This report highlights the progress made to date and key findings from the first phase (Pre-Implementation Monitoring) of a two-phase initiative to evaluate whether the IAASB needs to make further changes to the 36 clarified International Standards on Auditing (ISAs) and clarified International Standard on Quality Control (ISQC) 1, which became effective January 15, 2009. 

Phase 1 began in June 2009 with the an information-gathering exercise to learn about the experiences of practitioners in preparing to implement the clarified ISAs.

IFAC and The Banker magazine conducted a global survey of banks on lending to small and medium-sized enterprises (SMEs) in order to better understand the needs of lenders and SMEs' access to financing, as well as how the accountancy profession can best support both SMEs and lenders.

It is a great pleasure to participate in this Roundtable. As the co-owner of an SME the subject matter is of both personal and professional interest to me. Before I take you through the results of our April SMP Quick Poll I’d like to reiterate, though I’m sure we need no convincing, the importance of SMEs, the vital role the accountancy profession plays in supporting SMEs, and what the SMP Committee that I chair is doing to help.

In 2006, the International Federation of Accountants (IFAC) issued seven statements of membership obligations (SMOs) to assist ‘high quality performance by professional accountants’. The member bodies of IFAC, which includes national accountancy bodies from most of the countries in the world, were required to give their best efforts to abide by the SMOs, and failure to do such without satisfactory explanations would result in suspension or removal of membership. The seven SMOs issued by the IFAC covered areas such as audit quality, audit education, code of ethics for professional auditors, disciplinary procedures to be adopted by national auditing bodies, adoption of ISAs and IFRS, and accountability and auditing in the public sector.

Like many other researchers and academics in this area, I was also initially skeptical of the applicability of these SMOs in a less developed country (LDCs) such as Bangladesh, given that that these mechanisms, developed in the context of developed economies, would only work under assumptions of an efficient capital market, higher investor sophistication, and presence of effective second order institutions (such as efficient regulators, judiciary etc) that would complement such governance schemes. However, a few years down the line, it appears that some of these globalization attempts are actually producing results that might change the image of the accountancy profession in this impoverished yet economically promising nation.

This article was originally published in Business & Economy - Banking, Finance, Markets on August 1, 2011.

High-quality business reporting lies at the heart of strong capital markets and sustainable economic growth. All those involved in the business reporting supply chain play a critical role in making business reports more relevant, understandable, and reliable. This will enable the various stakeholders who use those reports to make informed decisions with respect to an organization’s social, environmental, and economic performance.

Professional accountants in business play key roles in organizations—roles that often go far beyond the stereotypical perceptions of accountants. It may not be readily apparent to all employers and business owners, but they can capitalize on professional accountants’ training, knowledge, and skillsets to help guide their organizations toward long-term sustainable success.

The Professional Accountants in Business (PAIB) Committee published this paper to support the global accountancy profession in responding to changing expectations of society, financial markets, and organizations, and promotes the value of professional accountants in business to their organizations. Since organizational needs are evolving faster than ever, professional accountants need to adapt to these changes to best serve their employers, and maintain relevance and public trust.