Stephenie Fox, CA, has been named Technical Director for the International Public Sector Accounting Standards Board (IPSASB), an independent standard-setting board of the International Federation of Accountants (IFAC). Ms. Fox, who will be based in Toronto, Canada, will assume the position on September 1.

Ms. Fox has extensive experience in public sector accounting standard setting and in working with all levels of government, in addition to having worked with public accounting firms. She most recently served as a Senior Reviewer for the Canadian Public Accountability Board. Prior to this, she worked for over twelve years as a Principal of the Public Sector Accounting Standards Board of the Canadian Institute of Chartered Accountants. While in this position, she participated on the steering committee for the IPSASB's project on non-exchange revenue.

"Stephenie's technical expertise and strong communications and leadership skills will be of great assistance to the IPSASB as it continues its work of developing financial reporting standards for governments worldwide," states Ian Ball, IFAC Chief Executive. "In this way, she will play a key role in improving the quality of financial reporting and financial management of public sector entities."

Stephenie Fox takes over from Paul Sutcliffe who is retiring as full-time Technical Director. Mr. Sutcliffe will continue to work for the IPSASB on specific projects as a Senior Advisor on a part-time basis. The IPSASB focuses on the accounting and financial reporting needs of national, regional, and local governments, related governmental agencies, and the constituencies they serve. A primary goal of the IPSASB is to achieve convergence in financial reporting between different governments, with the private sector, and between financial reporting and economic statistics.

IFAC is the worldwide organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC's current membership consists of approximately 160 professional accountancy bodies in 120 countries, representing more than 2.5 million accountants in public practice, education, government service, industry and commerce. IFAC, through its independent standard-setting boards, sets international standards on ethics, auditing and assurance, education, and public sector accounting. It also issues guidance to encourage high-quality performance by professional accountants in business.

Attention to the social, environmental and economic effects on business performance is increasing from investors, governments, customers, and society in general. As a result, professional accountants in business (PAIBs) are among those who are being called on to take a more active role in sustainable development. To help PAIBs better understand how they can advance, measure and report on sustainable development, the Professional Accountants in Business (PAIB) Committee of the International Federation of Accountants (IFAC) has published two new information papers on the topic.

The first information paper, Why Sustainability Counts for Professional Accountants in Business, provides an overview of enterprise sustainability and sets out the business case for addressing the risks and opportunities of sustainable development at the enterprise level. It also discusses the ways in which professional accountants in business, especially those working for organizations with significant environmental or social impacts, will be involved with the measurement, recording and interpretation of sustainability-related information.

Professional Accountants in Business - At the Heart of Sustainability?, the second paper, provides first-hand commentary from eleven senior professionals working in various enterprises around the world on the role of PAIBs and the challenges they face in promoting and implementing sustainable development strategies. The comments are based on interviews conducted by Mr. Robert Bruce, a leading accountancy journalist based in the United Kingdom. While recognizing that the role of PAIBs in sustainability will vary based on the organization employing them and the nature of their role, there was significant agreement that this was a field in which PAIBs should become more educated and more involved.

These two IFAC papers represent a significant international step in the education process. "Sustainability is an important topic that is moving up fast on the agendas of professional accountants in business," states Bill Connell, Chair of the PAIB Committee. "These information papers explain what is meant by sustainability, its importance to professional accountants in business, the roles they should play, and how they should operate within the management team." Mr. Connell added, "Professional accountancy bodies need to ensure that the topic is addressed in both the pre- and post-qualification of professional accountants."

The two information papers can be downloaded free-of-charge from the IFAC online bookstore at http://www.ifac.org/store. The PAIB Committee serves IFAC member bodies and the more than one million professional accountants worldwide who work in commerce, industry, the public sector, education, and the not-for-profit sector. Its aim is to enhance the profession by encouraging and facilitating the global development and exchange of knowledge and best practices.

IFAC is the worldwide organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC's current membership consists of approximately 160 professional accountancy bodies in 120 countries, representing more than 2.5 million accountants in public practice, education, government service, industry and commerce. IFAC, through its independent standard-setting boards, sets international standards on ethics, auditing and assurance, education, and public sector accounting. Through its Professional Accountants in Business Committee, IFAC also issues guidance to encourage high-quality performance by professional accountants in business.

In recent years, global guidance and regulations have focused on the development and strengthening of internal control systems as a means of minimizing business risk and protecting shareholder investments. A new publication, Internal Controls - A Review of Current Developments, released today by the International Federation of Accountants' (IFAC) Professional Accountants in Business (PAIB) Committee, summarizes key internal control frameworks, highlights recent legislative and other initiatives, and discusses the role of internal control in enhancing corporate governance.

"Professional accountants play an important role in supporting the internal control systems of their organizations. This new paper describes much of the current thinking on internal control from countries around the world and is the first step in the PAIB Committee's program to develop practical guidance on internal control," states PAIB Committee Chair Bill Connell.

The paper finds that current views on internal controls support a principles- and market-based approach in which organizations make a commitment to develop internal control systems particular to their own specific internal and external environments. It also identifies the importance of the tone at the top and the culture and ethical framework throughout the organization to the effective implementation of an internal control system.

This paper follows on the findings of the 2004 report, Enterprise Governance - Getting the Balance Right, jointly published by IFAC and the Chartered Institute of Management Accountants in the United Kingdom, which found that companies must balance conformance with rules and organizational performance. Internal Controls - A Review of Current Developments can be downloaded from the IFAC online bookstore at http://www.ifac.org/store.

The PAIB Committee serves IFAC member bodies and the more than one million professional accountants worldwide who work in commerce, industry, the public sector, education, and the not-for-profit sector. Its aim is to enhance the profession by encouraging and facilitating the global development and exchange of knowledge and best practices.

IFAC is the worldwide organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC's current membership consists of approximately 160 professional accountancy bodies in 120 countries, representing more than 2.5 million accountants in public practice, education, government service, industry and commerce. IFAC, through its independent standard-setting boards, sets international standards on ethics, auditing and assurance, education, and public sector accounting. Through its Professional Accountants in Business Committee, IFAC also issues guidance to encourage high-quality performance by professional accountants in business.

The American Institute of Certified Public Accountants (AICPA), the American Accounting Association (AAA), and the International Auditing and Assurance Standards Board (IAASB) have joined forces to launch a research initiative that will provide a better understanding of users' perceptions of the financial statement audit and the auditor's report. The research is intended to independently examine the perceptions of users of financial statements in countries around the world. A "Request for Proposal" is being issued this week, soliciting academic research to identify and provide information about such perceptions. The AICPA's Auditing Standards Board (ASB) has a current project to consider whether the auditor's report should be revised. The IAASB recently completed a project in this regard. The new research findings will provide important information that can be used as a basis for any future revisions to the auditor's report.

"Anecdotal evidence points to financial statement users not consistently understanding communications in an unqualified auditor's report, but there's little rigorous evidence to support the anecdotal observations," points out Douglas F. Prawitt, Chair of the ASB's Audit Report Research Task Force and Glen Ardis Professor of Accountancy at Brigham Young University. "This project should provide the required information, as well as anchor any effective modifications necessary to clarify the communication of information to financial statement users."

Mark Beasley, President of the AAA Auditing Section and a professor at North Carolina State University, explains, "We are thinking globally with this project. The plan is for the ASB to select one or more proposals to examine U.S. perceptions and the IAASB to select one or more proposals to examine perceptions internationally. We envision that, once the selected projects are completed, the ASB and IAASB will fund additional research to identify and explore ways in which the auditor's reports might be revised to communicate more clearly and to address identified user misperceptions."

IAASB Technical Director Jim Sylph emphasizes the public interest benefit of the project: "The interests of all stakeholders will be better served if any gaps between users' understanding and the intended meaning of the auditor's report, including the level of assurance that can reasonably be derived from a financial statement audit, can be identified and addressed."

Research proposals must be submitted by October 2, 2006 to Sharon Walker, Technical Manager, Audit and Attest Standards, AICPA, 1211 Avenue of the Americas, New York, NY 10036-8775. The "Request for Proposal" may be downloaded from the IAASB home page at www.iaasb.org. The ASB and IAASB will fund between US$10,000 and $20,000 for each project. Researchers are required to submit a summary of results to the ASB and IAASB by October 1, 2007, with a more detailed report to be provided to the Boards by January 7, 2008. The summary should be tailored toward practitioners, rather than readers of an academic journal. Researchers will have the right to publish the research, so long as the Boards are given appropriate credit for research support provided.

The American Institute of Certified Public Accountants (www.aicpa.org) is the national, professional association of CPAs, with approximately 330,000 members, including CPAs in business and industry, public practice, government, and education. It sets ethical standards for the profession and U.S. auditing standards for audits of private companies; federal, state and local governments; and non-profit organizations. It also develops and grades the Uniform CPA Examination.

The American Accounting Association (http://aaahq.org) promotes worldwide excellence in accounting education, research and practice. Founded in 1916 as the American Association of University Instructors in Accounting, its present name was adopted in 1936. The Association is a voluntary organization of persons interested in accounting education and research.

The IAASB (www.iaasb.org) is an independent standard-setting board within the International Federation of Accountants. Its objective is to serve the public interest by setting high quality auditing and assurance standards and by facilitating the convergence of international and national standards, thereby enhancing the quality and uniformity of practice throughout the world and strengthening public confidence in the global auditing and assurance profession. The Public Interest Oversight Board oversees the activities of the IAASB and, as one element of that oversight, establishes the criteria for its due process and working procedures.

The Professional Accountants in Business (PAIB) Committee of the International Federation of Accountants (IFAC) has released its 2006 Articles of Merit, a collection of award-winning international articles on topics such as performance measurement, sustainability and corporate social responsibility, and the changing roles of accounting and finance professionals. This collection includes 10 previously published articles that were selected by the PAIB Committee as part of its annual Articles of Merit Award Program for Distinguished Contribution to Management Accounting.

The winning article for 2006 is "Performance Measures in Supply Chains" by Kim Langfield-Smith and David Smith, which was first published in CPA Australia's Australian Accounting Review. The article examines the benefits and challenges of supply chain management. Other articles of outstanding merit were first published in the American Institute of Certified Public Accountants' Journal of Accountancy; the Chartered Institute of Management Accountants' (UK) Financial Management; CMA Canada's CMA Management, CPA Australia's Australian Accounting Review; the Institute of Chartered Accountants in England and Wales' Performance Measurement, Finance & Management Special Report; and the Institute of Management Accountants' (US) Strategic Finance.

The 2006 Articles of Merit, together with past issues, may be downloaded from the IFAC online bookstore: http://www.ifac.org/store. The PAIB Committee serves IFAC member bodies and the more than one million professional accountants worldwide who work in commerce, industry, the public sector, education, and the not-for-profit sector. Its aim is to enhance the profession by encouraging and facilitating the global development and exchange of knowledge and best practices.

IFAC is the worldwide organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC's current membership consists of approximately 160 professional accountancy bodies in 120 countries, representing more than 2.5 million accountants in public practice, education, government service, industry and commerce. IFAC, through its independent standard-setting boards, sets international standards on ethics, auditing and assurance, education, and public sector accounting. Through its Professional Accountants in Business Committee, IFAC also issues guidance to encourage high-quality performance by professional accountants in business.

This information paper provides an overview of enterprise sustainability and sets out the business/financial case for addressing sustainable development at the enterprise level in terms of the risks that sustainable development poses and the opportunities which it brings. It also seeks to identify the main sustainability related roles which the professional accountant in business might occupy, either today, tomorrow or at some more distant future time.

This information paper features interviews conducted by Robert Bruce, a leading accountancy journalist, with professional accountants operating in business throughout the world to seek their views on the role of professional accountants in business in sustainability.

This information paper reviews current developments and some of the latest thinking in the area of internal control.

An important objective of the International Ethics Standards Board for Accountants (IESBA), an independent standard-setting board within the International Federation of Accountants (IFAC), is to provide auditors with clear guidance on matters of independence. In keeping with this commitment, the IESBA has revised the Code of Ethics for Professional Accountants by updating the definition of a network firm. Network firms are required to be independent of an audit client of another firm within the network.

"The revised definition focuses on how networks operate and how they present themselves to third parties," states Richard George, IESBA Chair. "The public has a right to expect that when firms are part of a network the independence requirements apply to the other firms within the network. This revision provides clear guidance for firms and contains additional information on the application of the definition."

The revised definition is consistent with the definition in the European Union's Eighth Company Law Directive. It would classify firms as network firms if the firms belong to a larger structure that is aimed at cooperation and is clearly aimed at profit or cost sharing, or shares common ownership, control or management, common quality control policies and procedures, common business strategy, the use of a common brand-name or a significant part of professional resources. The revised definition is effective for assurance reports dated on or after December 31, 2008. The Code of Ethics for Professional Accountants and the revision can be downloaded from the IFAC online bookstore at http://www.ifac.org/store/Category.tmpl?Category=Ethics.

About the IESBA and IFAC

The IESBA develops ethical standards and guidance for use by professional accountants. It encourages member bodies to adopt high standards of ethics for their members and promotes good ethical practices globally. The Public Interest Oversight Board oversees the activities of the IESBA and, as one element of that oversight, establishes the criteria for its due process and working procedures.

IFAC is the worldwide organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC's current membership consists of approximately 160 professional accountancy bodies in 120 countries, representing more than 2.5 million accountants in public practice, education, government service, industry and commerce. IFAC, through its independent standard-setting boards, sets international standards on ethics, auditing and assurance, education, and public sector accounting. It also issues guidance to encourage high-quality performance by professional accountants in business.

Earlier this month, over 130 people from 35 countries attended the International Federation of Accountants' (IFAC's) first global forum focused entirely on small- and medium-sized entities (SMEs) and small and medium accounting practices (SMPs). Co-hosted by the Hong Kong Institute of Certified Public Accountants and the Confederation of Asian and Pacific Accountants, the forum provided an opportunity for national and regional accountancy organizations, representatives of SMEs and SMPs, and international standard setters, among others, to discuss the challenges and opportunities facing SMEs and SMPs and programs and initiatives that could best support them.

Participants identified two significant challenges facing SMEs and SMPs: SMEs need financial reporting standards that are appropriate for their users' needs and reduce the associated cost of compliance; and, in an increasingly globalized economy, SMPs should continue to explore new ways to support the growth and accountability of SMEs.

"Small- and medium-sized enterprises drive economic growth, foster innovation and provide employment in developed and developing countries around the world. IFAC fully recognizes this role and is committed to supporting them at an international level," emphasizes IFAC President Graham Ward. "The outcomes of the forum will be considered at the IFAC Board meeting in September so that we can proceed with acting on the recommendations that were presented."

IFAC SMP Committee Chair Sylvie Voghel, who also chaired the forum, outlined IFAC's approach to supporting SMPs. "The SMP Committee is taking a two-pronged approach to helping SMEs and SMPs converge and comply with international auditing and accounting standards. On the one hand, we are helping to shape the form and content of those standards and on the other, we are dedicated to providing practical assistance to SMPs and SMEs that have to use them."

Current projects include publishing an International Standards on Auditing Guide for SMEs and developing a web-based knowledge resource for SMPs. Additionally, IFAC regularly responds to exposure drafts of international standard setters where an SMP or SME focus is needed. For more information about IFAC initiatives to support SMPs and SMEs, visit its website at www.ifac.org. All presentations made at the SMP Forum are also available from the IFAC website through the SMP Committee home page.

IFAC is the worldwide organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC's current membership consists of approximately 160 professional accountancy bodies in 120 countries, representing more than 2.5 million accountants in public practice, education, government service, industry and commerce. IFAC, through its independent standard-setting boards, sets international standards on ethics, auditing and assurance, education, and public sector accounting. It also issues guidance to encourage high-quality performance by professional accountants in business.