(New York/August 1, 2011) – The Small and Medium Practices (SMP) Committee of the International Federation of Accountants (IFAC) today released an updated version of its Guide to Quality Control for Small- and Medium-Sized Practices (QC Guide). Intended to help SMPs successfully and cost effectively implement International Standard on Quality Control (ISQC) 1, the third edition of the guide features enhancements to the two sample manuals as well as other refinements for clarity and consistency with ISQC 1.

First released in 2009 and developed with CGA-Canada, the guide contains the requirements set out in the standard in addition to implementation guidance, including discussion material and a case study that can be used as a basis for training. It also contains a range of tools, including checklists and two sample manuals, which have been modified to better illustrate their compatibility with ISQC 1.

“With their limited resources, SMPs may feel burdened by the requirements in ISQC 1. The guide is intended to help mitigate that burden and help SMPs obtain the most benefit from implementing the standard,” said SMP Committee Chair Sylvie Voghel. “Effective quality control systems are key to helping ensure SMPs provide their clients with high-quality assurance and related services, which contributes to the quality of the profession overall and our mission to serve the wider public interest.”

The updated QC Guide, as well as an article with tips for implementing ISQC 1, can be downloaded free of charge from the SMP Publications and Resources area of IFAC’s website. See the Translations Database for translations of the guides by member bodies and other organizations. In addition to the guide, the International Center for Small and Medium Practices provides access to numerous free resources from IFAC and our member bodies (see relevant links).

About the SMP Committee
The SMP Committee of the International Federation of Accountants represents the interests of professional accountants operating in small- and medium-sized practices and other professional accountants who provide services to small- and medium-sized entities. The committee develops guidance and tools, and works to ensure the needs of the SMP and small- and medium-sized entity (SME) sectors are considered by standard setters, regulators, and policy makers. The committee also speaks out on behalf of SMPs to raise awareness of their role and value, especially in supporting SMEs, and the importance of the small business sector overall.

About IFAC
IFAC is the global organization for the accountancy profession, dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. It is comprised of 164 members and associates in 125 countries and jurisdictions, representing more than 2.5 million accountants in public practice, education, government service, industry, and commerce.

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Good afternoon, ladies and gentlemen. I am truly delighted to be here today to participate in this important event. Many thanks to Mr. Ádám Balog, Deputy State Secretary, Ministry for National Economy, and Dr. János Lukács, President, MKVK, for hosting the meeting and inviting me to participate.

As we stand here today, the world is still affected by the financial crisis and the economic environment. Here in Hungary, the government is making strides to cut the budget deficit—and that is very positive. But of course there are countries within the EU and all over the world that are still being affected by the broader global slowdown.

So what can we—what should we—do?

Certainly, significant financial reforms are being considered in different parts of the world. IFAC’s view is that we need to build a sustainable business environment and a strong financial architecture.

Financial infrastructure—in the form of high quality, recognized standards in auditing and assurance, ethics, education, public sector accounting, and related regulation—is the only way that we can achieve broad-based, sustainable economic development.

The program below provides links to speaker biographies, speeches, and presentations from the 2011 IFAC Small and Medium Practices (SMP) Forum held in Istanbul, Turkey, on March 21, 2011. 

The following materials are also available:

• Interviews conducted by SMP Committee Deputy Chair Giancarlo Attolini
• Press release, IFAC Global Forum Highlights Role of SMPs in Partnering with Small Businesses
• Article, "IFAC SMP Forum Unites SMP Community, Facilitates Global Dialogue," on p. 10 of the April 2011 issue of IFAC News

Forum Program

Today over 200 delegates from more than 45 countries converged in Istanbul for the fifth SMP Forum of the International Federation of Accountants (IFAC) Small and Medium Practices (SMP) Committee. Held in cooperation with the Union of Chambers of Certified Public Accountants of Turkey (TÜRMOB), the Expert Accountants' Association of Turkey (EAAT), and the Fédération des Experts Comptables Méditerranéens (FCM), the conference featured a keynote address from IFAC President Göran Tidström, and presentations from the World Bank and the European Association of Craft, Small and Medium-Sized Enterprises (UEAPME).

Delegates from IFAC member bodies convened to discuss, debate, and share best practices on a range of topics, including the challenge for small businesses in keeping up with the complicated and rapidly changing regulatory environment and the many ways that SMPs can partner with small businesses to build and sustain value. The forum also included breakout sessions on implementing the IESBA Code of Ethics, the IAASB’s future projects for SMPs, and resources and tools to support this sector.

In his opening remarks, Mr. Tidström indicated that small- and medium-sized entities (SMEs) are a public interest issue: they represent two-thirds of employment globally, and comprise 95% of entities, according to the OECD. “Therefore,” he said, “keeping the wheels of the SME sector turning is critical, as they are the engine of the global economy.”

Mr. Tidström continued, “SMPs can help SMEs thrive by providing them with a broad range of services, including strategic and business advisory services, IT and financial reporting systems support, risk management and fraud prevention services, and financial, tax, and HR advisory services. The IFAC SMP Committee supports SMPs in developing and maintaining their competencies to provide these services, in addition to traditional compliance services.”

“This event continues to provide us with a unique opportunity to unite the global SMP community to focus on the issues that are the most relevant to this sector. The attendance here today is testament to professional accountancy organizations’ commitment to their SMP members. The SMP Committee is committed to building the capacity of SMPs, and we look forward to translating what we have learned here today into tangible outputs,” said Sylvie Voghel, chair of the IFAC SMP Committee.

To learn more about IFAC’s activities to support SMPs, and to access the valuable resources and guides produced by the SMP Committee, see the International Center for SMPs on the IFAC website. Presentations from this year’s forum, as well as videos, will be available on this site.

About IFAC
IFAC is the global 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 is comprised of 164 members and associates in 125 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.

The effects of the financial crisis continue to be felt by small businesses, according to the small- and medium-sized accountancy practitioners recently polled by the International Federation of Accountants. Economic uncertainty is still the biggest challenge facing small- and medium-sized entities (SMEs), said the largest group of respondents—nearly 30%—while the burden of regulation was a close second. Regulations and standards challenge small- and medium-sized accounting practices (SMPs) as well: over 40% said that keeping up with regulations and standards is the most important issue now facing their practice.

Despite the prevalence of economic uncertainty, nearly 40% of SMPs expect their practices to perform better this year than last year. Only slightly more (43%) expect business to be even with 2010, and 19% expect business to shrink in 2011.

SMPs continue to generate the largest proportion of their revenue from traditional compliance-based services. Nearly 45% of respondents indicated that audit and assurance is their biggest source of revenue, followed closely by accounting and compilation (40%). Tax and advisory/consulting services comprised only 15% combined.

With the aim of taking a snapshot of the key issues confronted by SMPs and their SME clients, the IFAC SMP Quick Poll will be issued quarterly throughout 2011 in the SMP eNews, IFAC’s free newsletter for SMPs. The first Quick Poll collected 425 responses from all regions of the world over a 14-day period (January 27, 2011 to February 9, 2011). To subscribe to the SMP eNews, and participate in our next poll, sign up here.

IFAC wishes to thank those member bodies and regional organizations that published the poll in their newsletters, or otherwise helped promote it. The full survey results are available here.

About IFAC
IFAC (www.ifac.org) is the global 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 is comprised of 164 members and associates in 125 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.

The Small and Medium Practices (SMP) Committee of the International Federation of Accountants (IFAC) today issued the second edition of its Guide to Using International Standards on Auditing in the Audits of Small- and Medium-Sized Entities (ISA Guide). The implementation guide is intended to help practitioners understand and efficiently apply the Clarified International Standards on Auditing (ISAs), which are effective for audits of financial statements for periods beginning on or after December 15, 2009.

“Many practitioners around the world are transitioning to the use of the Clarified ISAs. While the Clarity Project made the ISAs more understandable, clear, and capable of consistent application, the SMP Committee has long recognized the challenges facing SMPs in applying new standards—which range from resource constraints to the distinctive traits of audits of small- and medium-sized entities,” says Sylvie Voghel, SMP Committee chair. “The updated ISA Guide provides IFAC member bodies—and ultimately the SMPs they represent—with a unique resource to help them implement the new requirements efficiently and deliver high-quality service.”

The first edition of the ISA Guide was issued in December 2007 and was IFAC’s second most popular publication during 2008. The second edition includes various improvements based on feedback from users of the first edition. In addition, it features two integrated case studies, one of which focuses on an audit of a micro-entity, increased focus on SME audits, and a new colorful design.

The ISA Guide also now comes in two stand-alone volumes:

• Volume 1 describes the basic concepts of a risk-based audit in conformance with the Clarified ISAs. It is directed at practitioners and students with little or no familiarity with the ISAs who want to understand them and apply them in practice. This volume might also provide material to training providers, institutes, and universities that teach audit practices.
• Volume 2 provides practical guidance for the audit of SMEs. It is aimed at practitioners with a good working knowledge of the ISAs who want a tool for reference purposes, as well as specific guidance on conducting SME audits cost effectively.

IFAC wishes to thank the Canadian Institute of Chartered Accountants for producing the ISA Guide and the global panel of reviewers for volunteering their time and effort to helping with its development.

The PDF version of the ISA Guide can be downloaded for personal use from the Publications & Resources section of the IFAC website. For information on reproducing or translating publications issued by IFAC, please see our policy statement or contact permissions@ifac.org.

The IFAC SMP Committee welcomes readers to visit its International Center for Small and Medium Practices (www.ifac.org/smp), which hosts a collection of IFAC publications (including recently issued guides on quality control and practice management) and relevant links to resources from IFAC member bodies and other organizations, including a category devoted to implementing international standards. The site also hosts a discussion board, where practitioners can exchange views on how to apply the ISAs, a link to the Translations Database, where downloadable translations of the ISA Guide are available, and a link to the IAASB Clarity Center, which hosts an array of implementation support materials.

About IFAC
IFAC (www.ifac.org) is the global organization for the accountancy profession, dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. It is comprised of 159 members and associates in 124 countries and jurisdictions, representing approximately 2.5 million accountants in public practice, education, government service, industry, and commerce.

IFAC President Robert Bunting speaks about the strategies that small- and medium-sized entities can use to secure financing during the credit crunch. Read the article here.