International Federation of Accountants IFAC’s Role in Strengthening SMPs Bob Bunting, IFAC Deputy President IFAC SMP Forum October 13, 2008

Percentage of Small and Medium Businesses by Region SMP INFLUENCE Percentage of Small and Medium Businesses by Region 99% 99.7% 97% 75% 95% 97%

Challenges to SMEs Access to capital Ability to meet rising costs More stringent compliance requirements National and global competition

Key Attributes of SMPs Innovative Flexible Resourceful CHARACTERISTICS Key Attributes of SMPs Innovative Flexible Resourceful Marketing-oriented

SMP ROLE Primary Role of SMPs Contribute to the performance and sustainability of SMEs and other entities

SMP Challenges Relevance and cost-benefit of international standards Capacity to comply with these standards Ability to remain competitive

Relevance and Cost Effectiveness of Standards CHALLENGES Relevance and Cost Effectiveness of Standards SMP Committee provides direct input into standard setting process Members of the committee serve on IAASB project task forces IAASB standards include “Consideration Specific to Smaller Entities”

Capacity to Comply with Standards CHALLENGES Capacity to Comply with Standards Guide to Using ISAs in the Audit of Small- and Medium-sized Entities Guide to Quality Control for Use by Small and Medium-sized Practices Updated Standard on Review Engagements ISRE 2400, Engagements to review Financial Statements Commenting on IASB’s IFRS for Private Entities

Competitive Tools New practice management guide IFAC SUPPoRT Competitive Tools New practice management guide Business Planning Guide: Practical Application for SMEs Governance support

IFACnet

SMP Branding Focus on quality first Promote strengths, i.e., flexibility Look for niche markets Promote resilience

Collaborating for the Future COLLABORATION Collaborating for the Future Share Resources Expertise Successes

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