Forum of Firms Perspective Nick Fraser, TAC Chairman September 9, 2009

Overview of Presentation Objectives Membership Obligations Relationship with IFAC TAC Core Activities Benefits of Membership

Objective The objective of the Forum of Firms (Forum) is to promote consistent and high quality standards of financial reporting and auditing practices worldwide. The Forum brings together firms that perform transnational audits and involves them more closely with the activities of the International Federation of Accountants (IFAC) in audit and other assurance-related areas.

FoF Members Promote consistent application of high quality audit practices worldwide Promote the use of ISAs and support convergence of national standards with ISAs

FoF Membership Obligations Have policies and methodologies for the conduct of transnational audits that are based, to the extent practicable, on ISAs Have policies and methodologies which conform to the IFAC Code of Ethics for Professional Accountants

FoF Membership Obligations Maintain appropriate quality control standards in accordance with International Standards on Quality Control Conduct regular globally coordinated internal quality assurance reviews Report annually on compliance with membership obligations

Related Policy and Guidance TAC Policy Statement 1 - Publicizing Membership TAC Policy Statement 2 – Internal Quality Assurance Review Program Requirements TAC Guidance Statement 1 – Definition of Transnational Audit Reporting on Membership Obligations - Self Assessment Guide

Forum of Firms As of June 24, 2009 –22 full members –1 provisional – close to full

FoF Full Members Baker Tilly International Limited BDO International Constantin Associates Network Crowe Horwath International Deloitte Touche Tohmatsu Ernst & Young Global Limited Grant Thornton International Ltd HLB International IEC INPACT Audit Limited JHI JPA International KPMG International Mazars Moore Stephens International Limited PKF International Limited PricewaterhouseCoopers International RSM International Limited Russell Bedford International SMS Latinoamérica Talal Abu Ghazaleh & Co. International UHY International Limited

FoF Provisional Members Polaris International February 23, provisional membership closed

KEY ACCOUNTABILITY OVERSIGHT CONSULTATION/ADVICE

Financial Contributions to IFAC Budget 2008 – US$6.7M 2007 – US$5.8M 2006 – US$4.8M

Transnational Auditors Committee Nominates 5 members to –International Auditing and Assurance Standards Board –International Ethics Standards Board for Accountants –International Accounting Education Standards Board

IFAC Regulatory Liaison Group Group comprised of IFAC Officers, Board members and representatives of firms, including TAC Chair Meets with Monitoring Group –IOSCO –EU –Basel Committee –International Association of Insurance Supervisors –World Bank

TAC Core Activities Technical input into IFAC Standard Setting Identifying audit practice issues Providing a forum to discuss “best practices Dialogue with international regulatory community

TAC Core Activities Development of Good Practice Guidance Papers –Tone at the Top and Audit Quality –Perspectives on the Global Application of IFRS –Globally Directed Internal Inspection Programs –Client Acceptance and Continuance – in process

Benefits of Membership Membership Obligations –Use of Forum logo – mark of quality to clients –Self assessment process Drives consistency across network Enhanced risk management Access and participation –Standard Setting –Regulatory Developments

Benefits of Membership Symposiums / Workshops –Audit of Financial Institutions – October ‘08 –Going Concern and Related Audit Considerations – April ‘09 –Globally Coordinated Internal Inspection Programs – October ’09

What About…??? Global Standards Professional liability Corporate governance Carbon emissions Financial Crisis Transparency of networks Regulatory oversight Internal control Rotation of firms SME audits IPSASB FraudEtc…, Etc

September 9, 2009