Page 1 | Confidential and Proprietary Information IFAC Update Kelly Ånerud, Deputy Director International Federation of Accountants INTOSAI Professional Standards Committee Manama, Bahrain May 20-22, 2014

Page 2 | Confidential and Proprietary Information IFAC Overview Strengthening Organizations, Advancing Economies

Page 3 | Confidential and Proprietary Information IFAC Operating Lines Developing and representing the profession; enhancing economic stability Supporting standards development Improving quality and capacity Supporting the profession Global representation and advocacy

Page 4 | Confidential and Proprietary Information Supporting Standards Development Facilitating the development of high-quality international standards Foster high-quality financial information Promote confidence in markets Enhance public resource management Facilitate regional and international economic integration

Page 5 | Confidential and Proprietary Information Improving Quality and Capacity Supporting high-quality PAOs and strengthening the profession Member Body Compliance Program Professional Accountancy Organization (PAO) Development MOSAIC

Page 6 | Confidential and Proprietary Information Supporting the Profession Providing thought leadership, resources, and insight; enhancing visibility and voice PAIB Committee SMP Committee Global Knowledge Gateway

Page 7 | Confidential and Proprietary Information Supporting the Profession Providing thought leadership, resources, and insight; enhancing visibility and voice

Page 8 | Confidential and Proprietary Information Global Representation and Advocacy Leveraging IFAC’s position as an independent public interest voice for the profession Promote profession's interests Stimulate discussion Convene interested stakeholders

Page 9 | Confidential and Proprietary Information IFAC Key Themes Representing the profession and the public interest Government transparency and accountability Enhanced organizational reporting (IR) Credibility and usability of financial reporting (FRSC) Accountants in society

Page 10 | Confidential and Proprietary Information “Fiscal transparency is a critical element of effective fiscal policymaking and the management of fiscal risks.” - IMF 2012 report Fiscal Transparency, Accountability, and Risk Government Transparency and Accountability

Page 11 | Confidential and Proprietary Information Accountability Now! Initiative Rebuilding trust in public finances through the adoption and implementation of high- quality public sector accruals- based accounting standards (IPSAS).

Page 12 | Confidential and Proprietary Information Accountability Now! Initiative Rebuilding trust in public finances through the adoption and implementation of high- quality public sector accruals- based accounting standards (IPSAS).

Page 13 | Confidential and Proprietary Information Enhanced Organizational Reporting Non-financial reporting is important for: Decision-making Promoting transparency Discharging accountability

Page 14 | Confidential and Proprietary Information All components of the “financial reporting supply chain” need to be of a high quality to support strong and credible financial reporting. Credibility and Usability of Financial Reporting

Page 15 | Confidential and Proprietary Information Accountants in Society Private Sector Private Sector Society Public Sector Public Sector

Page 16 | Confidential and Proprietary Information Updated Memorandum of Understanding IFAC and INTOSAI Working Together

Page 17 | Confidential and Proprietary Information Auditor Reporting continues to be a priority – plans to finalize new and revised standards in 2014 Work on ISA 720 (Other Information) and disclosures also relevant to public sector Strategy for 2015–2019 and Work Program for 2015–2016 –Work on quality control, group audits, financial institutions, professional skepticism –Monitoring developments in Integrated Reporting and “big data” International Auditing and Assurance Standards Board (IAASB) Independent Standard Setting Boards

Page 18 | Confidential and Proprietary Information Code of Ethics for Professional Accountants –Principles-based standards –For PAs in in practice and in business (including public sector) Global adoption of Code – 120 jurisdictions –have adopted/are in the process of adopting/basing national ethics standards on/or are working to eliminate differences with the Code –Forum of Firms – 24 largest accounting networks conform policies and methodologies to the Code for transnational audits International Ethics Standards Board for Accountants (IESBA) Independent Standard Setting Boards

Page 19 | Confidential and Proprietary Information Revision of IES 8, Competence Requirements for Audit Professionals Revision of the IAESB Framework for International Education Standards for Professional Accountants Development of Definition of the Professional Accountant Development of the IAESB Strategy and Work Plan International Accounting Education Standards Board (IAESB) Independent Standard Setting Boards

Page 20 | Confidential and Proprietary Information Governance –Response to Review Group on IPSASB Oversight –Only IFAC standard-setting board currently not subject to oversight Conceptual Framework –Finalization in 2014 Strategy & Work Plan –First public consultation on strategy and first full consultation on work plan International Public Sector Accounting Standards Board (IPSASB) Independent Standard Setting Boards

See you in Rome in November