1. Paul Boyle Chief Executive
INTERNATIONAL CONVERGENCE OF ACCOUNTING & AUDITING STANDARDS & REGULATION
WORLD BANK ADVANCED PROGRAM in ACCOUNTING and AUDITING REGULATION
MODULE 10
17 October 2005
Paul Boyle
Chief Executive

2. Agenda Forces affecting corporate behaviour
The corporate reporting process
Corporate reporting & governance – a joined-up approach
International standards implementation
International audit regulation
Completing the international architecture

3. Forces affecting corporate behaviour

4. The corporate reporting process

5. Corporate reporting & governance – a joined-up approach
Links between issues
Accounting
Auditing
Professionalism of accountants
Corporate governance
The ability to cover all of these issues increases effectiveness

6. … is to promote confidence in corporate reporting and governance
The FRC’s aim
… is to promote confidence in corporate reporting and governance

7. Our objectives To promote: high quality corporate reporting
high quality auditing
high standards of corporate governance
the integrity, competence and transparency of the accountancy profession
the FRC’s effectiveness as an independent regulator

8. Our regulatory philosophy
A well-informed market is the best regulator
Targeted use of powers (proactive, risk-based)
Principles and clarity in standards and codes
Consultative, practitioner decision-making … but independent
Promote appropriate international approaches
Transparency, accountability and awareness

9. International standards implementation
Keep in mind all stages of the process
The process as a whole needs to add value
Small & medium-sized companies have special considerations
Independence & accountability of regulators are both important

10. International audit regulation
100% self-regulation is no longer politically acceptable
Independent audit regulators emerging in various countries
Benefits of convergence of auditing standards
“ISA-plus” model
Independent monitoring and enforcement

11. Completing the international architecture
International capital markets, international audit firms … an international regulatory response is required
Globally/regionally
Pressure on firms to improve international quality delivery …
International regulatory convergence is a reasonable request
“Global” regulation is not feasible … but agreement on common principles and co-operation is more realistic

12. Completing the international architecture
Global
European
Banking
Basel Committee
CEBS
Securities
IOSCO
CESR
Insurance
IAIS
CEIOPS

13. Completing the international architecture
Global
European
Banking
Basel Committee
CEBS
Securities
IOSCO
CESR
Insurance
IAIS
CEIOPS
Audit ??

14. Completing the international architecture
Global
European
Banking
Basel Committee
CEBS
Securities
IOSCO
CESR
Insurance
IAIS
CEIOPS
Audit
“IAIAR”
“CEAR”

15. Promoting confidence in corporate reporting and governance