1. PER UN PAESE MIGLIORE 21/22/23 OTTOBRE 2010 MOSTRA D’OLTREMARE/NAPOLI SECONDO CONGRESSO NAZIONALE DEI DOTTORI COMMERCIALISTI E DEGLI ESPERTI CONTABILI FCM and IFAC Small and Medium Practices Committee: An Important Relationship Sylvie Voghel Chair, IFAC SMP Committee

2. SECONDO CONGRESSO NAZIONALE DEI DOTTORI COMMERCIALISTI E DEGLI ESPERTI CONTABILI 2 AGENDA Importance of SMEs and SMPs IFAC SMP Committee IFAC Acknowledged Accountancy Groupings FCM and IFAC SMP Committee Partnership

3. SECONDO CONGRESSO NAZIONALE DEI DOTTORI COMMERCIALISTI E DEGLI ESPERTI CONTABILI 3 IMPORTANCE OF SMEs AND SMPs Health of SME sector is public interest priority SMEs hold key to sustainable economic recovery Accountancy profession has key role to play SMPs can help SMEs perform and conform SMPs confronted with unprecedented challenges operational, regulatory, market

4. SECONDO CONGRESSO NAZIONALE DEI DOTTORI COMMERCIALISTI E DEGLI ESPERTI CONTABILI 4 IFAC SMP COMMITTEE Helping member bodies to help their SMPs Building capacity of SMPs to support SMEs Origins in 2000: committee from Jan. 1 2006 18 members (8 from FCM member bodies) Resources One technical manager (2 from Dec. 1, 2010) 0.3 director (from June 1, 2010) $900k budget for 2011

5. SECONDO CONGRESSO NAZIONALE DEI DOTTORI COMMERCIALISTI E DEGLI ESPERTI CONTABILI 5 IFAC SMP COMMITTEE Central role implementing SMP Review recommendations Responsibility for monitoring implementation and reporting to IFAC Board Successful implementation of recommendations depends on Collaboration (IFAC, member bodies, regional bodies etc.) Shared responsibility Increased engagement with SMPs and SMEs New Terms of Reference New and revised objectives Strategy and Work Plan for 2011-2014

6. SECONDO CONGRESSO NAZIONALE DEI DOTTORI COMMERCIALISTI E DEGLI ESPERTI CONTABILI 6 IFAC SMP COMMITTEE Strategic Objectives and Services (1) Input to IFAC’s policy-making process and participate in its regulatory dialogue so as to ensure that SMP and SME issues are fully considered European Commission Green Paper on Audit Policy

7. SECONDO CONGRESSO NAZIONALE DEI DOTTORI COMMERCIALISTI E DEGLI ESPERTI CONTABILI 7 IFAC SMP COMMITTEE Strategic Objectives and Services (2) Help to shape the form and content of international standards so as to ensure their stability, relevance, and proportionality to SMEs and SMPs Monitor and assist SMP representation International Standards on Auditing (IAASB), Code of Ethics (IESBA), IFRS for SMEs (IASB)....

8. SECONDO CONGRESSO NAZIONALE DEI DOTTORI COMMERCIALISTI E DEGLI ESPERTI CONTABILI 8 IFAC SMP COMMITTEE Strategic Objectives and Services (3) Provide and promote practical support to SMPs so as to enhance their ability to provide high quality and relevant professional services to their clients High quality and free to download Guide to Using ISAs in the Audits of SMEs (2 nd ed., Oct. 2010) Guide to Quality Control for SMPs (2 nd ed., July 2010) Guide to Practice Management for SMPs (1 st ed., June 2010) Member bodies, firms, and regional bodies may use as is, adapt, extract from, translate, and reproduce (permission)

9. SECONDO CONGRESSO NAZIONALE DEI DOTTORI COMMERCIALISTI E DEGLI ESPERTI CONTABILI 9 IFAC SMP COMMITTEE Strategic Objectives and Services (3 cont.) Web-based resources International Center for SMPs at www.ifac.org/smpwww.ifac.org/smp IFACnet Publications News Relevant links Discussion board

10. SECONDO CONGRESSO NAZIONALE DEI DOTTORI COMMERCIALISTI E DEGLI ESPERTI CONTABILI 10 IFAC SMP COMMITTEE Strategic Objectives and Services (4) Communicate the importance of the SME sector and the role SMPs can play in supporting this crucial sector so as to enhance the visibility, voice and recognition of SMPs The Role of SMPs in Providing Business Support to SMEs (April 2010) Trusted and competent business advisers Help position and equip SMPs

11. SECONDO CONGRESSO NAZIONALE DEI DOTTORI COMMERCIALISTI E DEGLI ESPERTI CONTABILI 11 IFAC ACKNOWLEDGED ACCOUNTANCY GROUPINGS AAGs Commonality of culture, sector, language, proximity, trade, etc. Policy Statement Establishes the criteria for acknowledgement Specifies mutual obligations once acknowledged Introduces an annual assessment / reporting framework IFAC Board acknowledged FCM in September 2008

12. SECONDO CONGRESSO NAZIONALE DEI DOTTORI COMMERCIALISTI E DEGLI ESPERTI CONTABILI 12 IFAC ACKNOWLEDGED ACCOUNTANCY GROUPINGS Assessment framework is basis for IFAC and AAG reporting on how mutual obligations are being met Submit strategic plan highlighting areas of alignment to IFAC’s mission Describe one or more specific activities in direct support of IFAC’s strategy and operational plan Commitment to bring professional accountancy organizations (PAOs) that support IFAC’s mission into IFAC membership Permit AAG President to attend IFAC Council meetings Annual reporting

13. SECONDO CONGRESSO NAZIONALE DEI DOTTORI COMMERCIALISTI E DEGLI ESPERTI CONTABILI 13 FCM AND IFAC SMP COMMITTEE PARTNERSHIP FCM is key strategic partner given its focus on SMPs and SMEs FCM already represented on committee How can FCM help SMP Committee help SMPs/SMEs? Engagement of SMPs and SMEs Make and encourage nominations to IFAC boards/Committees Submit comment letters to IAASB, IESBA etc. Promote and provide feedback on our strategy and work Support IFAC SMP Forum, Istanbul, March 21-22, 2011 Help PAOs with SMP/SME focus gain IFAC membership

14. SECONDO CONGRESSO NAZIONALE DEI DOTTORI COMMERCIALISTI E DEGLI ESPERTI CONTABILI 14 CONCLUSION THANK YOU! www.ifac.org/smp