Post on 30-Dec-2015
description
NASBANASBA
Role of State Regulators in Global Role of State Regulators in Global Standards SettingStandards Setting
Bob Bunting, Deputy PresidentBob Bunting, Deputy President
October 29, 2008October 29, 2008
Obstacles to Common Standards and Uniform Quality
Obstacles
Competition Sovereignty and national prideChampion industriesPoliticsCost and inconvenienceRepresentationImplementation
Leading to a lack of Collaboration……..And, yet…….
IFRS & ISAsOver 110 countries require or permit the use of IFRS
Over 110 countries require or permit the use of IFRS
Benefits of a United Global Approach
Enhanced levels of production of
goods and services
Suppressing corruption
Enhanced transparency
Promotion of growth and efficiency in capital and
labor markets
Provision of high quality performance information
Enhanced level of
competence within the
accountancy profession
Strong organizational governance
and management
structures
Lower transaction
costs for cross-border capital flows
Consumer confidence in the integrity
and efficiency of the markets
Adoption of high quality international standards
Stable and robust
regulation that promotes
growth and efficiency
Reduction of poverty
Lower cost of capital
Improved economic
decision-making in the private and public sectors
High public confidence in
the accountancy profession and
its services
Strong ethical behaviors
demonstrated by professional
accountants
Standards & guidance
Promoting qualitySupport for Adoption
Support for ImplementationRepresentationCommunications
Strong legal frameworks
Strong professional accountancy
institutes
Enhanced corporate behavior
Improved legislation and regulation of professional
liability
Confidence in international standards
High quality financial
management and reporting practices by organizations
Enhanced attractiveness of the accountancy
profession
Enhanced credibility of and accessibility to financial and non-financial information
Assisting fair trade
Achieving social equity
Strong professional accountancy
firms
High quality audit
practices by firms
Effective implementation
and enforcement of international
standards
Enhanced governmental accountability
Enhanced Corporate
Social Responsibility
Improved Corporate
Social Responsibility
reporting
IFAC’s Role in Moving the Profession to the Next Level
Mission
To serve the public interest, IFAC will continue to strengthen the worldwide accountancy profession and contribute to the development of strong international
economies by establishing and promoting adherence to high-quality professional standards, furthering the international convergence of such standards, and speaking out on public
interest issues where the profession’s expertise is most relevant
Values:
Integrity Expertise
Transparency
IFAC Strategic ThemesIFAC Strategic Themes
1. Be recognized as the international standards setter in the areas of auditing and assurance, education, ethics and governmental financial reporting
2. Actively support the adoption of, and assist in, the implementation of international standards
3. Continually enhance the relevance of the profession
4. Be the international voice of the accountancy profession
KEY
ACCOUNTABILITY
OVERSIGHT
CONSULTATION/ADVICE
IFAC Organization
CONSULTATIVE ADVISORY
GROUP
Structure of the IAASBStructure of the IAASB
IFAC REGULATORY
LIAISON GROUP
MONITORING GROUP
INTERNATIONAL AUDITING AND
ASSURANCE STANDARDS BOARD
PUBLIC INTEREST OVERSIGHT BOARD
Liaison/Liaison/ConsultatioConsultationn
Consults/Consults/AdvisesAdvises
ProvidesProvides InputInput
Oversees Due Process/Oversees Due Process/Approves Appointments and Approves Appointments and
ToRToR
IFAC BOARD
Consults/Consults/AdvisesAdvises
Appoints Appoints Members/Members/Establishes Establishes ToRToR
ED RESPONDENTS AND OTHER
STAKEHOLDERS
INTERNATIONAL ORGANIZATION
OF SUPREME AUDIT
INSTITUTIONS
NATIONAL STANDARD SETTERS &
REGULATORS
SMALL AND MEDIUM
PRACTICES COMMITTEE
Checks and Balances
• Monitoring Group (Regulators)• Public Interest Oversight Board (Appointed by MG)• Independent Chair• Public Members• CAG members (Regulators, Users)• Transparent Process
– Minutes– Exposure drafts– Other observers
Regulation and the Public InterestRegulation and the Public Interest
• Professional accountancy bodies and Professional accountancy bodies and governments share common objective: governments share common objective:
ensuring accountants serve the public ensuring accountants serve the public interest and meet high standardsinterest and meet high standards
• And common goal: And common goal: regulation with benefits that exceed costs regulation with benefits that exceed costs
Shared Regulation
Shared Regulatory SystemShared Regulatory System
Self regulation and external regulation Self regulation and external regulation reinforce each other; combine to form a reinforce each other; combine to form a regulatory mix that is effective and efficient. regulatory mix that is effective and efficient.
Shared Regulation
Goals of Shared Regulation in IAASB Goals of Shared Regulation in IAASB Standard SettingStandard Setting• Protect and respond to the public interestProtect and respond to the public interest
• Maintain and strengthen legitimacy through:Maintain and strengthen legitimacy through:
– IndependenceIndependence
– PerformancePerformance
• ResponsivenessResponsiveness
• EfficiencyEfficiency
– AccountabilityAccountability
Shared Regulation
Standard Setting That Protects the Standard Setting That Protects the Public InterestPublic Interest
Shared Regulation
Independence Performance
Accountability
Legitimacy
A Balanced System of Standard SettingA Balanced System of Standard Setting
• Appropriately balances functions between Appropriately balances functions between public and private sectorspublic and private sectors
• Balance between technical and nontechnical Balance between technical and nontechnical roles roles
• Balance between formal and informal Balance between formal and informal consultation and communicationconsultation and communication
• Aim is overall system performanceAim is overall system performance
Shared Regulation
NASBA / State Board Roles
CONSULTATIVE ADVISORY
GROUP
Structure of the IAASBStructure of the IAASB
IFAC REGULATORY
LIAISON GROUP
MONITORING GROUP
INTERNATIONAL AUDITING AND
ASSURANCE STANDARDS BOARD
PUBLIC INTEREST OVERSIGHT BOARD
Liaison/Liaison/ConsultatioConsultationn
Consults/Consults/AdvisesAdvises
ProvidesProvides InputInput
Oversees Due Process/Oversees Due Process/Approves Appointments and Approves Appointments and
ToRToR
IFAC BOARD
Consults/Consults/AdvisesAdvises
Appoints Appoints Members/Members/Establishes Establishes ToRToR
ED RESPONDENTS AND OTHER
STAKEHOLDERS
INTERNATIONAL ORGANIZATION
OF SUPREME AUDIT
INSTITUTIONS
NATIONAL STANDARD SETTERS &
REGULATORS
SMALL AND MEDIUM
PRACTICES COMMITTEE
NASBANASBA
Role of State Regulators in Global Role of State Regulators in Global Standards SettingStandards Setting
Bob Bunting, Deputy PresidentBob Bunting, Deputy President
October 29, 2008October 29, 2008