IFAC Seeks Comments on Role of International Auditing Committee

(New York/July 19, 2001) A special task force of the International Federation of Accountants (IFAC) has issued a report containing recommendations for improving the membership, organization, and procedures of the International Auditing Practices Committee (IAPC), the IFAC committee responsible for establishing international auditing guidance for the world’s accountants.

"Trends in IFAC member body usage of International Standards on Auditing (ISAs) demonstrate that the need for a global set of auditing standards is gaining momentum and support. With the growth of global capital markets, high quality internationally recognized auditing standards are seen to be essential for the effective and efficient functioning of the markets," states Manuel Sanchez y Madrid, chairman of the IAPC Review Task Force.

The report, presented to IFAC’s Board earlier this month, contains many recommendations that could lead to significant changes in the operations and transparency of the work of IAPC. IFAC’s Board is inviting public comments on the report, which is posted on the IFAC web site at http://www.ifac.org/Guidance/EXD-outstanding.php and is available through the IFAC office in New York.

Among its recommendations, the Review Task Force proposes that IAPC –

• Strengthen IAPC objectives by focusing on its role in developing "very high quality auditing standards" that serve the public interest and are ultimately endorsed by IOSCO (the International Organization of Securities Commissions).
• Enhance transparency by making its meetings and meeting materials accessible to the public;
• Work more closely with national auditing standard setters on matters important to its goals;
• Undertake more proactive public relations; and
• More clearly establish and communicate the authority of IAPC International Standards on Auditing and other guidance.

Additional recommendations focused on IAPC composition, selection criteria, and the consultative process, as well as the scope of its work and resources needed to accomplish an expanded work plan.
To be considered by the Task Force in developing its final recommendations, comments must be received by September 21, 2001. They can be e-mailed to Manuel Sanchez y Madrid, chairman of the IAPC Review Task Force, at Edcomments@ifac.org for faxed to his attention at 1-212-286-9570.

IFAC is the worldwide organization for the accountancy profession. Its mission is to develop and enhance the profession to enable it to provide services of consistently high quality in the public interest. Its current membership consists of 153 professional accountancy bodies in 113 countries, representing more than two million accountants in public practice, education, government service, industry and commerce.