Smp

May 20, 2008

Thank you for signing up to receive eNews from the Small and Medium Practices (SMP) Committee of the International Federation of Accountants (IFAC). We welcome your comments.

In This Issue:

  1. Join the Discussion on Issues Affecting SMPs and SMEs
  2. Feedback Sought on Guide to Using International Standards on SME Audits
  3. IFAC Launches Database of Translations of International Standards
  4. SMP Committee Developing Guides on Quality Control and Practice Management
  5. New Interactive IFACnet Search Page Launched
  6. Report Examines Improvements to Financial Reporting and Areas for Further Action
  7. SMPs and SMEs Encouraged to Comment on Proposed International Standards
  8. UK Oversight Board Updates Review of Accountants' Support for SMEs
  9. AICPA Survey Identifies Top Issues for Smaller Firms
  10. FRC Publishes Discussion Paper on Cost-Effective Regulation
  11. Share SMP eNews with Your Colleagues
  12. Future SMP Committee Meetings and 2008 Forum

1. Join the Discussion on Issues Affecting SMPs and SMEs

Professional accountants and others working in SMPs and small and medium entities (SMEs) are invited to share their views and insights through a discussion board that was recently launched on the International Center for SMPs on the IFAC website. Through the discussion board, IFAC is seeking input on the recently released guide to using international standards in SME audits (see below) and other recent guidance. Discussion is also welcome on other topics relevant to SMPs and SMEs.

For more information on IFAC resources for SMPs and SMEs, visit: http://www.ifac.org/SMP.

2. Feedback Sought on Guide to Using International Standards on SME Audits

In December 2007, the SMP Committee released implementation guidance to assist SMPs and other practitioners in applying International Standards on Auditing (ISAs), developed by the International Auditing and Assurance Standards Board (IAASB), to the audits of SMEs. The SMP Committee welcomes feedback on the guidance entitled Guide to Using ISAs in the Audit of Small- and Medium-sized Entities, which can be downloaded free-of-charge from the IFAC online bookstore (http://www.ifac.org/store). Comments can be emailed to paulthompson@ifac.org or submitted through the SMP discussion board. In addition, IFAC member bodies and others are encouraged to use the guide as is or to adapt or translate it for local use.

3. IFAC Launches Database of Translations of International Standards

IFAC has launched an online database of third-party translations of its international standards and guidance, including ongoing translations of the Guide to Using ISAs in an SME Audit. The database features information on the languages available, publication titles, and names of translating organizations/individuals.

In addition, IFAC is seeking comments by June 30 on a consultation paper that sets out IFAC's proposed translation process to facilitate the development of one quality translation per language.

4. SMP Committee Developing Guides on Quality Control and Practice Management

IFAC's SMP Committee is currently developing a guide to assist SMPs in implementing International Standard on Quality Control 1. The guide, which is being developed by the Certified General Accountants Association of Canada, is tentatively scheduled for release in December 2008. For more information, see the request for proposal.

The SMP Committee is also developing a guide to help SMPs improve their operational efficiency and make them more responsive to the needs of their clients. Further details on this guide, which is scheduled for release in early 2009, are available at http://web.ifac.org/download/Practice_Management_Guide_RFP.pdf.

5. New Interactive IFACnet Search Page Launched

Small practitioners and other users of IFACnet, the global, multilingual search engine, can now more easily access a wide range of resources and information developed by professional accountancy organizations worldwide through a redesigned IFACnet search results page. The new search page enables users to refine their search and find news articles on their search topic. In addition, IFACnet users can now share links to relevant resources with their colleagues and provide feedback. The new search results page can be accessed through the IFACnet home page.

6. Report Examines Improvements to Financial Reporting and Areas for Further Action

In March, IFAC released a report, Financial Reporting Supply Chain: Current Perspectives and Directions, which finds that significant improvements have been made to the financial reporting process, corporate governance and auditing in recent years, but that financial reports could still be more useful. The report is based on a survey and interviews of participants in all sectors of the financial reporting supply chain, including practitioners in small and large firms, accountants in business, boards of directors, standard setters, regulators, investors, and others.

The report is available at http://www.ifac.org/frsc, and comments may be submitted through this web page.

7. SMPs and SMEs Encouraged to Comment on Proposed International Standards

The IAASB is seeking comments on a number of exposure drafts issued as part of its project to improve the clarity of ISAs. SMPs and SMEs are encouraged to review the exposure drafts and to assess their impact on SME audits. The IAASB plans to complete the redrafting of all 35 ISAs by the end of 2008. Further information is available at http://www.iaasb.org.

8. UK Oversight Board Updates Review of Accountants' Support for SMEs

The United Kingdom Professional Oversight Board has published an update on progress made by UK professional accountancy bodies in implementing its recommendations on how accountants can support the needs of SMEs and their stakeholders. The update identifies progress made by accountancy organizations and highlights the need for further communication on the role of professional accountants in supporting entities whose financial reports are not audited. For additional information, visit: http://www.frc.org.uk/pob/press/pub1450.html.

9. AICPA Survey Identifies Top Issues for Smaller Firms

Dealing with technical complexity and finding and retaining qualified staff are among the top practice management issues facing CPAs in smaller firms, according to the results of the 2007 PCPS Top MAP Issues Survey. The survey, which was conducted by the Private Companies Practice Section of the American Institute of Certified Public Accountants (AICPA), also found that staying current with new regulations and standards is the second most important issue for firms with up to 20 professionals. For additional survey results, visit the AICPA website.

10. FRC Publishes Discussion Paper on Cost-Effective Regulation

The UK Financial Reporting Council (FRC) is seeking comments by May 31, 2008 on a discussion paper on improving the cost-effectiveness of regulation. Proposals include a major project to review the relevance and complexity of corporate reporting and the FRC's continuing work to promote cost-effectiveness in the development of international accounting and auditing standards. For more information, visit the FRC website at http://www.frc.org.uk/press/pub1540.html.

11. Share SMP eNews with Your Colleagues

The SMP Committee issues regular eNews updates to keep you current on its activities and recent publications. Please forward this eNews to any interested colleagues and advise them that they can subscribe to receive this eNews by following these simple steps:

  1. Go to the eNews sign-up page at http://www.ifac.org/E-news/index.tmpl.
  2. Enter your email address, name and country.
  3. Select "SMP eNews" from the check list as well as any other eNews alerts that you would like to receive.

You will receive the next issue of the SMP eNews directly into your inbox.

12. Future SMP Committee Meetings and 2008 Forum

The next meetings of the SMP Committee will be held in 2008 in New York City, United States on June 19-20 and in Abuja, Nigeria on October 14-15. The 2008 IFAC SMP Forum will be held in Abuja on October 13. Highlights of previous meetings can be viewed at http://www.ifac.org/SMP/Committee.php#Meetings. Speeches and other materials from past SMP Forums can be viewed at http://www.ifac.org/smp/index.php#Resources.

For more information about any of the items mentioned above or other information about the IFAC SMP Committee, please contact pr@ifac.org or visit the multilingual International Center for SMPs at http://www.ifac.org/smp.

About IFAC

IFAC is the global organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC is comprised of 157 members and associates in 123 countries and jurisdictions, representing more than 2.5 million accountants in public practice, education, government service, industry and commerce. Through its independent standard-setting boards, IFAC sets international ethics, auditing and assurance, education, and public sector accounting standards. It also issues guidance to encourage high quality performance by professional accountants in business and those working in small and medium practices.