IFAC SMP Permanent Task Force
Contact: Paul Thompson ()
This meeting summary of the IFAC Small and Medium Practices (SMP) Committee has been prepared for information purposes only. Decisions reported are tentative and reflect only the current status of discussions on projects which might change after further deliberation by the SMP Committee.
Strategic Planning
The committee approved its Strategy and Work Plan for 2011-14. This plan takes account of the recommendations from the IFAC Board’s review on how IFAC can best support SMPs. The committee intends to finalize and approve the plan at its next meeting. The plan, which includes new objectives for inputting to regulation and policy-making and communicating the value of SMPs, will take effect from January 1, 2011. The work plan include initiatives to position and equip SMPs as business advisors and help member bodies share and collaborate on products and services aimed at supporting SMPs. The strategy document will be posted to the SMP Committee website at http://wwww.ifac.org/smp in the coming few months.
Input to IAASB Standard Setting
The committee received a presentation from Professor Arnold Schilder, Chair of the International Auditing and Assurance Standards Board’s (IAASB). Professor Schilder focused on the development of the IAASB’s strategy and work program for 2012-2014[1] and sought comments on those aspects of most relevance to SMPs and SMEs. The committee is presently focusing its input on various projects[2] including ISA implementation support and monitoring; ISAE 3000; and reviews and compilations.
Input to IESBA Standard Setting
The committee was informed that SMP Committee staff will observe the next meeting of the International Ethics Standards Board for Accountants (IESBA). The committee was asked its views on what general points the observer might make if the opportunity arose. In June the committee submitted a response to the IESBA’s draft Strategy and Work Plan for 2010-2012[3] in which it stressed the need for increased support for SMPs in implementing the revised and redrafted Code of Ethics for Professional Accountants.
Input to IASB Standard Setting
The committee agreed to monitor and assist with implementation of the standard primarily through the IFAC nominees represented on the SME Implementation Group[4]. The committee noted the International Financial Reporting Standards Foundation’s (IFRSF) has published free-to-downloadtraining material to support implementation of the International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs)[5] and that a number of member bodies and regional organizations are using the material in workshops.
ISA Guide
At its June meeting the committee approved for publication an updated Guide to Using International Standards on Auditing in the Audits of Small- and Medium-sized Entities[6] (ISA Guide). The second edition of the ISA Guide is expected to be launched in late September 2010 and like all of the committee’s publications a PDF version will be available for download free of charge from the ‘Publications and Resources’ section of the IFAC website[7]. It will conform to the redrafted ISAs[8] and include various improvements based on feedback from users of the first edition. Designed to help practitioners efficiently apply ISAs to audits of SMEs, the updated ISA Guide will comprise two volumes, the first describing the basic concepts of a risk based audit in conformance with ISAs and the second setting out the practical guidance for the audit of SMEs.
Quality Control Guide
In July the committee published an updated Guide to Quality Control for Use by Small- and Medium-sized Practices (QC Guide)[9], an implementation guide intended to help SMPs understand and efficiently apply the redrafted International Standard on Quality Control 1, Quality Control for Firms that Perform Audits and Reviews of Historical Financial Information, and Other Assurance and Related Services Engagements. The committee agreed to a range of measures to assist in its promotion.
Practice Management Guide
The committee recently published the Guide to Practice Management for Use by Small- and Medium-sized Practices (PM Guide)[10] which provides guidance on how SMPs can better manage their practices[11]. The committee discussed ways of promoting the PM Guide and approved the issue of supplementary guidance directed at helping member bodies make best use of the publication.
Information Sharing
The committee noted ongoing improvements to the International Center for Small and Medium Practices (the Center)[12]. The Center’s set of ‘relevant links’ to free resources of IFAC member bodies and other organizations now includes categories dedicated to practice management, business advisory, and implementation of international standards[13].
CECCAR Congress
On September 3-4 the host member body Corpul Expertilor Contabili si Contabililor Autorizati din Romania (CECCAR)/The Body of Expert and Licensed Accountants of Romania held an international conference[14]. IFAC President, Robert Bunting, was one of the keynote speakers. Sylvie Voghel, chair of the SMP Committee, introduced an IFAC SME Regulation and Policy Roundtable.
Next Meeting
The next meeting of the SMP Committee will be on March 23-24, 2011 in Istanbul, Turkey. The SMP Committee will hold its IFAC SMP Forum on March 21-22.
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[1] See http://www.ifac.org/IAASB/Meeting-BGPapers.php?MID=0209&ViewCat=1345 for the latest set of IAASB agenda papers
[2] See http://www.ifac.org/IAASB/Projects.php for all project summaries
[3] See http://www.ifac.org/Guidance/EXD-Comments.php?EDID=0137&Group=Others
[4] See http://press.ifac.org/news/2010/08/two-ifac-nominees-selected-as-members-of-ifrs-sme-implementation-group
[5] See http://www.iasb.org/IFRS+for+SMEs/IFRS+for+SMEs.htm
[6] See http://web.ifac.org/publications/small-and-medium-practices-committee/implementation-guides#guide-to-using-internationa for the current edition
[7] See http://web.ifac.org/publications/small-and-medium-practices-committee
[8] See http://web.ifac.org/clarity-center/index
[9] See http://press.ifac.org/news/2010/07/ifac-smp-committee-publishes-quality-control-implementation-guide
[10] See http://press.ifac.org/news/2010/06/ifac-smp-committee-releases-practice-management-guide
[11] See http://web.ifac.org/publications/small-and-medium-practices-committee/good-practice-guidance-1
[12] See http://www.ifac.org/smp
[13] See http://www.ifac.org/SMP/index.php#Resources
[14] See http://congres.ceccar.ro/