IFAC may get watchdog

Link: IFAC says audit requires massive reform

In an IFAC reform paper obtained by the Financial Times, Rene Ricol, its president, has proposed that the body subject itself to an accounting profession public interest review group.

In particurlar, Ricol wants to ally regulators’ fears over potential conflicts of interest between the body’s dual roles of lobbyist and standard-setter.

The IFAC paper speaks of the apparent decline in confidence in both ‘the competence and integrity of the profession and a concern or adverse perception about the standards being applied.’

The proposed review group would include representatives from the Basel Committee, the European Commission, the Financial Stability Forum, the International Accounting Standards Board, the International Monetary Fund, the International Organisation of Securities Commissions and the World Bank.

IFAC is the global voice of two million accountants, with 155 members in 113 countries, including the ICAEW and the American Institute of Certified Public Accountants.

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