IFAC and MG seeks comment from PAOs on reforms to global audit and ethics standard-setting process
The Monitoring Group (MG) recently issued a consultation paper calling on reforms to the global audit and ethics standard-setting process. The paper aims to elicit view from a broad range of stakeholders, including professional accountancy organisations (PAOs), on how best to safeguard the independence of the standard-setting process and its responsiveness to the public interest.
The MG is a group of international financial institutions and regulatory bodies committed to advancing the public interest in areas relating to international audit standard setting and audit quality. For more information about the MG, and to access the Monitoring Group Consultation Paper, visit this website: https://www.iosco.org/about/?subsection=monitoring_group
The International Federation of Accountants (IFAC) has reviewed the Monitoring Group Consultation Paper and published its initial views on the proposed changes to the international audit and ethics standard-setting process. While IFAC agrees with the initiative to enhance the governance, accountability and oversight of the international audit standard-setting process, it also has concerns about far reaching proposals that would fundamentally dismantle the current model.
Apart from reviewing and commenting on the consultation paper, IFAC also proposed alternative changes that will further enhance the independence of international standard setting while retaining separate audit and ethics boards, and allowing ethics standards to remain applicable to all professional accountants, including auditors.
To read IFAC’s initial views and reactions to the Monitoring Group Consultation paper, visit the IFAC website at: https://www.ifac.org/news-events/2017-12/ifac-publishes-initial-views-monitoring-group-consultation-paper
The MG is considering feedback on the consultation paper from all stakeholders as follows:
- professional accountancy organisations
- investors and users of financial statements
- those charged with governance
- audit firms and their networks
- securities and other capital market regulators
- prudential regulators
- audit regulators and oversight bodies
- national standard setters
- governments, NGOs and public sector organisations
CAPA encourages all PAOs to review and comment on the Monitoring Group Consultation Paper. Comments should be submitted by 9 February 2018 to the following email address: MG2017consultation@iosco.org
Prior to submitting a written response, the MG is also providing opportunities for potential respondents to ask questions at three round table events, currently being arranged at the following locations. Stakeholders wishing to attend should request for an invite via the MG’s consultation email address ( MG2017consultation@iosco.org ).
- 15 January 2018, London, UK
- 24 January 2018, Washington DC, USA
- 30 January 2018, Singapore