MOSAIC Concludes that PAOs can Play Key Role in Global Development

The Memorandum of Understanding to Strengthen Accountancy and Improve Collaboration (MOSAIC) is a memorandum signed by members of international development community and the International Federation of Accountants (IFAC). A recent report was released as a result of an initiative of MOSAIC. The report suggests that professional accountancy organizations (PAOs) can contribute to private and public development and economic growth by producing financial information of high quality. PAOs can produce financial information of high quality by functioning properly.

PAOs are membership bodies that consist of professional accountants who carry out different roles in the accounting and finance field and comply with accounting and auditing standards of high quality. PAOs are an integral part of a nation's financial infrastructure. Therefore they can play a significant role in the social, economic and financial development of the nation.

The primary objective of MOSAIC is to "increase the capacity of PAOs in partner countries to improve the quality of public and private sector accountancy and financial management with a view toward enhancing the effectiveness and efficiency of donor assistance, enhancing economic growth, and reducing poverty."

The report also highlighted the areas in which the MOSAIC can work to improve the role and performance of PAOs. Following are these areas:

i. Strengthen legal and regulatory foundations

ii. Support internal strengthening of PAOs

iii. Broaden membership bases of the PAOS

iv. Provide support to weak states

v. Implement international standards

vi. Facilitate mentoring relationships of PAOs

vii. Strengthen regional organizations

viii. Develop education and certifications capacities for PAOs

ix. Support PAO orientation to the public sector

x. Comprehensively undertake the development of PAOs

The report stated that by improving the performance of PAOs, high-quality financial information can be achieved. The benefits of high-quality financial information include attraction of foreign investment, promotion and growth of SMEs, increase in transparency and accountability, and improvement in efficiency and effectiveness of official development assistance.