IFAC Publishes Guidance on Accountancy Regulation
The International Federation of Accountants (IFAC) has announced to provide support to countries with regards to developing an effective Professional Accountancy Organisation (PAO), to reflect all the changes made in the regulation in the recent past and to assist the companies in adapting to the changes in the regulation and also influencing the decisions made in relation to the accountancy profession in a country.
IFAC is of the opinion that its research with reference to global development has indicated that strengthening the PAO’s regulatory and legal foundations is necessary for the accountancy profession to grow and keeping in track of the changing Accountancy practices and procedures. The right model for regulating the accountancy profession is very important for ensuring that the profession is functioning properly and assisting in producing quality financial information, supporting economic growth and is providing relevant information to accountants and the organization in which they work.
The Executive Director at IFAC, Alta Prinsloo, has said that there is no single model or solution for accountancy regulation that can be made to work all around the world. There are various regulation models working effectively in different regions and countries.
She further said that understanding the key principles of Accountancy regulation and how these principles actually function will help PAOs in ensuring the long-term sustainability of the accountancy profession, and also will help PAOs in functioning in a manner that is in the best interests of the public.
The recently published guidance highlights and discusses different issues like the scope of regulation in the accountancy profession, why it is required, and other important principles for consideration. It also provides examples regulatory models used in different countries with more information available on the IFAC Website.The recently published research study forms the basis of IFAC’s PAO capacity building series, and provides guidance on PAO governance, public policy and engaging professional accountants in business.