International Federation of Accountants (IFAC)
Introduction to IFAC
International Federation of Accountants (IFAC) is referred as a global organization for accountancy profession. IFAC features 164 members and associates in 124 countries and jurisdictions, on behalf of more than 2.5 million accountants engaged in public practice, government, industry and commerce, and academe. With the support of its self-regulating standard-setting boards, the organization establishes international standards on auditing and assurance, ethics, public sector accounting, and accounting education. Besides, it also issues guidance to encourage good quality performance by professional accountants in business.
IFAC and its members teamed up to develop IFACnet, launched on October 2, 2006. IFACnet provides professional accountants around the world with one-stop access to wide ranging resources, counting articles, good practice guidance, and tools and techniques.
Function of IFAC
The most significant function of the IFAC includes the promulgation of International Standards on Auditing through its independent International Auditing and Assurance Standards Board (IAASB). The code of ethics of for professional accountants of IFAC, issued by an independent standards board, serves as an international model. Besides, IFAC also features independent boards which set standards for education as well as public sector accounting. Moreover, one of the most important initiatives of the IFAC includes the organizing of the World Congress of Accountants.
Standard setting Boards
The main standard setting boards of IFAC include:
- International Auditing and Assurance Standards Board
- International Public Sector Accounting Standards Board
- International Accounting Education Standards Board
- International Ethics Standards Board for Accountants
In addition to the standards boards, IFAC also features the following bodies:
- The Compliance Advisory Panel the Developing Nations Committee
- The Nominating Committee
- The professional Accountants in Business Committee
- The Small and Medium Practices Committee
- The Transnational Auditors Committee
The codes of the International Federation of Accountants have been revised recently. The new changes in IFAC are:
1. to revise terminology in addition to improving clarity
2. to make some significant alterations to the Auditor Independence Process
The individual changes do not influence auditors of UK or Irish companies since the APB Ethical Standards apply.