Page 1 | Confidential and Proprietary Information Unearthing the Power of PAOs Around the World Amarjit Chopra Deputy Chair IFAC PAO Development Committee.

Page 1 | Confidential and Proprietary Information

Unearthing the Power of PAOs Around the World

Amarjit Chopra

Deputy Chair

IFAC PAO Development Committee

The Exchange: Strengthening Accountancy as a Foundation for MSME Sector Development and Job Creation

June 18-20, 2013

Amman, Jordan

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PAOs are Important!

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Why are PAOs Important to the Profession?

• Act in the public interest

• Develop and produce competent accountancy professionals

• Promote strong professional and ethical standards

• Act as a resource to government, regulators, donors, mentors, and regional and international organizations

• Further the quality of financial reporting

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Why are PAOs Important to the Economy?

• Attract Foreign Direct Investment (FDI)

• Promote growth and development of the Small- and Medium-sized entities (SME) sector

• Enhance transparency and accountability in the use of public funds

• Improve the design and delivery of vital public services

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What is IFAC?

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IFAC’s Mission

IFAC's mission is to serve the public interest by:• Contributing to the development, adoption and

implementation of high-quality international standards and guidance

• Contributing to the development of strong professional accountancy organizations and accounting firms, and to high-quality practices by professional accountants

• Promoting the value of professional accountants worldwide

• Speaking out on public interest issues where the accountancy profession’s expertise is most relevant

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Challenges to PAO Development

Mutually Reinforcing Challenges

1. Lack of Awareness of the Value of Accountancy

2. Professional Accountancy Organization

(PAO) Weaknesses

3. Lack of Capacity to

Provide Vital Activities

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How Does IFAC Interact with PAOs?

IFAC Member

Body Development

Team

PAO Development

Compliance Program

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PAO Development Committee Strategic Goals

Develop the capacity of the accountancy profession

Increase awareness building and knowledge sharing

Foster and deepen development partnerships

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Priorities at a glance

• Development of tools and guidance

• National outreach – Technical assistance

– advocacy

• Regional collaboration – With regional organizations, accountancy groupings and donors

• Mentoring Program – Mentoring guidance

– Promotion of successes and good practice

• MOSAIC MoU

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Publications, Tools and Guidance

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National and Regional Outreach

In-country advocacy and technical assistance• In-person engagement with over 100 PAOs in 2012• Discussions with PAO Boards and staff around good

practice, IFAC membership requirements and the SMOs

• Meetings with country stakeholders and government to reinforce importance of PAOs

Regional events• Partnering with regional bodies to bring together PAOs

from across the region• Technical sessions on developing strong professions

and sustainable PAOs• Practical knowledge- and information-sharing between

PAOs around regional success factors

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Mentoring Program

• Raising awareness of the benefits of effective PAO-to-PAO partnerships

• Development of good practice guidance around direct collaboration between PAOs

• Creating opportunities that encourage and facilitate the formation of relationships

• Deliverables:– launch event “Mentoring Insights – The Mentor Perspective”

– mentoring guidance

– Promotion of benefits and successes through literature and events

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MOSAIC MoU

Signed in November 2011 - now 13 signatories:– African Development Bank (AfDB)– Asian Development Bank (ADB) – Inter-American Development Bank (IDB)– World Bank – UK Department for International Development (DFID) – Finland (FINIDA)– United States Agency for International Development (USAID)– Swedish International Development Cooperation Agency (SIDA) – Global Alliance for Vaccines and Immunisation (GAVI) – New Zealand (NZAid)– The Global Fund to Fight AIDS, Tuberculosis and Malaria– Australian Agency for International Development (AusAID)

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Global Development Report (GDR)

• Global and regional components• Essential elements of PAO development• Ten key findings:

– Undertaking PAO development comprehensively– Strengthening legal and regulatory foundations– Monitoring and providing support to fragile states– Support internal strengthening of PAOs– Developing PAO education and certification capacity– Broadening PAO membership bases – Furthering implementation of international standards– Supporting PAO orientation to the public sector– Strengthening Regional Organizations – Facilitating PAO mentoring relationships

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The PAO Development Committee – Implementing Strategy

Glo

bal I

niti

ativ

es

Reg

iona

l Im

plem

enta

tion

Mentoring

Regional Collaboration

MOSAIC

Tools and Guidance

National Outreach

Africa

AAO

ME

ECA

AC

SMO Workshop in Accra, Ghana around the Second Africa Congress of Accountants

Realizing the Power of PAOs workshop in Hanoi, Vietnam

Focus on success factors for the Middle East at Dubai PAODC meeting

Joint IFAC, IASB and IAASB event for standard-setters and PAOs of the CIS and Baltic States

CReCER

Integrated Communications

Collaboration with IFAC Boards and Committees

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PAO Development: IFAC Resources

Statements of Membership Obligations (SMOs)

• www.ifac.org/publications-resources/statements-membership-obligations-smos-1-7-revised

PAO Development Committee

• www.ifac.org/about-ifac/professional-accountancy-organization-development-committee

Establishing and Developing a Professional Accountancy Body

• www.ifac.org/publications-resources/establishing-and-developing-professional-accountancy-body

Establishing Governance: A Guide for PAOs

• www.ifac.org/publications-resources/establishing-governance-guide-professional-accountancy-organizationss

IFAC Member Body Development Contact

• Marta Russell Technical Manager, Member Body Development – Asia-Pacific [email protected]

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Thank You!