IFIAR in Discussions Over Core Principles for Regulators
IFIAR (The International Forum of Independent Audit Regulators) is in discussions with global firms about having a set of core principles for independent audit regulators. The principles are meant to improve audit quality. The proposals were discussed in Spain at IFIAR’S recent meeting and reportedly covered the operations of audit regulators, audit oversight and principles used for the inspection process.
IFIAR members, including audit regulators from 37 jurisdictions, would not be bind by the principles. However, members will be encouraged to comply with them and apply them to their own jurisdictions, which are again subject to local legislation and requirements.
The principles, if agreed to, are going to be announced in the next plenary meeting that is to be held in April 2011 in Egypt.
A joint meeting was held between IFIAR members and both the global CEO’s of six of the largest audit networks and representatives of the investor community for discussing the transparency and governance of audit firms improving communications between investors and auditors.
The talks that were held also discussed how improvement of choice among audit firms was to be done. Also discussed was how improvement of auditor’s report and the focus and scope of audit regulation was to be improved.
The joint meeting with the global CEOs was focused on concerns over group audits, revenue recognition, professional skepticism and engagement quality control review.
Steven Maijoor, who is the Managing Director and Chairman of IFIAR and Paul George, who is the Director of Auditing and the Professional Oversight Board at the UK’s Financial Reporting Council and also Vice Chairman of IFIAR chaired the joint meeting.
According to reports, regulatory authorities of countries such as Malaysia and Turkey sent representatives to the meeting. This is their first time at an IFIAR meeting.