IFAC issues guidance on accountancy regulation

The International Federation of Accountants (IFAC) has published guidance to support countries in developing an effective professional accountancy organisation (PAO), to reflect changes in regulation in recent years and the need to adapt to and actively influence the national environment

The federation says its research into global development suggests strengthening PAOs’ legal and regulatory foundations and internal capacity as a critical need for the global accountancy profession. The right accountancy regulation model is vital to ensuring a well-functioning profession that produces high-quality financial information, supports economic growth and development, and is relevant to professional accountants and their clients.

IFAC executive director Alta Prinsloo said: ‘There is no “one-size-fits-all” solution for accountancy regulation; there are many different models in place around the world that work effectively.

‘Understanding the key principles of accountancy regulation, and how they function in practical terms, helps PAOs and their key constituents ensure the profession’s long-term sustainability, and their ability to continue to function in the public interest.’

The new guidance explores the scope of accountancy regulation, why it is needed, and key principles for consideration. It also provides regulatory model examples used in a number of countries, with further information available in country profiles on the IFAC website.

The latest publication forms part of IFAC’s PAO capacity building series, which includes guidance on PAO governance, advocacy and public policy, partnership, and engaging professional accountants in business.

Making Regulation Work: Principles and Models for the Accountancy Profession is here.

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