THE INTERNATIONAL ACCOUNTANCY PROFESSION:
STANDING STRONG WITH A SINGLE VISION TO CREATE A BETTER
FUTURE
Fermín del Valle, President
International Federation of Accountants
2006 World Congress of Accountants – Closing Ceremony
Istanbul, Turkey – November 16, 2006
The accountancy profession is standing strong and looking ahead. In recent years, the
expectations of our profession have rightfully increased. We have not only met these
expectations; we have in many cases exceeded them. We have concentrated on doing
what is right and necessary, not for ourselves, but for the public who has entrusted us
with their confidence. We have the conviction and the talent to keep working in that
direction. The hearts and minds of professional accountants are willing and prepared to
respond to the future.
This extraordinary Congress that is now coming to an end is a reflection of the vitality of
the everyday profession, the one that, throughout the world, fulfills its professional duty,
serving its clients and contributing to the common good.
It is a privilege to be speaking before you today, and to serve all of you on behalf of
IFAC.
I commend IFAC’s two member bodies in Turkey, their presidents Mr. Timur and Dr.
Türker, as well as Professor Dr. Recep Pekdemir for organizing this World Congress.
Over the last four years, Recep has been a wonderful champion of this Congress. He has
told us that this Congress would be outstanding, and he has been true to his word.
I also want to pay special recognition in the name of IFAC to those who have always
been, and continue to be, the principal players within this great profession. I am referring
to the millions of professional accountants who assume their professional duties with
responsibility every day, serving their clients and employers with integrity, expertise, and
transparency.
In this service-oriented vocation, supported by knowledge and ethical behavior, resides
the true value of our profession.
This is why if any one of you who is sitting here today, maybe in one of the farthest seats
from this stage, feels by chance that you are only a minor spectator, I want to remind you
that in reality, you are, in fact, the greatest player, as also are the millions of professional
accountants who could not be here today. This has also been their Congress.
As accountants, we play a key role in the protection of the interests of the community,
doing our best to assure reliability and transparency of information, both in the public
sector and in the private sector, not only as auditors but also as accountants within
organizations. The field of the accountant is not reduced only to the functioning of the
capital markets. It necessarily extends to numerous other fields where we, as accountants,
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advise our “clients”: taxes, information systems, management, insolvency, and corporate
finance, as well as the advice we give within organizations.
The scope of the accountancy profession is very broad, and the reality for each of us, as
professional accountants, is diverse.
IFAC works for the entire profession and for all professionals.
Four years ago, at the World Congress in Hong Kong, René Ricol stated that the
objective for our profession was to “restore and increase trust.” Those were particularly
difficult times.
Today, we can say with conviction that this objective has not only been accomplished,
but that we have exceeded our own expectations. Many great accomplishments have been
achieved in the past four years under the presidencies of my predecessors, René Ricol
and Graham Ward.
Now, I would like us all here to imagine for a minute the world we will live in four years
from now, in 2010, when we meet for the next World Congress in Kuala Lumpur,
Malaysia. I would like to present this as a shared vision of the future we would like to
live in. So that the gap between this vision and today's reality becomes an energy source,
a creative tension that moves us towards that vision.
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Let me start with a desire that I am sure is shared by all of you: that all humanity will
have begun truly constructive dialogue between civilizations, cultures, and peoples and
that peace will prevail in the minds of all men and women.
In that environment, I believe our profession would have a great deal to add. I am totally
convinced that if we continue working as we have until now, and certainly we will, we
can achieve the following objectives:
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The world will have achieved convergence. We will have moved beyond
equivalence and mutual recognition. International Standards on Auditing and
Assurance will be recognized and applied in all, or virtually all, the countries
around the world. The same will occur with International Financial Reporting
Standards.
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There will have been a clear response to the needs of small and medium
businesses. The cost of applying accounting and auditing standards will be
proportionate to the benefit generated.
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The Public Interest Oversight Board will have demonstrated its efficiency and
reliability, and its effectiveness in protecting the public interest. It may very
possibly be copied in other international environments including, why not, the
IASB. I am committed to supporting and deepening the reforms and ensuring that
we do indeed contribute to strengthening both the processes for setting standards
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and the quality and efficiency of those standards. And I am fully committed to
working with the regulatory community to ensure that our standards can be
adopted and endorsed worldwide, knowing that they meet the public interest tests
of good regulation.
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IFAC will be recognized as strongly contributing to the improvement of
governmental financial reporting around the world, through the increased use and
endorsement of its International Public Sector Accounting Standards, and we will
have made significant progress in persuading governments to be as transparent in
their own financial reporting as we, and they, seek from the private sector.
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A sustainable system of audit regulation will have been promoted, and
convergence of key aspects of such systems will have been achieved by the
different independent audit regulators. The profession and the regulators will have
understood that they have a common objective, with different and complementary
roles, in working for the public interest.
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In terms of auditor’s liability, appropriate legislation will have been achieved in
many countries, that is, legislation that protects the public but that does not
inappropriately jeopardize the future of this profession.
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The business community will have understood and differentiated the advantages
of professional accountants in business, with the result that professional
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accountants will be more highly valued in CFO and other management positions.
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We will have strengthened our member bodies around the world and created
professional bodies in those countries where none exist today. The dream that
there is no country without an organized accountancy profession will be closer to
becoming reality.
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And, no less important, we will have preserved the unity of the organized
profession and we will continue to be one family on a global level.
But this will not be all. We can and must move ahead in other areas in order to build a
better future.
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The profession should continue looking to the markets it serves – both within
organizations and from public practice – identifying and designing more efficient
ways to deliver our services and generating new services that respond better to the
changing demands of the market.
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We should continue to be players, not spectators, in the development of this
profession. We should take the initiative. There is no need to fear innovation. The
world needs and seeks our answers to the new challenges it faces.
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We should be prepared to serve in the new technology environment and take a
leadership role in the preparation and assurance of non-financial information and
in the new forms of accessing and using information.
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We should also be more committed to be effective agents of the development of
our societies.
This is a challenging vision, but it is an achievable one.
How best can we accomplish these goals?
I firmly believe that four attitudes will enable us to move successfully along the road we
have set out on here today:
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First, recognizing the advantage of collaboration;
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Embracing all cultures;
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Emphasizing education; and
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Living our values.
We should align our efforts and investments to achieve synergy and efficiency, with and
among member bodies. We have to be open to new and innovative collaborative
approaches.
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There are instances in which the alignment of our efforts and joint investments can make
the difference, can make a project feasible and new goals achievable.
Working inclusively is also key to the development of the profession. This requires us to
embrace all cultures.
This great profession belongs to each and every one of us. There is no one owner. It is
fundamental that we leverage the strengths of all members of this profession; this can
only be accomplished if we have effective mechanisms of participation. We should
encourage all countries and regions to share what they can best contribute. International
standards and practices should be the reflection and fusion of the best of each country and
of each culture.
A commitment to education is also fundamental. We must seek to ensure that as the
profession develops, it is supported by high quality educational requirements,
Education provides the means to meet the challenges of the 21st century. If we do not see
education as a priority, then we will be making a serious mistake.
Also, we must keep in mind that it is ultimately values and not rules that drive behavior.
For professional accountants, IFAC encourages adherence to three fundamental values:
integrity, transparency and expertise.
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We have all heard this many times. We know it well. We should fill these concepts with
content. Put simply, we have to live these values. When it comes to behavior, passing
from knowledge to action is often a major step.
Expertise implies knowledge and experience. It is a necessary condition for the provision
of professional services.
Integrity is the coincidence between word and action. To have integrity is to honor
commitments: to promise what we can deliver and to deliver what we promise.
Finally, where transparency exists, corruption is not possible. Corruption is one of the
largest obstacles to development. If the accounting profession is committed to
development, then it should commit itself to combat corruption.
Albert Einstein once said: “Whoever is careless with the truth in small matters cannot be
trusted with the important matters.”
To emphasize Einstein’s point: We must sweat the small stuff. We cannot compromise
our character by appearing to be associated with corrupt activity, on any level, in any
way.
This is a major commitment for all of us to contribute to the common good.
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I am convinced that this profession, that we love so much, will remain strong, because we
are indeed committed to the common good. We see far beyond the numbers. This is why
we will be successful in achieving a single vision: the vision to help not only our global
society, but individual societies around the globe, to advance and prosper and to improve
the world for the benefit of all.
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