April 21, 2015 WHAT'S IN THIS ISSUE Latest Viewpoint Audit & Assurance Business Reporting Ethics An Abundance of Resources to Fight Financial Reporting Fraud by Cindy Fornelli, Executive Director, Center for Audit Quality Finance Leadership & Development Governance Financial reporting fraud is relatively rare, but it remains a serious challenge. Research from the Committee of Sponsoring Organizations of the Treadway Commission (COSO) has indicated that the median cumulative monetary loss resulting from instances of this type of fraud is around $12 million. Performance & Financial Management Practice Management Risk Management & Internal Control Sustainability The bad news: Financial reporting fraud, like most crimes, will always be a threat. The good news is that accountants and auditors, financial executives, boards of directors, and other key stakeholders across the financial reporting supply chain now have more resources and knowledge than ever to aid them in deterring and detecting fraud. What's more, we know that careful and comprehensive application of resources makes a huge difference to detecting fraud at companies of all sizes. Audit & Assurance 1. Discussion | Agreed-Upon Procedure Engagements—Help Shape the IAASB’s Standard The IAASB is in an information-gathering phase of its project on agreed-upon procedures, which includes a revision of ISRS 4400, Engagements to Perform Agreed-Upon Procedures Regarding Financial Information, and consideration of more holistic issues involving 2. 3. agreed-upon procedures. Resources | View All Ensuring Audit Quality and Engaging Investors Video | CFA Institute Clarified Auditing Standards: Assessing Risks of Material Misstatement–Part 1 Article | Accounting Web Enhancing Audit Quality Practice Aid Guidance | American Institute of CPAs Data & Analytics Add Value to Audit and Confidence in Assurance Video | KPMG Audit Trends: What’s Changing and How Are Audit Committees Responding? Report | KPMG Clarified Auditing Standards: Planning an Audit (AU-C 300)–Part 2 Article | Accounting Web Cindy Fornelli (CAQ) Discuss the Results of the Joint Report with the Institute of Internal Auditors Video | Bloomberg BNA News | View All FEE Makes Accountants Aware of Providing Horizon 2020 Certification Services April 20, 2015 | Fédération des Experts-comptables Européens – Federation of European Accountants EY Sees Barriers to Use of Big Data for Audits April 17, 2015 | CFO.com CAQ and AAA Provide Auditors for Research Projects April 16, 2015 | Accounting Today What Auditors Ought to Let US Investors Know April 15, 2015 | Fortune ICAS and CIPFA Launch Landmark Integrated Qualification in Audit April 14, 2015 | ICAS Report: Majority Adopt New COSO Framework April 13, 2015 | Compliance Week IAASB’s Revised Standard ISA 720 Enhances Auditor Focus on Annual Reports in Light of Increased Investor Focus on Qualitative Disclosures April 9, 2015 | International Auditing and Assurance Standards Board PCAOB Preparing New Rule for Audits of Accounting Estimates April 9, 2015 | CFO.com Revised Auditing Standard Puts Onus on Auditor to Read Annual Reports April 8, 2015 | Accounting Today Business Reporting 1. Discussion | Does Transparency Matter for SMEs? A closer look at the reasons, legal and otherwise, transparency matters for SMEs. 2. Resources | View All IFRS Formula Linkbase 2015 Guidance | IFRS Foundation IFRS Foundation Publishes Updated Guide to IFRS Use around the World Guidance | IFRS Foundation Communicating Strategies for Value Creation for SMEs–The Singapore Perspective Article | Institute of Singapore Chartered Accountants 3. News | View All Answers Needed for Flaws in M&A Accounting Standard April 20, 2015 | CFO.com The IFRS Foundation Publishes IFRS Taxonomy Formula Linkbase 2015 April 20, 2015 | IFRS Foundation IASB Chief Announces New Mission Statement April 17, 2015 | Economia German and Greek Finance Ministers Speak at Brookings, Offer Different Views on Eurozone Issues April 17, 2015 | Brookings Countdown for Singapore’s New Companies Act April 16, 2015 | The Accountant New EFRAG Chief Signals More Political Approach April 16, 2015 | Accountancy Age International Accounting Standards Best for Canada, Executive Says April 15, 2015 | The Globe and Mail New EU Accounting Body Chief Signals More Aggressive Approach April 14, 2015 | Reuters Europe Slow to Adopt New Accounting Standard Despite Greek Crisis April 14, 2015 | Wall Street Journal US Accounting Standard Setters Issue Their 2015 Strategic Plan April 14, 2015 | Accounting Web What Is the Point of Human Capital Reporting? April 14, 2015 | HR Magazine US Private Company Council Chair Billy Atkinson to Step Down April 9, 2015 | Accounting Today Convergence–Past, Present and Future April 7, 2015 | FEI Daily Big Four Dominate EFRAG Technical Expert Group Appointments April 7, 2015 | The Accountant Ethics 1. Discussion | A New Weapon in the Mexican Fight against Business Corruption New principles of business integrity and ethics from the Consejo Coordinador Empresarial in Mexico will help wage a battle against corruption. 2. Discussion | Responding to the IESBA: New Ethical Guidance for Professional Accountants in Business Timely and Relevant The IFAC Professional Accountants in Business Committee is developing a response to IESBA’s proposed changes to Part C of the Code of Ethics for Professional Accountants addressing presentation of information and pressure to breach the fundamental principles. 3. Resources | View All Downlaod the APESB Professional Standards App Website/Resource Center | Accounting Professional and Ethical Standards Board Changes to the Code Addressing Certain Non-Assurance Services Provisions for Audit and Assurance Clients Document | International Ethics Standards Board for Accountants Measuring the Return on Character Article | Harvard Business Review 4. News | View All IESBA Strengthens Auditor Independence Rules April 16, 2015 | Accounting Today New Mobile App Makes Professional Standards More Accessible April 16, 2015 | Accounting Professional and Ethical Standards Board IESBA Reinforces Auditor Independence Provisions; Further Limits Exceptions and Clarifies Guidance around Non-Assurance Services April 14, 2015 | International Ethics Standards Board for Accountants Nine Steps to Make Your Company’s Ethics Training Program Stick April 8, 2015 | Accounting Web Tax Avoidance Is Moral Question for Clients, Not Advisors April 8, 2015 | Economia Finance Leadership & Development 1. 2. Resources | View All For CPAs and Their Firms, Agility Trumps Ability Article | American Institute of CPAs Tomorrow’s Finance Enterprise Report | Association of Chartered Certified Accountants, Institute of Management Accountants The Secret to Retaining Top Talent? Development Article | AICPA Insights 5 Ways to Boost Sustainability's Value Proposition for CFOs Article | Green Biz You Made Partner: Now What? Article | Journal of Accountancy Women in Accounting: Recruit and Retain More People of Color Video | Accounting Today News | View All CIMA and the Hackett Group to Collaborate on Professional Development Offering for Global Business Services and Shared Services Organisations April 20, 2015 | Chartered Institute of Management Accountants The Five Influences on Future Finance April 17, 2015 | City AM ICAEW Salary Survey 2015 April 13, 2015 | Institute of Chartered Accountants in England and Wales Accountancy Roles No Longer the Preserve of Accountants April 9, 2015 | The C Suite Governance 1. 2. Resources | View All Staying Focused at the Top Article | Journal of Accountancy Corporate Governance Factbook Report | Organisation for Economic Co-operation and Development News | View All Finance Professionals Help Better Corporate Governance April 17, 2015 | Financial Express Performance & Financial Management 1. 2. Resources | View All Brightening the Black Box of R&D Article | McKinsey & Company Financing SMEs and Entrepreneurs 2015: An OECD Scoreboard Report | Organisation for Economic Co-operation and Development Performance Management: The Secret Ingredient Article | Deloitte News | View All Financing Small Businesses: OECD Launches SME Scoreboard April 16, 2015 | Organisation for Economic Co-operation and Development 5 Ways Treasurers Can Address Strategic Challenges April 16, 2015 | CGMA Magazine SMEs and Entrepreneurs Need to Diversify Their Funding Amid Continued Credit Constraints April 16, 2015 | Organisation for Economic Co-operation and Development CFOs Unhappy with Budget Process April 9, 2015 | Accounting Today Online Lenders Offer a Faster Lifeline for Small Businesses April 8, 2015 | NY Times Global Crowdfunding April 8, 2015 | The Economist The IPA’s Small Business White Paper April 8, 2015 | Public Accountant Practice Management 1. Discussion | SME Acquisitions and the Added Value of a Registered Auditor Hiring a registered auditor when acquiring an SME can help to reduce obstacles and increase the success of the acquisition, according to recent insights from the Belgian Institute of Registered Auditors (IBR-IRE) Congress, “Acquisitions (Transfer and Takeover) of SMEs: Approach, Risks, and Valuation.” 2. Resources | View All Guide to Cloud Computing Guidance | CPA Australia, Telstra Clouding SMEs: Tools Website/Resource Center | Clouding SMEs For CPAs and Their Firms, Agility Trumps Ability Article | American Institute of CPAs The Struggle to Stay Relevant Video | Accounting Today Measuring and Managing Actual Engagement Profitability Article | Accounting Today You Made Partner: Now What? Article | Journal of Accountancy What's Your Fraud IQ? Survey | Journal of Accountancy Pest Practices: How to Handle Nagging Clients Article | Accounting Today Three Roles Accountants in Practice Need to Fulfill Article | Accounting Web Women in Accounting: Recruit and Retain More People of Color Video | Accounting Today 3. News | View All FEE Makes Accountants Aware of Providing Horizon 2020 Certification Services April 20, 2015 | Fédération des Experts-comptables Européens – Federation of European Accountants ‘Lowballing’ a Continuing Threat to Firms, Claim Analysts April 17, 2015 | Accountancy Age The Tech Take: 3 Big Skills of the Future-Ready Firm April 17, 2015 | Accounting Today Busy Season 2015: Worse and Worser April 16, 2015 | CPA Trendlines Security Regains Place as Top Technology Priority for CPAs, North American Survey Finds April 16, 2015 | CPA Canada The Cheap, Convenient Cloud April 16, 2015 | The Economist Clients' Top Retirement Worry Is Going Broke: AICPA April 9, 2015 | Think Advisor Maryland CPAs Concerned about Staff Retention April 7, 2015 | Accounting Today Risk Management & Internal Control 1. 2. Resources | View All Great Walls of Fire Article | The Economist Audit Trends: What’s Changing and How Are Audit Committees Responding? Report | KPMG News | View All Security Regains Place as Top Technology Priority for CPAs, North American Survey Finds April 16, 2015 | CPA Canada Report: Majority Adopt New COSO Framework April 13, 2015 | Compliance Week Sustainability 1. 2. Resources | View All Short-Termism and the Threat from Climate Change Article | McKinsey & Company Sustainability and the CFO: Challenges, Opportunities and Next Practices Report | Corporate Eco Forum 5 Ways to Boost Sustainability's Value Proposition for CFOs Article | Green Biz Track It! Stop It! Get It! Report | United Nations Economic Commission for Africa How to Really, Truly Integrate Sustainability into Your Business Article | Green Biz News | View All Sustainability Challenges and Opportunities for CFOs April 20, 2015 | CGMA Magazine A Good Corporate Accounting of Social Costs Is Needed April 16, 2015 | NY Times ‘Sustainability’ Gone Mad on College Campuses April 15, 2015 | Washington Post Global Economic Development: Unsustainable Goals April 15, 2015 | The Economist How to Introduce Sustainability into Business Decisions April 10, 2015 | Institute of Chartered Accountants of Scotland Five Reasons to Act Now to End Pollution April 7, 2015 | World Bank Prepared by IFAC's Communications Department. Contact communications@ifac.org for further information. Copyright © 2015 by the International Federation of Accountants (IFAC). All rights reserved. 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