Heed global accounting standards

He was speaking at the 40th Anniversary of the Institute of Chartered Accountants in Jamaica.

The accountancy profession in Jamaica, and around the world, plays a central role in contributing to economic growth and stability and in helping to eradicate poverty, said Ball.

"I don’t think we could have realised 40 years ago the dramatic impact of globalisation on our profession, the extent of capital market growth that has occurred worldwide, the effect of political changes such as the collapse of communism, and the devastating failures of companies like Enron and WorldCom and Ahold. We have learned that I am sure you here in Jamaica have also felt the ramifications of those failures," he said.

"We have seen the emergence of new, shared, regulatory structures, characterised by strong relationships between the profession and those who oversee it. And we have seen more and more countries, including Jamaica, enhance the international profession through the adoption of international standards," he added.

In striving to meet this mission, IFAC, he said, has taken significant steps in three key areas:

•Strengthening our standard setting processes and promoting ethical conduct;

•Achieving convergence with international standards; and

•Reaching out to and supporting developing nations, professional accountants in business and small and medium practices and enterprises. In the area of auditing standards, the International Auditing and Assurance Standards Board (IAASB) is in the middle of a very significant project to improve the clarity and structure of its standards, he said.

In addition to focusing on clarity, the IAASB, he said, has released a new international standard on audit documentation, designed to enhance auditor performance and audit quality by establishing stricter requirements for audit documentation.

Beginning with this standard, the IAASB staff is preparing a "Basis for Conclusions" for each new international standard to increase understanding about the development of the standards.

In the area of ethics, IFAC’s International Ethics Standards Board for Accountants has updated the Code of Ethics for Professional Accountants, further emphasising the five fundamental values, which are integrity, objectivity, professional competence and due care, confidentiality and professional behaviour.

The development of the updated Code is part of an ongoing effort to ensure that all professional accountants — whether they work in public practice, business or government — have clear, relevant and high quality ethical guidance, he said.