Issues From an SMESMP Perspective

1
Issues From an SME/SMPPerspective

• IFAC Small and Medium Practices Forum
• Malta
• October 30, 2007

2
Issues for SMPs

• Effective Implementation
• Relevance of Standards
• Big Bang
• Increased Competition
• Future of Assurance Services for SMEs
• SMP Participation in the Process

3
Effective Implementation

• Need more and better guidance
• ISA Guide a start
• What else?
• Industry specific?

4
Relevance of Standards

• Standards must be relevant to all size practices
• SMPs must participate in the process
• Perception is important

5
Big Bang

• Appreciate delay of effective date
• SMPs must begin early
• Training is critical
• Consider volume of new standards
• ISAs
• IFRS SMEs
• Ethics
• Quality Control

6
Increased Competition

• Competition from Non-Accountants
• Larger practices pushing down
• Movement from regulatory environment to market
  driven

7
Future of Assurance Services

• When regulators no longer mandate audits for
  segments of our clients what then?
• Other levels of service
• Review engagements
• Compilations (with more involvement?)
• If independence is not an issue opportunity for
  greater involvement?

8
SMP Participation in the Process

• Level of participation with IAASB has improved
• CAG participation
• Task Force participation
• SMP Committee Input
• How to Improve/Enhance SMP input
• More input from SMPs from member bodies
• Organize task forces at national body level
• Increased task force participation

9
SMP Participation in the Process

• Direct representation on IAASB
• Problem with lack of resources
• IFAC subsidy
• Increased use of technology to enhance
  participation
• Assistance with meeting preparation