INTERNATIONAL FEDERATION OF ACCOUNTANTS

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International Federation of Accountants
The Work of the Small and Medium Practices (SMP)
Permanent Task Force by Angelo Casò, Chairman,
SMP Permanent Task Force
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Objectives of Presentation
SMP Permanent Task Force

• Introduce IFACs SMP Permanent Task Force
• Describe its input to accounting and auditing
  standard setting
• Summarize other activities
• Outline emerging projects

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SMP Permanent Task Force - Overview
SMP Permanent Task Force

• Permanent task force since early 2004
• 15 members from 14 countries
• ..is charged with identifying and representing
  the needs of the constituents and, where
  applicable, to give consideration to relevant
  issues pertaining to SMEs

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Input to International Auditing and Assurance
Standards Board (IAASB) Standard Setting - Process
SMP Permanent Task Force

• IAPS 1005 on smaller entities being phased out
• Specific SME/SMP considerations now incorporated
  into ISAs
• SMP PTF comments internally on IAASB papers
• Agreed policy statement covering liaison
• Since March 2005 submitted comments on 10
  projects (80-90 of total)

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Input to IAASB Standard Setting - Submissions
since March 2004
SMP Permanent Task Force

• Clarity of IAASB Standards
• Accounting Estimates (revised ISA 540)
• Audit Materiality (revised ISA 320)
• Documentation (revised ISA 230)
• Related Parties (revised ISA 550)
• Group Audits (revised ISA 600 and new IAPS)
• Modifications to the Audit Report (new ISA 701)
• Using the Work of an Expert (revised ISA 620)
• Communications (revised ISA 260)
• Auditors Report on Special Purpose Audit
  Engagements (revised ISA 800).

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Input to IAASB Standard Setting Future Plans
SMP Permanent Task Force

• Earlier this week SMP PTF agreed to continue
  tracking most IAASB projects
• Report on effectiveness of this input later this
  year

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Input to International Accounting Standards Board
(IASB) Standard Setting
SMP Permanent Task Force

• Played major role in compiling IFAC response to
  Discussion Paper on SME accounting standards
• Seeking ways of assisting IASB develop accounting
  standards for SMEs (renamed NPAE non-publicly
  accountable entities)

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Other Activities (I)
SMP Permanent Task Force

• Resource Center
• participation in IFAC Professional Accountants in
  Business (PAIB) Committee led initiative
• Input to
• IFAC Tax Review Task Force
• Education Committee draft IES 8

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Other Activities (II)
SMP Permanent Task Force

• Emerging Projects
• Micro-Entity Standards
• Audit Practice Aids
• Information Exchange
• Articles of Merit
• Communications Plan

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SMP Permanent Task Force Contact Us
SMP Permanent Task Force

• For more information
• go to the homepage at http//www.ifac.org/TaskForc
  es/smpptf.php or
• contact Paul Thompson, SMP Permanent Task Force
  Technical Manager at paulthompson_at_ifac.org

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Questions
SMP Permanent Task Force

• Do you agree with our current focus?
• Are there other activities we should consider?
• How should we organize member body input?

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International Federation of Accountants