Paper Seeks Input on International Standard-Setting Bodies' Structure

DECEMBER 2017  RECENT DEVELOPMENTS

In a speech before the 2017 AICPA Conference on Current SEC and PCAOB Developments, Nigel James, Associate Chief Accountant in the SEC's Office of the Chief Accountant, described a consultation paper entitled, MONITORING GROUP: STRENGTHENING THE GOVERNANCE AND OVERSIGHT OF THE INTERNATIONAL AUDIT-RELATED STANDARD-SETTING BOARDS IN THE PUBLIC INTEREST. 

Mr James noted that the SEC is keenly interested in the quality of audit and ethics standards outside the United States due to the inter-connectedness of US and international capital markets. He also mentioned the prevalence of audits the SEC accepts that are prepared under AICPA standards (e.g., crowdfunding filings), which are substantially driven by global audit standards. As such, the SEC staff participates in The Monitoring Group, a group of international financial institutions and regulatory bodies committed to advancing the public interest. 

The paper examines the structure of two boards overseen by the International Federation of Accountants - or IFAC, namely, the IAASB - International Audit and Assurance Board and the IESBA - International Ethics Standards Board for Accountants.  The Monitoring Group is seeking stakeholder input by 2/9/18 on several topics involving the structure, funding, operation, size and composition of the IFAC Boards.