IFIAR has released its 2023 Annual Report. Click here to download the Report.

IFIAR’s annual Plenary Meeting was held in Osaka, Japan on April 16-18, 2024, with representatives from 48 IFIAR Member jurisdictions participating in discussions focusing on key developments and emerging trends in the audit industry.

Please click here for our stakeholder announcement.

In March 2024, IFIAR released its twelfth annual survey of inspection findings arising from its Member regulators’ individual inspections of audit firms affiliated with the six largest global audit firm networks.

Please click here to access the 2023 Inspection Findings Survey and related documents.

IFIAR is pleased to welcome the Registration Authority (RA) of Abu Dhabi Global Market (ADGM) as a new IFIAR Member, joining a network of independent audit regulators from 56 jurisdictions around the world.

IFIAR is pleased to welcome the National Financial Reporting Authority (NFRA) of India as a new IFIAR Member.

NFRA joins a network of independent audit regulators from 55 jurisdictions around the world.

IFIAR has released a Report on its third Survey of Audit Regulators’ Enforcement Regimes.

The report details the investigative and disciplinary powers of IFIAR Members, and the ways in which Members exercised those powers during the years 2018-2022. The results of the 2022 Survey underscore the important role that enforcement plays in audit oversight and IFIAR Members’ dedication to investigating and addressing potential violations of auditing standards.

Please click here for the Press Release and here to access the Report.

IFIAR’s annual Plenary Meeting, resuming in-person for the first time since the start of the COVID-19 pandemic, was held in Washington DC on April 25-27, 2023, with representatives from 44 IFIAR Member jurisdictions participating in discussions focusing on key developments and emerging trends in the audit industry.

Please click here for our stakeholder announcement.

IFIAR’s annual Plenary Meeting was held virtually on April 25-27, 2022, with representatives from 53 IFIAR Member jurisdictions participating in discussions focusing on the Transition to the New Normal.

Please click here for our stakeholder announcement.

In March 2022, IFIAR released its tenth annual survey of inspection findings arising from its Member regulators’ individual inspections of audit firms affiliated with the six largest global audit firm networks.

Please click here to access the 2021 Inspection Findings Survey and related documents.

IFIAR holds virtual 2021 Plenary Meeting focusing on the Management of Audit Quality in the COVID Environment and Beyond.

Please click here for our stakeholder announcement.

In March 2021, IFIAR released its ninth annual survey of inspection findings arising from its member regulators’ individual inspections of audit firms affiliated with the six largest global audit firm networks.

Please click here to access the 2020 Inspection Findings Survey and related documents.

Please click here for an announcement regarding the passing of IFIAR Chair Frank Schneider.

IFIAR has published an Information Paper on “Facilitating Oversight of Global Audit Firm Networks”. Click here to access the Information Paper and click here for the stakeholder announcement.

IFIAR Member regulators from around the world met by video conference on May 26 with representatives from the six largest global audit firm networks (GPPC*) to discuss the GPPC network’s responses to the COVID-19 crisis. The GPPC provided IFIAR Members with an outline of the challenges their networks and the companies they audit are facing in the area of financial reporting and audit due to the impact of COVID-19.

IFIAR Chair, Frank Schneider, noted the importance of the continued engagement between IFIAR and external stakeholders such as the GPPC going forward: “Continued engagement between all those involved in the financial reporting ecosystem is vitally important during these uncertain times. The GPPC outlined the challenges that are currently faced by preparers and auditors in a financial landscape that has been dominated by the impact of COVID-19 on businesses around the world, and the steps being taken in response. IFIAR continues to stress the importance of audit firms’ compliance with the relevant auditing standards during this crisis, as investors and other stakeholders depend more than ever on accurate information. IFIAR Members will continue to share information on how the regulatory environment is adapting to the crisis – and we are grateful to IFIAR Members and the GPPC for the continued dialogue in this respect”.

The IFIAR website has a dedicated page to provide the public with access to the latest information, updates and developments from IFIAR Members in response to the COVID-19 crisis. This page is accessed here.

*The Global Public Policy Committee (GPPC) is the global forum of representatives from the six largest accounting networks: BDO, Deloitte, EY, Grant Thornton, KPMG, and PwC, which has as its public interest objective the enhancement of quality in auditing and financial reporting.

May 1, 2020

IFIAR Chair’s Update on COVID-19 to stakeholders

This letter is to provide an update on IFIAR activity, and that of IFIAR Member organizations, considering the COVID-19 pandemic crisis.

Firstly, IFIAR as an organization has responded with a focus on the health and safety of our Members, staff and the general public by canceling all upcoming in-person meetings and moving to a work-from-home basis for the IFIAR staff. Despite this, IFIAR as an organization has, like our Members, adapted and remains operational and actively focused on supporting our Membership and stakeholders in the audit community in our ongoing work as well as the new challenges at hand.

I, along with the IFIAR Board, recognize that many auditors and other participants in the audit and audit oversight community may be facing practical difficulties in carrying out audits and audit oversight as a result of the COVID-19 pandemic. But as audit regulators we also recognize the importance of audit’s contribution to maintaining high quality financial reporting during this time and stress the need for audit firms to fully comply with required standards despite, and in light of, the significant impacts of COVID-19 – when investors and other stakeholders may have greater need for high-quality financial information than ever. Despite these new challenges, IFIAR will continue to fulfill its mission which is to serve the public interest, including investors, by enhancing audit oversight globally – including new activity developed in light of the COVID-19 situation. Such activity includes:

Information sharing for IFIAR members and the public

Many IFIAR Members and related regulators have issued announcements, statements and guidelines of import to the audit community during this crisis. Many public communications have been issued to draw the attention of auditors, companies and others to the audit, accounting and disclosure implications of the COVID-19 pandemic and its likely impact to audits of financial statements; as well as the related steps many regulators have taken, such as the extension of filing deadlines, temporary relief from on-site inspections, and the provision of timely updates to firms and stakeholders as to regulator expectations.

IFIAR has published dedicated COVID-19 pages on the IFIAR website to keep Members and the general public updated on such developments from across our Member jurisdictions and other relevant information in relation to the ongoing COVID-19 situation. (https://www.ifiar.org/about/covid-19-updates-public/)

A separate dedicated page for Members hosts further information of value to regulators.

Further, IFIAR’s Board held a conference call on April 16 dedicated to discussing the responses of Board Member organisations to the COVID-19 pandemic, to enable Board Members to learn and identify themes to share with the greater IFIAR Membership. The Board continues to closely monitor the evolution of the situation during its ongoing meetings.

Global Audit Quality Working Group (GAQWG) Liaison with the Global Public Policy Committee (GPPC) Networks[1]

The GAQWG continue to interact with their GPPC counterparts to maintain dialogue and momentum regarding ongoing areas of focus for the working group; in addition to an immediate focus on new COVID-19-related issues that may be arising.

Officer/ Executive Director (ED) Liaison with the GPPC Leadership

The Officers and ED are holding periodic tele/video-conference calls with the GPPC Secretariat and Chair of the GPPC CEO Group; in addition to ad hoc calls with individual GPPC firm leadership to understand the challenges they are facing in completing audits in the current circumstances and the initiatives they are undertaking in response. During these interactions, the GPPC has been kept informed of the actions IFIAR has been taking to support its Members. The Officers and ED have reiterated the expectation for firms to comply with all relevant standards and perform high-quality audits.

Coordination with Standard Setters and other International Organizations

IFIAR continues to follow and comment on the work of the IAASB through IFIAR’s Standards Coordination Working Group (SCWG). In addition, the SCWG Chair is liaising with the IAASB and National Standard Setters (some of which are IFIAR Members with audit standard setting within their remit) to understand any responsive steps they may be taking.

IFIAR’s Officers and ED are also liaising with other international organizations to maintain open communication and information sharing, as appropriate.

Member Activity

Inspections: Members are adapting the practical aspects of their inspections of statutory auditors and audit firms to allow for continued activity under the recommended measures implemented by their respective governments. Remote working arrangements are in place for ongoing inspections in many jurisdictions and others continue to adapt their working arrangements to improve remote activity. In some cases, the timing of inspection activity is being adjusted or temporarily suspended to allow audit teams to focus on completing current audits.

Enforcement: Some Members are encountering obstacles to continued enforcement activity, particularly in respect of typical in-person activity such as conducting requisite in-person interviews or other meetings, or the taking of testimony (in jurisdictions where relevant) and are exploring remote arrangements for interviews and access to documentation.

Communication with national audit firms: A number of our Members have established regular contact with audit firm representatives at a national level in their jurisdiction to identify and understand key issues encountered by the firms in the current context, and the initiatives and processes implemented by the firms in response.

IFIAR recognizes the constraints experienced by, and additional pressures placed upon, all our stakeholders by the current circumstances. IFIAR’s efforts and methods to enhance audit oversight globally continues to adapt and evolve as a result and we will continue to update stakeholders through our website on these activities.

Yours Truly,

Frank Schneider,
IFIAR Chair

[1]  Each of the Global Public Policy Committee (GPPC) networks is comprised of a group of legally separate firms operating locally in countries or regions around the world. The GPPC networks are represented by the following entities: BDO International Limited, Deloitte Touche Tohmatsu Limited, Ernst & Young Global Limited, Grant Thornton International Limited, KPMG International Cooperative, and PricewaterhouseCoopers International Limited.

IFIAR would like to assure our Members and stakeholders that we remain operational despite the impacts of the COVID-19 pandemic.

In response to the rapidly evolving Covid-19 situation globally and to ensure the health and safety of our Members, IFIAR staff and the general public the IFIAR Board made the difficult decision to cancel or postpone all in-person IFIAR meetings in March and to cancel the 2020 Plenary Meeting scheduled to take place in Zurich in April (including all related meetings and events). The Board will continue to closely monitor the situation and adjust future scheduled events accordingly.

As a result of the cancellation of the 2020 Plenary and other meetings, IFIAR is adopting alternate procedures to allow necessary Member business to proceed.

A collection of public information from Member jurisdictions on relevant developments relating to the COVID-19 situation is available here. A separate resource for IFIAR Members containing further information is also available in the Members-only area of the website (Members must be logged in to view).

IFIAR will continue to adjust our operations as necessary to allow IFIAR business to proceed during this challenging time.

If you have any questions about IFIAR activity you may contact the IFIAR Secretariat at secretariat@ifiar.org.

Yesterday, February 27, 2020, the IFIAR Board made the difficult decision to cancel or postpone all in-person IFIAR meetings in March, and to cancel the April 2020 Plenary Meeting in Zurich (and all other side-meetings), in response to the rapidly evolving Covid-19 virus situation globally. The Board is of the view that the prudent approach, in line with many other organizations, to take this action for the health and safety of all.

Members will be contacted shortly with regard to alternative arrangements for the Annual General Assembly Meeting and we will seek alternative methods for providing Members with the information and updates they would have received at the Plenary.

In February 2020, IFIAR released its eighth annual survey of inspection findings arising from its member regulators’ individual inspections of audit firms affiliated with the six largest global audit firm networks. While encouraged by the downward trend, IFIAR urges the GPPC networks and their member firms to continue efforts to achieve improved audit performance as the current inspection findings rates remain high.

Please click here to access the 2019 Inspection Findings Survey and related documents.

IFIAR has announced the results of a four-year initiative to reduce the number of audit files with at least one finding and agreed a new initiative with GPPC firms.

Click here to view the stakeholder announcement.

IFIAR has published its comment letter on the IAASB’s project exploring the possible options to address the challenges in applying the ISAs in audits of less complex entities.

Click here to view the comment letter.

IFIAR is pleased to announce that the Financial Supervisory Authority (FSA) of Norway and the Audit Oversight Commission (AOC) of Poland have both joined as signatories to the IFIAR Multilateral Memorandum of Understanding Concerning Co-operation in the Exchange of Information for Audit Oversight (MMOU).

For more information on the IFIAR MMOU and a list of current signatories, please click here.

IFIAR has published its comment letter on the IAASB’s Exposure Drafts for ISQM 1, ISQM 2 and ISA 220.

Click here to view the comment letter.

In May 2019, IFIAR released its seventh annual survey of inspection findings arising from its member regulators’ individual inspections of audit firms affiliated with the six largest global audit firm networks. While the downward trend in inspection finding rates is encouraging, the recurrence and level of findings reflected in the survey indicate a lack of consistency in the execution of high quality audits and the need for a sustained focus on continuing improvement.

Please click here to access the 2018 Inspection Findings Survey and related documents.

IFIAR has released its 2018 Annual Report. Click here to download the Annual Report.

The Hellenic Accounting and Auditing Standards Oversight Board (HAASOB) hosted IFIAR members in Rhodes, Greece for the 2019 Plenary Meeting. Please click here for our stakeholder announcement.

IFIAR is pleased to welcome two new Members – the Authority for Public Oversight of the Statutory Audit Activity (ASPAAS) of Romania and the Capital Markets Authority (CMA) of Saudi Arabia. Please click here for our stakeholder announcement.

IFIAR has released a Report on its Survey of Audit Regulators’ Enforcement Regimes.

The Report underscores the extent to which IFIAR members have the authority to respond to auditor misconduct and enforce compliance with the rules, laws, and standards that govern the audit profession in different parts of the globe.  The results recognize the unique and critical role that enforcement plays in audit oversight.

Please click here for the Press Release and here to access the Report.

IFIAR is pleased to announce that the Philippine Securities and Exchange Commission (SEC) has joined as a Member of IFIAR. Please click here for our stakeholder announcement.

IFIAR has released its 2017 Annual Report. Please click here to download the Annual Report.

The Canadian Public Accountability Board (CPAB) hosted IFIAR members in Ottawa, Canada’s capital city, for the 2018 Plenary meeting. Please click here for our stakeholder announcement.

In March 2018, IFIAR released its sixth annual survey of findings identified by its Members in their individual inspections of audit firms affiliated with six large, international audit firm networks. Although the frequency of findings from inspections of individual audit engagements has reduced on an overall basis compared to the last survey, progress is not experienced in all jurisdictions or at the same rate. Further, no definitive trends have been noted for findings arising from inspections of firm-wide systems of quality control. These results affirm IFIAR’s views that the global networks must continue in their efforts to strengthen their systems of quality control and drive consistent execution of high quality audits throughout the world.

As described in recent survey reports, IFIAR has challenged the networks to reduce the percentage of listed PIE audits that have inspection findings by at least 25% on an aggregate basis, across the global networks’ member firms within the GAQ Working Group members’ jurisdictions, over a four year period using the 2015 survey results as a baseline. This report reflects the networks’ progress at the measurement period’s mid-point.

Please click here to access the 2017 Inspection Findings Survey and related documents.

Independent audit regulators and those professional accounting bodies that are responsible for oversight and audit standard setting from Botswana, Ethiopia, Lesotho, Malawi, Mauritius, Mozambique, Namibia, Tanzania, South Africa and Zambia joined the Public Accountants and Auditors Board (PAAB) of Zimbabwe for the inaugural meeting of the African Forum of Independent Accounting and Auditing Regulators (AFIAAR) at the historic Victoria Falls Hotel on March 1 and 2, 2018.

The establishment of the Forum is intended to formalise efforts for collaboration and the strengthening of independent auditing, and where relevant, accounting regulation across the continent by formalising a common base and one voice from which to advance audit regulatory activities as it relates to building capacity, increasing audit quality, and influencing and adopting international standards.

The event was co-hosted by the PAAB Zimbabwe and the Independent Regulatory Board for Auditors (IRBA) of South Africa, which CEO, Bernard Agulhas also represented the International Forum of Independent Audit Regulators (IFIAR) in his capacity as an IFIAR Board Member.

IFIAR is a global body of 52 independent audit regulators of which four countries in Africa, being Botswana, Egypt, Mauritius, and South Africa, have attained levels of independent regulation and oversight of auditors which makes them eligible for membership. This initiative is endorsed by IFIAR as a means to strengthen audit regulation in Africa and develop regulatory and legislative provisions in African countries to a level where they can attain international membership to the global forum.

Says Admire Ndurunduru, CEO of the PAAB (Zimbabwe): “Throughout the world, independent audit regulation plays a critical role in building confidence in capital markets and providing confidence to investors in the quality of financial reporting. In the context of the development of our continent, this is a momentous initiative for Africa as it will be one of the keys to increasing investment in our economies, public protection and contributing to the development of the continent.”

The members concluded the event with a unanimous adoption and signing of The Charter to formalise the establishment of AFIAAR with eleven founding members. Zimbabwe was elected as chair, represented by Admire Ndurunduru of the PAAB as chairman; South Africa as vice-chair, represented by Bernard Agulhas of the IRBA; and Ethiopia was elected as Third Officer, represented by Gashe Desta Yemane.

Issued by: Lorraine van Schalkwyk APR
On behalf of: African Forum of Independent Accounting and Auditing Regulators

On November 9, 2017 the Monitoring Group issued the consultation paper Strengthening the Governance and Oversight of the International Audit-related Standard-setting Boards in the Public Interest, which set out various options to enhance the governance, accountability and oversight of the international audit standard setting process.

The IFIAR Board has submitted a letter to the Monitoring Group in response to the consultation paper, in which the Board expresses its support for the reform initiative. A copy of the letter is available at the link below.

The Monitoring Group has issued a consultation paper setting out various options to enhance the governance, accountability and oversight of the international audit standard setting process.

The consultation will run until 9 February 2018.

Monitoring Group Consultation Paper
Monitoring Group Consultation Paper - Press Release