IFAC recently conducted its Fourth Annual Global Leadership Survey of the Accounting Profession (GLS), which revealed key opportunities and top-of-mind issues for the global accountancy profession. In addition, on-site polling at the 2011 Chief Executives’ Strategic Forum, which comprises the chief executives of a selected group of IFAC member bodies, similarly asked global accountancy leaders to weigh in on major issues and areas of focus.

International Standards: The most crucial issue for the accountancy profession is transitioning to International Standards on Auditing (ISAs), with 96 percent of GLS respondents citing it as very important or important. This is a substantial increase over last year, when 83 percent said this was a key issue. There was also universal sentiment that IFAC, as a representative of the global accountancy profession, has a key role to play relating to adoption of high-quality international standards—virtually all survey participants (98 percent) said that IFAC plays a very important or important role in this area. The vast majority of survey participants believe that IFAC should continue to work toward effective implementation of international standards, and 91 percent of those surveyed said that it is very important or important that IFAC continue to develop guidance regarding international standards.

Global relevance: A substantial 97 percent of GLS respondents said that recognition of IFAC as the umbrella organization for international standards in the areas of auditing and assurance, education, ethics, and public sector financial reporting is very important or important. Similarly, the chief executives said that a broader global approach is the #1 most important IFAC actions in relation to issues raised by the European Commission Green Paper.

Sustainability: Sustainability emerged as a key issue among both groupings as well, with 91 percent of GLS respondents saying that progressing corporate social responsibility, including sustainability, is important. This is a marked increase over last year, when 82 percent cited this issue as important. At the Chief Executives’ Forum, 86 percent of those polled said that they think integrated reporting will be mandatory in their country by 2020.

SMPs and SMEs: Ninety-five percent of respondents to the GLS said that addressing the needs of small- and medium-sized entities (SMEs) and small- and medium-sized practices (SMPs) was crucial. A number of participants called for greater recognition by IFAC of SMEs’ needs, their economic value, and their significant importance in many national economies. IFAC was also urged to build the profile of SMPs by emphasizing their professional capabilities, produce innovative ideas for alternatives to audit for use in the SME environment, and provide greater support for SMPs in terms of standards and guidelines tailored to their needs. Again, a significant majority said that addressing the needs of SMEs and SMPs would increase in importance over the coming three years.

Ethics: The survey also confirmed the widespread opinion that there is a clear need to have a global code of ethics to protect the fundamental qualities of the profession, particularly relating to independence. Auditor independence and agreeing/discussing expectations to prevent and detect fraud were cited as very important or important by 91 percent and 89 percent of respondents, respectively.

The 2010 GLS surveyed officers from IFAC’s member bodies, associates, affiliates, and regional accountancy organizations and groupings. The results include data from 123 respondents from 73 countries and jurisdictions who took the survey January 10–February 15, 2011. The GLS can be accessed from Publications and Resources on the IFAC website. On-site polling at the 2011 Chief Executives’ Strategic Forum took place February 28–March 1, 2011.