Within the coming months, an independent chair will be appointed to lead a new IFAC global initiative on enhancing the quality of the financial reporting supply chain and will be charged with considering such issues as corporate management and governance, regulatory developments, auditor independence and rotation, and the expectations around the auditor’s responsibility for the detection of fraud.

"To enhance the credibility of financial reporting, action is necessary at all points along the information supply chain that delivers financial reporting to the market," stated IFAC President Graham Ward. "This project will identify investor expectations and needs and include practical suggestions for enhancements that the global accountancy profession can provide by direct action and those where it will need to engage with others to create change."

In addition, the board approved a guidance document on environmental management accounting (EMA), developed jointly with the United Nations, "International Guidance Document on Environmental Accounting." The document defines EMA, defines its uses and benefits, and includes examples of EMA applications for internal management and external reporting initiatives. It will be posted on the IFAC Web site (http://www.ifac.org/) within a month.

The board directed the Small and Medium Permanent Task Force to move ahead on the development of guidance materials on International Standards of Auditing (ISAs) for use in SME audit engagements.

Other actions taken by the board included an endorsement for an outreach program to countries where the profession is not yet established and aproval of the ongoing development of electronic resource centers for professional accountants in business and small and medium practices. The board also expressed support to move ahead on initiatives to support developing nations and convergence to international standards.