INTERNATIONAL AFFAIRS

This Committee will have subcommittees to handle the international commitments of PICPA:

IA - AFA REQUIREMENTS

IA - CAPA REQUIREMENTS

IA - IFAC :SMO COMPLIANCE

IA - INTERNATIONAL ACCREDITATION LINKAGES

IA - MUTUAL RECOGNITION AGREEMENT

IA - RELATION WITH INT’L PICPA AFFILIATES

Over the years, our participation in international accounting affairs has been remarkable starting with the pioneering works of our leader’s .PICPA hosted the 1957 Manila Far East Conference of Accountants that brought forth the idea of forming a confederation of accounting bodies. This was followed by our participation in organizing the ASEAN Federation of Accountants ( AFA), the Confederation of Asian Pacific Accountants (CAPA ) and the International Federation of Accountants (IFAC) . PICPA has assumed leadership positions in these organizations; thrice for AFA, twice for CAPA and once for IFAC. PICPA likewise hosted a number of AFA and CAPA Conferences and some international committee meetings for IFAC and several regional and international accounting forums. PICPAs keeping membership with these regional and international organizations provide us benefits substantially in capacity build up both for competency and international linkages. Our relationship with these bodies continues in terms of:

1. Our regular attendance in the AFA Council meetings which are held quarterly and our regular contribution to its publication, the AFA Connection with respect to developments in the accountancy profession in the Philippines . PICPA has designed the CPE Programs for professional accountants in ASEAN countries.
   
   
2. Our participation in the CAPA Audit Committee , as chairman
   
   
3. PICPA is active in IFAC Committee on Corporate Sustainability

IFAC is very clear in its mission to serve the public interest , strengthen the accountancy profession worldwide and contribute to the development of strong international economies by establishing and promoting adherence to high quality professional standards, furthering the international convergence of such standards and speaking out on public interest issues where the profession’s expertise is most relevant. As such , IFAC has the toughest requirements and strict monitoring mechanism among the international and regional accounting bodies . Among others , IFAC issued Statements of Membership Obligations (SMO) to provide benchmarks to current and potential IFAC members to assist them in ensuring high quality performance by professional accountants.. The following are IFACs SMOs:

SMO 1 Quality Assurance

SMO 2 International Education Standards for Professional Accountants (IESs ) International Education Guidelines for Professional Accountants ( IEGs ) and International Education Papers for Professional Accountants (IEPs) issued by IFAC’s Education Committee (EDCOM ).

SMO 3 International Standards, related practice statements and other papers issued by the International Auditing and Assurance Standards Board (IAASB)

SMO 4 IFAC Code of Ethics for Professional Accountants and other pronouncements issued by the IFAC Committee on Ethics.

SMO 5 International Public Sector Accounting Standards (IPSAS) and other Guidance issued by IFACs Public Sector Committee (PSC)

SMO 6 Investigation and Discipline: This applies in investigation and discipline of misconduct such as breaches of professional standards and rules by members

SMO 7 International Financial Reporting Standards issued by the International Accounting Standards Board (IASB)

The SMOs serve as the foundation for IFACs Membership Compliance Program which will assist IFAC, its members and others in identifying successes and challenges in convergence towards international standards and regulation. Unless justified and accepted by IFAC, departure or non compliance of SMOs is cause for suspension or removal form IFAC membership.

The International Affairs Committee is tasked to set up directions for PICPAs participation in international affairs and to ensure PICPAs ability in meeting with the international requirements. Accordingly, committee members should be highly skilled and knowledgeable in both technical and administrative to manage effectively and efficiently our participation in international affairs.

FUNCTIONS

1. Evaluate PICPA’s standing, participation and relationship with international and regional professional bodies, committees and conferences and to set our future directions with respect to our relationship and participation in international affairs.
   
   
2. Set up an International Affairs division in PICPA that will keep and maintain international correspondences, communication system, and monitoring PICPAs compliance with accounting international bodies.
   
   
3. Identify and monitor international and regional developments and events and inform the Board of their assessments as to the possible effects of such developments to PICPA and to the Profession in general.
   
   
4. Prepare briefing documents and/or PICPA position, subject to Board approval, on issues that are most likely to be discussed in international events and activities.
   
   
5. Identify and recommend PICPA leaders who can be designated as PICPA’s representative to international and regional bodies of accountancy.
   
   
6. Nominate outstanding CPAs in International affairs and relations.
   
   
7. Keep PICPA members current of international and regional developments and their effects to PICPA, to the profession in general through our publications and website.
   
   
8. Develop the Committee’s Plans and Budget for approval by the Liaison Director and for submission during the Annual Planning Conference.