The development of professional organizations for accountants is seen as a key tool for global, regional and national development, according to a new report.
The Professional Accountancy Organization Global Development Report, released Thursday, is an initiative of MOSAIC, the Memorandum of Understanding to Strengthen Accountancy and Improve Collaboration. In 10 key findings, the report outlines the factors for success as well as challenges associated with building a strong, sustainable accountancy profession supported by an effective professional accountancy organization, or PAO. The report was co-financed by the African Development Bank, the Asian Development Bank, the Inter-American Development Bank and the World Bank.
“When professional accountancy organizations function properly, they hold the power to support the production of high-quality financial information, contributing to public and private sector development, economic growth, and the aid effectiveness agenda,” said the report.
Jennifer Thompson, who co-chairs the MOSAIC Steering Committee and is chief financial management officer at the World Bank said the report would allow the World Bank to “further the principles of aid effectiveness—embodied in the Paris Declaration, Accra Agenda for Action, and the Busan Partnership for Effective Development Cooperation—to contribute to economic growth and a reduction in poverty.”
The report’s key findings include the importance of undertaking PAO development comprehensively at the national level; strengthening legal and regulatory foundations; furthering implementation of international standards; and supporting internal strengthening of PAOs. The findings will provide direction for the MOSAIC Steering Committee in its future endeavors.
“As an integral part of national financial infrastructures, PAOs can provide significant contributions to the financial, economic, and social development of nations,” said Deborah Williams, MOSAIC Steering Committee co-chair and chair of the IFAC PAO Development Committee, in a statement. “Capacity-building efforts benefit the global economy since properly functioning PAOs support the production of high-quality financial information and contribute to public and private sector development, economic growth, and the aid-effectiveness agenda.”
The report points out then when professional accountancy organizations maintain the appropriate capacity, they are able to operate in the public interest, develop capable and competent accountancy professionals, promote strong professional and ethical standards, and enhance the quality of financial reporting and auditing.
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