Tuesday 18 February 2020

THE THREE-TIER STANDARD SETTING MODEL

High quality global standards that are responsive to the public interest are the objective of this collaborative model between the profession (IFAC), the international regulatory community (Monitoring Group) and the oversight body the PIOB.

Level 1 Level 2 Level 3 EU IOSCO IFIAR IAIS FSB WB PIOB foundation Nominating committee IAASB IAASB CAG IESBA IESBA CAG IAESB IAESB CAG MG CAP IFAC

LEVEL 1 - MONITORING: A of international public interest and financial institutions (the Monitoring Group), responsible for monitoring the overall structure and to which the PIOB is accountable .

LEVEL 2 - OVERSIGHT: An independent oversight body (the Public Interest Oversight Board), responsible for overseeing the standar-setting processes by the three Standard setting Boards as well as their nominations processes.

LEVEL 3 - STANDARD SETTING: The three standard setting boards (IAASB, IESBA and IAESB) responsible for setting international standards in the fields of Audit, Assurance and Related Services.

THE ESSENTIAL ELEMENTS OF PUBLIC INTEREST

PIOB DUTIES

High quality international standards for audit and assurance practice, quality control, education and ethics help to ensure that financial information is relevant and will be prepared by accountants who can be trusted because they meet these requirements;

Credible international standard setting structure helps to ensure that the standards are appropriate and furthers their adoption and implementation;

Adoption and implementation of international standards contributes to trust that work is to be done in a professional manner; and

Monitoring and evaluation of the adoption and implementation of standards - and their application by professional accountants - contributes to trust that work is actually being done in a professional manner.

PIOB duties with regards to Standard setting due process:

In order to ensure all Public Interest concerns are addressed and woven into the Standard setting process, the PIOB is responsible for:

  • OBSERVATION
  • MONITORING
  • OUTREACH
  • UNDERSTANDING
  • RAISING PI QUESTIONS
  • REPORTING
  • Attend SSB and CAG meetings Prepare Observation Memos
  • Monitoring Interaction between SSBs and CAGs Monitor stakeholder comment letters
  • Engage with stakeholders and the broaders public
  • Discuss PI issues and concerns with stakeholders Internal PIOB discussions
  • At SSB meetings or through official letters
  • To SSB or CAG To the Monitoring Group