Presentation from Warren Allen, IFAC Deputy President, to the Small and Medium Practices Forum, March 2012. The SMP Forum was co-hosted by IFAC and the Institute of Certified Accountants of Singapore.

1. Session 1: Setting the Scene:
SME and SMP Landscape
Warren Allen, IFAC Deputy President
IFAC SMP Forum
Singapore
March 19, 2012
Page 1 | Confidential and Proprietary Information

2. Singapore—Developing into a Global Hub
Page 2 | Confidential and Proprietary Information

3. Importance and Value of SMPs and SMEs
A Public
Interest Issue
Key to
Recovery
Choice &
from
Competition
Financial
Crisis
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4. 2011 Global Leadership Survey
Highest Priority Service Areas for IFAC
70% 61%
60%
48%
50%
39% 38%
40%
28%
30%
22% 19%
20% 13% 12% 11% 10%
10%
0%
IESBA
Integrated Reporting/IIRC
SMP Committee
Translations &
PAIB Committee
Public Policy and
Compliance Advisory
IPSASB
PAO Development
IAESB
IAASB
Permissions
Regulation
Committee
Panel
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5. 0%
10%
20%
30%
40%
50%
60%
Reputation and credibility
53%
of the profession
Needs of SMPs and
52%
SMEs
The difficult global
52%
financial climate
Issues related to the
European Union (EU)
44%
draft legislation
Public sector financial
management and
38%
2011 Global Leadership Survey
sovereign debt issues
Increased regulation
34%
Global regulatory
30%
convergence
Auditor independence
28%
40%
44%
48%
52%
56%
Role of PAIB
28%
Corporate governance
21%
Integrated reporting and
20%
sustainability
53%
Profession
Attracting new talent to
Reputation and
18%
the profession
Credibility of the
IT and innovation in
15%
accounting and auditing
Micro-entity financial
14%
reporting
The competency of
52%
SMEs
financial statement
13%
preparers
Anti-money
Needs of SMPs and
13%
laundering/anti-corruption
Most Significant Issues Facing Profession in 2012
Changing role of PAOs
12%
What it means to be a
professional and belong
9%
to a profession
52%
International taxation
5%
policy differences
Financial Climate
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The Difficult Global

6. 0%
10%
20%
30%
40%
50%
60%
70%
Reputation and credibility
60%
of the profession
Needs of Small and
45%
Medium Practitioners…
Public sector financial
43%
management and…
The difficult global
37%
financial climate
Auditor independence
27%
Global regulatory
24%
convergence
2011 Global Leadership Survey
Role of the professional
24%
accountant in business
Integrated reporting and
23%
sustainability
The competency of 23%
financial statement…
Attracting new talent to
23%
the profession
0%
10%
20%
30%
50%
60%
70%
40%
Corporate governance
Changing role of
22% 19%
professional…
60%
Increased regulation
Audit firm market
18% 17%
structure and…
Micro-entity financial
reporting
What it means to be a
professional and…
45%
Profession
Anti-money
laundering/anti-corruption
Audit firm rotation
Public Policy Areas IFAC Should Speak Out On
Restriction of non-audit
services
43%
Information technology
and innovation in…
Needs of SMPs 13% 11% The Difficult
Role of audit committees
Joint audits
6%
37%
International taxation
4%
policy differences
Page 6 | Confidential and Proprietary Information
Reputation and Credibility of the17% Financial SMEs 11% 10% 10%Global Financial
Public Sector 15% and Management and Sovereign Debt Is

7. IFAC’s Support for SMPs
• SMP Committee
• Standard Setting
– IESBA SME/SMP Implementation Group
– Input from the SMP Committee
• Public Policy and Regulation
– PPP 2
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8. Changing Global Landscape
Challenges Opportunities
Increase
Economic Marketing Efforts
Uncertainty to Win New
Clients
Develop a
Reduced Audit Business
Requirements Advisory
Practice
Page 8 | Confidential and Proprietary Information

9. Changing Global Landscape
Challenges Opportunities
Join International
Internationalization Network or
of SMEs Association of
Practices
Increased Embrace
Competition and Fee Technology, Including
Pressure Cloud Computing
Page 9 | Confidential and Proprietary Information

10. www.ifac.org/SMP