The International Federation of Accountants (IFAC) announced the formation of a global task force to help rebuild public confidence in financial reporting. The task force is chaired by John Crow, former governor of the Bank of Canada.
The task force's mission is to identify and analyze the causes of the recent loss of credibility in financial reporting and consider ways to restore credibility. This may result in recommendations for "best practices" in the areas of financial and business reporting, corporate governance, and auditor performance.
IFAC President Aki Fujinuma explains, "The task force will provide an international perspective on the problem of the loss of credibility of financial statements. This loss of credibility occurred prior to the collapse of Enron and WorldCom, although these events have made addressing the issue all the more urgent."
Joining Mr. Crow on the task force are Christian Aubin, a former Inspector General of Finance for the Republic of France, Olivia Kirtley, a former chair of the American Institute of CPAs, Ian Ramsay, dean of the University of Melbourne Law School, Mitsuo Sato, senior adviser to Dai-ichi Life Research Institute, Inc., a research subsidiary of Dai-ichi Mutual Life Insurance Company in Japan and a past president of the Asian Development Bank, Guylaine Saucier, a current member of IFAC's board and a former chair of the Canadian Institute of Chartered Accountants, and Graham Ward, a senior partner in PricewaterhouseCoopers and a member of IFAC's board.
The task force plans to issue a report in mid 2003.