ACCA IS THE
THIRD LARGEST FINANCIAL CONTRIBUTOR TO IFAC
The International Federation of
Accountants (IFAC) is a 'private interest' organisation started by
major accounting firms. Its purpose is to shape auditing regulation in
a way that is most beneficial to major auditing firms. For
example, it is keen to downgrade "true and fair" views and abolish the
"true and fair" override. Thus audits become mechanical, an approach
preferred by major accounting firms who are keen to use auditing
standards to dilute their duties and liability. There are no auditing standards on auditor
accountability.
Relatively few ACCA members are
licensed to conduct company audits. Hardly any audit major companies.
The production of auditing standards is mostly irrelevant to ACCA
members. However, the ACCA leadership is keen to have photo
opportunities and travel the world. Until year 2000, ACCA had no representation on IFAC .
AABA understands that ACCA has bought
seat on IFAC by agreeing to be the third largest financial contributor.
The biggest contributor is the American Institute of Certified Public
Accountants (AICPA). IFAC annual accounts do not show the amounts
contributed by each member. ACCA annual accounts are silent on its
financial commitment to IFAC. ACCA has never sought the approval of its
members for its financial commitment to IFAC. There has been no
supporting resolution at any AGM.
IFAC is a secretive
organisation. It is registered in Geneva, Switzerland under
Articles 60 through 79 of the Swiss Civil Code. IFAC’s primary base of
operation is New York, United States of America. This arrangement
enables IFAC to avoid taxes. A note to its 2006 accounts states "The
United States Internal Revenue Service has determined that IFAC is
exempt from United States federal income tax under Section 501(c)(6) of
the Internal Revenue Code. IFAC is also exempt from Swiss income taxes".