Kreston International joins Forum of Firms Kreston Russia is the Institute for Enterprise Issues
By Arvind Hickman, International Accounting Bulletin13 апреля 2011
Kreston International has become a full member of IFAC’s Forum of Firms (FoF) after the network satisfied global quality control and ethics requirements.
This means that Kreston International is officially regarded as an accounting network by the accounting profession’s peak global body.
Previously an association of independent firms, Kreston International first outlined plans to become a network in November 2009. The decision to shift from an association to a network was driven by profit and the belief that being a network would help Kreston member firms win more work.
“Now we are recognised as having a global quality system, which is what multinational companies are expecting from their auditors. So we can expect to gain significantly now with international tenders,” Kreston International executive director Jon Lisby said.
“Not only has it helped our member firms (win work), but the firms that we seek to recruit are only looking to join networks, they are not looking to join loose alliances of accounting firms. They want networks that are coherent, consistent and can competently handle international clients.»
Lisby said joining the FoF will allow Kreston International to influence the development of the accounting profession.
“Sue Almond is ideally placed to do that, she’s the deputy chair of the ISA committee in the UK and the forum are pleased to have her on board,” he added.
To become a network, Kreston International had to meet certain quality control and ethics criteria outlined by IFAC. Kreston hired Almond, an experienced director of quality control and professional standards, to roll out an inspection and review programme. Almond said she has noticed the network operates in a much more cohesive manner than it did in 2009.
“A lot of this has been about bringing together as a global group what was already embedded in practice,” Almond said. “We are putting in place a lot more tools that allow us to have more consistent policy. We’ve signed up to commitments on things like the use of ISAs and all our member firms have been committed to that.”
Kreston International has audit methodologies that sit on top of member firm’s existing methodologies, which help provide a more consistent approach to cross-border engagements. The network has also formed specialist working groups in areas such as tax and audit, which allows firms to share best practice and innovation.
The move from association to network has led to a 50 percent rise in Kreston International membership fees over the past two years. This extra cost has allowed Kreston to put in place regular quality control inspections and other network infrastructure.
The next step for Kreston International is common branding and Lisby predicts a lot of firms will adopt Kreston branding within the next few years.
Although not every global accounting network is a FoF member, this step is recognition that Kreston is firmly placed among the leading 15 global networks.
IFAC Forum of Firms