For information only: First Public Report of the Public Interest Oversight Board

May 2006

On 28 February 2005, the International Organisation of Securities Commissions (IOSCO), the Basel Committee on Banking Supervision (BCBS), the International Association of Insurance Supervisors (IAIS), the World Bank and the Financial Stability Forum announced the formal establishment of the Public Interest Oversight Board (PIOB) to oversee the public interest activities of the International Federation of Accountants (IFAC). The PIOB oversees IFAC's international standard setting activities in the areas of audit performance standards, independence and other ethical standards for auditors, audit quality control and assurance standards, and education standards. The PIOB was established to strengthen international auditing standards by injecting informed oversight in the public interest into IFAC's standard-setting activities, and by enhancing the transparency and consultative processes of these activities.

On 16 May 2006 the PIOB released its first public report. In addition to describing the PIOB's origins, unique mandate and efforts to establish its physical and legal presence in Spain, this report presents the results of the PIOB's first year of oversight operations. Highlights include the PIOB's first policy decisions and its emerging views related to standard-setting activities, international compliance by IFAC member bodies and the broader concept of the international public interest. In his opening message, PIOB Chairman Stavros Thomadakis has also noted the PIOB's concurrent efforts to promote its presence and mission and to build close links with relevant regulators at national, regional, and international levels.