What is the PIOB
The global architecture of standard setting in the field of audit, assurance, ethics and education consists of a three-tier structure made up of standard setting boards supported by IFAC, independent oversight (PIOB), and accountability to a monitoring body of public authorities (Monitoring Group).
The objective of this collaborative model between the profession (IFAC) and the international regulatory community (MG) is to produce high quality global standards that are responsive to the public interest. The architecture attempts to balance the contribution from the profession to standard setting –which helps ensure the high quality and applicability of standards- against important checks that help ensure the public interest responsiveness of these standards, chiefly amongst which is the PIOB.
The Public Interest Oversight Board is the global independent oversight body that seeks to improve the quality and public interest focus of the international standards formulated by the Standard Setting Boards supported by the International Federation of Accountants in the areas of audit and assurance, education, and ethics. Through its oversight activities, the PIOB works to bring greater transparency and integrity to the audit profession, thereby contributing to the enhanced quality of international financial reporting.
The PIOB provides independent oversight throughout the entire process of standard setting to help ensure that standards development is fully responsive to stakeholder needs, accountable and transparent. The Public Interest responsiveness of standard development requires aligning the priorities of the profession with those of all stakeholders. This is the ultimate objective of the current architecture in place, of which the PIOB is an essential component.
Independent oversight is necessary for financial markets: investors want to know that the financial information on which they base their capital allocation decisions is credible and reliable. By overseeing the establishment and adherence to high-quality professional standards, the PIOB seeks to further the international adoption and implementation of such standards and improve the comparability of financial statements across the globe.