The International Federation of Accountants (IFAC) and the Institute of International Auditors (IIA) have signed a strategic agreement to work together to develop risk management and internal controls in order to enhance governance and restore confidence in business reporting in both the private and public sector.

The Memorandum of Understanding (MoU) outlines a new plan for enhanced coordination, collaboration and resource sharing between the two global professional bodies. It sets out three key elements which IFAC and IIA identify as being fundamental to implementing reliable financial management and reporting.

These are: the implementation of international auditing and accounting standards; strong risk management practices, including the design and implementation of effective and efficient internal controls; and an effective governance process.

Richard Chambers, IIA president and CEO said: 'This Memorandum of Understanding further strengthens the important relationship between the IIA and IFAC. It represents our united commitment to serve the public interest and restore the confidence of the general public in business reporting.'

The two organisations say they will develop an Annual Work Plan so they can create the structures and processes to allow them to share information and best practices in government, risk management, and internal control as well as in audit methods and the application of international standards.

IFAC president Warren Allen said: 'IFAC welcomes this opportunity to continue our collaboration with the IIA. Our professions are closely related, we share common goals, and address the same issues. Joining our efforts and voices therefore makes sense.'