Association of Chartered Certified Accountants (ACCA) Certification Practice Test

What is the primary purpose of IFAC?

1. To regulate the accounting profession

2. To protect public interest through high-quality practices

3. To provide loans to small accountants

4. To set tax rates for accountants

The correct answer is: To protect public interest through high-quality practices

The primary purpose of the International Federation of Accountants (IFAC) is to protect the public interest through the promotion of high-quality practices in the accounting profession. This involves establishing and maintaining ethical standards and auditing practices that enhance the integrity and trustworthiness of financial reporting. IFAC plays a significant role in ensuring that accountants adhere to these high standards globally, which is essential for building confidence among stakeholders, including investors, governments, and the general public. In contrast, the other options do not accurately reflect IFAC's mission. Regulation of the accounting profession is typically managed by national regulatory bodies rather than an organization like IFAC, which focuses more on global standards. Providing loans to accountants or setting tax rates is outside the scope of IFAC's activities, as its mission does not encompass financial lending or taxation policies. Instead, IFAC's emphasis is on ethical practices and professional development to safeguard public interest and enhance the quality of accountancy worldwide.