Rebuilding Public Confidence in Financial Reporting: An International Perspective —Report on a Report

63 he financial system and all of its various components (institutions, markets, and clearing and settlement systems) are supported by a set of arrangements, including government policies, that influence its structure and facilitate its operation. Taken together, these arrangements form the financial system's infrastructure. Experience has demonstrated that a key determinant of a robust financial system is the extent to which it is underpinned by a solid, well-developed infrastructure. This section of the Review highlights work in this area, including that related to relevant policy developments. A key element of a well-functioning financial system is investor confidence in financial reporting and auditing standards. Since 2001, a series of revelations regarding questionable corporate accounting practices have damaged investor confidence in financial statements, corporate governance, and auditing standards. Since then, there has been a worldwide effort to improve this situation. One example is the report of a task force established by the International Federation of Accountants. John Crow outlines the key challenges that the task force faced and how these were approached. Mr. Crow also provides his views on the challenges associated with restoring investor confidence and on the progress currently being made at the international level.