THE ACCOUNTANTS ACT, 2013 ACCOUNTANTS REGULATIONS, 2016 DRAFT ACCOUNTANTS (PRACTICE) REGULATIONS, 2017 PRACTICE MANAGEMENT COURSE CPA MARK OMONA 1
2 PART ONE THE ACCOUNTANTS ACT, 2013 Introduction. Functions of ICPAU. Membership. Council. Practising accountancy. Quality Assurance Board. Professional Code of Ethics. Disciplinary and Appeals Committees.
3 INTRODUCTION Purpose of the Act is to amend, replace and consolidate the law relating to accountants; Date of Assent 27 June 2013. Date of Commencement 13 Dec 2013
4 FUNCTIONS OF ICPAU To regulate and maintain the standard of accountancy in Uganda; and To prescribe and regulate the conduct of accountants and practising accountants in Uganda.
5 MEMBERSHIP Full members; Associate members: o Qualified CPAs without practical experience, o Retains Associates under Accountants Act Cap 266 in Schedule 3 of the 2013 Act; Retired members per Regulations; Any other determined by Council.
6 MEMBERSHIP DISQUALIFICATION A person can not enrol or continue to be a member of the Institute if he or she; Is adjudged by a competent court to be of unsound mind. Is an undischarged bankrupt. Is convicted of a serious criminal offence or an offence involving fraud or dishonesty. Has been struck off the roll of accountants. Has not renewed his/her membership for two consecutive years.
7 COUNCIL - COMPOSITION 11 members of Council, headed by a president and deputised by vice president; 7 elected 5 practising accountants. At least 3 must be women. 3 ex-officio Accountant General, Auditor General & officer in charge of higher education in MoES - Can appoint a rep. 1 ministerial appointee from a recognised professional or regulatory body set up by an Act of Parliament.
8 COUNCIL - TENURE OF OFFICE 2 years. Eligible for re-election or re-appointment for another term of 2 years ONLY. Ex-officio members are not subject to this. May be removed from office for various reasons under section 11.
9 COUNCIL - FUNCTIONS Prescribe the societies and institutions with a status equivalent to the Institute. Advise regulators of educational institutions on the curricula of study in accountancy related courses. Advise government on matters of financial accountability and management in all sectors of the economy.
10 COUNCIL - SECRETARY Shall be the secretary to Council. Shall be the Registrar of accountants. The Secretary and other staff of the Institute shall be appointed by Council.
11 AUDITOR OF THE INSTITUTE A practising accountant or accounting firm shall be appointed at the AGM. Appointment takes into consideration issues of conflict of interest, e.g. relationship with a member of Council.
12 PRACTISING ACCOUNTANTS Persons enrolled as CPAs, who wish to practice accountancy, must apply for registration as practising accountants. They must fulfill the conditions for registration set by Council.
13 PRACTISING CERTIFICATES (PCs) PCs shall be issued to registered practising accountants, and will be valid up to 31 December every year. Applications for renewal of PCs shall be made by 31 October of the preceding year. A list of practising accountants and their firms, shall be published in the Gazette and at least one newspaper of wide circulation, every financial year.
14 LICENSES TO ACCOUNTING FIRMS Annual licenses will be issued to accounting firms whose partners or practitioners hold PCs. Applications for renewal of licenses should be made by 31 October of the preceding year. Accounting firms with valid licenses can use the description of CPA(U) after their names.
15 INSPECTION OF FIRMS Accounting firms will be inspected before they are issued with licenses or the renewal of their licenses.
16 PRACTICING ACCOUNTANCY Sec 34(1): A person shall be deemed to practice accountancy if he or she, whether by himself or herself or in partnership with another person, for payment; Offers to perform or performs services involving auditing, verification and certification of financial statements or related reports; or
17 PRACTICING ACCOUNTANCY Cont d Renders any service which, under accounting practices or regulations made by Council, is a service that amounts to practicing accountancy. Sec 34(2): All heads of accounts, finance and internal audit in public and private sector entities, with public interest, shall be members of the Institute in accordance with the regulations made under this Act.
18 PRACTICING ACCOUNTANCY A public officer or any employee who performs or renders a service that amounts to practicing accountancy, shall not be considered as practising accountancy. Practising accountancy without a certificate is an offence Sec 35(2)- A fine not exceeding Shs 10 million may be imposed, or imprisonment not exceeding 2 years and 10 months, or both.
19 QUALITY ASSURANCE BOARD Composed of 6 Professional Accountants, with at least 3 women. Hold office for 2 years and eligible for reappointment for only one more term of 2 years. QAB is independent in its operations Sec 37(2).
20 QAB - FUNCTIONS Monitor compliance with professional and quality assurance standards. Enforce regulations governing quality assurance programmes. Refer practitioners conduct to the disciplinary committee based on the results of the quality assurance reviews. Advise Council on matters pertaining to professionalism and quality assurance. Perform any other function incidental or related to quality assurance.
21 PROFESSIONAL CODE OF ETHICS Every member shall be subject to the Professional Code of Ethics, prescribed by the regulations made under the Accountants Act, 2013. An accountant who contravenes the Professional Code of Ethics commits an offence of professional misconduct and shall be dealt with by the disciplinary committee as appropriate.
22 DISCIPLINARY COMMITTEE Composed of 5 members as follows;1 member of Council chairperson; 2 members of the Institute; and 2 eminent persons of good repute from the public. The Secretary of ICPAU shall be the secretary of the Disciplinary Committee. 3 years, eligible for re-appointment for only one more term.
23 DISCIPLINARY SANCTIONS Admonishment. Suspension of the registration as a practising accountant for a period not exceeding 2 years. Suspension from membership for a period not exceeding 2 years. Imposition of a fine. Payment of compensation to any person who may have suffered loss or injury. Striking off the roll of accountants.
24 DISCIPLINARY APPEALS COMMITTEE Consists of: A chairperson who is an advocate. 4 Members, three of whom shall be members of the Institute and one of whom shall NOT be an accountant. Quorum is chair and any two members. Secretary is appointed among the members of the Committee.
25 REGULATIONS TO THE ACT The Minister may, by statutory instrument, on the recommendation of Council make regulations for the better carrying into effect the purposes of this Act Sec 53(1). The Act has 3 schedules covering; 1. Currency point. 2. Meetings of the Institute. 3. List of associate members.
26 PART TWO ACCOUNTANTS REGULATIONS, 2016 Practical Training Continuing Professional Development. Miscellaneous.
27 PRACTICAL TRAINING To enrol as a full member (CPA) must have 3 years experience in at least 3 technical fields and in all the non-technical fields. Technical areas: financial reporting, auditing, taxation, financial management, management accounting, insolvency practice & IT. Non-technical areas: communication, personal, and interpersonal & organisational skills.
28 CPD Members required to obtain 40 CPD hours through seminars, workshops, lectures, conferences or online studies, each year. A member must keep a record of his/her CPDs undertaken each year. Residents of Uganda must obtain at least 10 hours of CPD from ICPAU, annually. CPD hours must be submitted by 31 January of the proceeding year.
29 MISCELLANEOUS Summary financial statements can be provided to a member by Council, on request. They shall include a report of the auditor. Communication by the Institute to the members may be in electronic form. A member must notify the Secretary about his/her change of address as soon as it is practicable.
30 PART THREE DRAFT PRACTICE REGULATIONS 2017 Registration as a Practising Accountant Name of the Accounting Firm Inspection of the Firm Fit and Proper Assessment Granting Annual Licenses Quality Assurance Program Ceasing to Practise Accountancy
31 REGISTRATION AS PRACTISING ACCOUNTANT An Applicant shall make an application to the Institute indicating that he or she a) obtained practical experience in auditing, of at least three years under the supervision of a practising accountant, an accounting firm or the Institute; and b) undertook the prescribed continuing professional for at least three years.
32 NAME OF THE ACCOUNTING FIRM Applicant shall apply to the Council for approval of the name. The name of accounting firm shall a) comply with the requirements of the laws; b) be consistent with the dignity of the accountancy profession; c) not be misleading or confused with the name of another firm; d) not be directly or indirectly associated with any existing organisation; and e) not be offensive.
33 INSPECTION OF THE FIRM The Council shall inspect an accounting firm that applies for a licence or for renewal of a licence, for a) the suitability of the premises of the accounting firm and the appropriateness of the signage; b) the reference books and other documents and records of the accounting firm including the title and description of the accounting firm on its letter head; c) evidence of professional indemnity insurance; and d) a fit and proper assessment of the practising accountants of the accounting firm.
34 INSPECTION OF THE FIRM The Council shall during an inspection a) review any information and data relevant for the inspection of the accounting firm; and b) make appropriate inquiries from staff of the accounting firm. The accounting firm shall prepare for an inspection and shall cooperate with the Council in all matters of the inspection. The Council shall, within two weeks after the inspection, issue a certificate of inspection of an accounting firm that satisfies the requirements.
35 FIT AND PROPER ASSESSMENT The Council shall before issuing a PC, conduct a fit and proper assessment of the applicant for the certificate or license to determine that the person is suitable to practice accountancy.
36 FIT AND PROPER ASSESSMENT The Council shall take into account a) the competence and soundness of judgment of the person; b) the integrity and character of the person; c) the general probity of the person; d) the previous conduct and activities of the person in relation to accountancy, business and financial matters; e) the outcome of any investigation with regard to the person in any country; and f) any other requirements determined by the Council.
37 GRANTING ANNUAL LICENSES An accounting firm shall have appropriate professional indemnity insurance cover. The professional indemnity insurance cover shall be appropriate for the business of the accounting firm An accounting firm shall conspicuously display its annual license at its premises. A holder of a certificate of practice shall practice accountancy with only one accounting firm.
38 QUALITY ASSURANCE PROGRAM QAB shall every three years, monitor each practising accountant, for compliance QAB shall determine whether a practising accountant has a) maintained an adequate system of quality control and complied with it; and b) in the execution of the assignments of the clients, adhered to the professional standards. The monitoring shall be conducted at the office of the practising accountant.
39 QUALITY ASSURANCE PROGRAM A practising accountant shall a) provide to the Quality Assurance Board any information and explanations requested for the monitoring process; and b) provide access to the documents and records of the practising accountant. QAB shall for each monitoring process, prepare a report of the findings. QAB shall undertake follow up action to confirm that the recommendations have been properly addressed. Where appropriate, QAB may based on the report, refer a practising accountant for appropriate disciplinary action.
40 CEASING TO PRACTISE ACCOUNTANCY The Council shall request a practicing accountant or an accounting firm subject to suspension to resign from all the existing engagements. Where a practising accountant, practising as a sole proprietor, ceases to practice accountancy, the accounting firm of the practising accountant shall cease to hold an annual license and shall be removed from the register of accounting firms. A practising accountant who wishes to cease practising accountancy, and who wishes to become a retired member, shall submit with the application, his or her certificate of practice.
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