6.3 Structure of the Accountancy profession Flashcards
CCAB? How many members? what does it allow
Consultative Committee of Accountancy Bodies 5
allows the profession to speak in a unified voice to government.
What are the five members of the CCAB?
ICAEW England Wales
ICAS Scotland
CAI Ireland
ACCA (Association of certified chart accounts)
CIPFA (chart institute of public finance and accountancy)
what is the AAT? and who spondsers them?
CIMA (managment accountants) ICAEW,ICAS, CIPFA
IFAC? aims?
gloabl organisation for accoutnacy
protect the public interest
best practice guidance
memberships compliance programme
IFAC emphases the importance of?
Strong inerntional econamies
adhere to high qualityprofessional standards in the areas of audit, education, ethics, and public sector financial reporting
convergence of professional standards
seeking out on public interest nad public policy issues
why is regulation of proffessions necassary?
provide public interest with protection and assurance in situations where issues are too complex for the public to be reasonably expected to look after their own interests (many professions fall into this)
regulation should not?
protect vested interests from competition
be for personal gain
satisfy prurient interest
distort competition
methods of regulation?
goverment legislation
delegated legislation (separate angences est. by gover)
self-regulation (profession/industry)
combination of methods
oversight mechanism?
ensures that a body is achieving what is set out to achieve
particularly important in self regulation - counter accusations of self -interest
participants in oversight mechanism?
goverment
regulators
members of profession
members of public
who regulates accountants?
Goverment
the porfession (self-reg)
oversight mech
role of goverment in accountacy reg
legislative elements
(FRC act as advisor to goverment
role of self reg in accountancy reg?
CCAB have a regulatrory responsbility for supervision of their members acting in a professional capacity
oversight mech for accountacy reg?
PO (proff Oversight) Team
independent oversight
statuary oversight of the supervision of audit process
satuatry monitoring of the quality of the auditing
in non auidt areas (po have no powers) what recommendations can they make?
education traiing continuing professional education nd devlopment standards ethical matters professional conduct professional discipline registaion monitoring
CCAB bodies ahve a commintemtn too…
consider PO team recommendations carefully and either
- implement them within reasonable period
- give reasons on writing for not doing so.
PO team ahve statutory powers in audit it can…
agree amendments tp their procedures
recomm. tot he recognised supervisory bodies for appropriate regulatory action
refer matters tot he profeessaionl discipline (PD) ad corp reviewing board (CRB)
What does FRC do?
sets standards for corperance governance, financial reporting and audit adn assurnace
monitors adn reviews the quality of audit and financial reporting
regulation of audit profession
overseeing self regulation in accountancy
ultimate disciplinary body
FRC is split into two anvues?
Conduct commitee
codes and standards commitee
FRC conduct committee?
Professional oversight
professional disciplen
corperate reporting review
audit quality check
FRC Codes adn standards commitee?
acturial policy
Audit and assurance
accounting and reporting policy
cooperate governance
FRC - ARP?
Accouting adn reporting policy
makes amendments and withdraws accoutig standards
FRC AA?
Audit and assurance
develops standards for audting n assurance services and their effective application
develops ethical stanardsfor Indep Objec Integ of auditors
FRC - CRR?
make enquireies into departures fro requirements from financial statements
voluntry remedial action
types of remedial action?
volentary withdrawal
correction of the comparative figures
FRC - Audit quality review?
monitors the quality of the auditing function in relation to “economically significant entities” (major public interest entities
FRC - PD?
professional discipline
independant investigative adn disciplinary body for accountants and acturaries in the UK.
responsible for operating and adminsiatrying an independent disciplinary scheme covering CCAB
FRC - AP?
Actuarial Policy
estblish and improve actuarial standards - ensure coherent, consistent and comprehensive high quality practice
how is the finacial services indstry regulated?
Bank of Englands Prudential regulation Authority (PRA)
independent financial conduct Authority (FCA)
PSD?
professional standards departments
implimenting the ICAEWs disaplinary systems.- i.e.handling of complaints.
what are the common complains?
breaching regulations (not principle) departing from guidance bringing discredit (on ICAEW/profession on its own)
are fee disrupts on avolemary basis only?
yes - by the fee arbitration service
serious complaints are refered where?>
FRC professional dicipline (PD)
what is the iCAEWs complaints procedure?
conciliation - identifies a problem and find practical solution
investiagtion - if concilitaion can not be achieved)
Disciplinary proceedings - by disci commitee
what is the AC and how many people involved?
appeals commitee
5 - 3 chartered accoutants, one non-accoutant and chairman wth legal quals.
how are FRC cases dealt with?
refferals from an accountancy body
self-refferal
