Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

SMOs as a driver of successful PAOs: ICPAU’s Experience

722 views

Published on

Presentation by Derick Nkajja, Member, Compliance Advisory Panel, for SMO Workshop, February 13, 2016, in San Jose, Costa Rica.

Published in: Business
  • Be the first to comment

  • Be the first to like this

SMOs as a driver of successful PAOs: ICPAU’s Experience

  1. 1. Page 1 | Proprietary and Copyrighted Information SMOs as a driver of successful PAOs: ICPAU’s Experience Derick Nkajja, Member, Compliance Advisory Panel SMO Workshop San Jose―Costa Rica February 13, 2016
  2. 2. Page 2 | Proprietary and Copyrighted Information Agenda • Introduction • Development of Action Plans • Achievements & Challenges • Overview of the African Region
  3. 3. Page 3 | Proprietary and Copyrighted Information Introduction • The Institute of Certified Public Accountants of Uganda (ICPAU) was established by law in 1992. The current law is the Accountants Act of 2013. • Mandate – To regulate and maintain the Standard of Accountancy in Uganda; – To prescribe and regulate the conduct of accountants and practising accountants in Uganda.
  4. 4. Page 4 | Proprietary and Copyrighted Information Introduction PUBLICATION OF ICPAU’S SMO ACTION PLAN – 1st publication of the Action Plan in December 2008 – 1st Update published in June 2010 – 2nd Update published in September 2011 – 3rd Update published in October 2013 – 4th Update submitted in September 2015
  5. 5. Page 5 | Proprietary and Copyrighted Information Development of the Action Plan • Technical staff review the requirements of IFAC SMOs • Technical staff support ICPAU departments in drafting the plans to achieve SMO requirements • Action plan reviewed by Management Team • Action plan approved by Chief Executive • Action plan endorsed by Council and shared with Council Committees
  6. 6. Page 6 | Proprietary and Copyrighted Information SMO 7: IFRS SMO 3: ISA SMO 5: IPSAS SMO 2: Education SMO 4: Ethics Building Blocks The Framework
  7. 7. Page 7 | Proprietary and Copyrighted Information Quality Assurance Educations and Examinations Standards Compliance Awareness Achievements
  8. 8. Page 8 | Proprietary and Copyrighted Information Quality Assurance • A Quality Assurance Programme (QAP) has been strengthened. • The QAP is conducted in three-year cycles – 1st cycle was completed in February 2010. – 2nd cycle completed in March 2014. – 3rd cycle is on, so far, reviewed 70 out of 206 firms.
  9. 9. Page 9 | Proprietary and Copyrighted Information Quality Assurance • Notable progress; – Improvement in audit quality as years go by. – Introduction of a Practice Management Course in 2013 to address skills gaps identified through the QAP. – Introduction of a Quality Assurance Board (QAB) to enforce professional standards and to enhance quality assurance.
  10. 10. Page 10 | Proprietary and Copyrighted Information Education & Examinations • Introduction of regular reviews for ICPAU examinations courses - SMO2. • Stakeholder confidence in CPA course. • Engagement of tuition providers.
  11. 11. Page 11 | Proprietary and Copyrighted Information Examinations & Standards • Initial Professional Development – The professional standards are incorporated in the ICPAU courses. [Both Certified Public Accountant (CPA) course and Accounting Technician Diploma (ATD) course]. – IFRS, ISAs, IPSASs and IESBA Code are examinable in both CPA and ATD course.
  12. 12. Page 12 | Proprietary and Copyrighted Information Standards • All professional standards (IFRSs, ISAs, IPSASs) were adopted by ICPAU. • To support implementation, – training is conducted regularly. – Handbooks are regularly made available to members. • Generation of responses to Exposure Drafts and Consultation Papers. • IESBA code is implemented alongside the ICPAU Code.
  13. 13. Page 13 | Proprietary and Copyrighted Information Standards – FiRe Awards • Introduction of Financial Reporting (FiRe) Awards in partnership with the Uganda Securities Exchange and the Capital Markets Authority – FiRe awards conducted for the last five years. – To gauge and monitor implementation of standards – Aim at enhancing the quality of financial and business reporting in Uganda.
  14. 14. Page 14 | Proprietary and Copyrighted Information Compliance • ICPAU’s Investigations and Disciplinary guidelines developed and published in 2013. – Staff recruited to handle investigations and ensure compliance with SMO 6. • ICPAU continues to enhance public awareness of its Disciplinary Committees mechanism and results.
  15. 15. Page 15 | Proprietary and Copyrighted Information Awareness • ICPAU continues to; – Raise awareness of SMO requirements and benefits derived there from, to stakeholders. – Appreciate the role of the Compliance Advisory Panel. – Greatly get involved in IFAC activities • Ease in signing off East Africa Community Institutes of Accountants (EACIA) Mutual Recognition Agreement due to similar approach to the profession.
  16. 16. Page 16 | Proprietary and Copyrighted Information Challenges to SMO Action Plans • Enabling legislation for implementation of all standards. • Greater public expectations compared to professional demands. • Resource constraints. • Increased regulatory demands worsening the resource constraints. • State of Economic environment.
  17. 17. Page 17 | Proprietary and Copyrighted Information Overcoming Challenges • ICPAU adopted a mentorship approach to all its activities. – ICAS was chosen as a twinning partner (mentor) with the support from Uganda Government. – The relationship has helped to strengthen the Institute’s organs. • Sourcing sponsorships for ICPAU events & activities. • Be contented with the natural growth/progression of the profession according to the economic development of the country.
  18. 18. Page 18 | Proprietary and Copyrighted Information Overview of Africa Region • The profession is brought together by Pan Africa Federation of Accountants (PAFA) – With 43 members from 36 countries. – Only 26 PAFA members are participating in SMO Action Plan. • Not all PAFA members are IFAC members. • Regulatory framework is very diverse • Multiple languages used
  19. 19. Page 19 | Proprietary and Copyrighted Information Challenges and Initiatives in Africa • Challenges – Enabling laws – Low levels of private sector economic activities – Resource Constraints & Brain Drain. • Initiatives – Collaborations along economic blocs – Mutual Recognition agreements
  20. 20. Page 20 | Proprietary and Copyrighted Information Conclusion • The development and implementation of the SMO Action Plan has guided ICPAU’s professional activities and development. • Challenges and constraints notwithstanding, ICPAU and PAFA members continue to promote SMO framework as part of the profession’s contribution to the growth and development of strong economies.

×