The Institute of Certified Public Accountants of Cyprus

Transcription

1 The Institute of Certified Public Accountants of Cyprus 1

2 ICPAC Overview Joint Examination Scheme ACCA-ICPAC Continuing Professional Development ICPAC as regulatory and supervisory authority Capacities of a professional accountant Registers Monitoring Disciplinary Committee Cooperation with other bodies / institutions PUBLIC OVERSIGHT BOARD TROIKA & other reviews Updating/supporting Members Practising the profession 2

3 Established in 1961 ICPAC is the competent authority for regulating the accounting / auditing profession in Cyprus. Numbers more than professional accountants as members, and around students. Member composition: mainly ACCAs, ACAs, CPAs and other professional accountants from other countries.

4 A private company limited by guarantee, under the Companies Law (Cap. 113). Self Regulated body in 2001, by the amendment of the Companies Law (L.76(I)/2001). In 2001, the Council of Ministers recognised ICPAC as a competent authority for anti-money laundering activities. In 2002, the Council of Ministers recognised ICPAC as the official accounting body in Cyprus.

5 To provide an organisational framework to all professional accountants of Cyprus To provide professional training, guidance and education to its members To regulate the profession, by means of issuing the practising licences and monitor the work performed by the practising members and their firms To ensure adherence to the Code of Ethics To promote the interests of the members and the profession.

6 Council of 14 members Each term is of 3 yrs duration Max consecutive terms per council member = 4 President has a fixed 2-year term Works as a body and through 3 permanent Committees for corporate governance purposes: Audit committee Nominations & Compensations committee Risk Management committee Investment committee Operates through ad hoc committees too.

7 Council composition Demetris Vakis - President Demetris Halios - Vice President Maria Pastellopoulou - Secretary Members: Andreas Andreou Panicos Charalambous Nicos Chimarides Pieris Marcou Stavros Pantzaris Philippos Raptopoulos Marios Skandalis Spyros Spyrou Demetris Taxitaris Liakos Theodorou Christos Vassiliou

8 9 full time staff members: 1 General Manager, 1 Senior Officers, 7 officers and support staff It operates via 24 specialised committees and specialised working teams It uses the services of specialised partners for specific matters (outsourcing)

9 Accounting Standards Administrative Service Providers Advisory Services Auditing Standards Chief Financial Officers Consultative Committee for SMPs Corporate Governance, Internal Audit and Risk Management Economic Crime and Forensic Accounting Education Energy Financial Services Insolvency International Business and Foreign Investment Larnaca Ammochostos Coordinating Committee Limassol Paphos Coordinating Committee Public Relations Public Sector Shipping Stock Exchange and Capital Markets Taxation VAT Specialized Working Group for Compliance Specialized Working Group for Company Law Specialized Working Group for Ethics & Institutions Committee

10 The Institute has adopted the IFAC Code of Ethics, as it ethical code for all members. All members, irrespective of their professional capacity, they abide by the Code of Ethics and potential breach of the code constitutes a disciplinary offence.

11 Association of Chartered Certified Accountants (UK) Agreement for the outsourcing of the monitoring function Joint Examination Scheme ACCA/ICPAC Continuing Professional Development Schemes Institute of Chartered Accountants in England & Wales Provision of technical support to members Other local arrangements for Tax & VAT support and for AML training and support.

12 Have attained university entrance or equivalent level, possesses the prescribed practical experience and has passed the prescribed examinations of professional competence. Be a member of at least one of the corresponding bodies of Professional Accountants of EU countries, as well as other international bodies. Succeed in the Joint Examination Scheme ACCA- ICPAC.

13 International Federation of Accountants European Federation of Accountants Mediterranean Federation of Accountants

14 ICPAC in numbers as at December 31, 2014: No. Members Practising Members 1023 Practising Firms 622 J.E.S. Students 2904 Graduates 892

15 Practitioners as at December 31, 2014: Type of Practising Certificate Members Firms General Practising Certificate Auditing ASP

16 Number of Members, as at December 31, 2014: Rate of Members growth Annual growth No

17 Practising Members as at December 31, 2014: Type Practising Non-practising Total % 71%

18 ACCA and ICPAC partnered in a JES since 2004 All ACCA students who are Cyprus residents are automatically included in the JES The JES has 3 variant papers out of 14 papers: F4 Cyprus company law F6 Cyprus taxation P6 Cyprus advance taxation More than students follow JES 18

19 ICPAC has established its own CPD scheme, which identical to that of ACCA. Valid CPD activity, is any training activity which is related to the work and duties of each member. Required amount of CPD units = 40 p.a., of which 21 units must be verifiable. One net hour of training is equivalent to 1 CPD unit Submissions: Αnnual CPD declaration (mandatory) CPD evidence review (upon request) 19

20 There are also 3 CPD schemes for employers: Approved Employer (trainee development) Approved Employer (professional development) Approved Employers (practising certificate development audit) ICPAC, via ACCA, monitors the Approved Employer Schemes on a regular basis. 20

21 The Auditors and Statutory Audits of Annual and Consolidated Accounts Law (L.42(I)/2009) Prevention and Suppression of Money Laundering Activities Laws (L.188(I)/2007 and L.58(I)/2010) Law Regulating Companies Providing Administrative Services and Related Matters (L.196(I)/2012) The Insolvency Practitioners Law (L.64(I)/2015) 21

22 ICPAC, under the above laws, Licences (issues separates practising certificates) Monitors Disciplines, and Regulates it members and their firms for the relevant services offered by them. 22

23 Accountant Auditor Tax consultant Administrative Service provider Co. manager Financial controller Internal auditor Banker Analyst Insolvency Practitioner Fund manager Financial advisor Business consultant Investment analyst IT consultant Businessman Tuition provider + many more

24 ICPAC members may be: Practising accountants/auditors/asp s/ip s In public practice, holding a practising certificate. They provide accounting, audit, tax, consulting, trustee, administrative services, etc. Non-practising Working in the public and private sector, banking sector, from any post or role, without being required to have a practising certificate.

25 Base certificate General Practising Certificate Specialisation certificates Practising Certificate and Audit Qualification Provision of Administrative Services Insolvency Practitioner

26 Practising Certificate Auditing Certificate Provision of Administrative Services

27 Members Register Register of Students Register of Graduate Accountants Practising Members Register (per p/c issued) Practising Firms Register (per p/c issued) Register of Insolvency Practitioners 27

28 Register of Trusts Register of subsidiary co s of ASP licensed firms Register of staff of ASP licensed firms 28

29 ICPAC currently performs the following types of monitoring visits: The Audit Monitoring, for all statutory auditors and audit firms The AML/Rules and Regulations review, for ALL LICENSED FIRMS Both have been outsourced to ACCA 29

30 ICPAC has outsourced this function to ACCA since 2005, in order to capitalise on: Their broader experience and knowhow on the subject Their independence from the Cypriot market Their universal application of a similar process (as those followed in UK and other countries)

31 The scope of the audit monitoring visit is to assess the adherence to the Auditor s Law, the accounting and auditing standards, ISQC 1, Code of Ethics and the ICPAC Regulations. (Commenced in 2005) The AML/Rules and Regulations review assesses the adherence to the AML Directive of ICPAC, the AML Law, the ASP Law, the Code of Ethics and the Regulations of the Institute. Both follow a 6-year monitoring cycle, except for the audit firms which have PIEs as clients (3-year cycle). 31

32 Visits performed No of visits 9/

33 OFFSITE SURVEILLANCE Data for all firms is gathered via a standardised questionnaire Data is processed electronically and a risk score is calculated for every firm The firms are classified into three categories, being, High Medium Low risk Data is collected on an annual basis, hence once a year the risk scoring exercise is repeated. 33

34 ONSITE INSPECTION Depending on the results of the risk scoring, the sample for the onsite visits is selected There is priority on High risk firms Other factors are also taken into consideration in order to determine the sample, such as the size of the firm and the previous visit results The onsite inspection is done using ACCA s monitoring programmes (separate for audit and AML). Visit cycle is every 6 years, apart from audit firms which have PIE clients [reviewed every 3 years]. 34

35 ONSITE INSPECTION (cont d) The onsite inspection for the AML/Rules and Regulations review looks into, inter alia, the following: The client acceptance procedures The KYC and Customer Due Diligence performed Identification of Politically Exposed Persons Keeping of proper documentation and accounting records The AML Procedures Manual and the Compliance Officer Information about any Ultimate Beneficial Owners Reporting of any suspicious transactions Education and Training. 35

36 Matters arising from the monitoring visits are referred to the Regulatory Committee. This is a body independent from the Council and the management of the Institute, that examines the unsatisfactory outcomes of visits and imposes measures on the firms for improvement. 36

37 This is a body independent from the Council and the management of the Institute, where complaints, accusations and other allegations are filed. Mainly deals with matters arising form breach of Laws and Regulations, of the Code of Ethics and for conduct and professional issues. Comprises of 15 members (8 non-icpac members:7 ICPAC members) and each tribunal consists of 5 members. The examiner of each allegation and the prosecutor are usually a lawyer.

38 The decisions of the Disciplinary Committee are publicised both in the quarterly magazine Accountancy Cyprus and on the website of the Institute.

39 ICPAC, within its scope as a regulatory authority, cooperates closely with: Ministry of Finance Ministry of Energy, Commerce, Industry and Tourism Public Oversight Board CIPA Cyprus Securities and Exchange Commission Central Bank of Cyprus MOKAS Tax Department Auditor General Accountant General Registrar of Companies Cyprus Stock Exchange KEBE OEB Cyprus Bar Association Cyprus Banks Association Cyprus Shipping Chamber

40 All statutory auditors and ICPAC, as a licensing body, are under the supervision of the Public Oversight Board, as appointed by the Council of Ministers in accordance with the Auditors Law (L.42(I)/2009).

41 : ICPAC is under the quarterly review of TROIKA regarding its role as a competent authority under the AML and the ASP Laws. ICPAC is committed to the Action Plan given by TROIKA and the results so far indicate compliance with the required actions.

42 : ICPAC falls under the review and assessment of other bodies too, such as: Moneyval Global Forum for Transparency and Exchange of Information on Tax Matters World Bank, in the National Risk Assessment project EU Commission

43 This has been effected via: - Seminars & Presentations - Circulars - Announcements Support agreements have been made with companies both local and abroad for the provision of specialised guidance and support. 43

44 Support to members in cooperation with: AML & compliance: IFRS/Audit/Ethics: Tax support: Neofytos Neofytou 44

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