background note on action plans - ifac.org note on action plans ... smo 1 – quality ... ensure...

Action Plan Developed by Accounting Technicians Ireland

BACKGROUND NOTE ON ACTION PLANS Action Plans are developed by IFAC members and associates to address policy matters identified through their responses to the IFAC Compliance Self-Assessment Questionnaires. They form part of a continuous process within the IFAC Member Body Compliance Program to support the ongoing development and improvement of the accountancy profession around the world. Action Plans are prepared by members and associates for their own use based on the national frameworks, priorities, processes and challenges specific to each jurisdiction. As such, they will vary in their objectives, content and level of detail, consistent with their differing national environments and stages of development, and will be subject to periodic review and update. Refer to responses to the Part 1 Assessment of the Regulatory and Standard-Setting Framework Questionnaire and Part 2 SMO Self-Assessment Questionnaire for background information on each member and associate their environment and existing processes. These responses may be viewed at: http://www.ifac.org/ComplianceAssessment/published_surveys.php Use of Information Please refer to the Disclaimer published on the Compliance Program website. ACTION PLAN IFAC Member/Associate: Accounting Technicians Ireland (IATI) Approved by Governing Body: Board of Directors Date Approved: October 2011 Date Published: October 2011


GLOSSARY ASB Accounting Standards Board ATI Accounting Technicians Ireland BOD Board of Directors CAI Chartered Accountants Ireland CARB Chartered Accountants Regulatory Board CPD Continuing Professional Development DOJ Department of Justice IESBA International Ethics Standards Board for Accountants FRSSE Financial Reporting Standard for Smaller Entities IAS International Accounting Standards IASB International Accounting Standards Board IFRS International Financial Reporting Standards PARN Professional Associations Research Network QA Quality Assurance QCF Qualification and Credit Framework ROI Republic of Ireland SMO Statement of Membership Obligations SRG Syllabus Review Group


Action Plan Subject: SMO 1 – Quality Assurance Action Plan Objective: Ensure that our members providing business solutions to the public are guided by Accounting

Technicians Ireland’s Code of Ethics

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Actions Completion Date Responsibility Resource

Background Accounting Technicians Ireland (ATI) Members are not eligible to sign off on audits. Therefore, ATI does not develop any quality assurance review system for their members. ATI members may only become eligible by undertaking further professional accounting qualifications with a professional accountancy body such as Chartered Accountants Ireland or any other accountancy body that qualifies and regulates auditors, as specified by the Companies Acts. Unlike the UK, Registered Auditors in Ireland cannot be a body corporate. Our Members receive regular updates with regard to Money Laundering regulations as set down by the Department of Justice (Republic of Ireland, ROI) and the UK’s Money Laundering Regulations. Accounting Technicians Ireland Members can offer accountancy, taxation, or related consultancy services as a sole trader, a partner or director of a limited company. Accounting Technicians Ireland has introduced Quality Standards as guidelines for their members in general based on the Code of Professional Ethics. Accounting Technicians Ireland’s Quality Standards for members have recently been updated with the publication of a new Code of Professional Ethics. Accounting Technicians Ireland’s Quality Standards are spearheaded by Accounting Technicians Ireland Code of Professional Ethics. The previous Code was originally drafted in 2007 but has been updated now to include guidance for self-employed members as well as those providing taxation services. This Code does not establish rigid rules or mandatory requirements but rather sets out the fundamental principles and expected professional conduct that ATI members and students should practice.

Ongoing Review of Accounting Technicians Ireland Ethical Standards

1. Ongoing We have agreed to provide the Department of Justice with a list of

Ongoing Director of Member

Accounting Technicians Ireland Board of Directors, Ethics


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our members and that body takes the responsibility for making contact with our self employed members.

Services Committee and staff of Member Services Department

Maintaining Ongoing Processes 2. Ongoing Continue to advise members on their

obligations with regard to Money Laundering and Fraud legislation in ROI and Northern Ireland (NI).

Ongoing

See also SMO 3

Director of Member Services

Accounting Technicians Ireland Board of Directors, Ethics Committee and staff of Member Services Department

3. Ongoing Provision of bespoke Continuing Professional Development (CPD) courses especially developed to support our members in practice.

Ongoing Director of Education/ Director of

Member Services

Accounting Technicians Ireland Board of Directors, Accounting Technicians Ireland Executive Staff/ External CPD providers, Chartered Accountants Ireland CPD Department

New Developments 4. Ongoing Introduction of Accounting

Technicians Ireland Quality Standards as guidelines for our members in general.

A new booklet of the updated Code of Professional Ethics has since been re-issued to all members and is also available on our website. In addition, it will be distributed to new members at all graduations and will feature periodically in our member

Ongoing Director of Member Services

Accounting Technicians Ireland Board of Directors/CEO Financial Controller


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newsletter. Maintaining Ongoing Processes 5. Ongoing Annually undertake as a commitment

a review of SMO 1 to ensure we are compliant.

Annually Financial Controller

Accounting Technicians Ireland Board of Directors/International Standards, Chartered Accountants Ireland & CARB

Review of ATI’s Compliance Information 6. Ongoing Perform periodic review of ATI's

response to the IFAC Compliance Self-Assessment questionnaires and update sections relevant to SMO 1 as necessary. Once updated inform IFAC Compliance staff.


Board of Directors, CEO, Director of Education, Director of Member Services.


Action Plan Subject: SMO 2 – International Education Standards Action Plan Objective: To maintain the highest educational standards for Accounting Technicians

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Background Accounting Technicians Ireland is responsible for setting requirements for any student seeking to complete its programme and apply for Membership. Candidates are required to complete a two-year course of study and at least two years practical work experience. The programme of education is delivered by licensed centres throughout the island of Ireland, including Accounting Technicians Ireland professional education programme held at its head office in Dublin.

Our Members are not currently required to complete CPD in order to retain their membership; however, we offer an extensive suite of CPD courses which can be availed of throughout the year. Over the past 12 months we have partnered with the Professional Associations Research Network (PARN) with a view to establishing the benefits to members of compulsory CPD. In 2010, Accounting Technicians Ireland was recognized as an Awarding Organization by Ofqual (the UK/NI regulatory body) and our programme is now on the Qualification and Credit Framework (QCF) as a Level 5 Diploma. Compliance requirements do place some restrictions on the content, structure and certification of our programme. We are currently working towards achieving recognition on the Republic of Ireland qualifications framework (NFQ).

Achieve Recognition for the Qualification Program

7. April 2011

Achieve Recognition for our Programme on the NFQ in the Republic of Ireland.

December 2011 Direction of Education

Board of Directors, Accounting Technicians Ireland Executive Staff.

Considering the Introduction of Mandatory CPD

8. Ongoing Review the need for, and implications of, introducing compulsory CPD for

2012

Director of Member

Board of Directors, Member Services Department


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Members. We believe that for an Accounting Technician qualification, two years practical work experience is sufficient.

Services/ Director of Education

Director of Education, Chartered Accountants Ireland

Maintaining Ongoing Processes 9. Ongoing Continue to review and update the

content and structure of its educational programme in line with best practice and International Accounting Education Standards Board (IAESB) standards.

Ongoing Director of Education /

Syllabus Review Group

Board of Directors, staff Student Services department

10. Ongoing Maintain a high-quality CPD offering to all members in line with current industry needs.


Board of Directors, Director of Education, staff Member Services department

11. Ongoing Maintain compliance with Ofqual regulations to ensure continued recognition on the UK/NI Framework.

Ongoing Director of Education

Board of Directors, Student Services department


response to the IFAC Compliance Self-Assessment questionnaires and update sections relevant to SMO 2 as necessary. Once updated inform

Ongoing Direction of Education



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IFAC Compliance staff.


Action Plan Subject: SMO 3 – IAASB Pronouncements Action Plan Objective: Ensure compliance with SMO 3 in relation to business needs of Accounting Technicians

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Background Accounting Technicians Ireland Members are qualified to prepare financial statements, taxation computations and advise sole traders and partnerships on their business activities but do not carry out audit activities. There is legislation for the term Small, Medium and Large Companies as outlined in the Companies Acts. Audits are carried out in accordance with applicable law and Generally Accepted Accounting Principles (GAAPS) in Ireland including the accounting standards issued by the Accounting Standards Board (ASB) and published by Chartered Accountants Ireland as well as the International Standards on Auditing. Members from the professional accounting bodies such as Chartered Accountants Ireland Certified Public Accountants Ireland and the Association of Chartered Certified Accounts are authorized to carry out audits.

Accounting Technicians are also not required to hold a practicing license/certificate in order to perform their duties. As such, it is not possible for them to sign off an auditor's report. However, they can produce audit reports, if they additionally hold a practicing certificate with one of the senior accountancy bodies.

Maintaining Ongoing Processes 13. Ongoing Communicate with Members on new

legislation that may impact on their work.


BOD, Chartered Accountants Ireland, CARB, staff Member Services Department

14. Ongoing Accounting Technicians Ireland does not have an independent regulatory body, but as partner body with Chartered Accountants Ireland we are guided by their independent regulatory board, the Chartered

Ongoing CEO BOD, CARB, Chartered Accountants Ireland


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Accountants Regulatory Board (CARB), and adopt the principles thereof.

15. 2011 Introduction of new CPD courses to assist members meet obligations concerning audits standards (examples: courses on Preparing for your Audit, How to prepare and evaluate Management Accounts, and Risk Management and Internal Controls).

2011 CEO BOD, CARB, Chartered Accountants Ireland

16. Ongoing Ongoing liaison with Chartered Accountants Ireland and CARB.

Ongoing CEO BOD, Chartered Accountants Ireland, CARB






Action Plan Subject: SMO 4 – The Code of Ethics of the IESBA Action Plan Objective: Continue to monitor and follow the International Ethics Standards Board for Accountants’s

developments

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Background As mentioned above, the latest edition of the Accounting Technicians Ireland Code of Ethics was last published and distributed to members in 2010. Ethics has been incorporated into the syllabus within the Law & Ethics module. Ethics is a compulsory component within the syllabus examination structure. Accounting Technicians Ireland is planning to review and update as necessary the Code of Professional Ethics which was approved by the members at Annual General Meeting in June 2006, and which was reviewed / updated by the Board of Directors in June 2010. The Code of Professional Ethics is available to all members on the Institute’s website, and requires a minimum standard of ethical conduct from Student Members, Affiliates, Members and Fellows. The new Code updated in June 2010 sets out the fundamental principles and expected professional conduct that our members and students should practice. It contains six sections with Sections 1 – 3 applying to all members and the remaining sections applying to members depending on their working circumstances.

Section 1: Provides the context for the Code. Section 2: Sets out the fundamental principles that apply to all members. Section 3: Fleshes out the fundamental principles and provides guidance for all members. Section 4: Provides expanded guidance applicable to members as employees. Section 5: Provides expanded guidance applicable to self-employed members. Section 6: Provides expanded guidance applicable to members who are supplying taxation services, either as employees or as self-employed members.

A new booklet of the updated Code of Professional Ethics has since been re-issued to all members and is also available on our website.


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In addition, it will be distributed to new members at all graduations and will feature periodically in our member newsletter.

Review of Accounting Technicians Ireland Current Ethical Standards

18. April 2011

The Accounting Technicians Ireland Ethics Committee will review the current editions of the International Ethics Standards Board for Accountants (IESBA) and Accounting Technicians Ireland Code of Ethics to determine the changes required to bring its ethical guidelines in parity with the IESBA Code.

2012

Ethics Committee

Board of Directors, Director of Member Services, staff of Member Services

19. Ongoing Accounting Technicians Ireland will draft a revised version of its Code of Ethics based on the above findings for review by the Board of Directors.

2012 Ethics Committee

Board of Directors, Director of Member Services and staff of Member Services department

20. Ongoing Accounting Technicians Ireland will publish and distribute to its members the approved Code of Ethics based on the IESBA Code of Ethics.

2012 Ethics Committee

Board of Directors, Director of Member Services and staff of Member Department. Accounting Technicians Ireland web site

Maintaining Ongoing Processes 21. Ongoing Accounting Technicians Ireland will

continue to monitor and incorporate upcoming changes to the IESBA Code of Ethics for incorporation into

Ongoing Ethics Committee

Board of Directors, Director of Member Services and staff of Member Department


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their own guidelines.

22. Ongoing Accounting Technicians Ireland will include ethical topics as part of its CPD offering.


Director of Education, staff Member Services department



Ongoing Ethics Committee



Action Plan Subject: SMO 5 – International Public Sector Accounting Standards Action Plan Objective: Monitor developments in IPSASB publications, to ensure appropriate compliance and support for

International Public Sector Accounting Standards, consistent with our limited role in the adoption of Accounting Standards in Ireland.

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Date Actions Completion Date Responsibility Resource

Background The International Public Sector Accounting Standards Board (IPSASB) focuses on the accounting and financial reporting needs of national, regional and local governments, related to governmental agencies, and the constituencies they serve, and issues the International Public Sector Accounting Standards (IPSAS). The Irish Government has responsibility for adopting public sector accounting in Ireland and has not established convergence with IPSAS as an objective. Both cash and accrual are permitted for the preparation of financial statements and the Government has no plans to adopt IPSAS.

Accounting Technicians Ireland has no role in the adoption of Accounting Standards in Ireland. A minority of Accounting Technicians Ireland Members work in the Public Sector.

Contributing to the Promotion of IPSAS 24. Ongoing

Annually Review IPSASB publications and IPSAS, with a view to amending/updating syllabus content to reflect developments in relation to Public Sector Accounting.

Annually Director of Education &


IPASB Publications/Accounting Technicians Ireland Executive Staff, Syllabus Review Group

25. Ongoing Annually

Consult/liaise with our partner body, Chartered Accountants Ireland, to ensure harmonization with their approach to supporting/implementing developments in Public Sector Accounting.

Annually Director of Education

Chartered Accountants Ireland Director of Education/Accounting Technicians Ireland Executive Staff


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CAI, via its representation in the Consultative Committee of Accountancy Bodies (CCAB), promotes the work of the International Public Sector Accounting Standards Board (IPSASB) in a variety of forums:

Encouraging use of IPSASs by public sector at relevant fora and inclusion of articles in CAI journal ‘Accountancy Ireland’ promoting IPSAS.

Participating in the Public

Sector Network Group established in 2009 provides further opportunities to promote IPSAS.

Encouraging debate of issues

relating to the adoption of IFRS based requirements for the Irish public sector. For example, this was done with specific Focus Groups and at an Event to discuss IPSAS conceptual Framework.

Ensuring list of relevant IPSAS and IASB standards,


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discussion papers and exposure drafts with details of how to contribute to any CAI events or CAI submissions, are included and updated on the CAI website.

26. Ongoing In line with CAI public sector

accounting policy Accounting Technicians Ireland promotes the work of the International Public Sector Accounting Standards Board (IPSASB) at both student and member levels. Accounting Technicians Ireland’s Education Board meets 4 times a year and in accordance with its terms of reference oversees the development of the Awarding Organisation qualifications and in particular oversees the Syllabus Review Group. The Chair of the Education Board also Chairs the CAI Public Sector Network Group. This link provides a natural flow of communication between both bodies in relation to public sector accounting standards.


Chartered Accountants Ireland Director of Education/Accounting Technicians Ireland Executive Staff


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Maintaining Ongoing Processes

27.

Ongoing Bi-

monthly

Monitor IPSASB issuance of IPSAS and publications, and distribute appropriate content to our members, using our bi-monthly members’ezine.

Bi-monthly Director of Member Services

IPASB Publications/Accounting Technicians Ireland executive staff






Action Plan Subject: SMO 6 – Investigation and Discipline Action Plan Objective: Review and update as necessary the disciplinary process & code of professional ethics and continue to

apply disciplinary process and investigate complaints to ensure public confidence in the Accounting Technicians Ireland qualification

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Background Accounting Technicians Ireland developed a Code of Professional Ethics, which requires a minimum standard of ethical conduct from all Student Members, Affiliates, Members and Fellows. The Code of Professional Ethics is underpinned by a Disciplinary Procedure, whereby complaints are investigated impartially and thoroughly, and sanctions are imposed in the event of material non-compliance with the regulations of the Institute. The Complaints Committee and Disciplinary Panel operate independently of the Board of Directors, but is accountable to the Board for the effective operation of the Disciplinary Procedure. The Company Secretary reports on a regular basis to the Board of Directors in relation to the operation of the Disciplinary Procedure. Both the Accounting Technicians Ireland Code of Ethics and general business ethics are taught and examined as part of our syllabus. All Membership groups are bound by the Accounting Technicians Ireland Rules and Regulations which stipulate the standards required when undertaking further education or examinations. Accounting Technicians Ireland is planning to review and update as necessary the Disciplinary Process, which was approved by the members at the Annual General Meeting in June 2006, and which was reviewed / updated by the Board of Directors in June 2009. The Disciplinary Procedure is available to all members on the Institute’s website.

Reviewing the Disciplinary Process 29. July 2011 Review and update as necessary the

Disciplinary Process, not less September 2011 Company

Secretary Board of Directors, CEO


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frequently than every two years.

Maintaining Ongoing Processes 30. July 2012 Review and update as necessary the

Code of Professional Ethics, not less frequently than every two years

September 2012 Company Secretary

Board of Directors, CEO

31. Ongoing as

required

Investigate complaints promptly and thoroughly, liaising with the complainant, and publishing (as appropriate) the results of completed disciplinary enquiries

As required Head of Professional

Conduct

Complaints Committee/Disciplinary Panel

32. Ongoing Quarterly

Report to the Board of Directors the quantity and severity of complaints under review by the Complaints Committee and Disciplinary panel. Advise the Board of Directors of the Public Interest implications (if any) of any complaints under investigation.

Quarterly Head of Professional

Conduct


33. Ongoing Ensure the availability of the Disciplinary procedure information and the disciplinary flowchart for their members on ATI website.

Ongoing Head of Professional

Conduct


34. Ongoing Continue to apply the Disciplinary Process and to investigate Complaints, so as to ensure public confidence in the Accounting Technicians Ireland qualification, and

Ongoing Head of Professional

Conduct



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in the competence and integrity of our members.

Review of ATI’s Compliance Information 35. Ongoing Perform periodic review of

ATI's response to the IFAC Compliance Self-Assessment questionnaires and update sections relevant to SMO 6 as necessary. Once updated inform IFAC Compliance staff.




Action Plan Subject: SMO 7 – International Financial Reporting Standards Action Plan Objective: Continue to promote International Financial Reporting Standards to ensure appropriate compliance and

support for Accounting Technicians, consistent with our limited role in influencing the adoption of Accounting Standards in Ireland.

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Background In accordance with the European Union (EU) Regulation (EC) 1606/2002 concerning the application of International Accounting Standards and as endorsed by the European Commission (EC), International Financial Reporting Standards (IFRS) are mandatory for the preparation of financial statements of consolidated financial statements of listed entities. In addition, non-listed entities are permitted to apply IFRS for their consolidated financial statements. As a Membership Professional Accountancy Organization for Accounting Technicians IATI is not formally part of the Irish Structure for the development of national accounting standards thus the ability to influence the incorporation of standards into national accounting requirements is somewhat limited. However, we liaise closely with our partner body Chartered Accountants Ireland in this respect. As an increasing number of our students are continuing their studies in the accounting profession it behoves us to provide a solid platform for the future. We have in the past supported, and continue to support, the adoption of the Financial Reporting Standard for Smaller Entities (FRSSE). We have introduced the International Accounting Standards (IAS) to our Syllabus since 2009 and will continue to expand on these as deemed appropriate. Those standards currently included are; IAS 1, IAS 2, IAS 7, IAS 8, IAS 10, IAS 16, IAS 17, IAS 20 and IAS 37.

Providing Comments to the IASB

36. Ongoing Quarterly

Continue to respond to consultations/recommendations of the International Accounting Standards Board (IASB), particularly where these impact on Accounting Technicians.

Quarterly Director of Education

IASB Publications/Accounting Technicians Executive and Expert Practitioners


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New Developments

37. Ongoing Introduce progressively and as required other IAS’s to complement those already adopted for the syllabus.

Ongoing CEO/Director of Education

Directors of Education Accounting Technicians Ireland and Chartered Accountants Ireland and Syllabus Review Group.

Maintaining Ongoing Processes 38. Ongoing

Annually Review IASB and Accountancy Ireland publications, with a view to amending/updating syllabus content to reflect developments in relation to IFRS’s and IAS.

Annually Director of Education,


IASB Publications/Accounting Technicians Ireland Executive Staff/Syllabus Review Group, Accountancy Ireland

39. Ongoing Annually

Consult/liaise with partner body, Chartered Accountants Ireland, to ensure harmonization with their approach to supporting/implementing developments in International Accounting Standards.

Ongoing CEO/Director of Education

Directors of Education (Accounting Technicians Ireland and Chartered Accountants Ireland)/ Accounting Technicians Ireland Executive Staff, Board of Directors and External Practitioners.

Review of IATI’s Compliance Information 40. Ongoing Perform periodic review of IATI's




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