BACKGROUND NOTE ON ACTION PLANS
SMO Action Plans are developed by IFAC Members and Associates to demonstrate fulfillment of IFAC Statements of Membership Obligations (SMOs). SMOs require IFAC Members and Associates to support the adoption
1and implementation
2of international standards and other pronouncements issued by independent standard-setting boards under the auspices of IFAC as well as by the International Accounting Standards Board (IASB); and to establish a Quality Assurance (QA) review and Investigation and Disciplinary (I&D) systems.
IFAC Members and Associates conduct a self-assessment against the requirements of SMOs and identify areas where improvements are needed.
Based on the results of the assessment, Members and Associates develop an SMO Action Plan to (a) demonstrate how they fulfill the requirements of the SMOs and (b) where some requirements are not yet addressed, to present plans towards their fulfillment.
SMO Action Plans are designed to be ever-green documents that provide a comprehensive description of the accountancy profession and its legislative and regulatory environment in the jurisdiction as well as the actions undertaken by IFAC Members or Associates to support adoption and implementation of international standards and best practices.
Regular updates of the SMO Action Plans are required as part of the IFAC Member Compliance Program.
Use of Information
Please refer to the Disclaimer published on the IFAC Member Compliance Program website.
ACTION PLAN
IFAC Member: Institute of Certified Public Accountants of Uganda
Approved by: CEO of the Institute of Certified Public Accountants of Uganda Original Published Date: May 2009
Last Updated: April 2016
Next Update: April 2018
1 Adoption is concerned with the decision that international standards are appropriate for use in specific national financial reporting environments and with the actions necessary to effect those decisions, including incorporation into national requirements or requiring the use of international standards through law. Adoption may include a process to review draft international standards, translation, public exposure of proposed standards, approval, incorporation into national requirements as necessary, and promulgation of final standards, and, where applicable, a convergence process to eliminate or minimize differences between international and national standards.
2 Implementation may include a process to build awareness of the adopted standards, provide relevant education and training, develop or disseminate implementation guidance and any other activities that promote proper understanding and use of the standards in practice.
ATD Accounting Technicians Diploma CEO Chief Executive Officer
CIPFA Chartered Institute of Public Finance and Accountancy CPA Certified Public Accountant
CPD Continuing Professional Development CTA Certified Tax Advisor
IAASB International Auditing and Assurance Standards Board IAESB International Accounting Education Standards Board IASB International Accounting Standards Board
ICAS Institute of Chartered Accountants of Scotland ICPAU Institute of Certified Public Accountants of Uganda IES International Educational Standards
IESBA International Ethics Standards Board of Accountants IFAC International Federation of Accountants
IFRS International Financial Reporting Standards IPSAS International Public Sector Accounting Standards IPSASB International Public Sector Accounting Standards Board IRBA Independent Regulatory Board of Auditors
ISA International Standards on Auditing ISQC International Standard on Quality Control QAB Quality Assurance Board
PAEB Public Accountants Examinations Board
SME Small and Medium-sized Entities
SMO Statement of Members Obligations
SMP Small and Medium Practitioners
The Accountants Act, 2013
The Institute of Certified Public Accountants of Uganda (ICPAU) was established in 1992 by the Accountants Act, Cap 266. The Act was repealed and replaced by the Accountants Act, 2013. The functions of the Institute under the new Act are to: regulate and maintain the Standard of Accountancy in Uganda; and to prescribe and regulate the conduct of accountants and practising accountants in Uganda.
East African Community (EAC) Mutual Recognition Agreement
In September 2011, the Institute of Certified Public Accountants of Uganda (ICPAU), the Institute of Certified Public Accountants of Rwanda (ICPAR), the Institute of Certified Public Accountants of Kenya (ICPAK), the National Board of Accountants and Auditors (NBAA) of Tanzania and the Ordre des Professionnels Comptables (OPC) of Burundi signed a mutual recognition agreement (MRA) to promote the development of the accountancy profession in the East African region. The agreement provides for mutual recognition of the respective accountancy qualifications, institutional capacity building, development of learning material and cooperation in areas of standard setting & implementation, disciplinary measures, member education and quality assurance reviews.
DFID-IFAC Professional Accountancy Organisation Capacity Development Programme
Under a project funded by the Department for International Development (DFID) aimed at developing the accountancy profession in emerging
economies, the International Federation of Accountants (IFAC) engaged the Institute of Chartered Accountants of Scotland (ICAS) and the
Chartered Institute of Public Finance and Accountancy (CIPFA) to partner with the Institute of Certified Public Accountants of Uganda (ICPAU) to
strengthen accountancy education, qualification, and examinations; quality assurance; continuing professional development; and public sector
financial management in Uganda. The work under this project is scheduled for completion by 31 March 2017.
Action Plan Objective: To develop and implement a Quality Assurance Review System in line with SMO 1 requirements.
Background:
Section 36 of Accountants Act 2013 establishes the Quality Assurance Board (QAB) of ICPAU with the responsibility of implementing a Quality Assurance Programme and monitoring compliance with professional standards. Audit Quality Reviews are conducted as part of the Institute’s Quality Assurance Programme.
Since 2007, ICPAU has conducted mandatory audit quality reviews, of all registered accounting firms in Uganda, in three-year cycles. The audit quality reviews cover all audits of financial statements. Accounting firms are required to implement and maintain a quality control system in accordance with the most update version of ISQC 1 and relevant ISAs issued by the IAASB.
The audit quality reviews are conducted by staff of the Institute who constitute the Quality Review Team. The Quality Review Team is required to be independent of the accounting firms reviewed and to maintain a high level of expertise. The Quality Review Team maintains documentation of evidence to support independence and the conduct of the audit quality reviews and issues a report for each accounting firm that is reviewed.
The second cycle of audit quality reviews was completed in March 2014 and report presented to the Council and the members of ICPAU. The third cycle of audit quality reviews commenced in April 2014. The ICPAU Quality Assurance Framework was updated in May 2014 to bring it in line with the Accountants Act, 2013 and SMO 1 (Revised). ICPAU’s Quality Assurance Programme meets all the requirements of SMO 1 (Revised).
# Start Date Actions Completion
Date Responsibility Resource Design and Implementation of the Quality Assurance Review System
1. January 2015 Review and update Quality Assurance training content. December 2016 Quality Assurance Board
Quality Review Team
2. April 2014 Conduct the 3
rdcycle of audit quality reviews of all
licensed accounting firms. April 2017 Quality Assurance
Board
Quality Review Team
3. April 2014
Provide quarterly activity reports on the progress of the quality assurance programme to the Quality Assurance Board.
April 2017 Secretary of QAB Quality Review Team
4. April 2014
Refer Practising Accountants to the ICPAU Disciplinary Committee based on the results of the Audit Quality Reviews.
May 2017 Quality Assurance Board
Secretary of QAB, Quality Review
Team
# Start Date Actions Completion
Date Responsibility Resource Development of Resources to Support the Quality Assurance Review System
5. December 2015
Conduct training for Practising Accountants on quality
control and practice management. Annually Education
Committee
Technical Staff, CEO of ICPAU
6. January 2016
Develop guidance and tools, to support small and medium practitioners (SMPs) in the areas of practice management, human resources management, client engagement and disengagement, engagement performance and monitoring.
December 2017 Technical Committee Technical Staff
Review and Continuously Improve the Quality Assurance Review System
7. January 2015
Provide training for the Quality Assurance Team.
Examples of trainings conducted on an annual basis include review of SMO 1, ISAs, IFRSs, IFRS for SMEs, IPSAS and IESBA Code of Ethics.
December 2017
Quality Assurance Board, CEO of
ICPAU
Quality Review Team, ICAS
8. January 2016 Provide training for the team responsible for audit
quality related training. December 2016 CEO of ICPAU Quality Review
Team, ICAS
9. January 2015
Continuously update the ICPAU Quality Assurance methodology and review procedures to reflect changes in the standards and the regulatory environment.
Ongoing Quality Assurance Board
Quality Review Team
Maintaining Ongoing Processes
10. Ongoing
Create awareness through magazines, e-newsletters and seminars, make available by providing website links to the Implementation Guides issued by IFAC’s SMP Committee.
Ongoing Technical Committee Technical Staff
11. Ongoing
Ensure that training and awareness about requirements of ISQC 1 and the ISAs are incorporated in the CPD programme.
Ongoing Educational
Committee Technical Staff
12. Ongoing
Ensure that ICPAU’s Quality Assurance Review is effective and operates in compliance with SMO 1 requirements.
Ongoing Quality Assurance Board
Quality Review
Team
Date Review of ICPAU’s Compliance Information
13. Annually Review the SMO 1 information annually and provide
regular updates to the IFAC compliance staff. Annually CEO of ICPAU Compliance Staff
Action Plan Subject: SMO 2–International Education Standards for Professional Accountants and Other Pronouncements Issued by the IAESB
Action Plan Objective: To ensure that ICPAU’s Ongoing Processes adopt and implement IAESB Pronouncements.
Background:
The Public Accountants Examination Board (PAEB) as provided for under Section 15 of the Accountants Act 2013 designs the syllabus, conducts the examinations for the Certified Public Accountants (CPA) and Accounting Technicians Diploma (ATD) qualification, appoints and trains examiners, and defines the rules governing the examinations process. Since 2007, the PAEB and the Education Committee have mapped the ICPAU syllabi to the IESs to ensure that the Initial Professional Development Requirements are met in the ICPAU courses.
Under the Universities and Other Tertiary Institutions Act, 2001 (as amended), the National Council of Higher Education as supervisor of both accountancy and non-accountancy tertiary institutions does not develop or maintain any syllabi and curricula in its own right. NCHE’s role under the law is to “receive, consider and process applications for accreditation of the academic and professional programmes...in consultation with Professional Associations and Regulatory Bodies”. ICPAU is required by law to supervise and regulate the practical training and education and to advise regulators of educational institutions on the curricula of study in accountancy related courses. As such, the PAEB/ICPAU have sufficient discretion and autonomy in designing and determining the syllabi and curricula of its courses.
In 2014, PAEB reviewed and updated the CPA and ATD syllabi to bring them in line with the revised IESs and other changes in legislation. A new Certified Tax Advisor (CTA) qualification was also introduced by PAEB. The revised syllabi (CPA and ATD) and the new CTA qualification will be examined starting 2016.
The candidates for ICPAU membership are required to complete approved professional examinations. To qualify for ICPAU membership, CPA graduates must obtain a minimum of three years of practical experience. In August 2014, the Council of ICPAU approved the ICPAU practical training guidelines which were developed in line with requirements of IES 5 (revised). The practical training guidelines provide competency framework focused on work outcomes, in both technical and non-technical areas, that must be achieved by an applicant for ICPAU membership.
In December 2013, the ICPAU CPD guidelines were revised to ensure that they meet the requirements of IES 7 (revised). The Council of ICPAU implements licensing requirements that ensure that Certified Public Accountants performing the role of an Engagement Partner demonstrate the level of professional competence required by IES 8 (revised).
ICPAU’s Initial Professional Development and Continuing Professional Development Requirements comply with the IESs.
# Start Date Actions Completion
Date Responsibility Resource Continuous Improvement of the Required Accounting Education Content
14. January 2016 Implement the revised CPA and ATD syllabi, and the
new CTA syllabus. December 2020 PAEB Examinations Staff
Date
15. January 2015
Develop study materials for the CPA and ATD qualifications and ensure that study materials are in line with the most recent IFRS, IFRS for SMEs, ISAs, ISQC 1, and the Code of Ethics for Professional Accountants, and IPSASs.
December 2016 Education Committee Examinations Staff, ICAS
16. January 2015
Conduct reviews and participate in the accreditation/recognition of accountancy training providers.
Ongoing
Education Committee, National Council for
Higher Education
ICPAU Staff
17. January 2016
Conduct annual reviews of the ICPAU education syllabus and examinations administration system and address on existing gaps.
December 2020 PAEB Examinations Staff
18. January 2016 Identify and implement measures to improve training
provision by accountancy training providers. December 2018 Education Committee Examinations Staff
19. January 2016 To develop a system to effectively and efficiently
monitor institutions providing accountancy education. December 2018 Education Committee Examinations Staff, ICAS
20. Ongoing
Share the revised IESs with all accountancy training providers and continue to raise awareness of IESs among all relevant stakeholders.
Ongoing Education Committee Examinations Staff
Implementation of Practical Experience Requirements
21. January 2015
Implement the ICPAU practical training guidelines and conduct implementation workshops and developing guidance for both trainees and employers.
December 2018 Education Committee CEO of ICPAU, ICPAU Staff, ICAS
22. January 2016 Conduct a pilot program to implement the ICPAU
practical training guidelines. December 2016 CEO of ICPAU ICPAU Staff
23. January 2015 Assess, approve and review practical training
providers. December 2018 Education Committee CEO of ICPAU,
ICPAU Staff
24. Ongoing Continue to review and vet the practical experience
obtained by applicants for ICPAU membership. Ongoing Members’ Services Committee
CEO of ICPAU,
ICPAU Staff
# Start Date Actions Completion
Date Responsibility Resource Continuous Improvement of the CPD programme
25. January2015 Ensure full compliance by practicing accountants with
the revised CPD guidelines. Ongoing CEO of ICPAU Technical Staff
26. January 2015 Continuously improve the online CPD reporting
system. Ongoing CEO of ICPAU IT Staff
27. Annually Randomly sample and review ICPAU members for
compliance with CPD requirements. Annually CEO of ICPAU ICPAU Staff
28. Annually Publish an annual report on member’s compliance with
CPD obligations. Annually CEO of ICPAU ICPAU Staff
29. January 2016
Review and enhance the material supporting the ICPAU CPD Program and compliance monitoring system focusing on the practical application of IFRS, IFRS for SMEs, ISAs, ISQC 1, IPSASs and the IESBA Code.
December 2016 Council of ICPAU
CEO of ICPAU, Technical Staff,
ICAS
Competence of Engagement Partners
30. October 2015 Provide training on the requirements of IES 8 (revised). June 2016 Education Committee Technical Staff
31. January 2016 Review Practising Accountants for compliance with IES
8 requirements. Ongoing Quality Assurance
Board
Quality Review Team Use of IAESB Resources and Tools to Support Implementation of the Revised IESs
32. January 2016 Conduct training for the ICPAU staff on the revised
IESs. December 2016 CEO of ICPAU ICPAU Staff
33. January 2016
Review the processes and the system for monitoring, tracking, and quality control in support of the professional qualifications.
December 2017 CEO of ICPAU Examinations Staff, ICAS
34. January 2016 Conduct training for the ICPAU staff on Development
and Management of Written Examinations. December 2016 CEO of ICPAU ICPAU Staff
Date
35. January 2016 Use the Ethics Education Toolkit to carry out ethics
training for Practising Accountants. December 2017 CEO of ICPAU Technical Staff Maintaining Ongoing Processes
36. January 2016
Provide training for ICPAU’s examiners, moderators and accountancy trainers on the revised CPA and ATD syllabi.
December 2016 CEO of ICPAU Examinations Staff
37. Ongoing Provide training for the examinations staff on
accountancy education and assessment. Ongoing CEO of ICPAU Examinations Staff
38. Ongoing
Conduct a periodic review of the ICPAU education syllabus to ensure that it continues to meet IES requirements.
Ongoing PAEB Examinations Staff
39. Ongoing Continue to implement a CPD Training Programme and
promote compliance with CPD requirements. Ongoing Education Committee ICPAU Staff
40. Ongoing Continue to make comments on IAESB’s Consultation
Papers and Exposure Drafts. Ongoing Education Committee Examinations Staff, Technical Staff
41. Ongoing
Continuously update members and other stakeholders on the Pronouncements, Exposure Drafts and other Papers issued by the IAESB.
Ongoing CEO of ICPAU Technical Staff
Review of ICPAU’s Compliance Information
42. Ongoing Continue to review the SMO 2 information annually and
provide regular updates to the IFAC compliance staff. Annually CEO of ICPAU Compliance Staff
Action Plan Subject: SMO 3–International Standards and other Pronouncements Issued by the IAASB
Action Plan Objective: To ensure that ICPAU’s Ongoing Processes adopt and implement IAASB Pronouncements.
Background:
The Council of ICPAU has the responsibility, under Section 12 of Accountants Act 2013 of approving the auditing standards in Uganda. Since 1999, all ISAs issued by the International Auditing and Assurance Standards Board (IAASB) have been adopted for application in Uganda without modifications and become effective on the dates prescribed by the IAASB. All the clarified ISAs are applicable in Uganda.
# Start Date Actions Completion
Date Responsibility Resource Continuous Improvement of the Adoption and Implementation of IAASB’s Standards
43. Annually Review Practising Accountants for compliance with
IAASB’s Standards. Annually Quality Assurance
Board
Quality Review Team
44. October 2015 Conduct training on the revised and new auditor
reporting standards. December 2016 Education
Committee Technical Staff
45. January 2016 Update training and CPD materials on ISA
requirements. December 2017 Education
Committee Technical Staff
46. January 2015 Create awareness and publish articles on requirements
of revised and new auditor reporting standards. December 2016 CEO of ICPAU Technical Staff
47. January 2016 Actively promote the SMP Guides on Review
Engagements and Compilation Engagements. December 2017 Education
Committee Technical Staff
48. January 2016
Develop practice guides, information papers, sample documents, manuals and audit programmes to assist SMPs to apply IAASB pronouncements.
Ongoing Technical Committee Technical Staff
49. Ongoing
Create awareness through magazine articles, e- newsletters and seminars and encourage use of Implementation Guides and other resource tools developed by the IAASB Staff and the SMP Committee.
Ongoing Technical Committee Technical Staff
50. Ongoing Continue to create awareness and knowledge of IAASB
pronouncements. Ongoing Technical Committee Technical Staff
Date Participate in the Development of IAASB’s Standards
51. Ongoing
Regularly provide a summary, to all members, on the IAASB exposure drafts requiring comment and receive their input and views.
Ongoing CEO of ICPAU Technical Staff
52. Ongoing Make comments on IAASB’s Consultation Papers and
Exposure Drafts. Ongoing Technical Committee Technical Staff
Maintaining Ongoing Processes
53. Ongoing
Continue to ensure that ICPAU’s education syllabus includes testing of knowledge of IAASB pronouncements.
Ongoing PAEB Examinations Staff
54. Ongoing Continue to support Ongoing adoption and
implementation of the IAASB pronouncements. Ongoing Technical Committee CEO of ICPAU, Technical Staff Review of ICPAU’s Compliance Information
55. Ongoing Annually review SMO 3 information and provide regular
updates to the IFAC compliance staff. Annually CEO of ICPAU Compliance Staff
Action Plan Subject: SMO 4–IESBA Code of Ethics for Professional Accountants
Action Plan Objective: To ensure that ICPAU’s Ongoing processes adopt and implement the IESBA Code of Ethics.
Background:
Section 38 of the Accountants Act 2013 provides for a Professional Code of Ethics for accountants in Uganda. ICPAU currently implements the ICPAU Code of Ethics alongside the IESBA Code of Ethics for Professional Accountants. Practising accountants are required to comply with both the ICPAU and IESBA Code of Ethics under the ICPAU Quality Assurance Programme. In addition, the ICPAU Disciplinary Committee relies on both the ICPAU and IESBA Code of Ethics as a basis for disciplinary action.
Secondary regulations are being developed to support the implementation of the IESBA Code of Ethics.
# Start Date Actions Completion
Date Responsibility Resource Implementing the IESBA Code of Ethics
56. January 2015
Promote awareness through magazine articles, e- newsletters and seminars of IESBA Code of Ethics and make available relevant implementation material.
Ongoing CEO of ICPAU Technical Staff
57. January 2015
Provide training on various aspects on the IESBA Code of Ethics by incorporating ethics topics into various CPD seminars.
Ongoing Education
Committee Technical Staff
58. Annually Review Practicing Accountants for compliance with the
ICPAU and the IESBA Code of Ethics. Ongoing Quality Assurance Board
Quality Assurance Team
59. Ongoing
Publish decisions of the Disciplinary Committee and the results of any interpretation/advice on ethical questions that are of broad interest to ICPAU members.
Ongoing Technical Committee Technical Staff
Updating the ICPAU Code of Ethics and Supporting Ethical Compliance 60. January 2015 Issue Regulations prescribing the Professional Code of
Ethics for accountants in Uganda. December 2017 Minister for Finance CEO of ICPAU,
ICPAU Staff
Date
61. January 2015
Development of guidance and support tools to assist members to apply the IESBA Code of Ethics and circulate to them the website link to the IESBA Code of Ethics.
Ongoing Technical Committee Technical Staff
Raise Awareness and Participate in the Development of IESBA’s Standards
62. Ongoing
Regularly provide a summary, to all members, on the IESBA’s Exposure Drafts and Consultation Papers requiring comments and receive their input and views.
Ongoing CEO of ICPAU Technical Staff
63. Ongoing Make and submit comments on IESBA Work Programs,
Consultation Papers and Exposure Drafts. Ongoing Technical Committee Technical Staff
64. Ongoing
Continue to support accountancy education providers to ensure coverage of the requirements of the IESBA Code as required in the ICPAU syllabi.
Ongoing Education
Committee Examinations Staff
Maintaining Ongoing Processes
65. January 2016 Update the CPD programme and training materials to
align with the IESBA Code of Ethics. December 2017 Education
Committee Technical Staff
66. Ongoing
Continue to ensure that the ICPAU’s education syllabus includes testing of the knowledge of Professional Values, Ethics and Attitudes.
Ongoing PAEB Examinations Staff
67. Ongoing Continue to support the Ongoing adoption and the
implementation of the IESBA Code of Ethics. Ongoing CEO of ICPAU Technical Staff Review of ICPAU’s Compliance Information
68. Ongoing Annually review SMO 4 information and provide regular
updates to the IFAC compliance staff. Annually CEO of ICPAU Technical Staff
Action Plan Subject: SMO 5–International Public Sector Accounting Standards and Other Pronouncements Issued by the IPSASB Action Plan Objective: To continue to use best endeavours to assist the adoption and implementation of IPSASs in Uganda.
Background:
Section 12 of the Accountants Act empowers the Council of ICPAU to issue or adopt both private and public sector accounting standards in Uganda.
Since 2006, all IPSASs, issued by the International Public Sector Accounting Standards Board (IPSASB), have been adopted for application in Uganda without modifications.
Under section 3 and 46 of the Public Finance Management Act 2015 the Accountant General has authority to approve the accounting standards to be used in preparation of the financial statements by government entities. The Accountant General currently implements a modified form of the Cash Basis IPSAS and has expressed commitment towards full adoption of Accrual IPSAS.
# Start Date Actions Completion
Date Responsibility Resource Continue to Develop and Maintain an Active Program for Adoption and Implementation of IPSASs in Uganda
69. Ongoing
Regularly provide a summary, to all members, on the IPSASB’s Exposure Drafts and Consultation Papers, requiring comments and receive their input and views.
Ongoing CEO of ICPAU Technical Staff
70. Ongoing
Continue to raise awareness and knowledge of the IPSASB’s Standards through magazine articles, e- newsletters and seminars.
Ongoing Technical Committee Technical Staff
71. January 2016
Continue to work closely with the Accountant General’s Office to agree on a roadmap and strategies for IPSAS implementation by:
Developing a situation report on PFM reform in Uganda;
Building a knowledge bank on PFM reform in Uganda;
Identifying existing capabilities, capacity gaps and resources for IPSAS implementation; and
