Download PDF1.28MB ACCA Global practising regulations

493 Pages·2012·1.28 MB·English

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Rulebook
£20.00
ACCA
29 Lincoln’s Inn Fields
London
WC2A 3EE
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E-mail: [email protected]
Internet: www.accaglobal.com
© The Association of Chartered Certified Accountants (ACCA) 2013
No part of this publication may be reproduced,
in any format, without the prior written permission of ACCA.
ISBN 978-1-85908-481-6
January 2013
Typeset & Printed in the UK by Innerworkings Europe Ltd, Solihull B90 4RZ
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Contents
Rulebook
Contents

Page
Section 1
Royal Charter and bye-laws
1.1 Royal Charter ................................................................................................................3
1.2 Bye-laws
Definitions .........................................................................................................................11
Members ...........................................................................................................................12
Students ...........................................................................................................................13
Practising certificates .......................................................................................................14
Insolvency licences ...........................................................................................................15
Investment business .........................................................................................................15
General .............................................................................................................................17
Liability to disciplinary action ..........................................................................................17
Disciplinary process .........................................................................................................18
Obligation to co-operate and inform .............................................................................20
Application and interpretation ........................................................................................20
Appointment of regulatory board ..................................................................................21
Elections and appointments to Council .........................................................................21
Council ...........................................................................................................................27
Committees ......................................................................................................................27
Local branches and committees .....................................................................................27
Proceedings of the Council .............................................................................................27
Staff ....................................................................................................................................28
Accounts and audit ..........................................................................................................28
Indemnity ..........................................................................................................................28
Investments .......................................................................................................................29
General meetings .............................................................................................................30
Proceedings at general meetings ...................................................................................31
Common Seal ...................................................................................................................33
Notices ..............................................................................................................................34
Annex 1 – The Chartered Certified Accountants’ Fees Regulations 2012 ...................35
Annex 2 – The Chartered Certified Accountants’ Electronic Communications
Regulations 2002 ....................................................................................................36
Annex 3 – The Chartered Certified Accountants’ Online Provision of Annual
Reports and Notices Regulations 2006 .................................................................38
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Page
Section 2
Regulations
Introduction .....................................................................................................................42
2.1 The Chartered Certified Accountants’
Membership Regulations 1996
Citation, commencement and application ...................................................................43
Interpretation ...................................................................................................................43
Eligibility for membership ..............................................................................................45
Members’ obligations and rights ...................................................................................49
Eligibility for affiliate status ............................................................................................53
Affiliates’ obligations and rights ....................................................................................53
Eligibility for registered student status .........................................................................54
Registered students’ obligations and rights .................................................................55
Application procedure to become a member or registered student .........................58
Resignation of member, affiliate or registered student status ....................................61
Removal of member, affiliate or registered student for non-payment .......................61
Removal of member for non-compliance with CPD regulations ................................62
Bankruptcy .......................................................................................................................62
Readmission ....................................................................................................................64
General ............................................................................................................................65
Appendix 1 – ACCA Qualification examination structure ...........................................66
Appendix 2 – Practical experience requirement (PER) .................................................67
Appendix 3 – Foundations in Accountancy Suite of Qualifications
examination structure ............................................................................................69
Appendix 4 – Required experience to obtain Certified Accounting
Technician status ....................................................................................................70
2.2 The Chartered Certified Accountants’
Global Practising Regulations 2003
Citation, commencement and application ...................................................................73
Interpretation ...................................................................................................................73
Restrictions on carrying on public practice ...................................................................75
Meaning of public practice ............................................................................................75
Practising certificate ........................................................................................................76
Eligibility for a practising certificate ..............................................................................76
Qualifications ...................................................................................................................77
Fit and proper persons ...................................................................................................78
Professional indemnity insurance ..................................................................................79
Continuing professional development ..........................................................................81
Continuity of practice .....................................................................................................82
Notification ......................................................................................................................83
Conduct ...........................................................................................................................85
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Monitoring, quality assurance and compliance ............................................................85
Disclosure of information ...............................................................................................85
Appendix 1 – Competences of practising certificate holders .....................................86
Annexes:
Annex 1 – Additional Practising Regulations for the United Kingdom,
Jersey, Guernsey and Dependencies and the Isle of Man ..........................................88
Annex 2 – Additional Practising Regulations for the Republic of Ireland ................107
Annex 3 – Additional Practising Regulations for Cyprus ...........................................122
Annex 4 – Additional Practising Regulations for Zimbabwe .....................................127
Annex 5 – Additional Practising Regulations for Australia ........................................132
2.3 The Chartered Certified Accountants’
Designated Professional Body Regulations 2001
Citation, commencement and application .................................................................135
Interpretation .................................................................................................................136
Eligibility to carry on regulated activities ....................................................................145
Scope .............................................................................................................................148
Independence ...............................................................................................................152
Relations with clients ....................................................................................................153
Compliance procedures ...............................................................................................156
Enforcement ..................................................................................................................157
Waivers and service ........................................................................................................158
Liability ...........................................................................................................................159
2.4 The Chartered Certified Accountants’
Irish Investment Business Regulations 2013
Citation, commencement and application .................................................................160
Interpretation .................................................................................................................161
Eligibility for an investment business certificate (Ireland) ..........................................164
Scope .............................................................................................................................167
Consumer Protection ....................................................................................................170
Independence ...............................................................................................................171
Relations with clients ....................................................................................................171
Effecting transactions for clients ..................................................................................172
Advising clients .............................................................................................................173
Additional requirements in certain circumstances .....................................................174
Compliance procedures ...............................................................................................176
Enforcement ..................................................................................................................177
Waivers and service .......................................................................................................179
Liability ...........................................................................................................................180
Appendix 1 – Receipt in compliance with section 30 of the Act ...............................180
Appendix 2 – Essential details of a transaction ..........................................................181
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2.5 The Chartered Certified Accountants’ Regulatory Board and
Committee Regulations 2008
Citation, commencement and effect .............................................................................182
Interpretation ...................................................................................................................182
Appointment and establishment of Regulatory Board, Appointments Sub-Committee
and Regulations Review Sub-Committee and appointment of members .............184
Establishment of committees, and appointment of panel of committee members,
chairmen, assessors, regulatory assessors and legal advisers ..................................185
Constitution of Disciplinary, Admissions and Licensing and
Appeal Committees and eligibility ............................................................................186
Powers and responsibilities of Disciplinary, Admissions and
Licensing and Appeal Committees ............................................................................187
General ..........................................................................................................................187
Appendix 1 ......................................................................................................................188
2.6 The Chartered Certified Accountants’
Authorisation Regulations 1998
Citation, commencement and application ...................................................................190
Interpretation ...................................................................................................................190
Applications for certificates ............................................................................................192
Validity and renewal ........................................................................................................194
Withdrawal of, suspension of, or imposition of conditions on certificates ................195
Imposition of conditions on certificates by a regulatory assessor ..............................197
Correction of errors .........................................................................................................199
Appeals, effective date and publicity ............................................................................199
Re-application .................................................................................................................200
General ............................................................................................................................201
Interim orders ..................................................................................................................203
2.7 The Chartered Certified Accountants’ Complaints and
Disciplinary Regulations 2010
Citation, commencement and application ...................................................................205
Interpretation ...................................................................................................................205
Consideration of complaint ............................................................................................207
Decision of assessor ........................................................................................................210
Disciplinary Committee ..................................................................................................214
Ill health ............................................................................................................................225
General .............................................................................................................................227
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2.8 The Chartered Certified Accountants’
Appeal Regulations 2006
Citation, commencement and application ..................................................................230
Interpretation ..................................................................................................................230
Appeal .............................................................................................................................232
Applying for permission to appeal ...............................................................................232
Form of application notice and grounds of appeal ....................................................232
Permission to appeal .....................................................................................................234
The appeal ......................................................................................................................237
Preparation for the appeal hearing ..............................................................................237
Notice, representation and adjournments ...................................................................238
Hearing ...........................................................................................................................239
Orders of Appeal Committee .......................................................................................240
Costs ...............................................................................................................................241
Effect on costs of withdrawal of appeal .......................................................................241
Notification .....................................................................................................................242
Correction of errors ........................................................................................................242
Effective date ..................................................................................................................242
Publicity ...........................................................................................................................242
Open hearings ................................................................................................................243
Ill health ...........................................................................................................................244
General ...........................................................................................................................245
Section 3
Code of Ethics and Conduct
Scope and authority of the Code .................................................................................251
How to use the Code .....................................................................................................251
To whom does the Code apply? ...................................................................................252
Non-compliance with the Code ....................................................................................252
Part A: General Application of the Code
100 Introduction and fundamental principles .....................................................254
Fundamental principles .................................................................................................254
Conceptual framework approach .................................................................................255
Threats and safeguards .................................................................................................256
Ethical conflict resolution ..............................................................................................257
110 Integrity ......................................................................................................................259
120 Objectivity .................................................................................................................260
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130 Professional competence and due care ...................................................261
140 Confidentiality ......................................................................................................262
150 Professional behavior .......................................................................................264
Part B: Professional Accountants in Public Practice
200 Introduction ............................................................................................................266
Threats and safeguards ...............................................................................................266
210 Professional appointment ................................................................................271
Client acceptance .........................................................................................................271
Engagement acceptance .............................................................................................271
Changes in a professional appointment ....................................................................272
Matters to be communicated to proposed clients ....................................................275
Matters to be communicated to proposed accountants ..........................................275
Unpaid fees of previous accountant ...........................................................................276
Transfer of books and papers ......................................................................................276
Transfer of information .................................................................................................276
Changes in audit appointment ...................................................................................277
Casual vacancy in auditorship .....................................................................................277
220 Conflicts of interest .............................................................................................278
Conflicts between professional accountants’ and clients’ interests ........................279
Commission and other financial gains ........................................................................279
Agency work .................................................................................................................280
Conflicts between the interests of different clients ...................................................280
Managing conflicts between clients’ interests ...........................................................281
Conflicts between the interests of professional accountants and firms ..................281
Disengagement ............................................................................................................281
230 Second opinions ....................................................................................................282
240 Fees and other types of remuneration ......................................................283
Basis of fees ..................................................................................................................283
Referral fees and commission .....................................................................................284
Commission on indemnity terms ................................................................................285
Insolvency work in the UK ............................................................................................286
Management buy-out and raising venture capital ....................................................286
Fee disputes .................................................................................................................286
Investment business in the UK and Ireland ................................................................287
Advertisements .............................................................................................................287
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250 Marketing professional services ...................................................................288
Reference to fees in promotional material .................................................................289
Promotional material and promotional activities ......................................................290
Investment business .....................................................................................................290
260 Gifts and hospitality ............................................................................................291
270 Custody of client assets ....................................................................................292
Clients’ monies .............................................................................................................292
Clients’ accounts ..........................................................................................................293
Opening a client bank account ...................................................................................293
Payments into a client bank account ..........................................................................293
Withdrawals from a client bank account ....................................................................293
Fees paid in advance ...................................................................................................294
Interest payable on client account monies ................................................................294
Monies held by the firm as stakeholder .....................................................................295
Maintaining records .....................................................................................................295
Fees and fee disputes ..................................................................................................295
Bank ...............................................................................................................................295
Insolvency work: UK .....................................................................................................295
Untraceable funds ........................................................................................................296
280 Objectivity – All services ...................................................................................297
290 Independence – Audit and review engagements .................................298
Structure of section ......................................................................................................299
A conceptual framework approach to independence ..............................................299
Networks and network firms ........................................................................................301
Public interest entities ..................................................................................................303
Related entities .............................................................................................................303
Those charged with governance .................................................................................304
Documentation .............................................................................................................304
Engagement period .....................................................................................................304
Mergers and acquisitions ............................................................................................305
Other considerations ...................................................................................................307
Application of the conceptual framework approach to independence ..................307
Financial interests .........................................................................................................307
Loans and guarantees ..................................................................................................312
Business relationships ..................................................................................................313
Family and personal relationships ..............................................................................314
Employment with an audit client ................................................................................317
Temporary staff assignments .......................................................................................319
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