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Establishing and Developing a Professional Accountancy Body [Type text] ESTABLISHING AND DEVELOPING A PROFESSIONAL ACCOUNTANCY BODY The mission of the International Federation of Accountants (IFAC) is to serve the public interest, strengthen the accountancy profession worldwide and contribute to the development of strong international economies by establishing and promoting adherence to high-quality professional standards, furthering the international convergence of such standards and speaking out on public interest issues where the profession’s expertise is most relevant. Copies of this paper may be downloaded free-of-charge from the IFAC website at www.ifac.org. International Federation of Accountants 529 Fifth Avenue, 6th Floor New York, NY 10017 USA Copyright © December 2010 by the International Federation of Accountants (IFAC). All rights reserved. Permission is granted to make copies of this work provided that such copies are for use in academic classrooms or for personal use and are not sold or disseminated and provided that each copy bears the following credit line: “Copyright © December 2010 by the International Federation of Accountants (IFAC). All rights reserved. Used with permission of IFAC. Contact [email protected] for permission to reproduce, store or transmit this document.” Otherwise, written permission from IFAC is required to reproduce, store or transmit, or to make other similar uses of, this document, except as permitted by law. Contact [email protected]. ISBN: 978-1-60815-036-6 GUIDE TO ESTABLISHING AND DEVELOPING A PROFESSIONAL ACCOUNTANCY BODY Overview .................................................................................................................................... 4 About this Guide ..................................................................................................................... 4 Objectives of the Accountancy Profession .............................................................................. 6 About IFAC Membership ........................................................................................................ 9 Glossary ................................................................................................................................12 Part One: Establishing a Professional Accountancy Body ................................................................. 15 Quick Start Guide ..................................................................................................................15 Considerations in Establishing a Professional Accountancy Body .........................................20 Legislation .............................................................................................................................22 Legal and Organizational Structure ....................................................................................22 Constitution and By-Laws ..................................................................................................24 Regulation of the Profession ..................................................................................................39 Regulatory Structure ..........................................................................................................39 Working with Government to Protect the Public Interest .....................................................39 Governance ...........................................................................................................................40 Overview ............................................................................................................................40 Sample Professional Accountancy Body Organizational Structure .....................................44 The Council ........................................................................................................................45 The President ....................................................................................................................46 Strategic Planning ..............................................................................................................47 Improving Governance Structures ......................................................................................53 Committees ...........................................................................................................................55 Planning the Committee’s Work .........................................................................................58 Reporting to Council ..........................................................................................................59 The Management Structure ...................................................................................................69 The Chief Executive Officer ................................................................................................69 Staff Support ......................................................................................................................71 Financing the Body ................................................................................................................71 Financing ...........................................................................................................................71 Accommodation and Equipment ........................................................................................73 1 TABLE OF CONTENTS Marketing and Promotion of the Profession ...........................................................................74 Research and Planning ......................................................................................................74 Brand Identity .....................................................................................................................75 Protecting Intellectual Property ..........................................................................................75 Communications ................................................................................................................75 Promotion ..........................................................................................................................79 Member Services ...............................................................................................................78 The Register of Members ...................................................................................................78 Part Two: Roles and Responsibilities of a Professional Accountancy Body ................................... 81 Membership Requirements ....................................................................................................81 Membership Recruitment ...................................................................................................83 Student Membership ..........................................................................................................83 Practice Certificates ...........................................................................................................84 Adoption and Implementation ................................................................................................89 Setting Technical Standards ...............................................................................................89 Public Exposure .................................................................................................................88 Translation of International Standards ................................................................................88 Code of Professional Conduct and Ethics ..............................................................................90 Assuring the Quality of Professional Services ........................................................................99 Introduction ........................................................................................................................99 Quality Control ...................................................................................................................96 Establishing Quality Control Standards and Guidance .......................................................96 Establishing a Quality Assurance Review Program ............................................................97 Investigation and Disciplinary Process................................................................................. 100 Disciplinary Procedures ................................................................................................... 100 Sanctions ......................................................................................................................... 103 Right of appeal ................................................................................................................. 103 Publicity ........................................................................................................................... 104 Conclusion ....................................................................................................................... 104 Continuing Professional Development ................................................................................. 104 Part Three: Education and Examinations .......................................................................................... 107 Overview of Accounting Education Programs ...................................................................... 107 2 TABLE OF CONTENTS Relevant, Affordable Instruction Manuals ........................................................................
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