PRACTICAL HELP FOR STRONGER INSTITUTES
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- Bartholomew French
- 6 years ago
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1 PRACTICAL HELP FOR STRONGER INSTITUTES CAPACITY BUILDING FOR A SUSTAINABLE PROFESSION Focused and vibrant national accountancy institutes play a key role in business development and economic growth. They nurture the brightest students and empower them to become tomorrow s leaders in all walks of life. Strong national institutes inspire business confidence and improve the conditions for inward investment. ICAEW works with professional accountancy bodies to build capacity and strengthen the national profession. Our goal is for national bodies to become sustainable for the long term to arrive at the point where they can grow and evolve independently. ICAEW believes that every country deserves a dynamic and strong national institute. Inspiring confidence
2 PRACTICAL HELP FOR STRONGER INSTITUTES A PARTNERSHIP MODEL Strong national accountancy bodies have a vital role to play in their country s economic architecture. Businesses and organisations small and large, commercial and public sector rely on the assurance and advice that accountants provide. ICAEW is committed to supporting national accountancy institutes that seek to strengthen their capacity and profile in their home country and internationally. Through capacity building projects, ICAEW shares the development experiences that have helped us evolve our own professional body. Our international work often involves a twinning arrangement effectively a close working partnership between ICAEW and another national body. Twinning helps us to work together to strengthen capacity in line with international standards, practices and benchmarks. 02
3 KEY STEPS IN CAPACITY BUILDING REVIEWS Capacity building work involving ICAEW is usually funded under international development programmes intended to improve financial transparency, increase business confidence, incentivise investment and underpin growth. For countries to secure World Bank funding, it is usually a prerequisite to have undergone a Report on the Observance of Standards and Codes (ROSC) in Accounting and Auditing. This is conducted in cooperation with a nation s government. A ROSC report compares in-country procedures to international standards and benchmarks and recommends measures to strengthen financial reporting, audit, oversight and institutional capacity. Other sources of funding include the regional development banks and the European Commission. Projects Government departments increasingly recognise the value of twinning arrangements between ICAEW and their own counterpart body. A project usually begins with consultations with all key stakeholders in a country, including government departments and audit firms. Out of this comes a strategic plan to strengthen the national body and raise its profile. This focuses on: l measures to build capacity in the national body; l the professional qualification and steps to reform this in line with international benchmarks; l continuing professional development and steps to improve the culture, uptake and oversight of CPD; and l audit quality monitoring and steps to strengthen the regime and its capacity. Outcomes Projects take careful account of the statements of membership obligations (SMOs) required by the International Federation of Accountants, as well as ROSC recommendations. The outcomes sought involve combinations of: l strengthened leadership, governance and capacity; l a national professional qualification aligned to international benchmarks; l an enhanced culture and regime of continuous professional development; and l improved oversight of audit, with regulations, standards and practices optimally aligned. 03
4 HOW HAS IT WORKED? In its capacity building work in Africa, Asia and Europe, ICAEW experts work with government departments, regulators, audit firms, universities and colleges and others. Their collective involvement is essential to deliver changes in education and training, audit quality assurance and professional ethics. Their participation also helps the national accountancy institute to build its profile and positioning with its government, business environment and profession. Examples of projects undertaken by ICAEW include: Bangladesh In , ICAEW experts worked with the Institute of Chartered Accountants of Bangladesh to update ICAB s professional qualification in line with international benchmarks. ICAEW-trained tutors and closer working with the university sector have helped realise the full benefits of these reforms. A new ICAB strategy and strengthened governance are helping to raise the profile of ICAB in Bangladesh and internationally. Botswana ICAEW is currently working closely with the Botswana Institute of Accountants to strengthen the national institute. A key milestone was the joint development in 2010 of a three-year strategic plan. A major highlight will be the delivery in 2011 of BIA s first professional accountancy qualification. Other joint initiatives will raise the profile of BIA and make it the institute of first choice throughout Botswana. Croatia ICAEW s quality assurance specialists have been working with the Croatian Chamber of Auditors to build a strong oversight function. This involves mentoring and training audit reviewers in the UK and Croatia. A key goal is to enable the Chamber to align to the European Union Statutory Audit Directive. ICAEW is also undertaking similar work in other EU pre-accession countries and within the EU itself. 04
5 A country without its own professional qualification is in a bad situation. ICAEW is really taking us by the hand into difficult areas. They know exactly what they are doing. It s not an experiment. Duncan Majinda, CEO, Botswana Institute of Accountants The work ICAEW undertook and the memorandum of understanding that now exists between our two organisations, has gone a long way to moving ICAB towards a new qualification of greater international standing. Dr Jamaluddin Ahmed, President, Institute of Chartered Accountants of Bangladesh ICAEW has helped establish a sustainable approach, first to set up and then to improve audit oversight procedures. And it has provided the Chamber with examples of materials relating to inspections that it can provide to its own members. Ana Krivičić, President, Chamber of Auditors, Croatia 05
6 ICAEW has more than 134,000 members working in over 160 countries. Our members provide financial knowledge and guidance based on the highest technical and ethical standards. They are trained to challenge people and organisations to think and act differently, to provide clarity and rigour, and so help create and sustain prosperity. ICAEW ensures these skills are constantly developed, recognised and valued. ICAEW pioneers new thinking in many areas of accounting and auditing. It works with international bodies, contributing technical expertise and practical advice for strengthening the accountancy profession. ICAEW works with other professional bodies and government institutions on the practical steps involved in the adoption of regulations, standards and benchmarks. Because of us, people can do business with confidence. Further information For information on ICAEW s capacity building work worldwide contact: Mark Campbell T +44 (0) E mark.campbell@icaew.com icaew.com/capacitybuilding MKTPLN /10
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