Statement on Continuing Professional Development

Transcription

1 January 2007 MICPA Statement Statement on Continuing Professional Development The Malaysian Institute of Certified Public Accountants (Institut Akauntan Awam Bertauliah Malaysia)

2 STATEMENT ON CONTINUING PROFESSIONAL DEVELOPMENT (Effective for CPD reporting periods beginning on or after January 1, 2007) CONTENTS Paragraphs Introduction Objectives of CPD.. 8 Mandatory CPD for All Members Relevance, Measurement and Verification Minimum CPD Requirements CPD Records Monitoring Exemptions Effective Date. 29 Compliance with International Education Standards for Professional Accountants Appendix 1 : Examples of Learning Activities and Evidence Appendix 2 : Continuing Professional Development (CPD) Record Appendix 3 : Example of CPD Record

3 STATEMENT ON CONTINUING PROFESSIONAL DEVELOPMENT The Council of The Malaysian Institute of Certified Public Accountants has approved the issue of this Statement on Continuing Professional Development. This Statement prescribes the continuing professional development (CPD) requirements with which members of the Institute should comply. Introduction 1. This Statement draws on the CPD requirements prescribed in International Education Standard for Professional Accountants (IES) 7 Continuing Professional Development: A Programme of Lifelong Learning and Continuing Development of Professional Competence, issued by the International Accounting Education Standards Board of the International Federation of Accountants (IFAC). 2. Members have a continuing duty to maintain their professional knowledge and skills at the level required to ensure that their clients or employers receive the advantage of competent professional services based on current developments in practice, law and business. It is recognised that to achieve this needs more than just work experience; participation in a planned programme of CPD is the most effective way for members to maintain and enhance their professional competence. 3. This Statement is based on the principle that it is the responsibility of the individual member to develop and maintain professional competence necessary to provide high quality services to clients, employers and other stakeholders. 4. This Statement introduces the concepts of CPD as relevant, verifiable and measurable learning activities and outcomes. 5. CPD refers to learning activities that develop and maintain capabilities to enable members to perform competently within their professional environments. 6. The knowledge needed to function effectively as a Certified Public Accountant (CPA) in public practice, industry, commerce, education and the public sector continues to expand and change at a rapid rate. CPAs face increased knowledge and skill expectations. They also face unprecedented scrutiny about the quality of internal control, governance, financial statements and independent audits. These pressures apply to CPAs in both the private and public sectors. In addition, the need to be competitive in a worldwide economy has prompted a more intense focus on the role and responsibilities of CPAs in entities of all types. CPAs in all sectors have important contributions to make. Continued development of professional competence and lifelong learning are critical if CPAs are to meet these expectations. 1

4 7. On its own, CPD does not provide assurance that all members will provide high quality professional service all the time. Doing so involves more than maintaining professional competence; it involves applying knowledge with professional judgment and an objective attitude. Also, there cannot be assurance that every person who participates in a CPD programme will obtain the full benefits of that programme, because of variances in individual commitment and capacity to learn. Nevertheless, it is certain that members who are not up-to-date on current technical and general knowledge pertinent to their work will not be able to provide professional services competently. Therefore, despite the inherent limitations of any CPD programme, a CPD requirement is important to maintaining public confidence. Objectives of CPD 8. The objectives of a CPD programme are: (a) (b) (c) to maintain and improve upon the professional knowledge and skills possessed by members; to assist members to apply new techniques, to understand economic developments and evaluate their impact on their clients or employers and on their own work, and to meet changing responsibilities and expectations; and to provide reasonable assurance to society at large that members have the necessary professional competence to perform the services they undertake to provide. Mandatory CPD for All Members 9. Members are required to develop and maintain competence relevant and appropriate to their work and professional responsibilities. The responsibility for developing and maintaining competence rests primarily with each member. 10. CPD is applicable for all members, regardless of sector or size of business in which they operate, because: (a) (b) (c) All members have an ethical obligation of due care to their clients, employers and relevant stakeholders and need to demonstrate their ability to discharge this responsibility in a competent manner. Members in all sectors hold positions of importance involving financial reporting, public accountability and maintaining the public trust. The public is likely to rely on the designation or professional standing of the CPA. Moreover, all members carry the professional designation, and any lack of competence or ethical behavior has the same consequences to the reputation and standing of the profession, irrespective of the sector or role in which they operate. 2

5 (d) (e) All sectors are affected by the rapidly changing environment and the consequential need to adapt the strategic or business plans of those organisations relying on the CPA s professional competence. Employers hiring CPAs in any sector rely, at least to some extent, on the professional designation as proof of professional competence. Relevance, Measurement and Verification 11. CPD contributes to the competence of members and therefore acceptable CPD activities are expected to develop the professional knowledge, professional skills and professional values, ethics and attitudes of members, relevant to their current and future work and professional responsibilities. 12. Given the diverse activities in which members engage, the responsibility lies with each member to choose suitable CPD activities and to judge whether these activities contribute to the individual s professional development. 13. The learning activities shall be measured in terms of hours spent on an activity. 14. A certain portion of the learning activities that members engage in are verifiable. This means that the learning is able to be objectively verified by a competent source. Some learning activities may be measured but not verified. 15. Members are responsible to retain appropriate records and documents related to their CPD and, upon request by the Institute, provide sufficient evidence to demonstrate their compliance with the CPD requirements. Minimum CPD Requirements 16. All members, except those who have been granted exemptions, are required to: (a) (b) (c) complete at least 120 hours of relevant CPD activity in each rolling three-year period, of which 60 hours should be verifiable; complete at least 20 hours in each year; and track and measure learning activities to meet the above requirements. 17. Some learning activities may be measurable, but not able to be verified. These activities also contribute to development and maintenance of competence but would not be considered to form part of the 60 hours of verifiable CPD in the three-year rolling period. 3

6 18. The reporting period for each rolling three-year period will commence from January 1 in the year following the date of admission of a member after January 1, In respect of persons who are members as at January 1, 2007, the commencement date of their rolling three-year period shall be January 1, Examples of CPD activities and verification are given in Appendix 1. CPD Records 20. All members subject to mandatory CPD requirements should maintain appropriate records of all CPD activities completed in each of the rolling three-year period. Members are required to maintain records and documentary evidence sufficient to support their attendance or completion of CPD activities for a minimum of three years, and produce such records and documentary evidence when they are selected for a random audit conducted by the Institute annually. 21. Members are required to maintain their CPD records in the format recommended by the Council in Appendix 2. An example of CPD record is given in the Appendix 3. Monitoring 22. All members subject to mandatory CPD requirements are required to submit a declaration of CPD compliance to the Institute at the time of their annual membership renewal. 23. An annual audit of members compliance with the CPD requirements will be conducted by the Institute on a random sample of members. Members selected will be required to submit to the Institute their CPD records for each CPD year of the rolling three-year period, together with all relevant documentary evidence, wherever applicable, to support attendance or completion of the CPD activities stated in their CPD records. 24. The Council s intention in introducing the CPD requirements is to ensure that members maintain and enhance their professional competence. Members who wilfully fail to comply the CPD requirements may be subject to disciplinary action. Exemptions 25. Members who are above 55 years of age and who are fully retired and not carrying out any professional work (paid or unpaid) that calls on their financial or business expertise are not obliged to undertake CPD. Fully retired members will submit a declaration confirming their retired status and their exemption from the CPD requirements at the time of their annual membership renewal. 4

7 26 Retired members who carry out part-time or voluntary work that calls on their financial or business expertise, such as holding directorship of a company, are expected to comply with the CPD requirements. 27. The Council may, in its absolute discretion on the application of any member, grant a total or partial exemption from the CPD requirements to the member if the Council is of the opinion that the special circumstances of the case warrant such an exemption. 28. The following are examples of special circumstances that may justify the granting of an exemption from the CPD requirements: (a) (b) prolonged illness or physical disability; unemployment or career break (e.g. to bring up a young family or due to other domestic ties). Effective Date 29. The requirements of this Statement are effective for CPD reporting periods beginning on or after January 1, Hence, the first rolling three-year period for which the requirements of this Statement are applicable runs from January 1, 2007 to December 31, Compliance with International Education Standards for Professional Accountants 30. The requirements of this Statement are consistent with International Education Standard for Professional Accountants (IES) 7 Continuing Professional Development: A Programme of Lifelong Learning and Continuing Development of Professional Competence, issued by the International Accounting Education Standards Board of IFAC. 5

8 Appendix 1 Examples of Learning Activities and Evidence The Appendix is for illustration purpose only and does not form part of the Statement. The purpose of the Appendix is to illustrate the application of the Statement to assist in clarifying its meaning. This Appendix provides examples of different types of learning activities and how such learning can be verified. Examples of Learning Activities The following are examples of different learning activities; they are by no means exhaustive. Any of these activities could be carried out using electronic means and e-learning opportunities. Participation in courses, conferences, seminars, forums Self-learning modules or organised on-the-job training for new software, systems, procedures or techniques for application in professional role Published professional or academic writing Participation and work on technical committees Teaching a course or CPD session in an area related to professional responsibilities Formal study related to professional responsibilities Participation as a speaker in conferences, briefing sessions, or discussion groups Writing technical articles, papers, books Research, including reading professional literature or journals, for application in a professional role Professional re-examination or formal testing One single, repetitive activity, for example, teaching introductory accounting to different audiences, should not constitute a member s total CPD activity. Evidence for Verification Course outlines, teaching materials Attendance record, registration forms or confirmation of registration from provider Independent assessments that a learning activity has occurred Confirmation by an instructor, mentor or tutor of participation Confirmation by an employer of participation in an in-house programme 6

9 Appendix 2 Continuing Professional Development (CPD) Record Name : Membership No : Membership Status : Firm/Employer : Period Covered : January 1 to December 31 Date/ Period Description of Activity (course title, type of activity) Organisation Presenting Activity Verifiable No. of hours Not Verifiable TOTAL CPD HOURS Acknowledgement I hereby confirm that I have completed the CPD activities recorded herein. Signature : Date: 7

10 Appendix 3 Example of CPD Record Period covered: January 1, 2007 to December 31, 2007 Date/ Period Description of Activity (course title, type of activity) Organisation Presenting Activity Verifiable No. of hours Not Verifiable Attended Seminar on Deferred Taxation Writing of article on Auditor Independence (Published in The Malaysian Accountant) MICPA 8 MICPA Technical research on corporate social responsibility Conducted inhouse training on new auditing standards Attended Forum on Islamic Finance In-house 6 CERT to Serving as member of Accounting & Auditing Technical Committee MICPA 10 On-going Reading new FRS 9 On-going Reading accountancy journals TOTAL CPD HOURS