Action Plan Developed by Pakistan Institute of Public Finance Accountants (PIPFA) BACKGROUND NOTE ON ACTION PLANS

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1 BACKGROUND NOTE ON ACTION PLANS SMO Action Plans are developed by IFAC s and Associates to demonstrate fulfillment of IFAC Statements of ship Obligations (SMOs). SMOs require IFAC s and Associates to support the adoption 1 and implementation 2 of 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 s 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, s 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 s 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 Compliance Program. Use of Information Please refer to the Disclaimer published on the Compliance Program website. ACTION PLAN IFAC Associate: Approved by Governing Body: PIPFA Technical Committee Original Publish : September 2011 Last Updated: February 2016 Next Update: February 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. Status as of of Publication Page 1 of 19

2 GLOSSARY ACCAs AGP BOGs BOSs CPD EC EDC I&DC IAASB IAESB IASB ICAP ICMAP ICSP IESs IESBAs IFRIC IFRSs IPSAS IPSASBs ISA KASNEB P&SC PIPFAs QA SAFAs SECP TC Association of Chartered Certified Accountants Auditor General of Pakistan Board of Governors Board of Studies Continuing Professional Development Examination Committee Committee Investigation & Disciplinary Committee International Auditing and Assurance Standards Board International Accounting Standards Board International Accounting Standards Board Institute of Chartered Accountant of Pakistan Institute of Cost and Management Accountants of Pakistan Institute of Corporate Secretaries of Pakistan International Standards International Ethics Standards Board for Accountants International Financial Reporting Interpretations Committee International Financial Reporting Standards International Public Sector Accounting Standards International Public Sector Accounting Standards Board International Standards on Auditing Kenyan Accountants and Secretaries National Examinations Board Publication & Seminar Committee Pakistan Institute of Public Finance Accountants Quality Assurance South Asian Federation of Accountants Securities Exchange Commission of Pakistan Technical Committee Status as of of Publication Page 2 of 19

3 Action Plan Subject: Action Plan Objective: SMO 1 Quality Assurance To Further Investigate How PIPFA Can Use Best Endeavors to Support Quality Assurance in Pakistan Background: The Code of Corporate Governance of 2012 states that (a) All listed companies in the financial sector shall change their external auditors every five years. Financial sector in this instance is defined as banks, non-banking financial companies (NBFC s), modarabas and insurance/takaful companies; provided that all inter-related companies/ institutions, engaged in business of providing financial services shall appoint the same firm of auditors to conduct the audit of their accounts (b) All listed companies other than those in the financial sector shall, at a minimum, rotate the engagement partner after every five years; and (c) All listed companies must appoint only those firms of chartered accountants as their auditors which have obtained satisfactory rating under the Quality Control Review (QCR) program framework established by ICAP. ICAP has also implemented ISQC1 and issued the ISQC1 Implementation guide in 2011 for QCR rating purpose. Under The Companies Ordinance 1984, only members of the Institute of Chartered Accountants of Pakistan (ICAP) can audit the Financial Statements of Public Companies and private Companies having paid capital of Rs. 3 Million or more. s of PIPFA are not mandated to conduct statutory audits of financial statements. The Technical Committee of PIPFA is tasked to provide updated information on the latest changes and developments by IFAC and other Regulators and stakeholders to its members on a regular basis in order to improve the quality of their work. Technical committee disseminates the information through Technical update s, PIPFA website and PIPFA Journal on regular basis. ICAP also invites PIPFA members to attend seminars relating to QCR hosted by ICAP. # Start Actions Supporting Quality Assurance 1. September 2011 Review the requirements of SMO1 and consider the extent to which PIPFA can work with ICAP to play a role in supporting Quality Assurance of auditors in Pakistan. TC/P&SC/BOG 2. January 2014 PIPFA is working to enhance and support the quality of the work for its own members. P&SC/BOG Status as of of Publication Page 3 of 19

4 # Start Actions 3. PIPFA Conduct a series of seminars, relating to financial reporting and audit & assurance focusing on the professional development of its members who in many cases pursue chartered accountancy and as a result become part of audit teams during the course of IPD. The objective was to develop awareness of values, ethics and updates of accounting and auditing fields, recommended and communicated by IFAC. The BOG approved special funds for conducting CPD activities in continuation of the process of Quality assurance. P&SC/BOG / ICAP as a sponsoring body of PIPFA, also invites PIPFA s & students to attend seminars hosted by ICAP regarding quality assurance. Review of PIPFA s Compliance Information 4. Perform a periodic review of PIPFA s fulfillment of SMO 1 requirements and update the SMO Action Plan as necessary. Once updated, inform IFAC Compliance staff about the updates so that the SMO Action Plan can be published. TC/ Status as of of Publication Page 4 of 19

5 Action Plan Subject: Action Plan Objective: SMO 2 International Standards for Professional Accountants and Other Pronouncements issued by the IAESB To Fully Comply with the Requirements of SMO 2 and Adoption of IAESB Pronouncements Background: The Institute of Chartered Accountants of Pakistan, Institute of Cost and Management Accountants of Pakistan and Pakistan Institute of Public Finance Accountants are the three major Professional Accountancy providers in the country. PIPFA is the single largest Accounting body in Pakistan that provides Public Finance and works as an autonomous organization under The Companies Ordinance 1984 that is regulated by the Securities and Exchange Commission of Pakistan (SECP). PIPFA was established in order to impart quality education and develop specialized public accountants for the public and corporate sector. The compliance with IES is being observed by PIPFA during its course of studies by incorporating the standards. The new education scheme has been implemented from June 2015 which covers all aspects of the IESs. The PIPFA Board of Studies is responsible to review the syllabus on an annual basis and caters to the need of changes and ongoing improvement. Students who have passed Intermediate, A Levels, DBA, or equivalent are eligible to start PIPFA qualification. These are standard qualifications to meet entry requirements in PIPFA, No additional certification is required for entry. Students are coached through PIPFA s own coaching centres as well as authorized colleges/institutes managed by its own members. The program is divided into three Levels covering accounting, finance and business related areas. After completing tuition for a prescribed number of hours for each subject, students are eligible to appear in examinations. There is a prescribed period of three years of practical training in the field of auditing and accountancy in order to be admitted as an associate member of the Institute. This must be verified by a professional (Chartered Accountant, Cost & Management Accountant or Public Finance Accountant). PIPFA s are eligible for subject wise exemptions from a range of professional accountancy qualifications including The Institute of Chartered Accountants of Pakistan (ICAP), The Institute of Cost and Management Accountants of Pakistan (ICMAP), The Chartered Institute of Management Accountants (CIMA), Association of Chartered Certified Accountants (ACCA), Institute of Corporate Secretaries & Managers (ICS&M) and the Institute of Corporate Secretaries of Pakistan (ICSP). PIPFA members are also granted subject wise exemptions by highly ranked universities of Pakistan in the private sector. During the last year, PIPFA has entered into MOUs with various new private sector universities for providing more recognition to members and students. PIPFA is also making an all-out efforts to collaborate with government sector universities as well. PIPFA has established a continuing professional development (CPD) framework for its members including a standing committee on Publications and Seminars. The Institute delivers CPD courses and monitors compliance with the specified requirements. PIPFA members are required to complete a minimum of 20 CPD hours each year. During the last year, a number of Seminars were conducted for awareness of its members and students on various emerging topics such as Performance Management, Audit Risk, and Corporate Governance etc. PIPFA has also increased its practical training requirement from two (2) years to three (3) years. PIPFA has undertaken syllabus revision initiative and a task force of comprising members of the Board of Studies and Examination Committee has finalized a new education scheme for the students, which incorporates the full requirements of the IESs. Status as of of Publication Page 5 of 19

6 # Start Actions Aligning with IESs 5. April 2011 Review PIPFA s education requirements for alignment with revised IESs and compliance with the requirements of SMO 2. BOS IES 2 Professional Accounting Program 6. Continue to update PIPFA s qualification according to updates in IAESB guidance and other relevant national standards are considered. BOS/EDC BOS/ 7. Ensure that the educational program provides qualified students the required professional knowledge and high level of intellectual skills required to function as professional Public Finance Accountants in accordance of IESs. BOS/BOG / IES 5 Practical Experience Requirement 8. December 2013 Working with the concerned authorities to increase number of CPD hours each year for new and existing members. BOG on recommendation of P&SC and BOS 9. January 2012 Increased PIPFA s practical experience requirements from 2 to 3 years. Implemented BOS/BOG Promotion of IAESB Pronouncements 10. The requirements of IES3 in relation to development of intellectual skills are ensured by Pakistan Institute of Public Finance Accountants (PIPFA) through Career Developing / Accounting Awareness Seminars or through publications and online at the PIPFA website, During the last year, PIPFA conducted seminars on core topics of the profession for enhancing technical skills of its students and members. P&SC Status as of of Publication Page 6 of 19

7 # Start Actions 11. Work with Auditor General of Pakistan, Controller General of Accounts and Military Accountant General to develop a strategy for implementation of public accounting standards in the country and to raise the need for recruitment of the professional Accountants & Auditors in the public sector entities. BOS/BOG / s Incorporation of Audit and Ethics Pronouncements into PIPFA Program 12. July 2011 Ensure on an ongoing basis that new International Auditing and Assurance Standards Board (IAASB) and International Ethics Standards Board for Accountants (IESBA) pronouncements are incorporated into education and training programs on timely basis and communicated to all stakeholders. The recommended substance is also evaluated for inclusion in the new syllabus of PIPFA. BOS/EDC/BOG Maintaining Processes 13. Continue to implement to the fullest extent possible the requirements of SMO 2 and use best endeavors to promote national recognition. In addition, continue to support implementation of the international education requirements with regards to PIPFA s prequalification and CPD programs. The PIPFA educational program is being reviewed and assessed, continuously to ensure that qualified students are equipped with appropriate professional values and ethics as required by IES. BOS ED/ / Faculty s 14. Regular updates in the Journals, newsletters and Annual Reports of PIPFA regarding awareness of its members and students. P&SC ED/ / Accounts Review of PIPFA s Compliance Information 15. Perform periodic review of PIPFA response to the SMO Action Plan and update the response as necessary. Once updated inform IFAC Compliance staff about the updates in order for the Compliance staff to republish updated information. BOG Status as of of Publication Page 7 of 19

8 Action Plan Subject: Action Plan Objective: SMO 3 International Standards and other Pronouncements Issued by the IAASB Use Best Endeavors to Support Adoption and Implementation of International Standards on Auditing (ISAs) in Pakistan Background: The Council of the Institute of Chartered Accountants of Pakistan (ICAP) (one of the sponsoring body of PIPFA) is the authority responsible for adopting international auditing standards in Pakistan. The ISAs are adopted without translation and modification. PIPFA supports this implementation by keeping its members and students informed of the standards both in syllabus content and through publications. PIPFA has launched its website and the work on compiling all the updates of IFAC during the years is under process in order for their publication in a more comprehensive and accessible way. PIPFA has constituted a Technical Committee for research work related to this SMO. The Committee is continuously reviewing standard operating procedures. # Start Actions Promote IAASB Pronouncements 16. Provide IAASB pronouncements to members via PIPFA website & Publications (News Letters & Journals). P&SC/BOS IT Personnel in Coordination with s Assist with Adoption and Implementation of ISAs 17. Monitor pronouncements and updates provided by IAASB, and develop update briefings for members and communicate through newsletter, Journal and website. P&SC/ 18. A formal contract of practical training is duly executed by employer/trainer and the student in order to ensure proper practical training and development of the prospective member of PIPFA. Secretary/ED/ Affairs 19. July 2012 Formed a Technical Committee to oversee the implementation of the range of relevant international standards across PIPFA s operations. Pronouncements such as ISREs, ISAEs and ISRSs are also adopted without translation and modification. Completed BOG / Status as of of Publication Page 8 of 19

9 # Start Actions New Development in Adoption of International Accounting & Auditing Standards 20. January 2015 PIPFA is planning to post all Technical Updates, communicated by IAASB from time to time, on its official website to create awareness of changes and developments in auditing and accounting standards amongst its members. June 2015 TC Maintaining Processes 21. Include updates on IAASB pronouncements in PIPFA continuing professional education and pre-qualification programs. BOS/P&SC / 22. Incorporate specific standing order agenda item for PIPFA committees to review and respond to IAASB/IFAC (on proposals including exposure drafts). PIPFA provides comments to ICAP nominated members (on PIPFA BOG), as in Pakistan ICAP has direct responsibility to implement the same. 23. Review and update SMO 3 section of the Action Plan for future activities as necessary. President/P&SC / Review of PIPFA s Compliance Information 24. Perform periodic review of PIPFA response to SMO Action Plan and update the response as necessary. Once updated inform IFAC Compliance staff about the updates in order for the Compliance staff to republish updated information. President/ Status as of of Publication Page 9 of 19

10 Action Plan Subject: Action Plan Objective: SMO 4 IESBA Code of Ethics for Professional Accountants Adopt the Most Recent IESBA Code of Ethics Background: Currently, ethical requirements are set in accordance with Code of Corporate Governance 2012 (Listing Regulations) and by PIPFA itself with regards to its members. In the past, PIPFA had adopted the Code of Ethics established by the South Asian Federation of Accountants (SAFA). This Code was based on the IFAC Code of Ethics issued in June Revised Code of Ethics issued by IFAC in July 2014 with some amendments was adopted by the ICAP and is effective for audits of financial statements for period beginning on or after July 01, Currently PIPFA has adopted the same without modification and translation. The Board of Studies has discussed the need for including the code of ethics as a separate subject, or incorporating a larger ethics component into the existing subjects and the relevant department was advised to draft a proposal for the syllabus committee to review and form a recommendation. Now the research work has almost been completed and the matter is in finalization phase. PIPFA Technical Committee is working for better and immediate compliance of pronouncements and is responsible for providing comments on exposure draft to members of ICAP council nominated on the BOG of PIPFA. # Start Actions Adoption and Promotion of the IESBA Code of Ethics 25. January 2013 Formation of Technical Committee (TC) to conduct a review of the 2010 IESBA Code of Ethics and produce a work plan towards adoption. PIPFA has recently adopted ICAP Code of Ethics which is based on IESBA code of ethics. Completed TC / 26. Give consideration to future training/ education/promotion activities to further raise awareness of professional ethics requirements. The proposed new syllabus, under consideration of concerned committees is comprised of subject on Ethics to set a base of prequalification level. P&SC/BOS/ / 27. Create awareness about the PIPFA s Code of Ethics through Presentations/Seminars by PIPFA s Office bearers that reflect provisions of its revision and encourage compliance with them. P&SC/BOS/ / Status as of of Publication Page 10 of 19

11 # Start Actions 28. Disseminate IESBA Code of Ethics to students, members and the wider community through Seminars, Journal, Website and outreach by Faculty members. PIPFA Journal for the quarter of October December 2014 was dedicated to the theme of Ethics in order to emphasize its importance for Professional Accountants and Auditors. P&SC/BOS / 29. CPD courses to include exhaustive coverage of Ethical requirements including case studies showing areas of potential conflict of interest and challenges. Further, inclusion of the subject in PIPFA Course of Studies and examining students accordingly. BOS/EC / / Examination / Faculty Maintaining Processes 30. Monitor and review new and amended standards from the IESBA. Include updates of IESBA pronouncements in PIPFA s continuing professional education and pre-qualification programs. TC/BOS/P&SC / 31. Review and update Action Plan regularly to ensure that it continues to reflect the overall objectives under SMO 4. P&SC Review of PIPFA s Compliance Information 32. Perform periodic review of PIPFA response to SMO Action Plan and update the response as necessary. Once updated inform IFAC Compliance staff about the updates in order for the Compliance staff to republish updated information. President/ Committee/ Status as of of Publication Page 11 of 19

12 Action Plan Subject: Action Plan Objective: SMO 5 International Public Sector Accounting Standards and Other Pronouncements Issued by the IPSASB Use Best Endeavors to Assist the Adoption of IPSAS and Support and Disseminate the Work of the IPSASB Background: The Government of Pakistan has established convergence with IPSAS as an objective, and national public sector accounting standards are being developed with the goal of eliminating differences with IPSAS (Cash Basis). Article 168, 169, 170 and 171 of Constitution of Pakistan authorizes Auditor General of Pakistan to establish and implement convergence with IPSASs in Pakistan. Since 2005, PIPFA has been providing training to the Officers of the Auditor General of Pakistan and till date, have trained nineteen batches. PIPFA is also providing training to the employees of the following Public Sector Organizations; 1. Pakistan Military Accounts PIPFA is continuously expanding its services of promoting professional accounting education based upon International Public Sector Accounting Standards in Pakistan and within the Government Sector. The addition of the Pakistan Military Accounts in the Summer of 2013 shows great trust and confidence in PIPFA s education. PIPFA has so far trained four batches since the start of this education stream. 2. Local Fund Audit & Treasury s of Punjab Government The Punjab Finance started nominating its employees for PIPFA Training & Examinations since the Summer of 2008 and up till now, fourteen batches have been trained and have passed the program. The Auditor General of Pakistan (one of the sponsoring bodies of PIPFA) has mandated that IPSAS should also be used by Provincial Government Offices. CGA Ordinance provides this mandate to Provincial Government offices. Cash basis IPSASs version has already been adopted. 3. Pakistan Railways Accounts As a Pioneer in Public Sector education and training, PIPFA has achieved another milestone by signing an agreement with the Pakistan Railway Accounts (PRAD). PIPFA is also providing quality education & training to PRAD to meet IPSASs Standards, after successful inductions of the Auditor General of Pakistan (AGP), Pakistan Military Accounts (PMAD) and other public sector entities. Three batches of PRAD have been trained by PIPFA. 4. Financial institutions and other Govt. Organizations of Country PIPFA has also been entrusted by other Financial Institutions and Government organizations for training of their employees including Controller General of Accounts (CGA), National Highway Authority (NHA), Capital Development Authority (CDA) Islamabad, Local Fund Audit AJ&K etc. PIPFA s BOG includes representation from the Auditor General of Pakistan (AGP) where IPSASs are discussed and approved in BOG meetings before becoming part of PIPFA s syllabus and CPD program. In 2013, PIPFA further extended IPSASB Guidance to Provincial Government Employees and Federal Employees. The new insertions in PIPFA include Pakistan Military Accounts and Insertion of Pakistan Railways Accounts. Several meetings have been conducted regarding insertion of Water and Power Development Authority (WAPDA) and Pakistan Post Office, which are yet to be finalized. Status as of of Publication Page 12 of 19

13 # Start Actions Promote the Adoption of IPSAS 33. Periodically round table discussions with Auditor General of Pakistan office on Disclosures in Financial Statements of Public Sector Entities. TC& BOS 34. Continue to provide IPSAS education and training to public sector workers. BOS/ EDC/P&SC s of BOS/EDC/ / Examination 35. Promote and Support good governance and make arrangements for close monitoring of Public Sector Corporations. BOS/EDC/ s of BOS/EDC/ 36. Continue close work with the Auditor General s Office to advocate for full adoption of the IPSAS. EDC & BOS, / 37. Monitor issuance of new and amended IPSAS pronouncements and update PIPFA s continuing professional education program in accordance with these pronouncements. / 38. Review and update Action Plan once a year to ensure that it reflects the overall objectives under this SMO. TC/P&SC/ / 39. PIPFA invites the members to comment on the Exposure Drafts and share their views regarding Public Sector Accounting Standards with PIPFA & IFAC as part of the process in developing PIPFA's response. Secondly to ensure that all new, proposed, and revised IPSASs and other pronouncements issued by the IPSASB be communicate to members through PIPFA publications. TC/P&SC/ / Status as of of Publication Page 13 of 19

14 # Start Actions Review of PIPFA s Compliance Information 40. Perform periodic review of PIPFA response to SMO Action Plan and update the response as necessary. Once updated, inform IFAC Compliance staff about the updates in order for the Compliance staff to republish updated information. TC/P&SC/ and Status as of of Publication Page 14 of 19

15 Action Plan Subject: SMO 6 Investigation and Discipline Action Plan Objective: Introduce an Investigation & Disciplinary System that Complies with the Requirements of SMO 6 Background: The Articles of Association of PIPFA as approved by the Annual General Meetings and confirmed by the Securities Exchange Commission of Pakistan (SECP) form the legal foundation for PIPFA to adopt an I&D Mechanism. PIPFA has responsibility for implementing an investigation and disciplinary (I&D) mechanism to address complaints about possible misconduct of its members and issue sanctions where necessary. A member or a student shall be liable to disciplinary action for any misconduct specified in the by-laws. The disciplinary committee of the PIPFA board is responsible to develop an I&D mechanism in alignment with SMO6 requirements. The existing Investigation & Disciplinary procedure that are currently in place are as follows: Any aggrieved member can bring a complaint to the attention of the PIPFA Secretary. In addition, the investigation committee can also investigate into a matter that has been highlighted. The Investigation Committee considers the complaint and calls for relevant evidence to be provided. If the Investigation Committee decides to refer the complaint to the Disciplinary Committee, it will provide a report on the facts and matters which went before the Investigation Committee in addition to the records of the proceedings of the investigation and the verdict. The Investigation Committee shall also send a copy of its report to the member or student whose conduct has been the subject of investigation. On receipt of the report from the Investigation Committee, the Disciplinary Committee shall, as soon as practicable, notify the defendant of the nature of the complaint and the time and place of the hearing. The Disciplinary Committee shall provide him a reasonable opportunity of being heard and either in person, through legal counsel or a member of the Institute. If the defendant does not attend the hearing after the proper service of notice, the Disciplinary Committee may proceed to consider the complaint in his absence. If the Disciplinary Committee is of the opinion that the complaint has been proved in whole or in part, it shall record a finding to that effect and may pass orders against the defendant as it considers appropriate. Where the conduct of a student has been referred to the Investigation Committee, the result of any Institute s examination taken by the student shall be held back for the duration of the investigation. The accused may appeal against an order of the Disciplinary Committee within 30 days. During an appeal the PIPFA BOG shall take into consideration the record of evidence given before the Investigation Committee or the Disciplinary and if necessary, may admit fresh evidence or call for additional information, documents or records. The BOG may affirm, vary or rescind any finding of the Disciplinary Committee or order that the complaint be heard again by the Investigation & Disciplinary Committee. An order of the Disciplinary Committee shall not take effect until the disposal of the appeal by the BOG in cases where the defendant has appealed, or until the expiry of the prescribed appeal period. Where a member or a student is found guilty, the Secretary shall publish his name in such journal or journals as the Disciplinary Committee or the BOG deem appropriate. In 2014, three cases were reported to Investigation & Disciplinary Committee that were of a severe nature and were properly investigated by adoption of all defined procedures and were forwarded to the Board for a final decision. Status as of of Publication Page 15 of 19

16 # Start Actions Strengthening of the Investigation and Disciplinary System (I&D) 41. December 2010 Following BOG deliberations, a revision of I&D systems, rules and regulations has been completed. During the previous year, the Board has revisited the functionality of Investigation and Disciplinary Committee and concluded that the same is performing duties in fullfledged manner for elimination of unethical factors from the profession and disbursing the cases of misconduct of students and members on regular basis. Completed President/ Committee/ BOG/ / Examination Maintaining Processes 42. Continue to promote the importance of standards and codes through CPD and public outreach activities, and to clearly communicate the consequences of non-compliance. At the pre-qualification level, the students are clearly informed about the and Examination Policies and the required code of conduct during examinations. Instructions are published in PIPFA Career Plan for awareness of students and are also provided to the students along with Examination Entry Cards. Recently, the BOG has approved policy regarding Unfair Means Cases on the recommendations of Examination Committee which will be published shortly. BOS/EC/BOG / Examination / Ensure that complaints of misconduct against PIPFA members are investigated and processed in a timely manner. 43. Misconduct includes all and any of the following: Criminal activity. Acts or omissions likely to bring the accountancy profession into disrepute. Breach of professional standards. Breach of ethical requirements. Gross professional negligence. I&DC/ Committee/ Status as of of Publication Page 16 of 19

17 # Start Actions Review of PIPFA s Compliance Information 44. Perform periodic review of PIPFA response to SMO Action Plan and update the response as necessary. Once updated inform IFAC Compliance staff about the updates in order for the Compliance staff to republish updated information. President/ Committee/ Status as of of Publication Page 17 of 19

18 Action Plan Subject: Action Plan Objective: SMO 7 International Financial Reporting Standards and Other Pronouncements issued by the IASB Use Best Endeavors to Support Convergence with International Financial Reporting Standards Background: The Securities and Exchange Commission of Pakistan (SECP) has responsibility for adopting and promulgating accounting standards for listed and non-listed entities. The law (Companies Ordinance) simply refers to the International Accounting Standards Board (IASB) pronouncements as the standards to be used in the preparation of financial statements for listed entities. A large number of IASB pronouncements have been adopted for listed entities. PIPFA informs its members about new and amended IFRS through its website, periodic journal / newsletter and supports the implementation of the standards by providing pre-qualification courses on IFRS. PIPFA updates the syllabus to take into account new and amended standards. The PIPFA Board of Governors, in its last meeting, has decided to introduce Open Book Examinations for Corporate Sector for maintaining uniformity between all streams of PIPFA. It was decided that for the papers of Financial Reporting and Auditing the International Financial Reporting Standards(IFRSs) and International Auditing & Assurance Standards(ISAs) be allowed for solving the papers. This will enhance the knowledge of students at pre-qualification level which will help in their professional life. PIPFA is considering introduction of a short term online and offline courses on IFRSs, Valuations Management and other topics related to IFRS implementation. # Start Actions Promote the Use of IFRSs 45. Monitor pronouncements of IASB and ensure that members have access to updated standards, exposure drafts and other pronouncements. P&SC/BOG Maintaining Processes 46. Continued implementation of the pre-qualification and CPD programs that incorporate financial reporting courses based on IFRS, and elaboration of IASB guidance, interpretations and other pronouncements. P&SC/BOG 47. Continuously keep members and students abreast with newly issued Accounting Standards by IFAC and ICAP. Review existing Continuous Professional Development (CPD) strategies and events on both new and existing IFAC, SAFA and ICAP Standards and IFRS and implement and conduct new activities as appropriate. BOS/P&SC/ BOG / / Status as of of Publication Page 18 of 19

19 # Start Actions Review of PIPFA s Compliance Information 48. Perform periodic review of PIPFA response to SMO Action Plan and update the response as necessary. Once updated inform IFAC Compliance staff about the updates in order for the Compliance staff to republish updated information. President/ Status as of of Publication Page 19 of 19