Compliance Responses and Action Plans

  • Compliance Responses and Action Plans

    IFAC members and associates have provided self-assessment information about the regulatory and standard-setting framework in their countries (Part 1) and their organizations' activities in addressing IFAC's membership requirements (Part 2) as described in the Statements of Membership Obligations. Based on an analysis of this information, they are developing SMO Action Plans for continuous development and improvement.

    Some organizations have qualified to submit SMO Action Plans on a biennial basis by meeting eligibility criteria. These organizations are indicated with an asterisk (*).

    In the interest of transparency and providing information to the profession, regulators, and other stakeholders, all responses and SMO Action Plans are accessible below.

    Cayman Islands Society of Professional Accountants

     

    Introduction

    The information below has been submitted as part of the IFAC Member Body Compliance program. The Program has two components:

    Part 1: Assessment of the Regulatory and Standard-Setting Framework (provides information about regulatory requirements and standard-setting processes in member body countries); and
    Part 2: Assessment of Compliance (provides information on compliance by member bodies with the Statements of Membership Obligations). Part 2 of the Compliance Program will begin later this year, and the results will also be posted to the website.

    The responses to Part 1 are provided below. IFAC staff has reviewed the responses and, where necessary, validated them with external knowledgeable parties. A list of key terms is available to assist readers in understanding the responses.

    The purpose of this Part 1 Assessment is to collect information on the roles of IFAC member bodies and other organizations (including government, regulatory or other appointed authorities) with respect to:

    1. Setting auditing, accounting, ethics, public sector and education standards; and
    2. Regulating the accountancy profession.

    Sections 1 and 2 of Part 1 contain an introduction and instructions for member body respondents. For this reason, they are not included here, and the responses begin with Section 3.

    Questions or comments may be sent to complianceassessment@ifac.org.


    Section 3 -- Member Body General Information

    1. Country:

      Cayman Islands


    2. Name of member body:

      Or please specify name:
      Cayman Islands Society of Professional Accountants



    3. Individual responsible for preparation:
      Michael Pilling


    4. Date member body became a member of IFAC:
      Note: Please enter a numeric date (e.g., 12/2001, Month/Year)

      11 / 2007



    Questions 5 - 22 are for internal use only


    Section 3G -- Affiliations


    23. Please list those regional organizations to which your organization belongs (e.g., FEE, CAPA, ECSAFA, IAA, etc.):
      NONE



    Section 4 -- Statutory Framework


    Responses to this section will provide a description of the legal framework governing the commercial aspects of auditing and financial reporting in your country.

    Section 4A -- The Companies Act or Commercial Code


    The following questions concern the Companies Act (the Act) or Commercial Code (the Code) or similar Legal authority in your country. If no Legal authority exists, or the Legal authority does not address particular questions, please indicate "N/A" for Not Applicable.

    24. What is the full name of:
      a). the Act or the Code: Companies Law
      b). the Enacting body: Cayman Islands Legislative Assembly
      c). date the Act or Code came into force: 03 / 2004


    25. How can IFAC obtain a copy of the Act or Code?
      Copies of the Companies Law and other laws may be obtained from the Clerk of the Legislative Assembly, Cayman Islands Legislative Assembly, PO Box 890 GT, Grand Cayman, CAYMAN ISLANDS. Tel: (345) 949-4236/4237/4238 Fax: (345) 949-9514. Also see the website of the Cayman Islands Monetary Authority ("CIMA") for online copies of various laws at: http://www.cimoney.com/ky/templates/HTMLPage/defaultdisplay.asp?text_id=HTMLPage90071&button=1 The overall regulatory framework of the Cayman Islands financial services industry is governed by the following legislation: (see http://www.caymanfinances.com/reg_framework.cfm#csx ) The Monetary Authority Law The Banks and Trust Companies Law The Mutual Funds Law The Insurance Law The Companies Management Law The Securities Investment Business Law The Money Services Law The Proceeds of Criminal Conduct Law The Money Laundering Regulations The Misuse of Drugs Law The Confidential Relationships (Preservation) Law In addition to numerous regulations are issued under the above laws. Copies of the laws and regulations can be obtained for a nominal fee from the Legislative Department by contacting the Clerk of the LA.


    26. Is the Act or Code available in English?
      Yes   No


    27. What are the types of entities covered by the Act or the Code?
      Please check all that apply.
      Listed entities   Other (please specify):
      Private companies   Other (please specify):
      Governmental   Other (please specify):
      Not-for-profit   Other (please specify):


    28. Is there a requirement for the following entities to prepare annual statutory financial statements? If YES, please describe the financial reporting requirements including the accounting standards to be followed.
      Please check all that apply.
        No Yes (If YES, please describe)
      Listed entities
      Private companies
      Governmental
      Not-for-profit
      Other (please describe)
      Other (please describe)


    29. Is there a statutory requirement for the following entities to be audited? If YES, describe the requirement including the auditing standards to be followed:
      Please check all that apply.
        No Yes (If YES, please describe)
      Listed entities
      Private companies
      Governmental
      Not-for-profit
      Other (please describe) Although there is no statutory audit requirement imposed on a company under the Companies Law, there is such a requirement if the company is also licensed by CIMA under other governing legislation, such as that for banks, mutual funds and insurance companies. Specific auditing standards are not mandated under the legislation but the vast majority of audits apply US or International Standards.
      Other (please describe)


    30. Are the auditors ("statutory auditors") that are appointed for audits required by the Act or Code ("statutory audits") appointed for a specific period?
      Yes   No
      If YES, please indicate the term of appointment: Year(s)


    31. Who appoints the statutory auditors?
      Please check all that apply.
      Shareholders   Management
      Board of directors   Other (please specify):
      Audit committee   Other (please specify):
      Government agency   Other (please specify):


    32. Does the Act or Code require joint auditors for the statutory audit?
      Yes   No
      If yes, please describe the requirement:


    33. Does the Act or Code require the rotation of the auditors or audit firms performing statutory audits?
      Yes   No
      If yes, please describe the requirement:



    Section 4B -- Securities Market Regulations


    Responses to this section will provide a description of the financial reporting and auditing requirements for listed entities in your country.

    34. What are (a) the major items of Legal authority for such requirements, (b) the Enacting body(ies) and (c) the latest amendment date? Please identify the specific articles or sections that pertain to auditing and financial reporting:
    1. the major items of Legal authority for such requirements

      The Securities Market in the Cayman Islands is governed by the Cayman Islands Stock Exchange (CISE http://www.csx.com.ky ) a body corporate under the CISECL. See the Securities Investment Business Law which is available on-line from CIMA at http://www.cimoney.com.ky/pages/aboutus/laws/SIBL2004.pdf

    2. the Enacting body(ies)

      Cayman Islands Legislative Assembly

    3. the latest amendment date?

      July 2004


    35. How can IFAC obtain a copy of the Legal authority?
      Copies of the Legislation and Regulations may be obtained from the Clerk of the Legislative Assembly, as noted at Q 25 above.


    36. Is the Legal authority available in English?
      Yes   No


    37. Are there any additional or alternative financial statement reporting requirements for listed entities that are not described in your answer to Question 28?
      Yes   No
      If YES, please describe the requirement:


    38. Are there any additional auditing requirements that apply to listed entities other than those described in your answer to Question 29 (e.g., additional GAAS requirements, additional independence requirements, requirements to report to those charged with governance, etc.)?
      Yes   No
      If YES, please describe the requirement:


    39. Who appoints the statutory auditors of listed entities?
      Please check all that apply.
      Shareholders   Management
      Board of directors   Other (please specify):
      Audit committee   Other (please specify):
      Government agency   Other (please specify):


    40. Are auditors who perform audits of listed entities appointed for a specified period?
      Yes   No
      If YES, please indicate the term of appointment: Year(s)


    41. Are joint auditors required for audits of listed entities?
      Yes   No
      If YES, please describe the requirement:


    42. Is rotation of the auditor or audit firm for audits of listed entities required?
      Yes   No
      If YES, please describe the requirement:



    Section 5 -- Auditing Standards


    Responses to this section will provide a description of the legal and professional framework governing audit and other assurance standards in your country. The section focuses on the establishment of such standards. Please indicate the role your organization plays within this framework.

    Section 5A -- Statutory Framework


    43. Please provide the name of the Legal authority and/or self-regulatory rules that establish audit and other assurance standards in your country, the date of the last amendment of such authority or rules and the name of body responsible for setting audit and other assurance standards. If the standards are different for different entities (e.g., listed entities, private companies, governmental bodies, not-for-profit organizations, etc.), please specify the details that apply to each:
      Type of entity Name of
      applicable
      legal
      authority
      Date of last
      amendment
      (e.g. MM/YYYY 06/2001)
      Name of body responsible
      for setting audit and
      other assurance standards
      Listed entity n/a
      Other (please describe) Banks and Trust Companies The Banks and Trust Companies Law 2006 revision N/A
      Other (please describe) Open-ended Investment Funds The Mutual Funds Law 2006 revision N/A
      Other (please describe) Insurance companies Insurance Law 2006 revision N/A

      a. How can IFAC obtain copies of these documents?

      Re: Q. 43-
      Company management companies Companies Management Law 2003 revision N/A

      Security investment business companies Securities Investment Business Law 2004 revision N/A

      As noted above, audits in the Cayman Islands apply standards specific to the engagement. For the vast majority of audits the standards are US or IFRS.

      RE: Q. 43a-

      i. See CIMA Website http://www.cimoney.com.ky/templates/HTMLPage/defaultdisplay.asp?text_id=HTMLPage90071&button=1
      ii. CIMA maintains a listing of Approved Auditors at http://www.cimoney.com.ky/pages/investment/ApprovedAuditors.pdf


      b. Are the documents available in English?
      Yes   No


    Section 5B -- Standard-Setting (N/A)


    44. For N/A, please indicate the nature of the body (i.e., whether it is part of a government ministry or department, an agency appointed by government, a private organization established by the profession, or other [please describe]) and the name of the standards.
      a. Nature of body

      N/A

      b. Name of standards



    45. How many voting members does the standard-setting body have?
      N/A


    46. Are the members of the standard-setting body involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe: N/A


    47. What are the criteria considered in selecting members of the standard-setting body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?
      N/A


    48. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      N/A


    49. What is the term of appointment for members?
      Year(s)


    50. For how many years has the standard-setting body been in existence?
      Year(s)


    51. Please indicate the budget in US$ of the standard-setting body for the last fiscal year:
      Note: Please enter a whole number using commas (e.g., 4,000,000)

      N/A

      Please enter the exchange rate used to calculate this number.

      Note: Please enter a decimal amount (e.g., 4.0027)

      N/A



    52. To what entity is the standard-setting body accountable?
      N/A


    53. Describe the due process followed by the standard-setting body. Please include explanations of the following:
    1. public exposure of standards

      N/A

    2. accessibility of meetings (i.e., public or private)

      N/A

    3. approval process for final standards (i.e., majority required to approve final standards)

      N/A

    4. other relevant due process activities

      N/A


    54. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      Day(s)



    Section 6 -- Ethics


    Responses to questions in this section will provide a description of the legal and professional framework governing ethics standards for accountants in your country. This section focuses on the establishment of such standards. Please indicate the role your organization plays within this framework.

    Section 6A -- Statutory Framework


    55. For each of the following types of professionals, please indicate the name of the Legal authority and/or self-regulatory rules establishing ethics standards for accountants and auditors in your country, the date of the last amendment of such authority or rules and the name of body responsible for setting the ethics standards.
      Type of professional covered Name of
      applicable
      legal
      authority
      Date of last
      amendment
      (e.g. MM/YYYY 06/2001)
      Name of body responsible
      for setting ethics standards
      Professional Accountants in Public Practice N/A see below
      Professional Accountants in Business
      Professional Accountants in the Public Sector
      Other (please describe)

      a. How can IFAC obtain copies of these documents?

      CISPA has not established a unique code of ethics but has designated the IFAC Code of Ethics as the minimum standard for applicability in the Cayman Islands. Members are subject to the ethics standards established and maintained by each of their "home" institutes as well as those of their employer organization.

      b. Are the documents available in English?
      Yes   No



    Section 7 -- Education


    Responses to questions in this section will provide a description of how education requirements for the profession are established. Please indicate the role your organization plays within this process.

    Section 7A -- Education Requirements


    67. Please describe in general terms the education system in your country including the different stages of education from early childhood education through to tertiary level study. Please indicate which aspects / levels are compulsory as part of the national education system:
      The State System
      Government schools are based upon the British system, with primary schools (4-11 year olds) in each district, two Government high schools (11-16 year olds), a community college and a law school in George Town. Cayman Brac has three primary schools and a high school, providing full education for 5-16 year olds.
      Government high schools follow the CXC (Caribbean Exchange Council) curriculum, roughly equivalent to the British GCSE, and also offer a range of other external examinations to meet all ability levels, including IGCSE (the international version of the GCSE), Pitman's and City and Guilds.

      The University College of the Cayman Islands http://www.ccci.edu.ky offers a wide range of vocational training geared to local needs (business, hotel and building trades for example) as well as GCSE "A" Levels and Associate's and Bachelor's degrees in a range of majors. It also offers recreational courses, including evening classes.

      The law school, founded in 1991, offers a three-year Bachelor of Laws degree in conjunction with teh University of Liverpool (UK), as well as a five-year attorney-at-law course, and a Diploma in Legal Studies.

      The Private System
      In addition to Cayman's Government Schools, there is a wide variety of otehr educational establishments. All pre-school education remains in the private sector, although there are three pre-schools run by the National Council of Voluntary Organisations (NCVO) in George Town, Bodden Town and East End.

      Private schools are regulated and inspected by the Government's School Inspectorate.

      The International College of the Cayman Islands (ICCI) is a non-profit school that focuses on business education and office administration. Located in Savannah, Grand Cayman, ICCI, founded in 1970, is affiliated with several universities in the US. It offers degrees, including Masters, and diploma courses in accounting, banking, business administration, secretarial skills and other subjects.

      [Source http://www.caymanchamber.ky/relocation/school.htm ]


    68. Is there a legal authority or regulation that specifies the requirements for an individual to operate as an accountant or auditor in your country?
      Yes   No

      If YES, please provide the name and describe the requirements, including any relating to education, experience or qualifications.

      Sections 11 and 12 of The Public Accountants Law 2004 grant to the Council of CISPA the power to issue licenses to engage in public practice to appropriately qualified individuals (financial statement signatories). The detailed regulations governing the licensing process came into force in January 2007. In summary, these regulations allow the grant of licenses to individuals with the appropriate experience and professional qualifications acquired in other jurisdictions.

      With respect to licensed entities, CIMA maintains a list of approved audit firms.


    69. Please select from below all the relevant key levels of requirements to obtain certification from your member body (i.e. to qualify as a certified or chartered accountant) and provide a general description of the requirement.
      Academic requirements
      N/A
      Professional examinations
      N/A
      Practical experience
      N/A
      Final qualifying examination
      N/A
      Other (please describe)
      See 68 above.


    70. Which of the following arrangements best describes who establishes the education requirements for the accounting profession in your country? Please select one option.
      A government ministry, department or agency establishes education requirements for the accounting profession with no additional requirements set by the member body(ies).
      A government ministry, department or agency establishes minimum education requirements for the accounting profession, and member body(ies) supplement these requirements.
      Member body(ies) establishes the education requirements for the accounting profession.
      Other (please describe) See 68 above.


    71. Please provide the name(s) of the relevant body in the government ministry, department, agency and / or member body who establishes the education requirements.
      See 68 above.

    1. A general description of the role of the relevant body(ies) including how it operates and its due process in establishing the education requirements.

      See 68 above.

    2. How many voting members does the relevant body(ies) have

    3. Are the members of the relevant body(ies) involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe:

    4. For how many years has the body been in existence?

      Year(s)


    72. How would you describe the authority that the education requirements have?
      Requirements are legally-based
      Requirements are set in the constitution, by-laws or other rules of the relevant body(ies).
      Requirements are set in member body(ies) policy document(s).
      Other (please describe) See 68 above.

    72 a. How can IFAC obtain copies of these documents?

    72 b. Are these documents available in English?
      Yes   No


    73. Are the education requirements for accountants and auditors the same throughout your country, or do they differ among regions, provinces or states?
      Same   Different
      If different, please briefly describe the main differences:
      See 68 above.


    74. Please indicate the scenario that best describes who delivers the education and examination process for members of the profession. Please only select one option.
      The education program and final examination are delivered by the member body.
      The education program and final examination are delivered by the member body and other education institutions (e.g., universities, colleges, and others).
      The education program and final examination are delivered by education institutions (e.g., universities, colleges, and others).
      Other (please explain) See 68 above.


    75. Once qualified as a member of your professional body, can members offer their services directly to the public?
      Yes   No



    Section 7B -- Licensing


    76. Are there licensing requirements for auditors in your country?
      Yes (continue with Question 77)   No (proceed to Section 8)


    77. Who sets the requirements to obtain a license?
      Under the powers set out in sections 11 and 12 of the Public Accountants Law of 2004, the power to grant licenses to engage in public practice is vested in the Council of CISPA.


    78. What are the requirements to obtain a license (please select all relevant requirements.)?
      Academic study specific for obtaining a license
      Practical experience
      Licensing examination
      Final qualifying examination
      Other (please describe)
      The requirements governing the issuance of licenses to engage in public practice are as set out in the Regulations to the Public Accountants Law which came into force in January 2007 and the specific procedures developed by CISPA, based on the practical experience of the applicant and their professional qualifications.


    79. Are there ongoing requirements to retain a license?
      Yes   No

      If YES, please select all relevant requirements.
      Continuing professional development
      Re-examination
      Other (please specify): The prescribed conditions for license retention are the same as for initial issuance, as set out in the Regulations to the Law, these essentially being the applicant's ability to demonstrate honesty, integrity, and good repute- refer to Q.80


    80. What entity grants the license?
      Re: Q.80- CISPA

      Re: Q. 79-

      and the appropriate level of competence, experience and capability. In practice much of these requirements will be met by the licensee's continuing membership in good standing in their "home" institute.


    81. Describe any additional licensing requirements for auditors of listed entities (e.g., additional education requirements, registration, etc.).
      N/A



    Section 8 -- Public Sector Accounting Standards


    Responses to this section will provide a description of the legal and professional framework governing public sector accounting standards in your country. The section focuses on the establishment of such standards. Please indicate, where appropriate, the role of your organization within this framework.

    Section 8A -- Statutory Framework


    82. Please provide the name of the Legal authority and/or self-regulatory rules establishing public sector accounting standards in your country, the date of last amendment and the name of the body responsible for setting public sector accounting standards. If the standards are different for different entities (e.g., whole of government, ministry/department, statutory authority/agency, profit entity owned by government, state governments, local governments, other [please specify]), please specify the details that apply to each.
      Type of entity Name of
      legal
      authority
      Date of last
      amendment
      (e.g. MM/YYYY 06/2001)
      Name of body responsible
      for setting public sector
      accounting standards
      Whole of government Public Management and Finance Law (Revision 2003) and Financial Regulations, 2004 Law 08/2003 Cayman Islands Government
      Ministry/department Public Management and Finance Law (Revision 2003) and Financial Regulations, 2004 08/2003 Cayman Islands Government
      Statutory authority/agency Public Management and Finance Law (Revision 2003) and Financial Regulations, 2004 08/2003 Cayman Islands Government
      Profit entity owned by government Public Management and Finance Law (Revision 2003) and Financial Regulations, 2004 08/2003 Cayman Islands Government
      State governments N/A N/A N/A
      Local governments N/A N/A N/A
      Other (please describe)
      Other (please describe)

      a. How can IFAC obtain copies of these documents?

      Can obtain the Law from the Clerk of the Legislative Assembly

      b. Are the documents available in English?
      Yes   No


    Section 8B -- Standard-Setting (Cayman Islands Government )


    83. For Cayman Islands Government , please indicate the nature of the body (i.e., whether it is part of a government ministry or department, an agency appointed by government, a private organization established by the profession, or other [please describe]) and the name of the standards.
      a. Nature of body

      Government - Ministry of Finance and Economics

      b. Name of standards

      Through the Public Management and Finance Law (PMFL)


    84. How many voting members does the standard-setting body have?
      N/A


    85. Are the members of the standard-setting body involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe: The standards chosen for the PMFL to guide the Public Sector Accounting Standards for the Cayman Islands Government were decided through a collaborative effort under the Financial Management Initiative (FMI) that included discussions with the Financial Secretary, Accountant General, Auditor General and the Consultant for the FMI. There is no standard setting body per se. The Standards were set through the PMFL and Cayman Islands Government is relying on IFAC to continue to set the appropriate standards.


    86. What are the criteria considered in selecting members of the standard-setting body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?
      See Q. 85 above.


    87. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      See Q. 85 above.


    88. What is the term of appointment for members?
      Year(s)


    89. For how many years has the standard-setting body been in existence?
      Year(s)


    90. Please indicate the budget in US$ of the standard-setting body for the last fiscal year:
      Note: Please enter a whole number using commas (e.g., 4,000,000)

      N/A

      Please enter the exchange rate used to calculate this number.

      Note: Please enter a decimal amount (e.g., 4.0027)

      N/A



    91. To what entity is the standard-setting body accountable?
      There is no standard setting body


    92. Describe the due process followed by the standard-setting body. Please include explanations of the following:
    1. public exposure of standards

      N/A

    2. accessibility of meetings (i.e., public or private)

      N/A

    3. approval process for final standards (i.e., majority required to approve final standards)

      N/A

    4. other relevant due process activities

      N/A


    93. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      Day(s)


    Section 8B -- Standard-Setting (N/A)


    83. For N/A, please indicate the nature of the body (i.e., whether it is part of a government ministry or department, an agency appointed by government, a private organization established by the profession, or other [please describe]) and the name of the standards.
      a. Nature of body



      b. Name of standards



    84. How many voting members does the standard-setting body have?


    85. Are the members of the standard-setting body involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe:


    86. What are the criteria considered in selecting members of the standard-setting body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?


    87. Who appoints these members (e.g., member body, government, user, regulator, etc.)?


    88. What is the term of appointment for members?
      Year(s)


    89. For how many years has the standard-setting body been in existence?
      Year(s)


    90. Please indicate the budget in US$ of the standard-setting body for the last fiscal year:
      Note: Please enter a whole number using commas (e.g., 4,000,000)

      Please enter the exchange rate used to calculate this number.

      Note: Please enter a decimal amount (e.g., 4.0027)



    91. To what entity is the standard-setting body accountable?


    92. Describe the due process followed by the standard-setting body. Please include explanations of the following:
    1. public exposure of standards



    2. accessibility of meetings (i.e., public or private)



    3. approval process for final standards (i.e., majority required to approve final standards)



    4. other relevant due process activities



    93. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      Day(s)



    Section 9 -- Private Sector Accounting Standards


    Responses to the questions in this section will provide a description of the legal, statutory and professional framework governing private-sector accounting standards in your country. The section focuses on the establishment of such standards. Please indicate what role your organization plays within this framework.

    Section 9A -- Statutory Framework


    94. Please provide the name of the Legal authority and/or self-regulatory rules that establish private-sector accounting standards in your country, the date of last amendment, and the name of the body responsible for setting private sector accounting standards. If the standards are different for different entities (for example, listed entities, private companies, governmental organization, not for profit organizations, etc.), please specify the requirements that apply to each.
      Type of entity Name of legal
      authority or
      applicable
      rules
      Date of last
      amendment
      (e.g. MM/YYYY 06/2001)
      Name of body responsible
      for setting private sector
      accounting standards
      Listed entity See(a) below
      Other (please describe)
      Other (please describe)
      Other (please describe)
      Other (please describe)

      a. How can IFAC obtain copies of these documents?

      There is no law or regulation in the Cayman Islands which mandates the accounting standards to be used for preparation of financial statements of either listed or non-listed entities, nor have specific "national" standards been developed in the Cayman Islands. The accounting standards applied in specific instances is a decision of the entity or its parent. For a licensed entity, the standards used must be approved by CIMA. For the vast majority of cases, the standards applied are US or IFRS.

      b. Are the documents available in English?
      Yes   No



    Section 10 -- Monitoring (Quality Assurance) and Enforcement


    Responses to the questions in this section will provide a description of the legal and professional framework governing regulation of the profession in your country. Please indicate what role your organization plays within this framework.

    Section 10A -- Securities Market Regulatory Authority


    106. Name the authority that regulates the securities market:
      Cayman Islands Stock Exchange http://www.csx.com.ky/


    107. What responsibilities does this organization have for monitoring and enforcing compliance with accounting, reporting or auditing requirements? Please identify the Legal authority that establishes that responsibility:
      The Cayman Islands Stock Exchange ("CSX") was established under the Stock Exchange Company Law 1996 and is structured as a private limited company owned by the Cayman Islands Government. Its Board of Directors is comprised of senior professionals from the private sector of the financial service industry. The CSX under present legislation does not have a significant role in monitoring or enforcing compliance with accounting, reporting or auditing requirements.


    108. Briefly describe the role of the regulatory authority as it relates to the following:
    1. regulation of the audit profession

      No significant role

    2. accounting and auditing standard-setting

      No significant role

    3. review of financial statements prepared by listed entities, and monitoring of their compliance with the accounting and disclosure requirements

      No significant role



    Section 10B -- Stock Exchange


    109. Name the four largest stock exchangers (by market capitalization) and whether it is organized as a profit or not-for-profit organization:
      Profit Not
      for
      profit
      Stock Exchange
      Cayman Islands Stock Exchange



    Section 10B -- Stock Exchange
    Cayman Islands Stock Exchange Details


    110. For Cayman Islands Stock Exchange, is there a mechanism at the stock exchange(s) for monitoring and enforcing financial reporting, accounting and auditing of listed entities?
      Yes   No

      If YES, please describe the following:

    1. How the monitoring and enforcement of financial reporting, accounting and auditing is conducted.



    2. The consequences of non-compliance with the financial reporting, accounting or auditing requirements.



    3. How enforcement actions are administered.




    Section 10C -- Regulatory Oversight of the Accounting Profession


    111. Has an audit profession oversight body been established (e.g., to oversee the external quality assurance review process, etc.)?
      Yes   No

      If NO, proceed to the next section.

      If YES, please describe :

    1. What are the name and duties of the oversight body?



    2. The number of members on the oversight body



    3. Its powers



    4. How the oversight body conducts or oversees a program of inspections to assess the degree of compliance of each audit firm/auditor with applicable auditing standards and regulations



    5. The sanctions the oversight body may impose in the event of non-compliance



    6. How the oversight body is accountable to any public institution or body



    Section 10D -- Banks Regulatory Authority


    112. Name the authority that regulates the banks and similar financial institutions. Discuss how this authority differentiates between accounting requirements for regulatory reporting and general purpose external financial reporting:
      The body regulating banks and similar financial institutions in the Cayman Islands is the Cayman Islands Monetary Authority ("CIMA"). CIMA doe snot impose specific accounting requirements for regulatory reporting purposes and for purposes of the filing of annual audited finanical statements accepts statements prepared under most commonly used generally accepted accounting standards.


    113. Discuss briefly the legal requirements with respect to monitoring and enforcement by the regulatory authority of accounting and auditing standards that apply to the banks and similar financial institutions:
      As noted in Q29 above, banks and similar financial institutions licensed under the Banks and Trust Companies Law have an obligation to file audited financial statements with CIMA on an annual basis. The audited statements therefore become a part of the resources available to CIMA in the supervision process. CIMA also require auditors to submit to them copies of management letters sent to the client institution as part of the audit process, as well as meeting with the auditors as part of their inspections of particular institutions.


    114. Briefly describe the role of the regulatory authority as it relates to the following:
    1. regulation of the audit profession

      The role of CIMA in regulating the audit profession in the Cayman Islands lies in its power to admit individual firms as qualified to undertake audits of licensed entities. This process of authorization is based on CIMA's assessment of individual firms in terms of the size, quality and experience of their professional staff and the adequacy of their professional indemnity insurance and training programmes.

    2. accounting and auditing standard-setting

      CIMA does not have a direct role in standard setting

    3. review of financial statements prepared by listed entities

      CIMA reviews the financial statements of all licensed entities as part of its supervisory role. In certain instances, particularly where an audit report has been qualified, this will mean that the client and its auditor will be subject to direct enquiry by CIMA.

    4. enforcement of accounting, reporting and auditing requirements

      Failure of a licensed entity to submit audited financial statements will expose the entity to a range of sanctions enforceable by CIMA. These could range from fines to the appointment of a special investigator and in extreme cases, the suspension or even cancellation of the entity's licence.



    Section 10E -- Non-Banking Financial Institutions Regulatory Authority


    115. Name the regulatory authority(ies) responsible for monitoring compliance with and enforcing accounting, reporting and auditing requirements imposed on non-banking institutions.
      CIMA is the responsible body and the responses in this section are as for 10D above


    116. What is the source of Legal authority of the regulatory authority(ies)?


    117. Briefly describe the role of the regulatory authority(ies) as it relates to the following:
    1. regulation of the audit profession



    2. accounting and auditing standard-setting



    3. review of financial statements prepared by listed entities



    4. enforcement of accounting, reporting and auditing requirements




    Section 10F -- Insurance Companies Regulatory Authority


    118. Name the regulatory authority responsible for monitoring compliance with and enforcing accounting, reporting and auditing requirements imposed on insurance companies.
      CIMA is the responsible body and the responses in this section are as for 10D above


    119. What is the source of Legal authority of the regulatory authority(ies)?


    120. Briefly describe the role of the regulatory authority(ies) as it relates to the following
    1. regulation of the audit profession



    2. accounting and auditing standard-setting



    3. review of financial statements prepared by listed listed entities



    4. enforcement of accounting, reporting and auditing requirements




    Section 10G -- Other Regulatory Authority


    121. Name any other regulatory authority(ies) responsible for monitoring compliance with and enforcing accounting, reporting and auditing requirements.
      N/A


    122. What is the source of Legal authority of each regulatory authority?


    123. Briefly describe the role of the regulatory authority(ies) as it relates to the following
    1. regulation of the audit profession



    2. accounting and auditing standard-setting



    3. review of financial statements prepared by listed listed entities



    4. enforcement of accounting, reporting and auditing requirements




    Section 10H -- Quality Assurance


    124. Does any organization of professional accountants/auditors organize a program of quality assurance review to monitor compliance with accounting, reporting and auditing requirements?
      Yes   No

      If NO, proceed to next Section.

      If YES, briefly describe the monitoring and enforcement mechanism.



    125. Under what authority does the organization conduct the program of quality assurance review?


    126. Who performs the review (e.g., one firm reviewing another firm, staff from the national professional organization, contractors, or a combination of these)?




    Section 10 I -- Investigation and Discipline


    127. Is there a process for investigating and disciplining the accounting profession in your country?

    128. Which of the following best describes the responsibility for the investigatory and disciplinary function in your country?
      Government or other agencies are solely responsible for this function.
      Government or other agencies have this responsibility, but the member body or bodies participate in the process.
      Government formally delegates this function to the member body or bodies, to exercise on its behalf.
      Member body or bodies have separate and independent processes that operate alongside processes of legal authorities.
      Other (please explain)


    129. Please indicate the name of the body or bodies responsible for investigation and discipline.
      The primary body responsible for disciplinary matters is the Council of CISPA, through its Investigation Committee and power to refer serious matters to an independent Disciplinary Tribunal when necessary.

      RE: Q. 127-

      One of the primary motivations for enacting the Public Accountants Law ("the Law") in 2004 was to implement a disciplinary procedure specifically applicable to individuals engaged in the accounting profession in the Cayman Islands. These provisions are set in Part IV of the Law and include a range of measures including the establishment of an ad hoc Disciplinary Tribunal (having a majority of non-CISPA members) to hear the most serious cases.



    Responses to the remaining questions in this Section are required if your organization has responsibility for investigation and disciplinary actions.

    130. How many voting members does the body have?
      Council currently comprises 15 elected members of CISPA


    131. Are the members of the body involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe:


    132. What are the criteria considered in selecting members of the body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?
      Council members are elected annually at the AGM of the Society from its senior members.


    133. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      See Q132 above


    134. What is the term of appointment for members?
      1 Year(s)


    135. For how many years has the body been in existence?
      36 Year(s)


    136. Please indicate the budget in US$ of the body for the last fiscal year.
      Note: Please enter a whole number using commas (e.g., 4,000,000)

      256,000

      Please enter the exchange rate used to calculate this number.

      Note: Please enter a decimal amount (e.g., 4.0027)

      CI$ 1.00 = US$ 1.20 (specify currency)



    137. To what entity is the body accountable?
      CISPA as a company limited by guarantee is not accountable to any entity in terms of routine reporting or control. However, section 30 of the Public Accountants Law empowers the Government to make regulations in relation to the Law and as such, comprises an ultimate form of control over the activities and powers of CISPA.


    138. Approximately how many days per year does the body meet in full session (including teleconferences)?
      12 Day(s)



     

     

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