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.

    Iraqi Union of Accountants and Auditors

     

    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:

      Iraq


    2. Name of member body:

      Or please specify name:
      Iraqi Union of Accountants and auditors



    3. Individual responsible for preparation:
      Rafid El Nauas


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

      01 / 1984



    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.):
      Arab Union of Accountants and Auditors



    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: The Professional Board, Commercial and Private Companies Law (enacted 1997), Iraqi Trade Law, Import law, Contract Law
      b). the Enacting body: Government
      c). date the Act or Code came into force: /


    25. How can IFAC obtain a copy of the Act or Code?
      Contact the Iraqi Union of Accountants and Auditors.


    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 Unified Accounting System, Iraqi Trade Law, Iraqi Accounting Standards.
      Private companies See above for listed entities
      Governmental Governmental Accounting system
      Not-for-profit See above for listed entities
      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 International Standards on Auditing
      Private companies Iraqi Auditing Standards
      Governmental INTOSAI
      Not-for-profit
      Other (please describe)
      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: 1 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:
      The requirement of the auditor team, first of all is 3 to 5 members. Title is Assistant Auditor to Chief of Auditing Team according to their experience.


    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

      Commercial Law, Companies Law, Professional Board Law.

    2. the Enacting body(ies)

      The Iraqi Government.

    3. the latest amendment date?

      1998


    35. How can IFAC obtain a copy of the Legal authority?
      From the Ministry of Justice


    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: 1 Year(s)


    41. Are joint auditors required for audits of listed entities?
      Yes   No
      If YES, please describe the requirement:
      Yes, The governmental team is described above in question 32.


    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 Board of Supreme Audit 01/2002 Board of Accounting and Auditing Principles and Standards
      Other (please describe) Other private sector entities Board of Supreme Audit 01/2002 Board of Accounting and Auditing Principles and Standards
      Other (please describe)
      Other (please describe)

      a. How can IFAC obtain copies of these documents?

      Through the Iraqi Ministry of Justice

      b. Are the documents available in English?
      Yes   No


    Section 5B -- Standard-Setting (Board of Accounting and Auditing Principles and Standards)


    44. For Board of Accounting and Auditing Principles and Standards, 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

      It is an agency appointed by the government.

      b. Name of standards

      Auditing and Assurance Standards.


    45. How many voting members does the standard-setting body have?
      15 is the total number. 9 Members from the BSA, 2 from the Ministry of Finance, 1 from the Ministry of Trade, 1 from the Accounting and Auditing Association, 2 members representing Iraqi Universities.


    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:


    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.)?
      Sector of profession.


    48. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      Governmental appointment in addition to members appointed by the Iraq Union of Accountants and Auditors.


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


    50. For how many years has the standard-setting body been in existence?
      17 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)

      3,000,000 Dinar before the war. No budget as of last year.

      Please enter the exchange rate used to calculate this number.

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



    52. To what entity is the standard-setting body accountable?
      Public, Private, and mixed sector.


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

      To be published and distributed to the obligated parties.

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

      Declare the meeting, subjects and date of session - this takes place before the board meeting. After the meeting, it declares the subjects and decisions that approved in the meeting.

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

      Majority required to approve final standards.

    4. other relevant due process activities



    54. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      8 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 Governmental Authority 07/2002 Iraqi Union of Accountants and Auditors, Audit Profession Board
      Professional Accountants in Business Governmental Authority 07/2002 Iraqi Union of Accountants and Auditors, Audit Profession Board
      Professional Accountants in the Public Sector Governmental Authority 07/2002 Iraqi Union of Accountants and Auditors, Audit Profession Board
      Other (please describe)

      a. How can IFAC obtain copies of these documents?

      National Assembly Gazette

      b. Are the documents available in English?
      Yes   No


    Section 6B -- Standard-Setting (Iraqi Union of Accountants and Auditors, Audit Profession Board)


    56. For Iraqi Union of Accountants and Auditors, Audit Profession Board, 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

      Agency Appointed by Government, Part of government ministry.

      b. Name of standards

      Ethics Standards.


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


    58. 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:


    59. 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.)?
      Sector of the profession,
      Member of accountants union.


    60. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      Accountants association is responsible for appointing members.


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


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


    63. 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)

      Due to the situation in Iraq, there has been no budget in 2 years.

      Please enter the exchange rate used to calculate this number.

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



    64. To what entity is the standard-setting body accountable?
      None, It is accountable to shareholders, stakeholders and concerned citizens.


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

      There is public exposure after each meeting.

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

      Private

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

      Majority required to approve final standards.

    4. other relevant due process activities



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



    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:
      There are three compulsory levels of education.
      Primary School - six years/grades
      Mediterranean School - three years/grades
      Secondary School - three years/grades
      All are compulsory
      University/College is four years and not compulsory.


    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.

      Accounting Standards Board.
      For accountants, the educational qualification is enough besides month training in one of administration related to accountancy profession.
      For auditor, the educational qualification should be higher, like the Higher Institute of Financial and Banking Sciences, or the Arabian Institute of Accounting. The practical training reaches to 25 weeks for the Higher Institute of Financial and Banking Sciences.


    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
      Four years study in accounting dept/College of Management and Economic
      Professional examinations
      Yes
      Practical experience
      Yes - see question 68
      Final qualifying examination
      Yes
      Other (please describe)
      Practical research presented before obtaining final certificate. Study in higher institute of financial and banking sciences requires four to six years post-graduate student to obtain CPA certificate.


    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)


    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.
      Committee inside the Ministry of higher education is responsible for limitation the requirements of education in college. According to Higher Institute of Financial and Banking Services, there is a board is responsible to limits educational requirements.

    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.

      According to Higher Institute of Financial and Banking Services (HIFBS)committees of instructors make a comparison to educational requirements in countries of the world to choose curriculums or requirements suitable to our country.

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

      Eight Members-
      General Managers from Financial, Industrial, Central Bank and BSA.
      Dean and Assistant Dean of institute and two members of head of departments inside institute.

    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)

    72 a. How can IFAC obtain copies of these documents?
      From the Higher Institute for Financial and Banking Studies.

    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:


    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)


    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?
      Professional Code of Auditing and Controlling Accounts, item 3 from the year 1999.


    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)


    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):


    80. What entity grants the license?
      Board of Accounting Standards.


    81. Describe any additional licensing requirements for auditors of listed entities (e.g., additional education requirements, registration, etc.).
      No Requirements.



    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
      Ministry/department Board of Supreme Auditors 07/2004 Board of Accounting and Auditing Principles and Standards
      Statutory authority/agency
      Profit entity owned by government
      State governments
      Local governments
      Other (please describe)
      Other (please describe)

      a. How can IFAC obtain copies of these documents?

      Through application to the BSA

      b. Are the documents available in English?
      Yes   No


    Section 8B -- Standard-Setting (Board of Accounting and Auditing Principles and Standards)


    83. For Board of Accounting and Auditing Principles and Standards, 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

      Board of Accounting and Auditing Principals and Standards.

      b. Name of standards

      Accounting 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 Board of Supreme Audit 2002 Board of Accounting and Auditing Principles and Standards
      Other (please describe) Other private sector entities Board of Supreme Audit 2002 Board of Accounting and Auditing Principles and Standards
      Other (please describe)
      Other (please describe)
      Other (please describe)

      a. How can IFAC obtain copies of these documents?

      Ministry of Justice

      b. Are the documents available in English?
      Yes   No


    Section 9B -- Standard-Setting (Board of Accounting and Auditing Principles and Standards)


    95. For Board of Accounting and Auditing Principles and Standards, 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

      See response to section 5 about auditing standards (it is the same body that is responsible for accounting standards).

      b. Name of standards

      Iraqi Accounting Standards


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


    97. 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:


    98. 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.)?


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


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


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


    102. 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)



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


    104. 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



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



    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:
      Baghdad Stock Exchange Market


    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:
      None


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

      Manager of Baghdad Market is a member of Board of Accounting and Auditing Principles and Standards. This Board controls the regulations of Accounting and Auditing.

    2. accounting and auditing standard-setting



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





    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
      Baghdad Stock Exchange Market



    Section 10B -- Stock Exchange
    Baghdad Stock Exchange Market Details


    110. For Baghdad Stock Exchange Market, 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.

      There is a specialized governmental administration for research and monitoring investment. The stock markets use the annual reports to make an assessment of the financial status.

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

      The stock markets have no authority to oppose a punishment on these companies, but raise the matter to the companies' registrant

    3. How enforcement actions are administered.

      The securities commission has regulator authority. There are agents and monitors who do this.



    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?

      Private Sector oversights by Board of Profession.
      Public Sector oversights by Board of the Supreme Audit.
      Through out making working team groups with auditing programs according to the governmental laws.


    2. The number of members on the oversight body

      Every working team group has five to seven members.

    3. Its powers

      Requesting information related to the audit reports made and review quality and compliance of work performed.

    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

      The working team group makes periodic and annual reviews of auditing of randomly selected individuals and report.

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

      Non compliance sanctions are imposed by this working team group. This can include taking away licenses, fines, and even expulsion from the profession. Legal matters are remained to the legal authorities in the case of tax or other fraudulent behavior for punishment.

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

      Board of Supreme Audit.


    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:
      According to government banks: Ministry of Finance and Central Bank of Iraq. According to private banks: Ministry of Finance, Central Bank of Iraq, and the company's registrant.


    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:
      Presenting monthly budget and weekly statements to the Central Bank which assembles data each month, a reference of seven schedules that indicates detailed data related to the table of assets and liabilities data. This accordance to instructions of unified accounting system. in addition, there is a commission from board of supreme audit works at the bank to audit sinisterly and annually.


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

      There is specific programs of auditing banks differ from the other enterprises.

    2. accounting and auditing standard-setting

      There is International Accounting Standards no.10 in use in Iraq plus other standards.

    3. review of financial statements prepared by listed entities

      Board of Supreme Audit and Central Bank audit the government banks. The companies' registrant audits private banks.

    4. enforcement of accounting, reporting and auditing requirements

      If they do not comply with the rules of accounting, reporting and auditing requirements, the Central Bank will close the bank. Depending on the nature of the event, other actions could be taken.



    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.
      Iraq has not any non banking financial institututions.


    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.
      Same answers as in section 10D


    119. What is the source of Legal authority of the regulatory authority(ies)?
      Governmental laws and registrations.


    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.
      None, because the nature of the Iraqi economy today - centralized authority has been the standard operating procedure.


    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.

      Yes, a program prepared by the Union of Iraqi Auditors.



    125. Under what authority does the organization conduct the program of quality assurance review?
      No authority because it is a non-governmental organization, so it only has on authority imposed on it. Its authority come directly from the law of government.


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



    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.
      Iraqi Union of Accountants and Auditors.


    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?
      Three


    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.)?
      It is a condition that member should be one of the Accountants Association members.


    133. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      Iraqi Union of Accountants and Auditors


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


    135. For how many years has the body been in existence?
      37 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)

      As a result of the operating environment in Iraq during the last fiscal year, the committee has had no stand alone budget.

      Please enter the exchange rate used to calculate this number.

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

      (specify currency)



    137. To what entity is the body accountable?
      The body is directly accountable to the membership.


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



     

     

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