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.

    Institute of Certified Management Accountants of Sri Lanka

     

    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:

      Sri Lanka


    2. Name of member body:
      Institute of Certified Management Accountants of Sri Lanka

      Or please specify name:



    3. Individual responsible for preparation:
      H.A. Wehalle


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

      /



    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 Act No.7 of 2007
      b). the Enacting body: Government of Sri Lanka
      c). date the Act or Code came into force: 05 / 2007


    25. How can IFAC obtain a copy of the Act or Code?
      From website: www.drc.gov.lk


    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): All Companies Limited by share capital or guarantee
      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 Sri Lanka Accounting Standards
      Private companies Sri Lanka Accounting Standards
      Governmental International Public Sector Accounting Standard Board
      Not-for-profit Sri Lanka Accounting Standards
      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 Sri Lanka Auditing Standards
      Private companies Sri Lanka Auditing Standards
      Governmental International Association of Supreme Audit Institution(INTOSAI)
      Not-for-profit Sri Lanka Auding Standards
      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): Auditor General for Corporations
      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:
      Rotation of Audit Partners and not the firms



    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

      Sri Lanka Accounting Standards CSE Listing Rules

    2. the Enacting body(ies)

      Institute of Chartered Accountants of Sri Lanka
      Colombo Stock Exchange

    3. the latest amendment date?

      31st December 2005


    35. How can IFAC obtain a copy of the Legal authority?
      Please go to websites
      www.icasrilanka.com
      www.cse.lk


    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:
      Rules & regulations applicable under SEC
      Disclosure of
      1. Corporate Governance 2. Audit Committees
      3. Executives, Non Executives & Independent Directors


    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:


    42. Is rotation of the auditor or audit firm for audits of listed entities required?
      Yes   No
      If YES, please describe the requirement:
      Rotation of Audit Partners once in 5 years and not the audit firms



    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 Sri Lanka Auditing Standards 05/1997 Institute of Chartered Accountants of Sri Lanka
      Other (please describe)
      Other (please describe)
      Other (please describe)

      a. How can IFAC obtain copies of these documents?

      Please go to website: www.icasrilanka.com

      b. Are the documents available in English?
      Yes   No


    Section 5B -- Standard-Setting (Institute of Chartered Accountants of Sri Lanka)


    44. For Institute of Chartered Accountants of Sri Lanka, 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

      A body incorporated by an Act of Parliament

      b. Name of standards

      Sri Lanka Accounting Standards
      Sri Lanka Auditing Standards


    45. How many voting members does the standard-setting body have?
      Sixteen Council Members


    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.)?
      Private & Public Members


    48. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      8 members elected by members & 8 members appointed by the Minister of Trade, Marketing Development, Co-operatives & Consumer Affairs


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


    50. For how many years has the standard-setting body been in existence?
      15 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)

      83,195

      Please enter the exchange rate used to calculate this number.

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

      120.02



    52. To what entity is the standard-setting body accountable?
      Ministry of Finance


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

      Standards are published in the Government Gazette

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

      Round table discussion with public before approval of standards

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

      Quorum for meeting required. Minimum of 3/4th of committee members present should approve

    4. other relevant due process activities

      Public Seminars


    54. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      12 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 Code of Ethics 12/2007 Institute of Chartered Accountants of Sri Lanka
      Professional Accountants in Business Code of Ethics 12/2007 ICA(Sri Lanka)
      Professional Accountants in the Public Sector Code of Ethics 12/2007 ICA(Sri Lanka)
      Other (please describe)

      a. How can IFAC obtain copies of these documents?

      Please go to websites:
      www.icasrilanka.com
      www.cma-srilanka.org


      b. Are the documents available in English?
      Yes   No


    Section 6B -- Standard-Setting (Institute of Chartered Accountants of Sri Lanka)


    56. For Institute of Chartered Accountants of Sri Lanka, 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

      A body incorporated by an Act of Parliament

      b. Name of standards

      Sri Lanka Accounting Standards
      Sri Lanka Auditing Standards


    57. How many voting members does the standard-setting body have?
      Sixteen Council Members


    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.)?
      Private & Public Members


    60. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      8 members elected by members & 8 members appointed by the Minister of Trade, Marketing Development, Co-operatives & Consumer Affairs


    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?
      15 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)

      83,195

      Please enter the exchange rate used to calculate this number.

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

      120.02



    64. To what entity is the standard-setting body accountable?
      Ministry of Finance


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

      Standards are published in the Government Gazette

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

      Round table discussion with public before approval of standards

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

      Quorum for meeting required. Minimum of 3/4th of the committee members present should approve

    4. other relevant due process activities

      Public seminars


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


    Section 6B -- Standard-Setting (ICA(Sri Lanka))


    56. For ICA(Sri Lanka), 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

      Incorporated by an Act of Parliament

      b. Name of standards

      Sri Lanka Auditing Standards
      Sri Lanka Accounting Standards


    57. How many voting members does the standard-setting body have?
      Sixteen Council Members


    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.)?
      Private & Public Members


    60. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      8 elected by the members and 8 appointed by the Minister of Trade, Marketing Development, Co-operatives & Consumer Affairs


    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?
      15 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)

      83,195

      Please enter the exchange rate used to calculate this number.

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

      120.02



    64. To what entity is the standard-setting body accountable?
      Ministry of Finance


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

      Standards are published in the Government Gazette

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

      Round table discussion with public before approval of standards

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

      Quoram for meeting required. Minimum of 3/4 of members present should approve

    4. other relevant due process activities

      Public seminars


    66. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      30 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:
      School education is at Primary & Secondary Levels leading to the GCE (Advanced Level) qualification.
      Primary education is compulsory.
      Tertiary Level education is offered by State Universities and foreign degrees are offered by private colleges.


    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.

      Local registration applies only to auditors

      Local requirement only for auditors if specific Business Enterprises.

      Auditors should be Chartered Accountants


    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
      Professional examinations
      Practical experience
      Final qualifying examination
      Other (please describe)


    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.
      Education & Examination Committees

    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.

      The Institute of Certified Management Accountants of Sri Lanka (CMA) Incorporated by an Act of Parliament No. 23 of 2009.
      The Governing Council of CMA establishes the education requirements.

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

      8 members

    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?

      9 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?
      Please go to the CMA website: www.cma-srilanka.org

    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?
      Institute of Chartered Accountants of Sri Lanka


    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?
      The Institute of Chartered Accountants of Sri Lanka


    81. Describe any additional licensing requirements for auditors of listed entities (e.g., additional education requirements, registration, etc.).
      None



    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 of Finance & Planning - IPSASB(IPSASs)
      Ministry/department
      Statutory authority/agency Ministry of Finance & Planning - ICASL(SLASs)
      Profit entity owned by government
      State governments Provincial Ministry of Finance - IPSASB(IPSASs)
      Local governments
      Other (please describe)
      Other (please describe)

      a. How can IFAC obtain copies of these documents?

      From IPSAS Board

      website: www.ifac.org


      b. Are the documents available in English?
      Yes   No


    Section 8B -- Standard-Setting (IPSASB(IPSASs))


    83. For IPSASB(IPSASs), 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

      Part of Government Ministry the Public Enterprises Division of the Finance Ministry.

      b. Name of standards

      International Standards IPSAB/IPSAS


    84. How many voting members does the standard-setting body have?
      No local setting body


    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: No members but circular issued at present from Fiance Minstry.


    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.)?
      N/A


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


    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)

      Not available - Met by Govt.

      Please enter the exchange rate used to calculate this number.

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

      Not applicable



    91. To what entity is the standard-setting body accountable?
      Public Enterprises Division of the Minstry of Finance


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

      Followign International Standards

    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)

      Public Enterprises Division of the Ministry of Finance

    4. other relevant due process activities

      Not known


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


    Section 8B -- Standard-Setting (ICASL(SLASs))


    83. For ICASL(SLASs), 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

      A body incorporated by an Act of Parliament

      b. Name of standards

      Sri Lanka Accounting Standards
      Sri Lanka Auditing Standards


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


    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.)?
      Private and Public Members


    87. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      8 members elected by member body
      8 members appointed by Government


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


    89. For how many years has the standard-setting body been in existence?
      15 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)

      83,195

      Please enter the exchange rate used to calculate this number.

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

      120.02



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


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

      Standards are published in the Government Gazette

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

      Round table discussion with public before approval of standards

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

      Quorum for meeting required. Minimum of 3/4th of members present should approve

    4. other relevant due process activities

      Public seminars


    93. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      12 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 Sri Lanka Accounting Standards 12/2005 Institute of Chartered Accountants of Sri Lanka
      Other (please describe) Private Limited Sri Lanka Accounting Standards 12/5005 Institute of Chartered Accountants of Sri Lanka
      Other (please describe) Partnership (optional) Sri Lanka Accounting Standards 12/5005 Institute of Chartered Accountants of Sri Lanka
      Other (please describe) Societies, Club (etc) (optional) Sri Lanka Accounting Standards 12/5005 Institute of Chartered Accountants of Sri Lanka
      Other (please describe)

      a. How can IFAC obtain copies of these documents?

      Please go to website: icasrilanka.com

      b. Are the documents available in English?
      Yes   No


    Section 9B -- Standard-Setting (Institute of Chartered Accountants of Sri Lanka)


    95. For Institute of Chartered Accountants of Sri Lanka, 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

      A body incorporated by an Act Parliament

      b. Name of standards

      Sri Lanka Accounting Standards
      Sri Lanka Auditing Standards


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


    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.)?
      Private & Public Members


    99. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      8 elected by the members and 8 appointed by the Minister of Trade, Marketing Development, Co-operatives & Consumer Affairs


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


    101. For how many years has the standard-setting body been in existence?
      15 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)

      49,166

      Please enter the exchange rate used to calculate this number.

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

      120.02



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


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

      Standards are published in the Government Gazette

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

      Round table discussion with public before approval of standards

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

      Quorum for meeting required. Minimum of 3/4th of members present should approve

    4. other relevant due process activities

      Public seminars


    105. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      12 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:
      Securities & Exchange Commission of Sri Lanka


    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:
      Monitoring & Compliance is done by both the SEC as will as the Colombo Stock Exchange which is licensed by the Securities & Exchange Commission of Sri Lanka.
      Sri Lanka Accounting & Auditing Standards Monitoring Board


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

      None. But issues certain rules in consultation with ICASL.

    2. accounting and auditing standard-setting

      Statutory Bodies

      1. Auditing Standards Committee

      2. Accounting Standards Committee
      Institute of Chartered Accountants of Sri Lanka, Council adopts those standards.


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

      This function is carried out by
      1. Securities & Exchange Commission (SEC)
      2. Colombo Stock Exchange

      3. Accounting & Auditing Standards Monitoring Board




    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
      The Colombo Stock Exchange Limited by Guarantee



    Section 10B -- Stock Exchange
    The Colombo Stock Exchange Limited by Guarantee Details


    110. For The Colombo Stock Exchange Limited by Guarantee, 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.

      Disclosure of information which could effect share prices. Compulsory submission of quarterly, bi annually & Annual Report to CSE written a given time frame

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

      Fines & delisting

    3. How enforcement actions are administered.

      Making announcements in daily newspapers & CSE bulletins



    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?

      Responsibility of Institute of Chartered Accountants of Sri Lanka (ICASL)

    2. The number of members on the oversight body

      Yet under consideration

    3. Its powers

      Powers are being drafted by Institute of Chartered Accountants of Sri Lanka (ICASL)

    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

      Not applicable

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

      Not applicable

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

      Not applicable


    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:
      Central Bank of Sri Lanka


    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:
      Requests monthly returns on selected financial information, assets & liabilities, statutory liquid assets. Enforces publication of quarterly and annual audited financial statements in the newspapers. Balance sheet and Profit & Loss Accounts to give specified information. Accounting & Auditing Standards are as per Sri Lanka Accounting & Auditing Standards set by ICASL


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

      Director of Bank Supervision to issue the list of qualified auditors

    2. accounting and auditing standard-setting

      None

    3. review of financial statements prepared by listed entities

      As given in 113 (Section 10D)

    4. enforcement of accounting, reporting and auditing requirements

      As mentioned in 113 (Section 10D)



    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.
      Central Bank of Sri Lanka


    116. What is the source of Legal authority of the regulatory authority(ies)?
      Finance Companies Act No.78 of 1988 Finance Leasing Act


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

      This is done only by ICASL

    2. accounting and auditing standard-setting

      This function is with ICASL

    3. review of financial statements prepared by listed entities

      Regulatory & supervisory function exercised by Central Bank of Sri Lanka Balance Sheet and Profit & Loss Account to be prepared to specification which includes specified information.

    4. enforcement of accounting, reporting and auditing requirements

      These are carried out by the Central Bank of Sri Lanka



    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.
      Insurance Board of Sri Lanka


    119. What is the source of Legal authority of the regulatory authority(ies)?
      Regulation of Insurance Industry Act. No.43 of 2000


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

      None

    2. accounting and auditing standard-setting

      Insurance Companies have to comply with Statement of Recommended Practice standard in the preparation of audited financial statements

    3. review of financial statements prepared by listed listed entities

      Quarterly financial statements are monitored

    4. enforcement of accounting, reporting and auditing requirements

      All Insurance companies are required to submit Annual Statutory and Actuarial Returns



    Section 10G -- Other Regulatory Authority


    121. Name any other regulatory authority(ies) responsible for monitoring compliance with and enforcing accounting, reporting and auditing requirements.
      Sri Lanka Accounting & Auditing Standards Monitoring Board (SLAASMB)


    122. What is the source of Legal authority of each regulatory authority?
      Sri Lanka Accounting & Auditing Standards Act. No. 15 of 1995


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

      1. Every specified business enterprise should be audited by a practicing auditor of ICASL
      2.Auditors to certify the audit report that the audit had been conducted in accordance with Sri Lanka Auditing Standards and financial statements prepared in accordance with Sri Lanka Accounting Standards


    2. accounting and auditing standard-setting

      Not written their scope

    3. review of financial statements prepared by listed listed entities

      Every specified business enterprise should submit its annual audited financial statements to the SLAASMB to enable them to determine whether its financial statements have been prepared in compliance with Sri Lanka Accounting Standards.

    4. enforcement of accounting, reporting and auditing requirements

      The Board has investigative powers to request for information from specified business enterprises, summon and question any director, officer or auditor on the preparation of financial statements.
      The Board also has powers to carry out investigations, as expedient



    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.

      Institute of Chartered Accountants of Sri Lanka is in the process of introducing a Quality Assurance Mechanism in Sri Lanka. The Council has appointed a Quality Assurance Committee. Steps have been taken by the committee to study the system in place in Pakistan and to develop an Action Plan to introduce a Quality Assurance Mechanism in Sri Lanka. This Action Plan had been submitted to IFAC under Part 3 of IFAC SMO complian program



    125. Under what authority does the organization conduct the program of quality assurance review?
      As empowered by Sri Lanka Accounting and Auditing Standards Act No. 15 of 1995, the ICASL in the Accounting & Auditing Standards setter in Sri Lanka. Accordingly specified Business Enterprises as gives in the Act can only be audited by practicing ICASL Members.
      However, initially, ICASL is planning to introduce on a voluntary basis.


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



    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) AASMB set up by Act of Parliament


    129. Please indicate the name of the body or bodies responsible for investigation and discipline.
      Institute of Chartered Accountants of Sri Lanka
      Sri Lanka Accounting & Auditing Monitoring Board



    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?
      8 Members


    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.)?
      Private & Public Members


    133. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      Members & Government


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


    135. For how many years has the body been in existence?
      9 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)

      49166

      Please enter the exchange rate used to calculate this number.

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

      120.02 (specify currency)



    137. To what entity is the body accountable?
      Members & Government


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



     

     

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