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.

The Institute of Chartered Accountants in England & Wales

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:

Setting auditing, accounting, ethics, public sector and education standards; and
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:

United Kingdom

2. Name of member body:

The Institute of Chartered Accountants in England & Wales

Or please specify name:

3. Individual responsible for preparation:

Jean Ettridge

4. Date member body became a member of IFAC:

Note: Please enter a numeric date (e.g., 12/2001, Month/Year)

10 / 1977

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.):

FEE (full member)

ECSAFA (affiliate member)

ICAC (affiliate member)

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 1985, as subsequently amended (and which restated all previous equivalent legislation including the Companies Act 1981, which implemented the 4th Directive and came into force in 1982)
b). the Enacting body:		Government, Department of Trade and Industry
c). date the Act or Code came into force:		07 / 1985

25. How can IFAC obtain a copy of the Act or Code?

It is published in Butterworths' Company Law Handbook (currently in its 17th Edition), which can be obtained by contacting +44 208 662 2000, and is available online at www.lexisnexis.co.uk by subscribing to LexisNexis Online Services (tel: +44 1483 257726).

26. Is the Act or Code available in English?

Yes

27. What are the types of entities covered by the Act or the Code?

Please check all that apply.

	Listed entities					Other (please specify): Limited Liability Partnerships
	Private companies					Other (please specify): Not for profit (only to the extent they fall into another category e.g., they are companies
	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			Accounts to consist of Profit and Loss Account and Balance Sheet, giving a true and fair view. UK accounting standards (issued by the Accounting Standards Board ("ASB") also to be followed, which require a cash flow statement and a statement of total recognised gains and losses (listed entities will not be subject to UK accounting standards as from 1 January 2005). Copies of UK accounting standards can be obtained from the ASB at the following link: www.asb.org.uk/asb/publications.
Private companies			As above
Governmental
Not-for-profit			As above
Other (please describe) Limited Liability Partnerships			As above
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			Auditor to state whether the accounts give a true and fair view and are properly prepared in accordance with the requirements of the Act. The standards to be followed are the UK AuditingStandards issued by the Auditing Practices Board. As from 1 January 2005, International Auditing Standards will apply to all UK companies (subject to an exception for companies that have both a turnover of not more than £5.6 million and gross assets of not more than £2.8 million)
Private companies			as above
Governmental
Not-for-profit			as above
Other (please describe) Limited Liability Partnerships			as above
Other (please describe) Limited Liability Partnerships

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

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): Board of directors applies in the event of a vacancy, for example, if the auditor resigns during an accounting period.)
	Audit committee					Other (please specify):
	Government agency					Other (please specify): Note re Q30: Term of appointment is 1 year, but auditor can be reappointed at the Annual General Meeting

32. Does the Act or Code require joint auditors for the statutory audit?

Yes

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

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:

the major items of Legal authority for such requirements

The Listing Rules.
the Enacting body(ies)

The UK Listing Authority (UKLA), part of the Financial Services Authority (FSA).
the latest amendment date?

05/2004

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

The Listing Rules are available at http://www.fsa.gov.uk/ukla/1_listinginfo4.html

36. Is the Legal authority available in English?

Yes

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

If YES, please describe the requirement:

Half-yearly interim reporting.

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

If YES, please describe the requirement:

Reporting on corporate governance disclosures.

39. Who appoints the statutory auditors of listed entities?

Please check all that apply.

	Shareholders			Management
	Board of directors			Other (please specify): See also Question 31
	Audit committee			Other (please specify):
	Government agency			Other (please specify): Note re Q40: Term of appointment is 1 year, but auditor can be reappointed at the Annual General Meeting

40. Are auditors who perform audits of listed entities appointed for a specified period?

Yes

If YES, please indicate the term of appointment:

1 Year(s)

41. Are joint auditors required for audits of listed entities?

Yes

If YES, please describe the requirement:

42. Is rotation of the auditor or audit firm for audits of listed entities required?

Yes

If YES, please describe the requirement:

UK (ICAEW, ACCA, ICAS and ICAI) recommended practice is that individual audit engagement partners of listed company audit clients are rotated at least every 5 years. Other key audit parties at group level on listed entities should rotate at least every 7 years. (ACCA's Code of Ethics recognises that rotation may not be possible in all circumstances, due to the size of the firm or the nature of the engagement. In such cases, it requires suitable alternative safeguards (e.g. external consultation) to be applied to reduce risks to an acceptable level).

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	Companies Act 1985 (Private and public companies, including listed entities)	Note 1	Auditing Practices Board (APB)
Other (please describe) LLPs	Limited Liability Partnerships Act 2000	Note 1
Other (please describe) Entities established under legislation	See Note 2
Other (please describe) Public sector and other audits	See Note 3 and Note 4

Through Her Majesty�s Stationery Office www.hmso.gov.uk.

Note 1 (Q43) - The last major amendment to the Companies Act 1985 was the Companies Act 1989. Amendments have been made since, principally by means of Statutory Instruments. Please note that the Companies Act 1985 contains requirements for bodies such as the ICAEW to abide by technical standards set by an independent body, but that auditing standards and the Auditing Practices Board are not specified in legislation. The Consultative Committee of Accountancy Bodies has undertaken to adopt auditing standards and guidance issued by the Auditing Practices Board within three months of promulgation by the Auditing Practices Board. The Companies Act 1985 will be amended by a Companies Bill currently passing through Parliament. The Limited Liability Partnerships Act 2000 has also been amended, principally by means of Statutory Instruments. The auditing requirements for LLPs are similar to those for companies.

Note 2 (Q43) - Entities established under other legislation: These include building societies, credit unions, pension funds, registered social landlords, charities, industrial and provident societies, friendly societies, trade unions and others. Such entities are subject to varying auditing requirements depending on their size, and on the legislation to which they are subject.

Note 3 (Q43) - Governmental bodies: The APB's Practice Note 10 provides guidance on how to apply standards to audits in the public sector.

Note 4 (Q43) - Standards set by the Auditing Practices Board apply to (a) other audits conducted by firms registered with CCAB members unless the terms of engagement require the use of other recognized auditing standards such as International Standards on Auditing and (b) audits conducted by firms not registered with CCAB members where such firms elect to, or are required by contract to perform audits in accordance with UK or Irish auditing standards.

Not-for-profit organizations: there is no overarching requirement for the audit of such entities in the UK unless they are constituted as charities, industrial and provident societies, friendly societies, trade unions or similar in which case they may be caught by legislation governing such entities (see Note 3). Additional auditing requirements for many entities are also mandated by professional bodies and trade associations such as the Law Society (for solicitors) and the Association of British Travel Agents (for travel agents) and other organisations. These bodies may specify auditing procedures, but they do not set auditing standards.

Yes

Section 5B -- Standard-Setting (Auditing Practices Board (APB))

44. For Auditing Practices Board (APB), 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.

Private Company limited by guarantee.

The Auditing Practices Board is a subsidiary of the Financial Reporting Council which is an independent body responsible for auditing and accounting standard setting, the oversight of the profession and the promotion of high standards of corporate governance in the UK. The Financial Reporting Council�s remit derives from reports issued by the UK Government.

Statements of Auditing Standards (SASs).

The Auditing Practices Board also issues Practice Notes, Bulletins and Statements of Investment Reporting Circular Standards.

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

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:		All members of the Auditing Practices Board are involved on a voluntary basis except for the Executive Director who is an employee.

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.)?

40% of Auditing Practices Board members are required to be Responsible Individuals, i.e. eligible for appointment as company auditors under companies legislation. Any of the balance of 60% who are accountants may not be office holders of any accountancy body, nor involved in the governance of any accountancy body, nor partners in firms authorised to conduct audits. Representatives of the Accountancy Foundation, the Department of Trade and Industry, the Department of Trade and Enterprise in the Republic of Ireland, and the Financial Services Authority are entitled to attend and speak at meetings but not to vote.

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

The Nomination Committee of the Financial Reporting Council leads the appointment of members of the Auditing Practices Board following best practice.

49. What is the term of appointment for members?

3 Year(s)

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

13 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)

$1,788,034

Please enter the exchange rate used to calculate this number.

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

0.559273

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

The Financial Reporting Council

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

public exposure of standards

Before publishing or amending a SAS or any other standard, the Auditing Practices Board publishes an exposure draft on its web-site, ensures that a hard copy of the document is circulated to the accountancy bodies and to other interested parties and allows at least three months, unless circumstances require a shorter period, for representations to be made on it. Where publications cause changes to be made to other previously issued publications, any such consequential changes are exposed for comments.
accessibility of meetings (i.e., public or private)

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

Decisions to establish, publish, amend or withdraw a SAS or an exposure draft thereof requires a majority of the votes of all the members of the Auditing Practices Board (whether present at a meeting or not).

Decisions to establish, publish, amend or withdraw non-mandatory notes, guidance and other material relevant to auditing requires a simple majority of the votes of the members of the Auditing Practices Board who are at a meeting where a quorum is present and at which the matter is decided upon.

Any other questions are decided by a majority of votes actually cast at a meeting. In case of an equality of votes, the chairman of the meeting has a second or casting vote.
other relevant due process activities

The Auditing Practices Board has established a Technical Advisory Group and publishes a review of its activities annually. For further details please see www.frc.org.uk/documents/pdf/apbstandingordersextractsforwebsite.pdf.

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

10 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			See ICAEW attachment
Professional Accountants in Business
Professional Accountants in the Public Sector
Other (please describe)

ICAEW � available through internet at
www.icaew.co.uk/index.cfm?aub=TB2I_25930
ICAS � available (to members) through internet at
www.icas.org.uk (from 1/7/04)
CIMA � available through internet at
www.cimaglobal.com/downloads/ethical_guidelines.pdf
CIPFA - available through internet at
www.cipfa.org.uk/conduct/standards.cfm
ACCA - available through internet at
www.accaglobal.com/members/publications/2033

Yes

Section 6B -- Standard-Setting (See ICAEW attachment)

56. For See ICAEW attachment, 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.

See ICAEW Attachment for all information for this section.

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

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.)?

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

61. What is the term of appointment for members?

Year(s)

62. For how many years has the standard-setting body been in existence?

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)

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?

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

public exposure of standards
accessibility of meetings (i.e., public or private)
approval process for final standards (i.e., majority required to approve final standards)
other relevant due process activities

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

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:

Schooling is compulsory from ages 5 to 16 through stages seen as infant/first, primary/middle and secondary. Education after 16 is voluntary. Higher Education (i.e. the university sector) commences at 18.

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

Accountancy per se is not legally restricted but company auditing is, as are insolvency and financial services. Company auditors must be registered auditors and in order to become a registered auditor an individual must hold a recognized qualification for audit under the Companies Act, 1989.

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 In order to train for the ICAEW qualification, an individual must satisfy minimum entry standards. For example, a university degree from a recognized university, whilst not compulsory, would be sufficient. It should also be noted that an individual has to gain a training place with a firm and in order to do this they effectively have to compete with others who also want that place, thereby raising the entry qualification threshold.
	Professional examinations ICAEW has two stages of professional examination: the �Professional Stage� (comprising 6 papers) and the �Advanced Stage� (comprising the Test of Advanced Technical Competence and the Advanced Case Study).
	Practical experience Students must complete a period of approved training � normally 3 years in duration � within an authorized training organization. During this time they must satisfy work-based learning requirements.
	Final qualifying examination See above.
	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) See Q71 for explanation.

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.

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 Department of Trade and Industry is a major government department under a leading cabinet minister, the Secretary of State � currently Patricia Hewitt. For full details, see http://www.dti.gov.uk/about_dti.html

The Financial Services Authority, whose Chief Executive is John Tiner, is an independent non-governmental body that has legal powers to regulate financial services in the UK granted by the Financial Services and Markets Act, 2000. Full details can be found at http://www.fsa.gov.uk
How many voting members does the relevant body(ies) have
N/A
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: Re Question71d - DTI established in 1970. FSA established in 1997.
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?

See the websites given above and also http://www.hmso.gov.uk

72 b. Are these documents available in English?

Yes

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:

As explained, accountants and auditors face different practising requirements from each other. However, those individual requirements are consistent throughout the United Kingdom. Please note: there are no legal requirements to practise as an accountant in the UK.

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

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?

Requirements come from the European Union (8th Company Law Directive), UK legislation (Companies Act, 1989) and the regulations of recognized qualifying and supervisory bodies (such as ICAEW).

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

	Continuing professional development
	Re-examination
	Other (please specify): Professional Indemnity Insurance (PII) and continued compliance with the eligibility requirements of the audit regulations.

80. What entity grants the license?

The recognized qualifying/supervisory body (e.g. the ICAEW).

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

N/A

Section 8 -- Public Sector Accounting Standards

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

Section 8A -- Statutory Framework

82. Please provide the name of the Legal authority and/or self-regulatory rules establishing public sector accounting standards in your country, the date of last amendment and the name of the body responsible for setting public sector accounting standards. If the standards are different for different entities (e.g., whole of government, ministry/department, statutory authority/agency, profit entity owned by government, state governments, local governments, other [please specify]), please specify the details that apply to each.

Type of entity	Name of legal authority	Date of last amendment (e.g. MM/YYYY 06/2001)	Name of body responsible for setting public sector accounting standards
Whole of government	See ICAEW Attachment for further details. There are two bodies responsible for standard setting in this area as indicated at right.		UK Treasury (overseen by Financial Reporting Advisory Board (FRAB))
Ministry/department			UK Accounting Standards Board/PSNC (Public Sector and Not-for-Profit Committee)
Statutory authority/agency
Profit entity owned by government
State governments
Local governments
Other (please describe)
Other (please describe)

For principal documents the Resource Accounting Manual (RAM) can be obtained from the UK Treasury and is also available on-line at www.hm-treasury.gov.uk. The Code of Practice on Local Authority Accounting in the United Kingdom can be obtained from the Chartered Institute of Public Finance & Accountancy (IFAC member body). Extracts from legal authorities can be provided by CIPFA.

Additional info re Q82: UK Accounting Standards Board is responsible for approval of Statements of Recommended Practice (SORPs). One of its specialist committees is the Public Sector and Not-for �profit Committee (PSNC) which makes recommendations to the Board

Yes

Section 8B -- Standard-Setting (UK Treasury (overseen by Financial Reporting Advisory Board (FRAB)))

83. For UK Treasury (overseen by Financial Reporting Advisory Board (FRAB)), 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.

Government department with statutorily recognized advisory board

Resource Accounting Manual and other non-departmental public body, trading fund and public corporation requirements.

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.)?

The Terms of Reference for the Financial Reporting Advisory Board give powers of nomination to a variety of bodies. These include the UK Accounting Standards Board, the UK audit bodies, departmental bodies, Office of National Statistics and an independent economist

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

See above Question 86. Independent economist is nominated by the Head of Government Economic Service.

Re: Question 88: Appointments are determined on an individual basis.

88. What is the term of appointment for members?

Year(s)

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

8 Year(s)

90. Please indicate the budget in US$ of the standard-setting body for the last fiscal year:

Note: Please enter a whole number using commas (e.g., 4,000,000)

N/A

Please enter the exchange rate used to calculate this number.

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

N/A

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

The FRAB reports to the Public Accounts Committee and Treasury Select Committee of the House of Commons. The FRAB�s last Report covered the period April 2002-March 2003.

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

public exposure of standards

There is no public exposure of standards. There is internal consultation within Government and affected entities on changes to the Resource Accounting Manual /NHS Manual of Accounts and other accounting requirements for Non Departmental Public Bodies, Trading Funds & Public Corporations
accessibility of meetings (i.e., public or private)

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

FRAB�s role is advisory and, as such, there is no formal approval process. FRAB will highlight areas where it disagrees with a treatment in the Resource Accounting Manual or considers that a departure from UK Generally Accepted Accounting Practice in its reports to Parliament.
other relevant due process activities

None.

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

6 Day(s)

Section 8B -- Standard-Setting (UK Accounting Standards Board/PSNC (Public Sector and Not-for-Profit Committee))

83. For UK Accounting Standards Board/PSNC (Public Sector and Not-for-Profit Committee), 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.

National Standards Setter

SORPs for local government, further and higher education, social housing, and charities components of public benefit sector

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:		See also Section 9 for detail on ASB. The members of its Public Sector and Not-for-profit Committee are involved on a voluntary basis.

Best person for job allied with need to ensure adequate representation from different components of public benefit sector.

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

Members are appointed by the ASB.

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?

14 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)

see section 9

Please enter the exchange rate used to calculate this number.

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

see section 9

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

The PSNC reports to the full Board (ASB), which is one of the operational bodies of the UK Financial Reporting Council

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

public exposure of standards

For Accounting Standards Board SORPS are required to be exposed for a 3-month period.
accessibility of meetings (i.e., public or private)

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

See Section 9 for full ASB approval requirements. Full Board of ASB must also approve consultation exposure drafts. The Public Sector and Not-for-profit Committee operates on �a simple majority of those voting� basis; the substance of the arguments of dissenting voices will be brought to the attention of the full Board.
other relevant due process activities

ASB PSNC has produced a Discussion Paper on the Application of the UK Statement of Principles to the Public Benefit Sector, which it subjected to an exposure period of three months in 2003. It will follow this up with a further exposure draft in 2004 of proposals for a full interpretation.

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

5 Day(s)

Section 9 -- Private Sector Accounting Standards

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

Section 9A -- Statutory Framework

94. Please provide the name of the Legal authority and/or self-regulatory rules that establish private-sector accounting standards in your country, the date of last amendment, and the name of the body responsible for setting private sector accounting standards. If the standards are different for different entities (for example, listed entities, private companies, governmental organization, not for profit organizations, etc.), please specify the requirements that apply to each.

Type of entity	Name of legal authority or applicable rules	Date of last amendment (e.g. MM/YYYY 06/2001)	Name of body responsible for setting private sector accounting standards
Listed entity	See 94a for further detail	8/1990	UK Accounting Standards Board
Other (please describe)
Other (please describe)
Other (please describe)
Other (please describe)

www.asb.publications.com

Re Q94: There is no legal authority in the UK that requires compliance with accounting standards. However, with effect from August 1990 UK companies, other than small and medium sized companies, have been required by the Companies Act 1985 to state whether their accounts have been prepared in accordance with applicable accounting standards and to give particulars of any material departure from those standards and the reasons for it.

With effect from January 2005, group accounts for UK listed companies will be required to comply with standards prepared by the International Accounting Standards Board, when they have been approved by the European Commission. The UK Government currently intends that individual companies, and other groups, will be able to choose to comply with IASB standards.

Yes

Section 9B -- Standard-Setting (UK Accounting Standards Board)

95. For UK Accounting Standards 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.

Agency appointed jointly by government and private sector

Financial Reporting Standards

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

up to 10

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:		2 employed, up to 8 voluntary

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.)?

Not stated, but in practice there appears to be a balanced membership

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

Financial Reporting Council (Regulators)

100. What is the term of appointment for members?

Year(s)

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

14 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)

3,810,600

Please enter the exchange rate used to calculate this number.

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

1.80

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

The Financial Reporting Council

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

public exposure of standards

Draft Standards are exposed for public comment
accessibility of meetings (i.e., public or private)

Meetings are held in private
approval process for final standards (i.e., majority required to approve final standards)

Seven members required to vote in favour when the Board has ten members; six when it has less than ten
other relevant due process activities

Draft standards are sometimes preceded by discussion papers, which are exposed for public comment

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:

Financial Services Authority

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:

See response to 10D

108. Briefly describe the role of the regulatory authority as it relates to the following:

regulation of the audit profession

None
accounting and auditing standard-setting

None
review of financial statements prepared by listed entities, and monitoring of their compliance with the accounting and disclosure requirements

None, other than through their enforcement of the Listing Rules. This enforcement role is mainly concerned with pre-approval of information supplied with prospectuses or where shareholder approval is required.

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
		London Stock Exchange
		Alternative Investment Market
		OFEX

Section 10B -- Stock Exchange
London Stock Exchange Details

110. For London Stock Exchange, is there a mechanism at the stock exchange(s) for monitoring and enforcing financial reporting, accounting and auditing of listed entities?

Yes

If YES, please describe the following:

How the monitoring and enforcement of financial reporting, accounting and auditing is conducted.
The consequences of non-compliance with the financial reporting, accounting or auditing requirements.
How enforcement actions are administered.

Section 10B -- Stock Exchange
Alternative Investment Market Details

110. For Alternative Investment Market, is there a mechanism at the stock exchange(s) for monitoring and enforcing financial reporting, accounting and auditing of listed entities?

Yes

If YES, please describe the following:

How the monitoring and enforcement of financial reporting, accounting and auditing is conducted.
The consequences of non-compliance with the financial reporting, accounting or auditing requirements.
How enforcement actions are administered.

Section 10B -- Stock Exchange
OFEX Details

110. For OFEX, is there a mechanism at the stock exchange(s) for monitoring and enforcing financial reporting, accounting and auditing of listed entities?

Yes

If YES, please describe the following:

How the monitoring and enforcement of financial reporting, accounting and auditing is conducted.
The consequences of non-compliance with the financial reporting, accounting or auditing requirements.
How enforcement actions are administered.

Section 10C -- Regulatory Oversight of the Accounting Profession

111. Has an audit profession oversight body been established (e.g., to oversee the external quality assurance review process, etc.)?

Yes

If NO, proceed to the next section.

If YES, please describe :

What are the name and duties of the oversight body?

The Professional Oversight Board for Accountancy (POBA), a subsidiary of the Financial Reporting Council (FRC) structure.
� Independent oversight of the regulation of the auditing profession by the recognised supervisory and qualifying bodies.
� Monitoring of the quality of the auditing function in relation to economically significant entities.
� Independent oversight of the regulation of the accountancy profession by the professional accountancy bodies.
The number of members on the oversight body

The Board of the POBA has 9 members
Its powers

In relation to audit the POBA will:
i) Discharge on behalf of the FRC the statutory responsibilities delegated by the Secretary of State for authorising professional accountancy bodies to act as supervisory bodies and/or to offer a recognised professional qualification. As part of this activity the Board will ensure that:
� the Recognised Supervisory Bodies (RSBs) comply with all the statutory requirements for recognition set out in Part II of Schedules 11 and 12 to the Companies Act 1989; and
� the RSBs comply with the independent standard setting, monitoring and disciplinary arrangements which the legislation provides for.
ii) Monitor the quality of the audits of economically significant entities through an independent Audit Inspection Unit (AIU). These entities will include listed companies plus major charities, major pension funds, major mutual organisations and other major public interest entities.
The AIU will monitor quality of audits by reviewing audit processes including audit judgements. It will:
� visit those firms which audit listed companies, major charities, major pension funds, major mutual organisations and other major public interest entities identified from time to time;
� agree amendments with audit firms to their procedures where appropriate; and
� make recommendations to the relevant RSB for regulatory action if appropriate.
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 POBA was launched on 1 April 2004. It has yet to carry out its oversight function sufficiently for an answer to be given to this question. Its authorisation function of recognising supervisory bodies of audit firms/auditors will not commence until enactment of the legislation currently before Parliament. The AIU is due to commence operation during June 2004.
The sanctions the oversight body may impose in the event of non-compliance

The regulatory bodies for audit firms/auditors remain the RSBs (e.g. the ICAEW). The AIU will not be able to impose sanctions, but will report to the relevant RSB (as the RSB�s monitoring arms do at present, and as they will continue to do for audit firms and audits outside the AIU remit). Once the new legislation is enacted, it is intended that power to recognise RSBs (currently exercised by the Government�s Department of Trade and Industry (DTI)) will be delegated to the POBA. In the event of a failure to comply with any obligation to which an RSB is subject under Schedule 11 of the Companies Act 1989 a recognition order may be revoked or, alternatively, an application may be made to the Court under Section 39 for a compliance order.
How the oversight body is accountable to any public institution or body

The POBA will be accountable to the Government�s DTI for the discharge of its delegated function of recognising supervisory bodies and for its oversight of their regulatory activities in relation to audit firms/auditors.

Section 10D -- Banks Regulatory Authority

112. Name the authority that regulates the banks and similar financial institutions. Discuss how this authority differentiates between accounting requirements for regulatory reporting and general purpose external financial reporting:

The Financial Services Authority (FSA) is responsible for the regulation of banks, insurers and investment businesses. It is not responsible for regulating accounting services, including those related to the audit and financial reporting of regulated financial services businesses. The FSA sets the accounting (and other) requirements for regulatory reporting purposes and can require regulated businesses to obtain an auditors report on certain matters (such as compliance with client money rules) or to commission special reports. The FSA has no role in setting accounting or auditing requirements for general purpose financial reporting. Although FSA reporting rules generally follow the principles established in accounting standards, it is not required to do so and on occasions the regulatory reporting requirements will differ from financial reporting standards

113. Discuss briefly the legal requirements with respect to monitoring and enforcement by the regulatory authority of accounting and auditing standards that apply to the banks and similar financial institutions:

The FSA monitors and enforces regulatory reporting requirements. It has no role in monitoring or enforcing financial reporting or auditing standards. The mechanisms for this in the UK are set out elsewhere in this response.

114. Briefly describe the role of the regulatory authority as it relates to the following:

regulation of the audit profession

None
accounting and auditing standard-setting

None
review of financial statements prepared by listed entities

The FSA may review audited financial statements of regulated bodies as part of its overall supervision of banks. The purpose of this review would be to assess compliance with FSA rules, rather than monitoring of compliance with accounting standards. See Section 10A for description of FSA�s future responsibility for compliance with listing rules in the UK.
enforcement of accounting, reporting and auditing requirements

FSA responsibility is limited to regulatory reporting. It has a range of enforcement tools available against regulated financial services businesses and individuals within those businesses. These include fines, suspension of licenses and criminal prosecution.

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.

Financial Services Authority � see Section 10D for description of FSA responsibilities

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

Non-governmental organization established by Financial Services and Markets Act 2000. FSA has a series of high level principles supported by detailed rules. These rules are enacted by Statutory Instrument, which have the status of secondary legislation thereby providing legal authority.

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

regulation of the audit profession

None
accounting and auditing standard-setting

None
review of financial statements prepared by listed entities

The FSA may review audited financial statements of regulated bodies as part of its overall supervision of banks. The purpose of this review would be to assess compliance with FSA rules, rather than monitoring of compliance with accounting standards. See Section 10A for description of FSA�s future responsibility for compliance with listing rules in the UK
enforcement of accounting, reporting and auditing requirements

FSA responsibility is limited to regulatory reporting. It has a range of enforcement tools available against regulated financial services businesses and individuals within those businesses. These include fines, suspension of licenses and criminal prosecution.

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.

Financial Services Authority � see Section 10D for description of FSA responsibilities

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

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

regulation of the audit profession

None
accounting and auditing standard-setting

None
review of financial statements prepared by listed listed entities

The FSA may review audited financial statements of regulated bodies as part of its overall supervision of banks. The purpose of this review would be to assess compliance with FSA rules, rather than monitoring of compliance with accounting standards. See Section 10A for description of FSA�s future responsibility for compliance with listing rules in the UK
enforcement of accounting, reporting and auditing requirements

FSA responsibility is limited to regulatory reporting. It has a range of enforcement tools available against regulated financial services businesses and individuals within those businesses. These include fines, suspension of licenses and criminal prosecution.

Section 10G -- Other Regulatory Authority

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

(1) The accountancy bodies
(2) The Financial Reporting Council and its subsidiaries � POBA, ASB, APB, AIDB and FRRP

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

The Department of Trade and Industry delegates power under the Companies Act 1989 to the Recognised Supervisory Bodies (5 accountancy bodies, determined by the DTI)

The FRC�s authority in relation to accounting standards (ASB) and the enforcement of them (FRRP) derives from the Companies Act. The role of the FRC is being widened (POBA, APB and AIDB) and deepened (FRRP) by the Companies (Audit, Investigations and Community Enterprise) Bill now before Parliament.

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

regulation of the audit profession

(1) The RSBs register auditors to carry out statutory audits (statutory audits in the UK can only be carried out by registered audit firms). The registered audit firms must comply with audit regulations set by the RSBs, who monitor audit work carried out. The RSBs also assess the outcome of the monitoring reviews and where necessary impose regulatory and if necessary disciplinary penalties.

Responsibility for monitoring audits of listed and certain other entities is being transferred, starting in 2004, to the Audit Inspection Unit, a part of the independent oversight framework. The RSBs will continue to assess and act upon the outcome of the AIU visits

(2) The Professional Oversight Board for Accountancy (POBA, a subsidiary of the FRC) provides
� independent oversight of the regulation of the auditing profession by the recognised supervisory and qualifying bodies
� monitoring of the quality of the auditing function in relation to economically significant entities
� independent oversight of the regulation of the accountancy profession by the professional accountancy bodies
accounting and auditing standard-setting

(1) No formal responsibility: all accounting and auditing standards are set by parts of the independent oversight framework. However, the accountancy bodies do issue guidance on matters not covered by standards and these are generally accepted as best practice.

(2) The Accounting Standards Board (ASB, a subsidiary of the FRC) is responsible for issuing accounting standards and is recognised for that purpose under the Companies Act 1985. The ASB also collaborates with accounting standard-setters from other countries and the International Accounting Standards Board (IASB) both in order to influence the development of international standards and in order to ensure that its standards are developed with due regard to international developments.

In accordance with an EU regulation, all listed companies will use IFRS (set by the IASB) to report their group accounts from 2005 onwards.

The Auditing Practices Board (APB, a subsidiary of the FRC) is responsible for leading the development of auditing practice in the United Kingdom and the Republic of Ireland so as to:
� establish high standards of auditing;
� meet the developing needs of users of financial information; and
� ensure public confidence in the auditing process.
review of financial statements prepared by listed listed entities

(1) No responsibility: all review work is undertaken by parts of the independent oversight framework and the Financial Services Authority (see 10 A)

(2) The Financial Reporting Review Panel (FRRP, a subsidiary of the FRC) considers whether the annual accounts of public companies and large private companies comply with the requirements of the Companies Act 1985 including applicable accounting standards.

The FRRP can ask directors to explain apparent departures from the accounting requirements. If the FRRP is not satisfied by the directors' explanations it aims to persuade them to adopt a more appropriate accounting treatment. The directors may then voluntarily withdraw their accounts and replace them with revised accounts that correct the matters in error. Depending on the circumstances, the FRRP may accept another form of remedial action - for example, correction of the comparative figures in the next set of annual financial statements. Failing voluntary correction, the FRRP can exercise its powers to secure the necessary revision of the original accounts through a court order
enforcement of accounting, reporting and auditing requirements

(1) As noted in a. above, the RSBs have a regulatory role in respect of registered audit firms, consider the outcomes of monitoring visits and impose regulatory or disciplinary penalties, in accordance with the terms of the registration.

While the accountancy bodies do not have direct responsibility for enforcing accounting and auditing standards, all accountancy bodies have disciplinary powers over their members as part of their charters and will investigate complaints and if necessary impose penalties. Failure to follow relevant standards would generally constitute a failure to follow the ethical or technical standards expected of a member and result in action.

(2) The Accountancy Investigation and Discipline Board (AIDB, a subsidiary of the FRC) will take over the function, for future referrals, of the present Joint Disciplinary Scheme operated by ICAEW and ICAS. The participants in the AIDB are, at present, expected to be the ACCA, CIMA & CIPFA as well as the ICAEW. A publicly-available Scheme, currently being completed, will establish the framework under which the AIDB will operate.

The remit of the AIDB will cover members and member firms of participating bodies where a matter raises, or appears to raise, important issues affecting the public interest in the UK. Other cases will continue to be dealt with by the individual accountancy body of the member concerned. The channel for referrals to the AIDB for such matters will, as for the JDS, be by the Investigation Committee of a participating accountancy body that has members who appear to be concerned in the matter to be referred. However, the AIDB will also have the power to call in matters (as defined above), after consultation with those participants whose members are involved in the matter, which have not been referred to it by any of the participants.

The FRRP and FSA also have an enforcement role in respect of public interest companies and listed entities respectively.

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

If NO, proceed to next Section.

If YES, briefly describe the monitoring and enforcement mechanism.

Each Recognised Supervisory Body (RSB) has arrangements for monitoring compliance of the audit firms/auditors that they register with audit regulations, which include compliance with the Auditing Standards and thereby with accounting and reporting requirements. Monitoring of the audits of those entities whose activities have the greatest potential to impact on financial and economic stability (�major audits�) will, from mid-2004, progressively be undertaken by the Financial Reporting Council�s Audit Inspection Unit (AIU). In all cases, reports of monitoring/inspection units are made to the relevant RSB, which is the body responsible for initiating any regulatory/disciplinary action.

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

The ICAEW conducts its monitoring of audit firms under the authority that derives from its status as an RSB. The AIU will have the remit to inspect �major audits� once the new legislation is enacted. Meanwhile, the AIU can be authorised to do so by the relevant RSBs on their behalf.

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

The ICAEW carries out its audit monitoring functions using its own specialist audit inspection staff. The AIU will, similarly, have its own inspection staff.

Section 10 I -- Investigation and Discipline

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

Yes

If NO, proceed to the Certification of Chief Executive

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) See Q129.

129. Please indicate the name of the body or bodies responsible for investigation and discipline.

Within the ICAEW the Investigation Committee (IC) is responsible for deciding what action to take on reports on the investigation of complaints about misconduct, and the Disciplinary Committee (DC) hears formal complaints referred by the IC.

In addition, the Accountancy Investigation and Discipline Board (AIDB) is currently being established (within the Financial Reporting Council (FRC) structure) to investigate, and where appropriate to take disciplinary action in relation to, matters that raise or appear to raise important issues affecting the public interest in the UK. The initial participants in the AIDB are likely to be the ICAEW, ACCA, CIMA and CIPFA.

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?

IC: 18 mem. DC: 16

131. Are the members of the body involved on a voluntary basis or employed by the standard-setting body?

	Voluntary
	Employed
	Both - Please describe:		Non accountant members of committees are paid fees.

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.)?

The IC and DC are each required to have non-accountants numbering at least one quarter of their membership. All appointments are governed by then overriding principle of selection based on merit � i.e. the well-informed choice of individuals who, through their abilities, experience and qualities, match the needs of the committee in question. Appointments of non-accountants aim to ensure that the �lay� membership comes from a variety of backgrounds (e.g. legal, academic, business, public service, etc). Accountant members are appointed to ensure a balance across the profession (by type of work and size of firm) with an appropriate geographic spread and active/recently-retired mix. In both cases the ethnic, male/female and age profile of the committee is taken into account.

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

Appointments are approved by the Institute Council

134. What is the term of appointment for members?

3 Year(s)

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

124 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)

84,000,000

Please enter the exchange rate used to calculate this number.

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

1.75 (specify currency)

137. To what entity is the body accountable?

The ICAEW is constituted under a Royal Charter, and its constitution and Bye-laws are approved by Her Majesty�s Privy Council. The Institute�s Council is accountable to its Members in General Meeting. For activities regulated under statute the Institute is accountable for the discharge of the functions, in respect of which it acts independently, to the Government�s Department of Trade and Industry (DTI) for audit and insolvency and to the Financial Services Authority for exempt regulated investment business. Under the new arrangements described in Section 10C the FRC, including the Professional Oversight Board for Accountancy, will be interposed between the Institute and the DTI in respect of audit and general accountancy activities.

Re Q 138: IC: 12 days DC Tribunals: 24 days

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

Day(s)

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