Certified Practising Accountants Papua New Guinea
Associate | Established: 1974 | Associate since 2006
Established in 1974, the Certified Practising Accountants of Papua New Guinea (CPAPNG) is the only professional accountancy organization in Papua New Guinea (PNG). Its functions are outlined in the Accountants Act of 1996. Membership with the CPAPNG is mandatory for all accountancy professionals, both Certified Practising Accountants and Certified Accounting Technicians. The Accountants Act empowers the CPAPNG to: (i) review and communicate information on technical developments in the accountancy profession to members; (ii) set accounting and auditing standards to be applied in PNG; (iii) advise the Accountants Registration Board on any matters referred to it; (iv) determine initial and continuing professional development requirements, including setting requirements for admission into the Institute; (v) research topics affecting the accountancy profession; (vi) set ethical requirements; (vii) establish an investigation and disciplinary system for its members and, where appropriate, ask the Accountants Statutory Committee to inquire into allegations of improper conduct by a member; (viii) establish and administer, or participate in the establishment and administration of, any organization, whether incorporated or not, whose principal objectives relate to the advancement of the accountancy profession; and (ix) promote the interests of the accountancy profession in PNG.
Statements of Membership Obligations (SMOs)
The Statements of Membership Obligations form the basis of the IFAC Member Compliance Program. They serve as a framework for credible and high-quality professional accountancy organizations focused on serving the public interest by adopting, or otherwise incorporating, and supporting implementation of international standards and maintaining adequate enforcement mechanisms to ensure the professional behavior of their individual members.
Although the CPAPNG has no responsibility for conducting quality assurance (QA) reviews in Papua New Guinea, the institute is actively supporting the Accountants Registration Board (ARB) and the government of Papua New Guinea in ensuring that the revised Accountants Act, awaiting approval by Parliament, will make it mandatory for the ARB to perform QA reviews of all CPAPNG members.
The CPAPNG will assist the ARB in developing a quality review program that will commence immediately once the revised act is approved; an initial design is expected by June 2016. In addition, the CPAPNG plans on promoting awareness of the new QA system to members and other stakeholders in 2016.
In addition to assisting the ARB in developing the quality review program, the CPAPNG is encouraged to develop action steps to ensure that the proposed QA systems is aligned with the requirements of SMO 1. If the CPAPNG conducts a review and identifies gaps in the system, the institute is encouraged to recommend action steps to the ARB to develop methods for closing the gaps identified. To support its members and firms with the eventual adoption of ISQC 1, the CPAPNG is encouraged to facilitate access to readily available resources by IFAC, such as the Guide to Quality Control for Small- and Medium-Sized Practices (SMPs), developed by IFAC’s SMP Committee, and other related implementation guidance.
With direct responsibility for setting initial and continuing professional development (IPD and CPD) requirements in Papua New Guinea (PNG), the CPAPNG is reviewing its IPD and CPD system to ensure that it incorporates the requirements of the IES. To maintain the quality of its IPD and CPD program, the CPAPNG has signed a Memorandum of Understanding with the UK-based BPP Learning Media to develop four of CPAPNG’s Certified Accounting Technician program books. It has also signed a Memorandum of Agreement with CPA Australia to incorporate four of CPA Australia’s exam modules into the CPAPNG CPA syllabus. The institute reports that the Accountants Act 1996, which is being revised, will create legal provisions for the body to fully incorporate the IES requirements.
The CPAPNG has conducted a review of its members’ CPD needs and has made improvements that include partnering with subject area specialists to deliver CPD training. The CPAPNG is also engaging with local universities to develop a comprehensive accounting education program and syllabus to ensure that all accounting education standards in PNG are in line with IES requirements.
The CPAPNG is encouraged to review the revised IES requirements, issued in 2015, and, after its review, to share in its SMO Action Plan planned actions to incorporate the revised requirements. The CPAPNG is encouraged to promote to the government the adoption of the revised requirements. The CPAPNG is also encouraged to participate in the international standard-setting process by responding to Exposure Drafts issued by the IAESB.
With no responsibility to set auditing standards in Papua New Guinea (PNG), the CPAPNG supports the implementation of standards by keeping members informed about new and revised IAASB pronouncements by distributing ISA information and developing relevant ISA continuing professional development courses.
As the Accounting Standards Board (ASB) has not met since 2006, auditing standards in PNG are not current. The CPAPNG has been urging the ASB to reconvene and approve a new set of auditing standards in the jurisdiction. In addition, the CPAPNG is also urging the ASB to issue interpretations and guidance on all the relevant standards and to develop an Audit Manual and Toolkit, which will be available once the revised Accountants Act has been approved by Parliament.
The CPAPNG is encouraged to indicate in its Action Plan what version of ISA is applicable in PNG. In addition, the institute should continue encouraging the ASB to meet and promote the adoption of the latest version of ISA to the ASB. The CPAPNG is also encouraged to participate in the international standard-setting process by reviewing and responding to IAASB Exposure Drafts.
The CPAPNG is directly responsible for setting ethical requirements for all professional accountants in Papua New Guinea and has adopted the 2006 IESBA Code of Ethics.
The CPAPNG has enhanced member knowledge of, and compliance with, ethical requirements by organizing various continuing professional development workshops on ethics and professional responsibility. The Code is also distributed to new members when they join the institute. The CPAPNG plans to incorporate, in 2016, a new exam module developed by CPA Australia on Ethics and Governance into its syllabus.
The CPAPNG is working to ensure that the revised Accountants Act, awaiting approval by Parliament, incorporates the 2015 IESBA Code of Ethics.
Once the revised Accountants Act is approved, the CPAPNG is encouraged to provide an update in its Action Plan on the adoption of the 2015 IESBA Code of Ethics and its actions to incorporate the IESBA Code into its Code of Ethics. The CPAPNG is encouraged to develop an ongoing process to review new and revised IESBA pronouncements to ensure that local standards are updated in alignment with international standards. The CPAPNG is also encouraged to participate in the international standard-setting process by responding to Exposure Drafts issued by the IESBA.
With no responsibility for adopting public sector accounting standards, the CPAPNG is actively encouraging the government to adopt IPSAS and has been developing a public sector accounting stream that is incorporated into its continuing professional development (CPD) program. To further the development of accountants in the public sector, the CPAPNG is engaging with a public sector accounting specialist to develop CPD programs on public sector finance management.
The CPAPNG is encouraged to provide details on its recent activities to review and disseminate information on IPSAS. The CPAPNG should also consider participating in the standard-setting process and respond to IPSASB Exposure Drafts.
The CPAPNG is one of three bodies responsible for the investigation and discipline (I&D) process for accountancy professionals in Papua New Guinea. CPAPNG’s Membership, Ethics and Disciplinary Committee (Disciplinary Committee), which consists of individuals from the accountancy profession, academia, and law, is responsible for recommending ethical and disciplinary cases to the independent Accountants Statutory Committee (ASC). Members of the ASC include the chair of CPAPNG’s Disciplinary committee; however, the ASC rarely meets. Thus, the ASC has not undertaken any disciplinary actions in recent years.
The CPAPNG reports that the revised Accountants Act, which is undergoing approval, will include provisions to clearly align the procedures and processes for its I&D system with the requirements of SMO 6 and will impose tougher penalties on individuals who do not comply with CPAPNG’s Code of Ethics and relevant rules.
While the revised Accountants Act is awaiting approval, the CPAPNG is encouraged to clarify if there is an I&D system in operation and if there are any active investigations underway. The CPAPNG is also encouraged to clarify what plans are in place to revise its I&D system once the revised Act is approved. The institute should ensure that these changes are in line with the 2012 revised requirements of SMO 6 and, if there are gaps in the system, indicate plans to address these gaps. The CPAPNG is encouraged to promote the adoption of SMO 6 requirements to the Accountants Registration Board and encourage the ASC to meet on a regular basis so that the I&D system can fully function.
While CPAPNG is not responsible for the adoption of corporate accounting standards, it has been promoting the application of the latest IFRS in the country and supports implementation through the education and training that it provides to members. The CPAPNG includes IFRS in its continuing professional development (CPD) program and has collaborated with various key accounting firms in the jurisdiction to organize training seminars and CPD workshops for members. The CPAPNG has also organized workshops in two of the biggest cities in PNG to publicize changes to IFRS.
The CPAPNG indicates that the adoption of IFRS for SME is being considered in PNG; however, the Accounting Standards Board (ASB) has yet to meet to discuss this initiative. As the ASB has not met in a number of years to review and approve new standards, the CPAPNG has written to the ASB encouraging the board to meet and to seek further CPAPNG representation on the ASB.
The CPAPNG is encouraged to clarify in in its Action Plan what version of IFRS is applicable in Papua New Guinea (PNG). It is also encouraged to continue urging the ASB to meet and to encourage the formal adoption of the latest IFRS, and IFRS for SMEs, to be applied in PNG. The CPAPNG is encouraged to participate in the international standard-setting process by reviewing and responding to IASB Exposure Drafts.
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