Chartered Institute of Public Finance and Accountancy

The Financial Reporting Council (FRC) and the four Recognised Supervisory Bodies in the United Kingdom, ACCA, CAI, ICAEW, and ICAS, share responsibility for the quality assurance review system governing statutory audits in accordance with the Companies Act 2006 and the Statutory Auditors and Third Country Auditors Regulations 2016 (SI 2016/649). These bodies have established operational quality assurance review systems that are aligned with the requirements of SMO 1.

Most members of the Chartered Institute of Public Finance and Accountancy work as professional accountants in business, primarily in the public sector, and therefore are not subject to statutory audit quality assurance reviews. Consequently, CIPFA does not maintain a separate quality assurance review system for statutory audits.

A small proportion of CIPFA members operate in public practice and provide accountancy services to clients. Members undertaking statutory audit work must obtain appropriate authorization through a recognised supervisory body. Through its strategic alliance with the Institute of Chartered Accountants of Scotland, CIPFA members may pursue an integrated qualification leading to the dual designation of Chartered Public Finance Accountant and Chartered Accountant and membership of ICAS. Members following this pathway fall within the regulatory and quality assurance arrangements operated by ICAS.

CIPFA supports its members’ compliance with professional standards through guidance, professional communications, and continuing professional development activities, which help ensure that members remain aware of applicable professional requirements.

Current Status: Sustain

Recognised Qualifying Bodies deliver the initial and continuing professional education requirements for statutory auditors in the United Kingdom. The Financial Reporting Council maintains oversight of these arrangements and has cooperation agreements with the principal professional accountancy bodies in the jurisdiction, including ACCA, the Chartered Institute of Management Accountants, the Chartered Institute of Public Finance and Accountancy, ICAEW, CAI, and ICAS, as well as the Association of International Accountants, in relation to oversight of initial professional development and continuing professional development requirements for professional accountants.

Several of these organizations, including ACCA, CAI, ICAEW, ICAS, CIPFA, AAT, the Chartered Institute of Management Accountants, and the Institute of Financial Accountants, are members of IFAC and indicate that their professional accountancy qualification programs align with the International Education Standards issued by the International Accounting Education Standards Board.

CIPFA requires aspiring members to complete its Professional Qualification program, which integrates academic study with practical workplace experience. The program is designed to develop professional competence in public financial management and incorporates knowledge, skills, and professional values consistent with the International Education Standards.

Practical experience requirements form an integral part of the qualification process. CIPFA requires students to document and reflect on their practical experience, including ethical considerations encountered in professional practice.

The CIPFA Professional Qualification syllabus is reviewed periodically to ensure that it reflects developments in public financial management, accounting standards, and professional practice. CIPFA also consults with employers, practitioners, and professional bodies in the development and review of its competency framework for public sector finance professionals.

CIPFA communicates updates related to professional education requirements and developments in international education standards through professional communications, member forums, newsletters, and its website. In addition, the institute participates in international consultations related to professional education standards and incorporates relevant developments into its qualification framework where appropriate.

Current Status: Sustain

The Financial Reporting Council is the authority responsible for setting auditing standards in the United Kingdom in accordance with the Companies Act 2006 and the Statutory Auditors and Third Country Auditors Regulations 2016. All statutory audits must be conducted in accordance with International Standards on Auditing (UK) issued by the FRC. ISAs (UK) are based on the International Standards on Auditing issued by the International Auditing and Assurance Standards Board, with certain additions reflecting UK company law.

Only a small proportion of CIPFA members operate in public practice and require implementation support related to auditing standards. Through its strategic alliance with the Institute of Chartered Accountants of Scotland, CIPFA members may pursue an integrated qualification leading to the dual designation of Chartered Public Finance Accountant and Chartered Accountant, which provides access to the regulatory framework and professional support for statutory audit practice.

Although CIPFA does not have direct responsibility for setting auditing standards in the United Kingdom, it contributes to the national and international standard-setting process and promotes high-quality auditing standards. CIPFA engages with the FRC and public sector audit authorities, including national audit agencies, on matters related to auditing and audit quality in the public sector.

CIPFA’s Accounting and Auditing Standards Panel develops the institute’s responses to consultations on financial reporting and auditing standards and supports the development of policy positions related to audit and assurance. The panel contributes to discussions on developments in auditing standards and the improvement of audit quality, including consultations issued by the IAASB and the FRC.

CIPFA supports the implementation of auditing standards through professional publications, technical guidance, and continuing professional development activities. These include materials and commentary on audit practice and developments in auditing standards that are disseminated through CIPFA’s professional communications and practitioner networks.

In addition, CIPFA engages in international public financial management development initiatives and training programs, through which it promotes the application of high-quality auditing standards where relevant.

Current Status: Sustain

In accordance with their charters and by-laws, professional accountancy organizations in the United Kingdom are authorized to establish ethical requirements for their members.

Professional accountancy organizations in the jurisdiction indicate that their ethical frameworks are aligned with the International Code of Ethics for Professional Accountants issued by the International Ethics Standards Board for Accountants and that they maintain ongoing processes to review and incorporate revisions to the Code where they are not in conflict with national laws and regulations.

CIPFA has adopted the International Code of Ethics as the basis for its ethical framework, which forms part of the institute’s Standard of Professional Practice on Ethics. The institute supports the implementation of ethical requirements through guidance materials, case studies, and professional communications designed to assist members in applying ethical principles in practice.

CIPFA monitors developments in international ethical standards and participates in the standard-setting process through its involvement in the Ethics Group of the Consultative Committee of Accountancy Bodies, which coordinates responses from UK professional bodies to consultations issued by the International Ethics Standards Board for Accountants.

To promote ethical behavior and support members facing ethical dilemmas, CIPFA provides a range of resources including guidance materials, professional training, and ethics-focused communications. Ethics are incorporated into the institute’s professional qualification syllabus and continuing professional development programs.

CIPFA also maintains resources such as the “Ethics and You” guidance materials and provides members with access to professional advice and confidential consultation mechanisms to support ethical decision-making. In addition, the institute continues to promote ethics and good governance through professional events, publications, and engagement with the broader public financial management community.

Current Status: Sustain

HM Treasury is responsible for establishing accounting policies and standards for the preparation of central government financial statements in the United Kingdom. For local government, the Chartered Institute of Public Finance and Accountancy and the Local Authority Scotland Accounts Advisory Committee work together through the CIPFA/LASAAC Local Authority Code Board to develop the Code of Practice on Local Authority Accounting in the United Kingdom. The Code of Practice is based on UK-adopted IFRS and draws on International Public Sector Accounting Standards and other relevant financial reporting guidance.

CIPFA strongly supports the work of the International Public Sector Accounting Standards Board and contributes to the development of public sector accounting standards through participation in consultations, working groups, and technical discussions. The institute’s Accounting and Auditing Standards Panel coordinates CIPFA’s responses to IPSASB consultations and provides input from practitioners and public sector experts.

To support implementation of IPSAS and high-quality public sector financial management practices, CIPFA offers a range of professional education and training programs, including an IPSAS Diploma and certification programs delivered through flexible online learning and assessment platforms. IPSAS concepts and developments are also incorporated into CIPFA’s professional qualification syllabus and continuing professional development programs.

CIPFA disseminates information about developments in public sector accounting standards through professional communications, publications, newsletters, and its website. In addition, CIPFA promotes the application of IPSAS and other high-quality public sector financial reporting practices through its international development and training activities with governments, public sector organizations, and supreme audit institutions.

Through research initiatives and international collaboration, CIPFA continues to contribute to discussions on the quality and transparency of public sector financial reporting globally and to support improvements in public financial management frameworks.

Current Status: Sustain

In accordance with their charters and by-laws, professional accountancy organizations in the United Kingdom are authorized to establish systems of investigation and discipline for their members in cases of noncompliance with applicable professional standards and ethical requirements. Professional accountancy organizations in the jurisdiction, including ACCA, the Chartered Institute of Management Accountants, the Chartered Institute of Public Finance and Accountancy, and the Institute of Financial Accountants, report that they operate investigation and disciplinary systems that align with the requirements of SMO 6.

CIPFA maintains an investigation and disciplinary framework for its members and registered students to address complaints and allegations of professional misconduct. The institute’s disciplinary arrangements include procedures for investigating complaints, conducting hearings, and imposing sanctions where misconduct is established.

CIPFA participates in the Financial Reporting Council’s Accountancy Scheme, which provides an independent disciplinary process for cases involving significant public interest matters within the UK accountancy profession. Under this scheme, cases that meet the relevant public interest criteria may be referred to the FRC for independent investigation and prosecution.

The institute publishes information on its disciplinary processes on its website, including guidance for the public on how to submit complaints and information for members and students on investigation and disciplinary procedures. CIPFA reports that its investigation and disciplinary arrangements are subject to periodic review to ensure that they remain effective and aligned with SMO 6 requirements.

Current Status: Sustain

The Financial Reporting Council is responsible for issuing accounting standards in the United Kingdom in accordance with the Companies Act 2006. IFRS as adopted for use in the United Kingdom are required for the consolidated financial statements of companies whose securities are admitted to trading on a regulated market. Other entities apply UK accounting standards issued by the Financial Reporting Council, including Financial Reporting Standards developed for entities of different sizes and reporting requirements.

Although CIPFA does not have direct responsibility for adopting IFRS in the United Kingdom, it contributes to the development and implementation of high-quality financial reporting standards. The institute responds to consultations issued by the International Accounting Standards Board, particularly on issues relevant to the public sector, drawing on advice from practitioners through its Accounting and Auditing Standards Panel.

CIPFA supports the implementation of IFRS and related financial reporting standards through professional training programs, specialist networks, conferences, and publications. The institute also disseminates information about developments in international financial reporting through professional communications, newsletters, and its website.

IFRS concepts and developments are incorporated into CIPFA’s professional qualification syllabus and continuing professional development programs where relevant. Through these activities, CIPFA supports awareness and implementation of international financial reporting standards among its members and the wider public financial management community.

Current Status: Sustain