Institute of Certified Public Accountants of Cyprus
Member | Established: 1961 | Member since 1977
The Institute of Certified Public Accountants (ICPAC) was established in 1961 in accordance with the provisions of the Companies Law, Cap.113. ICPAC membership comprises practicing and non-practicing accountancy professionals and audit firms. Practicing professionals are accountants and auditors in public practice who possess a practicing certificate and provide accounting, audit, tax, consulting, and other services. Non-practicing accountancy professionals work in the public and private sectors and are not required to have a practicing certificate. In accordance with the Law, all statutory auditors and audit firms must be registered ICPAC members. The institute’s duties and responsibilities include organizing the profession; providing professional training and education to its members; regulating the profession through the issuance of practicing licenses and monitoring the performance and professional conduct of practicing auditors and audit firms; ensuring that members adhere to a Code of Ethics; and promoting the interests of the profession.
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 responsibility to conduct quality assurance (QA) reviews under law rests with the Cyprus Public Audit Oversight Board (CyPAOB), the ICPAC de facto administers the system with the assistance of the Association of Chartered Certified Accountants, and continues to use its best efforts to ensure that the system is fully compliant with the requirements of revised SMO 1. On completion of its review of the revised requirements of SMO 1, in 2014, the institute incorporated the necessary changes and raised member awareness of the requirements. The ICPAC collaborates closely with the CyPAOB and shares information to enhance monitoring of the profession’s performance. The institute supports its members in their implementation of quality control and auditing standards by providing educational and training programs. It also provides up-to-date relevant information in its quarterly magazine and by facilitating access to IFAC Global Knowledge Gateway.
The ICPAC is encouraged to closely cooperate with the CyPAOB as the responsibilities for the QA review system are being defined to ensure that the resulting system continues to be in line with the requirements of SMO 1. The ICPAC could also highlight the training opportunities it offers to Compliance Officers and the Monitoring Unit and Regulatory Committee to strengthen capacity to effectively implement the QA review system.
The ICPAC, which shares responsibility for initial and continuing professional development of the accountancy profession, reports in its SMO Action Plan that it supports ongoing adoption and implementation of IAESB pronouncements and plans to review the requirements of the revised IESs and consider whether its initial professional development and continuing professional development (CPD) requirements comply with those of the revised IESs. .
The institute reports that it monitors the IAESB work program and provides comments on Exposure Drafts. It uses email and the institute’s quarterly magazine and website to ensure that members and other stakeholders are informed of updates issued by the IAESB. The ICPAC collaborates with the Association of Chartered Certified Accountants, its partner in the joint examination scheme, to ensure that the examination and CPD syllabi incorporate new and revised international accounting, auditing, internal control, and ethical standards. In addition, the ICPAC delivers a wide range of courses and training opportunities to its members.
The ICPAC is encouraged to review the requirements of the revised IESs and report to the IFAC Quality and Membership staff on the extent of the compliance of professional accountancy education with those of IESs.
With ISAs adopted by law in Cyprus, the ICPAC focuses on ensuring that members of the profession have access to the necessary education and training for implementing new and revised standards and on the translation of the standards into Greek.
The institute includes compulsory modules on auditing and assurance in the initial professional development program, and also incorporates courses that address technical challenges identified in the quality assurance review program. Whenever new ISAs are issued, the ICPAC provides practical guidance via technical circulars to its members. It monitors the IAASB work program, provides comments on Exposure Drafts, and disseminates information on changes to members of the profession and other stakeholders via email, its quarterly magazine (Accountancy Cyprus) and its new website launched in early 2015.
The ICPAC collaborates with the Greek professional accountancy organization and the Cyprus Public Audit Oversight Board on translating IAASB pronouncements into Greek. However, as of 2015, the latest translation of ISAs available is that of 2010.
The ICPAC is encouraged to collaborate with the Greek PAO and the national authorities to ensure that the latest international pronouncements are translated on an ongoing basis.
The ICPAC shares responsibility for the adoption of ethical standards for the accountancy profession with the government, which mandates application of the IESBA Code of Ethics for all auditors. In addition, ICPAC’s regulations require its members, both auditors and non-auditors, to comply with the IESBA Code of Ethics (2009), which the ICPAC has adopted.
The ICPAC supports the ongoing adoption and implementation of the Code of Ethics by monitoring the IESBA’s work programs and circulating all new and revised pronouncements to its members and the public. New information, as well as clarifications and practical guidance, is disseminated via email and in the quarterly magazine, and IFAC Handbooks are made available on an annual basis. The ICPAC provides a variety of courses in the initial professional development and continuing professional development programs on IESBA pronouncements to raise awareness, improve understanding, and enhance compliance with the requirements. The ICPAC also continues to collaborate with the Greek Accounting and Oversight Board to produce an up-to-date translation of the Code of Ethics in Greek. As of 2015, the translation of the 2013 version of the IESBA Code is in progress.
In addition, the institute reviews and provides comments on IESBA Exposure Drafts.
Although the ICPAC has no direct responsibility for the adoption of public sector accounting standards in Cyprus, it indicated in its 2015 SMO Action Plan that it promotes the adoption of IPSASs to relevant authorities.
ICPAC’s Public Sector Committee participates in a Government Steering Committee that was established to explore the adoption and implementation of IPSASs. The Public Sector Committee also monitors the IPSASB’s work program and provides updates to members via email and the institute’s quarterly magazine. The institute intends to disseminate information on IPSASs on the new ICPAC website launched in early 2015. As of 2015, the ICPAC reported that it had submitted no comments to IPSASB consultations and had organized no educational events on public accounting.
The ICPAC is encouraged to consider ways to promote to the government the need to adopt IPSASs and, during the next round of SMO Action Plan updates, showcase specific actions aimed to this effect. The institute is also encouraged to consider organizing educational and training events for public sector accountants and to participate in the international standard-setting process by providing comments on IPSASB Exposure Drafts, if deemed pertinent.
Pending the transposition of the 2014 EU Audit Directive, the ICPAC continues to run an investigative and disciplinary (I&D) system for its members. The system was reviewed in 2013 during the revision of the ICPAC’s I&D Regulations to ensure that they continue to comply with the requirements of SMO 6 (revised 2012). The ICPAC raises awareness of the I&D system to the public and its members via a designated section on I&D matters on its new website launched in early 2015.
The institute is encouraged to closely cooperate with the Cyprus Public Audit Oversight Board and the government as the responsibilities for the I&D system are being defined and ensure that the resulting system continues to be in line with the requirements of SMO 6.
The ICPAC has no direct responsibility for the adoption of corporate sector accounting standards, but has a well-established process for supporting adoption and implementation of EU-endorsed IFRSs.
The institute monitors the IASB work programs, and reviews and provides comments through the European Financial Reporting Advisory Group on Exposure Drafts and other pronouncements released by the IASB. The ICPAC disseminates updates on IASB information to its members and key stakeholders via email, its quarterly magazine, its website, and copies of the IFRSs bound volumes that it makes available.
The institute ensures that initial professional development and continuing professional development programs include educational resources and courses on standard-related topics, and provides technical support to members on the standards. In addition, the ICPAC has entered into a collaborative agreement with the Institute of Chartered Accountants of England and Wales to provide access to technical resources on accounting, auditing and ethical standards.
IFAC bears no responsibility for the information provided in the SMO Action Plans prepared by IFAC member organizations. Please see our full Disclaimer for additional information.