Institute of Financial Accountants

The Financial Reporting Council 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. These bodies operate monitoring systems designed to ensure that audit firms comply with applicable auditing and ethical standards and are subject to oversight by the Financial Reporting Council.

The Institute of Financial Accountants does not have direct responsibility for the quality assurance review of statutory audits in the United Kingdom, as it is not a Recognised Supervisory Body. The institute’s members are therefore not authorized to conduct statutory audits unless they obtain the necessary authorization through a recognised supervisory body.

The institute focuses on monitoring compliance of its members with professional and regulatory requirements relevant to their areas of practice. This includes oversight of compliance with ethical requirements and the United Kingdom’s anti-money laundering regulations where applicable. The institute maintains processes for reviewing its ethical framework and member guidance to ensure that they remain aligned with professional standards and regulatory expectations.

To support compliance among its members, the institute provides guidance and resources on regulatory and professional requirements, including anti-money laundering obligations. The institute conducts monitoring activities such as member reviews, questionnaires, and practice visits where appropriate, and investigates complaints related to professional conduct.

Through these activities, the Institute of Financial Accountants supports professional quality and promotes compliance with applicable standards among its membership.

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

The Institute of Financial Accountants maintains professional qualifications and training programs designed to support the development of accounting and finance professionals. The institute reports that its qualifications and learning programs are periodically reviewed and updated to ensure alignment with professional education standards, regulatory requirements, and developments in accounting and business practices.

The institute’s qualifications are regulated by the Office of Qualifications and Examinations Regulation in the United Kingdom. The institute indicates that its learning programs incorporate the competencies and learning outcomes expected of professional accountants and are periodically reviewed to reflect developments in professional education standards.

Continuing professional development is mandatory for IFA members. Members are required to maintain records of their CPD activities and submit annual declarations confirming compliance with CPD requirements. The institute conducts periodic monitoring of CPD records, including random reviews of member submissions, to ensure that members maintain professional competence. Where members fail to comply with CPD requirements, the institute may take appropriate follow-up actions in accordance with its disciplinary procedures.

Through these arrangements, the Institute of Financial Accountants supports the implementation of international education standards and promotes continuing professional competence among its members.

Current Status: Sustain

The Financial Reporting Council is responsible for issuing 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 Financial Reporting Council. 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 and regulatory requirements.

The Institute of Financial Accountants does not have direct responsibility for the adoption of auditing standards in the United Kingdom and its members are generally not authorized to conduct statutory audits unless they obtain the appropriate authorization through a recognised supervisory body.

Nevertheless, the institute supports awareness and understanding of auditing standards among its members by disseminating information on developments in auditing and assurance standards issued by the IAASB. The institute provides updates and commentary on relevant standards through professional communications, its website, and publications.

IFA also provides opportunities for members to discuss developments in auditing and assurance through professional forums and online communities. Through these activities, the institute promotes awareness of international auditing standards and supports members in understanding developments that may affect their professional activities.

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.

The Institute of Financial Accountants maintains a Code of Ethics that is aligned with the International Code of Ethics issued by the International Ethics Standards Board for Accountants. The institute supports compliance with ethical requirements by incorporating ethics into continuing professional development requirements and by providing training and educational resources on ethical issues relevant to professional accountants.

IFA promotes awareness of ethical standards through online learning courses, professional publications, and guidance materials addressing topics such as ethical decision-making, professional skepticism, and professional conduct. The institute also provides access to resources and case studies that help members address ethical dilemmas in practice.

The institute monitors developments in international ethical standards and informs members of updates through its professional communications and website. IFA also seeks to participate in consultations on developments in ethical standards and contributes perspectives from small and medium-sized practices and enterprises.

Through these activities, the Institute of Financial Accountants promotes awareness and implementation of ethical standards among its members.

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.

The Institute of Financial Accountants does not have direct responsibility for the adoption of public sector accounting standards and its membership primarily operates in the private sector. Nevertheless, the institute supports awareness of developments in public sector accounting standards by disseminating relevant information through its professional communications and website.

Through these activities, the Institute of Financial Accountants promotes awareness of developments in public sector financial reporting standards and supports understanding of relevant international standards where applicable.

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.

The Institute of Financial Accountants maintains a disciplinary framework for addressing complaints and allegations of misconduct by members. The institute’s investigation and disciplinary procedures include processes for reviewing complaints, conducting investigations, and referring cases to the appropriate disciplinary bodies where misconduct is identified.

IFA provides information and guidance on its disciplinary procedures through its website and professional publications, including guidance for members and the public on how to submit complaints. The institute also cooperates with other professional bodies and regulatory authorities where appropriate in matters involving professional misconduct.

The institute maintains processes to review the effectiveness of its investigation and disciplinary system on an ongoing basis. These processes include reviewing disciplinary procedures, providing training to members of disciplinary committees, and maintaining systems for tracking complaints and documenting the investigation and disciplinary process.

Disciplinary outcomes are published to promote transparency and maintain confidence in the profession. Through these activities, the Institute of Financial Accountants supports the effective operation of its investigation and disciplinary system and promotes compliance with professional standards.

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 the Institute of Financial Accountants does not have direct responsibility for the adoption of International Financial Reporting Standards in the United Kingdom, the institute supports the implementation of financial reporting standards among its members. IFRS and IFRS for SMEs concepts are incorporated into the institute’s professional qualification programs and continuing professional development activities.

The institute promotes awareness of developments in international financial reporting standards by disseminating information on new and revised standards, exposure drafts, and discussion papers issued by the International Accounting Standards Board through its professional communications and website.

IFA also encourages member engagement in the international standard-setting process by informing members of IASB consultations and supporting responses where relevant. Through these activities, the institute promotes awareness and understanding of international financial reporting standards among its membership.

Current Status: Sustain