Kuwait Association of Accountants and Auditors
Member | Established: 1973 | Member since 1987
Kuwait Accountants and Auditors Association (KAAA) was declared by the Ministry of Social Affairs and Labour under No. (57) Clubs and public interest associations on 02/11/1973 in accordance with the provisions of Law No. (23/1962). Its main objectives are to: (a) raise professional literary and cultural level of the members; (b) defend their rights, facilitate their work, and ensure their future in case of disability, old age, sickness, and unemployment; (c) provide its members with information on the developments of accounting and encourage them to exchange information among themselves at their meetings and conferences; (d) work on the development of accounting thought, encourage, and nurture scientific research in the fields of accounting; (e) contribute to the organization rules of the profession of accounting and auditing and work to maintain a high level when licensing qualified persons to become chartered accountants; (f) contribute to the economic development in the country and plan for it in cooperation with the competent authorities; (g) cooperate with other professional and practical associations within the country and abroad in the field of exchange of professional information in order to achieve common goals.
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 KAAA has no responsibility for the quality assurance (QA) review system in Kuwait, it collaborates with the Ministry of Commerce and Industry and the Capital Markets Authority to support the establishment of an effective system.
It participates in the drafting of legislation that would require mandatory QA reviews for all financial statement audits. The KAAA indicates in its 2015 SMO Action Plan that it is in the process of (i) preparing quality assurance review questionnaires, (ii) identifying gaps between the proposed QA review system envisaged in the draft amendments and the revised SMO 1 requirements, (iii) considering how the gaps can be rectified, and (iv) planning training events. The Association states that, beginning in January 2015, it will organize and deliver training on quality control and quality assurance reviews and that, as of June 2015, it will publish relevant articles in its magazine on a quarterly basis.
The KAAA is encouraged to facilitate or collaborate with the responsible parties to make available translated copies of ISQC 1 to members of the profession in order to raise awareness and enhance members’ knowledge of the requirements of the standards. In addition, it would be beneficial for the association to disseminate (i) updates on new and revised standards issued by the IAASB with respect to quality control in the audits of financial statements and (ii) implementation guidance issued by IFAC, such as the Guide to Quality Controls for Small- and Medium-Sized Practices. In addition, the KAAA is encouraged to share the estimated timeline for approval of draft legislation and implementation of the QA review system, if the information is available.
The KAAA has no responsibility for setting initial professional development (IPD) requirements for the accountancy profession in Kuwait, but it actively supports adjustments to the accountancy education system in line with IES. The association drafted a proposal for a continuing professional development (CPD) program in 2012, which is pending Ministerial approval. The KAAA will be responsible for delivering the mandatory CPD program for auditors, which they will be required to take for the renewal of their licenses to practice. The KAAA liaises with government officials, universities, and other approved education providers on ways to enhance the current IPD and CPD rules, or lack thereof, and programs to enable compliance with IES.
The KAAA provides learning opportunities for its members in the form of courses, forums, and workshops aimed at enhancing members’ understanding and implementation of requirements in professional standards.
The association continues to try to obtain technical and financial resources to improve professional accountancy education and development. In addition, it is considering mechanisms for communicating updates on new and revised IPD and CPD requirements to members and relevant authorities.
The KAAA is encouraged to facilitate access to IES translated into Arabic to raise the awareness of the responsible parties and to support the adoption of IES. The association is also encouraged to participate in the international standard-setting process by providing comments on Exposure Drafts and other IAESB pronouncements.
The KAAA has no responsibility for the adoption of ISA and other pronouncements issued by the IAASB, but it collaborates with the Ministry of Commerce and Industry (MOC) and the Capital Markets Authority to improve the process of adoption and promulgation of new and revised ISA and promote the adoption and translation of all IAASB pronouncements.
In addition, the KAAA serves in an advisory position to the MOC on the implementation of ISA, and participates in the review of new and revised ISA. The association has developed a range of activities to support members in their implementation of the auditing standards, such as the design and delivery of pertinent continuing professional development courses and seminars and the publication of updates in the KAAA magazine. Also, the KAAA is in the process of organizing seminars geared at raising the awareness of university professors on adopted ISA and subsequent changes.
The KAAA is encouraged to share information on the latest translated and published ISA that are available in Kuwait. It would be beneficial for the association to consider a variety of dissemination mechanisms in addition to the magazine, such as electronic distribution, to communicate updates on IAASB pronouncements in a timely manner. Also, the KAAA is encouraged to promote incorporation of standard-related topics into the initial professional development programs on an ongoing basis. It would be beneficial for the KAAA to facilitate access to translated implementation guidance issued by IFAC, depending on the resources that it has available. In addition, the KAAA is encouraged to participate in the international standard-setting process by providing comments on IAASB Exposure Drafts.
Although the KAAA has no responsibility for the adoption of ethical standards in Kuwait, it actively promotes convergence of the Kuwaiti Code of Ethics with the latest version of the IESBA Code of Ethics and, on an ongoing basis, compares both Codes for differences. The association notifies the Ministry of Commerce and Industry, which is responsible for the establishment of ethical standards for the professions, of identified gaps and discusses the importance of full convergence. The KAAA also promotes the enactment of a mandatory requirement for all members of the profession to comply with the established Code of Ethics.
The KAAA regularly publishes, in print, the differences between the Kuwaiti Code of Ethics and the IESBA Code of Ethics in order to raise members’ awareness of new and revised requirements. The association also delivers training courses to assist members with compliance.
The KAAA is encouraged to collaborate with universities and other education providers, the Ministry of Commerce and Industry and the Capital Markets Authority to ensure that initial professional development programs and educational material include revised and updated ethical requirements. Also, the KAAA is encouraged to participate in the international standard-setting process by providing comments on Exposure Drafts and other IESBA pronouncements.
Although the KAAA has no direct responsibility for the adoption of public sector accounting standards, it supports the adoption of IPSAS in Kuwait.
Its main focus is to liaise with relevant stakeholders to promote the adoption of IPSAS and it intends to arrange meetings with the Ministry of Finance to discuss the benefits of IPSAS adoption. The association also plans to publish educational material on IPSAS for its members. The KAAA reports that it is working to provide the government with an Arabic translation of the IPSAS by the end of 2015.
The KAAA is encouraged to develop a detailed plan with specific activities that would enable it to comply with SMO 5.
The KAAA has no direct responsibility for the investigative and disciplinary (I&D) system, but encourages the relevant authority to incorporate the revised SMO 6 requirements in the system that is in operation. It has proposed expanding the powers of the Ministry of Commerce and Industry (MOC) to adopt new sanctions in draft legislation, which is still pending Ministerial approval.
The KAAA assists MOC with the implementation of the system (i) through its representative on the Disciplinary Committee and (ii) by having procedures in place within the association to report its members for misconduct and non-compliance with applicable standards and regulations. The KAAA also raises its members’ and the public’s awareness of how the I&D system functions by disseminating information on the rules and procedures in seminars, training sessions and on its website.
The KAAA is encouraged to continue to promote the alignment of the current Kuwaiti I&D system with the revised SMO 6 by conducting a gap analysis and communicating to the MOC specific areas of improvement that may be addressed over time.
Even though the KAAA has no responsibility for the adoption of IFRS, it supports the implementation of the standards through the seminars and training that it provides to members.
In addition, the KAAA liaises with university professors on the incorporation of changes to IFRS into university courses.
The KAAA has established an ongoing process for monitoring IASB standard-setting activities and disseminating information on new and revised standards. In 2012, the KAAA Training Committee introduced its IFRS Update Program, which specifically focuses on IFRS implementation issues.
The KAAA is encouraged to disseminate in a variety of media information on updated IASB pronouncements, other standard-related material, and implementation guidance. It would be beneficial for the association to facilitate access to translated versions of new and revised standards issued by the IASB for its members and education providers. The KAAA is also encouraged to participate in the international standard-setting process by providing comments on IASB Exposure Drafts.
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.