Palestinian Association of Certified Public Accountants
Associate | Established: 1995 | Associate since 2013
Palestinian Association of Certified Public Accountants (PACPA) was founded in 1995, under the license issued by the Palestinian Ministry of Interior (No. 5026) in accordance with the Provisions of the Charities Act and Civil Bodies No. (1) of the year (2000). It enjoys a corporate body and financial and administrative independence to own movable and immovable assets and to perform all legal acts needed to achieve its goals. Membership in PACPA is mandatory for all the practicing CPAs in Palestine. PACPA is responsible for ensuring that its members are complying with applicable rules, regulations, and professional standards, including audit, ethics, and continuing professional development. PACPA is also responsible for carrying out the quality assurance reviews of its members. PACPA is a member of the Arab Federation of Accountants and Auditors and the Fédération des Experts Comptables Méditerranéens.
ContactAl Bireh P.O.Box 2397; Al- Silwadi Bld 1st floor
Palestinian Territory, Occupied
Tel: +972 59 9420220
Fax: +972 2 2408183
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.
The PACPA, which has a direct responsibility for the quality assurance (QA) review system in Palestine, is in the process of operationalizing a QA system. The PACPA has made the relevant changes to its by-laws, created a QA Committee, and developed guidelines to help members’ understand and comply with the system. With the support of a World Bank grant and technical expertise from another international professional accountancy organization (PAO), the PACPA prepared a QA manual, provided training to members of the profession, and organized and delivered an awareness program. The association held the first round of inspections in July 2015, with an emphasis on building capacity, and intends to inspect all firms within the next three years. The PACPA states that the next steps include translation and publication of the QA manual into Arabic, an annual review of the implementation process, and updates to further align the system with the requirements in SMO 1.
It would be beneficial for the association to ensure that continuing professional development programs include quality control topics and implementation guidance, and that there are sufficient training opportunities for quality assurance inspectors.
The PACPA is responsible for the continuing professional development (CPD) program for the accountancy profession, and endeavors to fully comply with the requirements of SMO 2 through its support of the adoption of IES and its efforts to strengthen the CPD program.
The PACPA indicates that it has reviewed the revised IES and promotes awareness of the requirements to its members and the Board of Professional Auditing (BPA), the body responsible for licensing auditors in Palestine. It liaises with the BPA and universities to raise awareness, and promotes the adoption of IES by these two bodies, which are responsible for the initial professional development program in the jurisdiction.
The association continues to strengthen the CPD program and conducts needs assessments to tailor its CPD course offerings and other training to member needs. It has developed a feedback mechanism to evaluate the effectiveness of its courses. The PACPA also accredits training providers to enhance the quality of CPD training and workshops delivered to its members.
The PACPA participates in the international standard-setting process by providing comments on IAESB Exposure Drafts in collaboration with Palestinian universities.
The PACPA is encouraged to develop specific plans to address the revised IES issued in 2015: a review of the revised standards, a gaps analysis, and plans to adopt or promote adoption of the new requirements. The PACPA is encouraged to clarify whether all of its members are required to complete mandatory CPD. Also, it would be beneficial for the association to arrange access to the translated versions of IES, and to establish an ongoing mechanism to update initial professional development and CPD providers on changes.
Having adopted ISA for use by all its members, the PACPA disseminates new and revised pronouncements issued by the IAASB on a periodic basis and is in the process of establishing cooperation with other Arabic professional accountancy organizations in the region to secure updated translations of ISA.
The association provides ongoing training on standard-related topics in its continuing professional development programs, and hosts or participates in conferences aimed at raising awareness and the skill level of members of the profession on the use of ISA.
The PACPA is encouraged to demonstrate in its Action Plan the type and frequency of training and implementation support activities for ISA that it delivers to its members. The association is also encouraged to participate in the international standard-setting process by providing comments on IAASB Exposure Drafts and other pronouncements.
Having adopted the IESBA Code of Ethics for its members, the PACPA supports compliance with the Code through education activities. The association raises awareness of the requirements of the Code, including new and revised requirements, through training courses and workshops. It has instituted mandatory annual ethics trainings in its continuing professional development programs and includes ethics-related topics in professional examinations. In addition, it has prioritized strengthening the linkage between compliance with the Code and the PACPA’s investigative and disciplinary system. The PACPA also participates in the international standard-setting process by providing comments in collaboration with the Board of Professional Auditing on Exposure Drafts issued by the IESBA.
The PACPA intends to continue the process of comparing ethical requirements in national legislation with the Code of Ethics to ensure harmonization. Also, the association plans to disseminate the most recent translated version of the Code to all PACPA members.
The PACPA is encouraged to promote the incorporation of ethics-related topics in initial professional development education programs.
The PACPA, which has no responsibility for the adoption of public sector accounting standards in the jurisdiction, does help raise awareness of the benefits of IPSAS adoption. The association has established an internal committee to promote adoption of IPSAS, and collaborates with regional and international institutions to gather information on IPSAS adoption and implementation experiences. The committee also organizes workshops and publishes articles and bulletins on IPSAS-related topics. Most recently, the PACPA sent a formal letter to Mr. Mahmoud Abbas, the President of Palestine, explaining the importance and the positive effects resulting from the adoption of IPSAS. The PACPA is planning to send the President a copy of the translated IPSAS.
It would be beneficial for the association to consider the development of a plan of action spelling out specific activities and a timeframe for completion.
The PACPA, with shared responsibility for the investigative and disciplinary (I&D) system in the jurisdiction, focuses on improving the operation of the I&D system to enhance the system’s alignment with the requirements of the revised SMO 6.
The association reports that it has an ongoing process in place to periodically benchmarks its I&D system against the requirements of SMO 6; however, it is unclear as to when the last comparison was done. The PACPA raises the awareness of the public and its members about the features of the I&D system through its website and other publications. The association intends to link the quality assurance (QA) and I&D systems once the QA review system is fully operational. The PACPA is planning to conduct an updated gap analysis of the differences between its I&D system and the revised SMO 6 requirements.
The PACPA is encouraged to develop specific plans to adopt any missing requirements once it has carried out its analysis. It is also encouraged to share the revised SMO 6 requirements with other parties that are responsible for I&D of members of the profession in order to improve compliance of all I&D systems with the requirements.
The PACPA has no direct responsibility for the adoption of corporate sector accounting standards, but it promotes the adoption of IFRSs and IFRSs for SMEs for entities that are not yet subject to the requirements.
The PACPA participates in the activities of the committee responsible for drafting, preparing comments, and promoting the new draft Companies Law that addresses corporate sector accounting standards. The association is exploring options to make available Arabic translations of the standards in the jurisdiction.
The PACPA promotes inclusion of standard-related topics in the initial professional development curriculum and organizes workshops and other trainings on the standards in its continuing professional development program.
The PACPA is encouraged to participate in the international standard-setting process by providing comments on the Exposure Drafts and other pronouncements issued by the IASB.
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