GCC Accounting & Auditing Organization
General
Rules for
Fellowship
Examination
(Unofficial Translation)
November
, 2003
Preface
:
The
GCC council aims to achieve coordination, integration and effective correlation
between member countries to the extent that attains unification and deep
relations between the people of these countries in the various fields.
The
GCC Accounting and auditing organization is established to assist in achieving
this objective. It has been established under the resolution of the supreme
council taken during its summit meeting held in
The
employees of the organization shall enjoy the facilities and privileges for
carrying the work of the organization”. The organization started its work on
In
its work the organization adopted a scientific method. The board prepared
strategic plan reflecting the work of the board for five years.
The
plan included main objectives representing the organization purposes provided
in its regulations. These objectives were divided into sub-objectives
representing the constituents usually required for the profession, these are :
(1) conceptual framework for financial accounting (Objectives and concepts),(1)
accounting standards (3) auditing standards, (4) professional qualification–
fellowship certificate, (6) training and continuous education, (7) standards
and programs for professional practice monitoring, (8) unified legal
regulations for practicing the profession of auditing and accounting and (9)
research, studies, bulletins and communication with specialists and users of
the services provided by the organization (studies and information center). The
board prepared a detailed schedule for implementing each sub-objective. The
schedule indicates who will execute the objective and who will review it, when
and how, plus the estimated cost.
The
above mentioned constituents were prepared by specialized and expert
consultants, reviewed by exerts and specialized work teams, and implemented as
scheduled within the approved cost. The board approved the conceptual framework
of financial accounting as it constitute the basis for
looking effectively and competently into other constituents. The board also
concluded to the final texts of other constituents mentioned above. The board decided to distribute
the constituents among accountants, auditors, universities capital markets,
concerned governmental bodies, users of financial reports and other related
parties in general. They will be requested to provide their comments and
proposals within six months that end on 31.12.2003.
The
board approved the means that assure continuous development ,
and that assure also the implementation and updating. These means are
represented in the interior organization rules and bylaws, including: (1)
Administrative and financial rules, (2) bylaws regulating the work of technical
committees which are : accounting standards committee , auditing standards
committee, consultation services standards committee, professional ethics
committee, follow-ship examination committee, nomination committee, quality
review committee and training and continuous education committee.
The
organization’s web site (ww.gccaao.org) accommodates the strategic plan, its
implementation schedule, the above mentioned constituents, rules organizating the work of the organization for its
development, following – up of the implementation and updating. It also
accommodates the first issue of the organization’s bulletin.
The approval of the above constituents will result in
:
·
Convincing
financial report prepares, economic decion makers,
accounting practitioners and scholars that, those constituents are in consistency
with their economical, social and disciplinary (legal) environment.
·
Providing
unified reference in Arabic and English for all member countries. It will be
also a reference for the accounting and auditing faculty and students,
practitioners and accounting service beneficiaries.
·
Creating
the reasons for being able to positively participate in the various
international forums, by bring forward the requirements of the GCC environment
so as to be taken in consideration when such forums attempt to converge the constituents of the profession in countries of
different environments.
·
The
implementation of the constituents will result in :
·
Financial
reports presenting fairly the financial positions of the economic units and the
results of its operations. It will be a supporting element when competing in
global markets and will provide considerable enhancement to the economic of the
GCC Countries.
·
Regular
preparation and updating of the constituents by national citizens who are
directly close to local changes and constantly aware of the global changes.
·
Preparation
and updating of constituents that are appropriate for the GCC environment as
needed according to priority and in a quality not less than that issued by
specialized organizations in other environments.
Finally, I would like to thank every one who
contributed in those achieve-ments including, the
consultants, experts, work teams, governmental bodies, professional
organization and private entities. I hope, for every one able to participate,
to send his comments and proposals about the constituents above mentioned
before the end of December, 2003.
Prepared on 09.08.2003
Abdul Aziz Bin Rashed Ibrahim Al Rashed
Chairman of the Board of Directors
Introduction :
Within the effort that the G.C.C Accounting
and Auditing Organization (GCCAAO) makes to promote the profession of
accounting and auditing and enhance its status in the GCC countries, GCCAAO
board established a strategic plan for preparing the constituents of the
profession. Dr. Osama Bin Fahd
Al-Haizan, assisted by Mr. Amin
Fahd Al –Shedi, to prepare
the proposed general rules.
On its meeting held during the period
This product may be found on the
organization website (ww.gccaa.org) and also they are printed in this documents
which also includes a summary of the organization progress and its future prospect.
Please provide the organization with your
comments on the attached form or an the electronic form at website so that we
can be able to study, analyze and make use of such comments before the final
approval of the general rules for GCCAAO fellowship examination.
Best Regards
The
executive manager
GCC Accounting and Auditing Organization
General
Rules for Fellowship Examination
(This form may be
filled at web site www.gccaao.org.)
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Notice : Please write each comment in
a separate page to facilitate tabulation of comments according to subjects for
study purpose.
To be sent to the
following address
GCC Accounting and Auditing Organization
Quality Control Standards
Contents
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Description |
Page No. |
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A summary of the
establishment of the GCC Accounting and Auditing Organization and the
products of its Activities |
7 |
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Introduction
of general rules for fellowship examination |
17 |
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GCCAAO General Rules for
Fellowship Examination |
19 |
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1.
Objective
of the examination. |
19 |
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2.
Subjects
of the examination |
19 |
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3.
The
questions of the examination |
19 |
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3.1 The multiple choice questions |
19 |
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3.2 The essay type
questions |
19 |
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4. Date of holding the examination and subjects to
be taken |
19 |
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5. Duration of the
examination |
20 |
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6. Marks of the examination |
20 |
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7. Retaking the examination |
20 |
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8. References and subjects of the examination |
21 |
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9. Data base of examination questions and
model answers |
21 |
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10. Preparation of final
forms of examination questions and model answers |
22 |
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11. Supervision of the
examination |
22 |
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12. Grading of the
examination |
22 |
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13. Approval of the result
of the examination |
22 |
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14. Place of examination |
22 |
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15. Sitting to examination |
22 |
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16. Educational
qualifications of candidates |
22 |
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17. Examinations fees |
22 |
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Appendix (1) : Outline
of subjects of GCCAAO fellowship examination |
23 |
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First : Accounting (1) :
Financial Accounting : |
24 |
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1. |
Objectives and concepts of
financial accounting and the standard of presentation and general disclosure |
24 |
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2. |
Accounting cycle |
24 |
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3. |
Measurement, presentation
and disclosure of main elements of financial statements |
24 |
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4. |
Measurement,
presentation and disclosure of some events, circumstances and transactions
that effect on the financial position and results of operations |
24 |
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Second : Accounting (20 : management
accounting, cost accounting, governmental accounting, accounting for non-for
– profit entities, accounting information systems and zakat
and tax accounting : |
25 |
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1. |
Management accounting and
cost accounting |
25 |
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2. |
Governmental accounting |
25 |
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3. |
Non-for-profit entities |
25 |
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4. |
Accounting information systems |
25 |
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5. |
Zakat and tax accounting |
26 |
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Third : Auditing : |
26 |
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1. |
Conceptual frame work of
auditing |
26 |
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2. |
Acceptance on continuous of
clients and planning the audit engagement |
27 |
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3. |
Implementing audit test and
gathering audit evidences. |
27 |
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4. |
Review and document the engagement |
27 |
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5. |
Preparation of
reports and letters. |
28 |
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Fourth : Business law and jurisprudence
: |
28 |
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1. |
Business law |
28 |
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2. |
Jurisprudence
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28 |
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Appendix (2) : General Guidances for examination |
29 |
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First : Before the examination : |
30 |
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1. |
Candidate
shall be assure of the following |
30 |
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Second : Taking the examination : |
30 |
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1. |
Essay type questions |
30 |
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2. |
Multiple choice questioins |
30 |
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Third : Other guidances
: |
31 |
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Fourth : Fees : |
31 |
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Comparative Analytical
Study |
32 |
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1. Objective and scope of the study |
33 |
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2. Methodology of the study |
33 |
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Stage (1) : Collecting information's |
33 |
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Stage (2) : General study
and tabulation |
34 |
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Stage (3) : Detailed study
and analysis |
34 |
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3. |
Outcomes of the study |
35 |
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4. |
Consultation |
36 |
A summary of the
establishment of the GCC Accounting and Auditing Organization and the products
of its Activities
A summary of the
establishment of the GCC Accounting and Auditing Organization and the products
of its Activities
1. Establishment of the GCCAAO
Within
the frame of cooperative work among GCC countries, attention was given to the
accounting and auditing profession. On 1982 the GCC supreme Council agreed to
open the door for GCC professionals to practice certain professions, including
accounting and auditing, within GCC countries, provided that registration and
license is obtained similar to that required for their counterparts in the
hosting country. This was followed by diligent studies, including
:
·
The
Ministry of commerce in
·
Upon
the decision of the commerce cooperation committee in its sixth meeting in 1986,
a technical committee was invited to study the proposed accounting and auditing
standards prepared by the Ministry of Commerce in
·
In
its ninth meeting in
·
A
committee from member countries was formed to study the decision taken by the
commerce cooperation committee, accepting the proposal of the committee
assigned for studying the accounting and auditing standards which requires the
development of the profession to go as follow : (1) determination of
objectives, (2) identification of concepts, (3) studying accounting standards,
(4) studying auditing standards, (5) establishing unified organization rules
and bylaws for the accounting and auditing profession in GCC countries.
·
As
a result of the encouragement from the GCC. Secretariat General, a constituent
committee encompassing prominent practioners and academics from the
citizens of GCC Countries was formed to provide advice and propose any matter
that may enhance the profession. In March 1990 the committee started its
efforts and held many meetings with representatives of the ministries of
commerce in GCC countries. As a result all parties became convinced of the
significance of the objectives of the profession and it has been agreed that a
professional organization is to be established under the supervision the
commerce cooperation committee "Ministers of commerce in member
countries". Then a proposed constitutional regulation was prepared for
GCCAAO.
·
On
·
In
implementation of the supreme council decision regarding the first session, the
Secretariat General invited the general assembly to hold the first meeting in
·
Immediately
after the general assembly held in May
2001, the board of directors held its first meeting and elected H.E. Abdul Aziz Al Rashed Bin Ibrahim Al– Rahshed, from Saudi
Arabia, as chairman of the board and H.E Dr. Jasem Mohmed Al– Medhef, from Kuwait,
as deputy chairman. The board assigned Mr. Agel Menawer Al Dhamiri, from the
Secretariat General, to work as a coordinator and reporter to the board of
directors.
Members of GCCAAO board for the first
session are :
|
Sr. |
Name |
Country
|
|
1 |
Mohammed Jasem Al Mazki (replaced later by Shaikh Soud Hamad Al-Qasmi) |
U.A.E
|
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2 |
Ahmed Jasem Al Abduly |
U.A.E |
|
3 |
Buty Ahmed Khadim |
U.A.E |
|
4 |
Ali Ahmed Radhi |
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5 |
Abbas A. Al-Mohsin Radhi |
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6 |
Dr. Jawahir Shahin Al madhaki |
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7 |
H.E. Abdul Aziz Al Rahed Ibrahim (chairman) |
|
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8 |
Ali Deghileep Al-Otaibi (replaced later by
Ahmed Mohammed Al Abdul Qader) |
|
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9 |
Abdul Ellah Mohammed Al obaid |
|
|
10 |
Nafisah Jaafer Mohammed |
Sultanate of |
|
11 |
Salem Hameed Al khosaibi |
Sultanate of |
|
12 |
Mansour Dirweesh Al raeasi |
Sultanate of |
|
13 |
Salah Ganim Al Ali |
|
|
14 |
Ali Sultan Al Hajri |
|
|
15 |
Hosain Faraj Ibrahim |
|
|
16 |
Dr. Jasem Mohammed Al Medhef (Deputy chairman) |
|
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17 |
Hamad Abdullah Al Ganim |
|
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18 |
Abdul Latif Ahmed Al Ahmed |
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|
19 |
Saleh Abdul Rahman AL-Semail (replaced later by Hassan
Mohammed Al Obaidley) |
GCC Secretariat General
|
2. GCCAAO Products :
2.1 The Strategic Plan :
In its first meeting , held in May 2001, the board began studying the
ways through which GCCAAO objectives can be realized. Sub-committees from among
its members were formed including the financing committee and the budget
committee.
However, these
committees did not reach a suitable vision because no information were
available regarding the excepted financing. As a result the board
decided to prepare a strategic plan in accordance with the experienced planning
methodology. The plan included, documentation of the current status of the
constituents of the profession, analyzing it, follow–up and evaluation and
cost. It aims to provide a clear vision to the concerned parties and users of
the service in order to obtain their support. The board authorized its chairman
and some of its members to assign a well– known consultation parties to carry
out this job.
The board was not able to assign a
consultant firm with a reasonable cost, therefore it formed a team using its
members and the voluntary efforts of Mr. Yousef
Al– Mobarak SOCAP Secretary General in addition to
efforts, against limited costs, of Dr. Osama Bin Fahad Al– Hezan, head of the
department of financial sciences of Prince Sultan University and Mr. fahad Bin Abdulla Al Rashed, the financial manager of Al– Riyadh construction
Company. The board required its chairman and its member Mr. Aqel
Al–Dhamiri to provide them with assistant as needed.
With the assistant of the GCC
Secretariat general, SOCPA and Al Rashed Firm
(Consultants, CPAs and auditors) the strategic plan and its implementation
programs was prepared.
The board reviewed, amended and
approved the plan and assigned Dr. Osama Bin Fahd Al– Hezan to follow–up the
technical aspects and Mr. Aqel Al– Dhamiri to follow–up the administrative and coordinative
affairs, assisted by the chairman as
needed and by the board members, particularly in regard of distributing and
returning the questionnaire in their countries.
The strategic plan and its implementing
programs approved by the board can be seen at the organization web site (www.gccaao.org). It is focusing on the
constituents of the profession in member countries compared to those in
different environments, considering the differences, reasons and effects of
those differences, in order to achieve consistency with regional environment
and competency with the standard of other environments.
2.2 The constituents of the profession :
The following are the
constituents of the profession (sub-objectives of the strategic plan), the
consultants worked on it and the team that approved it. However, the products
of their work including, the methodology followed, comparison studies and
analysis and constituents reached, can be seen, in full, at the organization
web site.
2.2.1 First
main objective: The regulations stated "review, develop prepare and
approve professional standards, particularly auditing and accounting standards
and rules of ethics and professional conduct, taking in consideration, the
international standards and experiences of other countries and professional
organization." This is implemented by dividing the objective it to two
sub-objectives, as follow :
1. First sub-objective :
conceptual frame work of financial accounting (objectives and concepts) :
2. Second Sub
– objective : Financial accounting standards.
Professor
Ismail Gomaa was assigned
to work on these two objectives as a consultant.
A draft
conceptual frame-work of financial accounting and draft accounting standards
were prepared. A work team encompassing specialists and experts from all member
countries, was formed to review the work of the
consultants. This team included Mr. Ali Said Al sherhan
from U.A.E, Mr. Ahmed Matar from
3. Third
sub-Objective : Auditing standards :
Dr. Eihab Kamel Abu–Al khair was assigned as a consultant for this objective. He
prepared the draft auditing standards. The same work team mentioned above review
the work of this consultant. After studying the proposal, the board concluded
to the final product and decided to distribute it as provided in paragraph 2.3
hereunder.
4.
Dr. Mohammed
Al–Sehali was assigned as consultant for this
objective. Draft rules of ethics and professional conducts were prepared. After
studying the proposal, the board concluded to the final product and decided to
distribute it as provided in paragraph 2.3 hereunder.
2.2.2 Second main objective : The regulation stated
"Development and unification of the means regulating the profession,
including a proposal to amend, develop and unify the regulations and laws
organizing the profession and licensing requirements needed to practice the
profession". It is implemented through the following two sub-objectives :
1. First sub-objective : specify, review and evaluate the regulations and
laws organizing the profession.
2. Second sub-objectives : prepare a draft unified regulations (law) for
practicing the accounting and auditing profession in member countries :
Mr. Abdulla Al Ahmadi was assigned as
consultant for these two objectives, and a draft unified regulation (law) for
practicing the accounting and auditing profession in member countries was
prepared. After studying the proposal, the board concluded to the final product
and decided to distribute it as provided in paragraph 2.3 hereunder.
2.2.3
Third
main objective : The regulations states
"establish the necessary rules for fellowship examination and conducting
it, including the professional, academic and practical aspects of the
accounting and auditing profession". This is implemented under the title
(establishing the general rules for fellow ship examination its material,
contents and requirements for sitting to exam).
Dr. Osama Bin Fahad Al–Haizan, assisted by Mr. Amin Bin Fahd Al Shedi, was assigned as
consultant for this objective. A draft of the general rules for followship examination, its material contents and requirements for sitting
to exam, was prepared. After studying the proposal, the board concluded to the
final product and decided to distribute it as provided in paragraph 2.3
hereunder.
2.2.4
Forth
main objective : The regulations states "promote
professional practice and prepare and conduct the continuous education program
related to the profession" It was implemented under the title (training
and continuous education).
Dr.
Aiman Al Khabari was
assigned as consultant for this objective. A draft of the general rules for
training and continuous education was prepared. After studying the proposal,
the board concluded to the final product and decided to distribute it as
provided in paragraph 2.3 hereunder.
2.2.5
Fifth
main objective : The regulation states "establish
proper organization for the field monitoring of the practicing of CPAs and the
follow–up and evaluation of professional performance". It is implemented
through the following two sub-objectives :
1.
First
sub-objective : establish proper organization for field
monitoring, propose and approve the standards and programs for monitoring
professional performance.
2. Second sub-objective : establish
procedural guidances for the teams reviewing
accounting firms :
Mr.
Abdul Aziz Al–fraih was
assigned as consultant to work on these two objectives. A draft for
organization of field monitoring, standards and programs for monitoring,
professional performance and guidance for the review of accounting firms was
prepared. After studying the proposal, the board concluded to the final product
and decided to distribute it as provided in paragraph 2.3 hereunder.
i.
Main
objectives : (the sixth, seventh and eighth) : for the sixth main objective the
regulations states "prepare and encourage researches, studies, translation,
publication of books, periodics and bulletins
concerning the auditing and accounting profession and related subjects to
academically and professionally enrich the accounting conception", for the
seventh main objective the regulations states “coordination with societies,
practitioners and other” concerned with the development of the accounting and
auditing profession and strive with them to support and develop its status
" and for the eighth main objective the regulations states "unification
of accounting and monitoring terms".
These
objectives were implemented through the following :
1.
Establishing
the studies and information center.
Dr. Tawfiq Al Rebia, assisted by Dr.
Mohammed Al Sehali and Mr. Abdul Aziz
Al Newaiser, was assigned to set up alternatives for
establishing the center, define requirements needed to enrich the accounting
conception and professional practicing and to find the relation between such
practicing and the education programs and curricula. The team was also required
to develop the organization web site, where madam Jawhra Al–Gewaiz has provided
considerable assistant. The board looked into the proposal, approved it and
assigned one of its members to follow–up with executive staff the establishment
of the center.
2.
Issuance
of a periodic bulletin :
Dr.Assem
Al-Said was assigned to issue a quarterly bulletin and the first issue has
appeared and can be seen on the organization's web site.
2.2.7
Membership :
It is
implemented under the title (study for organizing membership, specifying conditions
and criteria for obtaining membership of the organization and determing membership fees :
Dr. Suliman Al Towajri was assigned as a consultant to this objective.
Proposed conditions and criteria for obtaining membership and membership fees was prepared. After studying the proposal, the board decided
to form a sub-committee from its members to studying the proposal, the proposal
of consultant in connection with the financing resources in general and the
relation of GCCAAO with national organizations and societies.
2.3
Board study and conclusion with respect to the constituents :
In its meeting held in Muscat from the first to the
fourth of June 2003, the board approved the conceptual frame work of financial
accounting (objectives and concepts) as it is considered as a base for looking
effectively and competently into other constituents. It also concluded to the
final texts for other products mentioned above. By this point GCCAAO has
achieved most of
the objectives provided in its regulations.
The
board decided to distribute these constituents among accountants, auditors,
universities, capital markets, concerned governmental bodies, and users of
financial reports including users of financial statements issued annually by
business enterprises, and requested them to provide GCCAAO with their comments
before the end of the year 2003. The board shall look into the comments that
will be received and shall approve those constituents in its final form during
its meeting decided to be held by the end of year 2003.
2.4
Temporary and permanent residence :
The GCC Secretariat General has hosted GCCAAO from the
day of starting its work until moving to the temporary residence received from Saudi Government
after being furnished and equipped. The government of
2.5
The financial, administrative and technical Rules :
The board approved the financial and administrative
rules and bylaws regulating the work of the technical committees. It also
identified the number and categories of members for each technical committee.
2.6
The executive manager and the administrative staff :
During the meeting held in
3. The future :
For
the near future the organization focuses on achieving consistency between
realizing its objectives and obtaining adequate financing, beside assurance of
the implementation and development of the constituents of the profession.
3.1
Realization of Objectives :
The constituents mentioned
in (1) and (2) above were realized with a very low cost. No major cost, such as
salaries of the executive manager and the administrative staff, was incurred.
The work was done by voluntary contribution from the board members and nominal
compensation for the coordinator unit the executive manager is assigned on
01.08.2003. In addition the GCC secretariat general provided the administrative
support and SOCPA provided the technical support. All documents, informations and studies concerning the constituents of the
profession in
However, on preparing the plan for remaining period of
the year 2003
and on updating the five year plan to include the period (2004-2008), the costs
of the administrative staff and compensation of technical committee members as
stated in the regulation, were added. The following table indicate members of
the technical committees :
|
Name of Committee |
Sectors |
Total |
||||
|
Practicing members |
Financial statements
preparers (Accountants) |
University and Higher Instates staff |
Gover-nment |
Private Sector |
||
|
Accounting standards |
4 |
3 |
3 |
3 |
2 |
15 |
|
Auditing standards |
3 |
3 |
3 |
2 |
2 |
13 |
|
Professional Ethics |
2 |
- |
2 |
1 |
1 |
6 |
|
Examinations |
3 |
- |
3 |
1 |
1 |
8 |
|
Nomination |
2 |
1 |
1 |
1 |
1 |
6 |
|
Quality Review |
3 |
1 |
2 |
1 |
1 |
8 |
|
Training and Continuous
Education |
2 |
- |
2 |
1 |
1 |
6 |
|
Researchs and Publication |
1 |
- |
1 |
1 |
1 |
4 |
|
Consulting Services |
2* |
1 |
1 |
1 |
1 |
6 |
|
Total |
22 |
9 |
18 |
12 |
11 |
72 |
·
Members
are from those working in the field of consultation.
3.2
Financing :
This is
the most difficult and most risky aspect with respect to the future of the organization.
Although most of the government responsibles and the
public sector, including the financial and professional bodies, are convinced of the significance of the work
carried out by the organization with respect to those who benefit from its services
and with respect to the economic as a whole, considering the last events that
caused the failure of some of the largest companies in the world, however no
adequate financing is provided for the organization in order carry out its
mission and in order to put these countries aside from any disaster.
The organization concluded,
that the best way is to prepare its strategic plan, as that prepared for the
last period depending on objectives connected to costs and financing means, and
raise it to the ministerial committee before its meeting in October 2003. A
comprehensive report on the products shall be attached, in compliance with
Article 4 of the Regulations which states (The GCC commerce cooperation
committee shall supervise the organization through the periodic reports raised
to it by the board of the organization).
By that, the ministerial committee will have clear
vision about the objectives that the organization can realize if adequate
financing is provided. The committee will take its decision in consistency with
the plans and aspirations of GCC countries in this area.
This summary is prepared on :
Saturday 11.06.1424 H
Corresponding to 09.08.2003
GCCAAO General Rules for Fellowship Examination
Introduction
of General Rules for Fellowship Examination:
Within
the efforts that the GCCAAO makes to promote the accounting and auditing
profession in GCC Countries , GCCAAO prepared a
strategic plan for the period from 2003 to 2007.
The
plan, substantially aims to built the constituents of
the profession, including the GCCAAO fellowship examination. The ninth
sub-objective of the plan stated "establish, and approve the necessary
rules for fellowship certificate examination, its material and requirements for
sitting to examination". The approved strategy for implementing this
objective requires, studying the rules adopted in GCC
Countries, tabulating and analyzing them and concluding to recommendations that
will be raised to GCCAAO board to take its decision.
Upon this
strategy certain methodology was prepared and followed to conduct the study,
divided into a specific phases and according to
specific timetable. A comparative analytic study was conducted for the general
rules for fellowship examinations adopted by the professional organizations and
associations in GCC Countries, and also for that adopted in U.S.A and U.K. Main
elements (basic constituents), were selected as bases for comparing the rules
specified for those examinations. The most significant deductions derived from
the comparative study were determined and analyzed, and available alternatives for each
element of the general rules were defined, then the most appropriate
alternative is selected for the proposal.
In
addition, when preparing the proposal of the general rules, the following was
taken in consideration :
·
GCCAAO
objectives and duties as stated in the regulations.
·
The
organization's mission and statement of mission as stated in the approved
strategic plan, with respect to the considerations, that should be given to the
GCC professional environment and its variations from corresponding foreign
environments, when preparing the articles of the general rules.
·
·
Legal
and environmental considerations of the accounting and auditing profession in
GCC Countries.
·
Experiences
of GCC Countries that conduct professional examinations and using it for
guidance, as possible.
·
Experiences
of foreign countries, provided to consider the differences related to the
professional, legal and economical considerations.
·
The
conclusions reached in this study and the appendices of SOCPA general rules for
fellowship examinations were used in formulating the proposal of GCCAAO general
rules for fellowship examination.
Fees were defined for
registration, retaking and sitting for the examination subjects according to the following
proposal unit being studied by the organization depending on deliberated
comprehensive bases :
- Exam registration fees - SR 1000
- Exam retaking fees -
SR 500
- Registration for a subject - SR 200
In
addition to fees paid for exam registration or exam retaking, registration fees
will be paid for each subject the candidate desires to register.
The
general rules proposal did not include any article regarding how to deal with
those obtaining other Gulf or international professional fellowship
certificates, although they were provided within the basic constituents of the
comparative analytic study. The consultation team advised that any decision on this
matter is preferred to be taken after
holding a number of fellowship examination sessions.
GCCAAO General Rules for
Fellowship Examination
1. Objective of the examination :
Testing the technical and
professional capabilities and ethical attribute of individuals who desire to
obtain GCCAAO fellowship and being assured that, they possess adequate
competence and skill to carry out their work in such a way that promote the
profession, enhance the quality of performance and protect the public interest.
2. Subjects of the examination :
The examination consist of the following four subjects
:
·
Accounting
(1) : Financial
accounting.
·
Accounting
(2) :
Management accounting cost accounting, government and non-for-profit accounting,
accounting information systems, zakat and tax
accounting.
·
Auditing.
·
Business
law and jurisprudence.
3. The questions of the examination :
The questions of the examination for each subject include the following :
3.1 The multiple choice questions
:
The object of the multiple choice
questions is to test the candidate's knowledge and full understanding of the
subjects of the examination, by posing theoretical or practical questions
related to those subjects and including correct informations.
The candidate to choose the correct answer from a number of
probable answers.
3.2
The
essay type questions :
The object of the essay
type questions is to test the candidate's knowledge and full understanding of
the subjects of the examination, by posing theoretical or practical questions
related to those subjects. The candidate is required to answer the question
through explanation, analysis, comparison and clear interpretation.
4. Date of holding the examination and subjects
to be taken :
Examination dates are fixed by the
examination committee, provided the examination is
held twice yearly, and the subjects taken by each candidate are not less that
two in every session, unless the remaining subjects required from the candidate
are less than two.
5. Duration of the examination :
5.1
The
examination's number of hours :
The examination's number of hours for each level shall
be twenty one hours distributed as follows :
|
Subjects |
|
No. of hours |
|
Accounting (1) |
|
6 |
|
Accounting (2) |
|
6 |
|
Auditing |
|
6 |
|
Business law and jurisprudence |
|
3 |
|
Total |
|
21 |
5.2
The
examination's number of days :
The examinations'
number of days shall be four days distributed as follows :
|
Day |
First Session |
Second Session |
||||
|
Hours |
Time |
Subject |
Hours |
Time |
Subject |
|
|
Saturday |
3 |
|
Accounting (1) (First paper) |
3 |
|
Accounting (1) (second paper) |
|
Sunday |
3 |
|
Accounting (2) (First paper) |
3 |
|
Accounting (2) (second paper) |
|
Monday |
3 |
|
Auditing (First paper) |
3 |
|
Auditing (second paper) |
|
Tuesday |
3 |
|
Business law and jurisprudence |
|
|
|
6. Marks of the examination :
The result
of each subject are evaluated separately, based on one hundred marks for
each subject. The multiple choice questions comprise 60% of the mark and the
essay type questions comprise 40% of the mark.
Passing score is 70% for
each subject. When the candidates fails to pass all subjects of the
examination, all subjects passed by him may be dropped ,
in accordance with a time limit that shall be defined by the board upon
recommendations by the examination committee.
7. Retaking the examination :
Candidates may retake
the examination in any subject if they do not obtain the required passing
score.
8. References and subjects of the examination :
8.1
Objectives
and concepts of financial accounting (conceptual framework for financial accounting),
auditing standards, rules, guidance, and professional opinions issued by GCCAAO
and standards rules, guidance's and opinions issued by the organization at a later
date shall be the basic references for the preparation of the program's
subjects and examination. Accounting and auditing standards and other approved
technical standards issued by IASB and IAASB shall be the foundation for any
standards which do not exist with GCCAAO, after studying them and eliminating
what does not confirm to the circumstances of the Gulf Region.
8.2 Appendix (1) shows an outline of the
subjects of the fellowship examination program of the organization. Based on
its experience, the organization shall continually evaluate the contents of the
subjects of the fellowship program and the guidance references in order to
develop them so as to conform to the objectives of the program.
9. Data base of examination questions and model
answers :
9.1
From
among specialized and interested persons, the examination committee shall
select teams to prepare the examination questions and their model answers.
Consultants are to be selected from the following groups :
- Teaching staff members of universities or
specialized institutes
- Members of GCCAAO.
- Accounting and auditing practitioners and
other related professions.
- Members of professional organizations in GCC
Countries.
9.2 The examinations committee shall select a team of
specialists for each subject separately
to study the questions and their model answers prepared by the consultants or
others and select the appropriate questions and their model answers.
9.3 The examination committee shall study the
selected questions and their model answers for each subject separately, approve
them and store in the data base.
10. Preparation of final forms of
examination questions and model answers :
For each subject the
examination committee shall choose, from its members or from other specialists,
teams to select the examination questions and the model answers from the
questions and model answers stored in the data base and classify them as follows :
Accounting (1) :
|
Classification |
Time (Minutes) |
No. of questions |
|
Multiple choice questions |
180 |
72 |
|
Essay questions |
180 |
5 |
|
Total |
360 |
|
Accounting (2) :
|
Classification |
Time (Minutes) |
No. of questions |
|
Multiple choice questions |
180 |
72 |
|
Essay questions |
180 |
5 |
|
Total |
360 |
|
Auditing :
|
Classification |
Time (Minutes) |
No. of questions |
|
Multiple choice questions |
180 |
72 |
|
Essay questions |
180 |
5 |
|
Total |
360 |
|
Jurisprudence and business law :
|
Classification |
Time (Minutes) |
No. of questions |
|
Multiple choice questions |
120 |
60 |
|
Essay questions |
60 |
3 |
|
Total |
180 |
|
1. Supervision of the examination :
The examination
committee shall select a team of three persons to supervise and conduct the
fellowship examination at any place it is held and one member of the committee
or a member of GCCAAO shall be in charge of the team.
2. Grading of the examination :
The examination
committee shall select a number of consultants to grade each subject of the examination. Every paper shall be graded by
one of the consultants and reviewed by another. If there is any difference in
the grading results of any paper, the paper shall be reviewed by the
examinations committee or any party assigned by it. Grading consultants should
adhere to marks assigned to multiple choice questions and essay type question
for each subject.
3. Approval of the result of the
examination :
The examination
committee shall approve the result of the examination for each subject all
results shall be delivered to the executive manager for publication. Based on recommendations
of the examination committee, the fellowship certificate shall be granted by
the board of directors to the persons who have passed the examination.
4. Place of examination :
The examination may be
held in any of the GCC Countries where sufficient candidates are available , however it may be held outside GCC Countries
upon a decision by the GCCAAO board.
5. Sitting to examination :
Any candidate should
abide to the general instructions for sitting to the fellowship examination
provided in appendix (2).
6. Educational qualifications of
candidates :
Any candidate should
have a university degree in accounting or other specialization provided to
fulfill certain special requirements to be determined by the examination
committee.
7. Examinations fees :
GCCAAO approves the
fees for registration and sitting to examination and any other related fees,
upon recommendations from the examination committee.
Appendix (1)
Outline of subjects of GCCAAO fellowship examination
Appendix (1)
Outline of subjects of GCCAAO fellowship examination
The following is an
outline of the topic's of each of the fellowship examination subjects. The examination may include
other topics not included in this outline.
First
: Accounting (1) :
Financial Accounting :
- Objectives and concepts of financial accounting
and the standard of presentation and general disclosure :
1.1
Users
of financial statements.
1.2
Nature
of informations that can be produced by financial
accounting.
1.3
Objectives
of financial statements
1.4
Main
elements of financials statements.
1.5
Events , transactions and circumstances.
1.6
Concepts
of accounting measurement.
1.7
Concepts
of quality of accounting information.
1.8
Presentation
requirements of informations of financial statements.
1.9
General
disclosure requirements.
1.10 Presentation and general disclosure
requirements related to consolidated financial statements.
1.11 Presentation and general disclosure
requirements related to entities in the development stage.
- Accounting cycle :
2.1
Double
entry principle
2.2
Books
and records.
2.3
Analyzing
and recording business transactions.
2.4
Preparing
trial balances and adjustments.
2.5
Preparing
financial statements.
2.6
Closing
and running of accounts.
- Measurement, presentation and disclosure of main
elements of financial statements :
3.1
Cash
and equivalent.
3.2
Investments.
3.3
Receivables.
3.4
Inventory.
3.5
Fixed
assets.
3.6
Intangible
assets.
3.7
Other
assets.
3.8
Payables.
3.9
Deferred
revenue.
3.10 Bonds.
3.11 Equity.
3.12 Retained earnings.
3.13 Other liabilities.
3.14 Capital subsidy.
3.15 Revenues and gains.
3.16 Expenses and losses.
- Measurement, presentation and disclosure of some
events, circumstances and transactions that effect on the financial
position and results of operations :
4.1
Accounting
policies.
4.2
Contingences .
4.3
Financial
commitments.
4.4
Subsequent
events.
4.5
Accounting
changes and correction of errors.
4.6
Discontinuous
works.
4.7
Transactions
with related parties.
4.8
Exceptional
items.
4.9
Earnings
per share.
4.10 Pension plans and other benefits of employees.
4.11 Leases.
4.12 Operation and maintenance contracts.
4.13 Construction and supply contracts.
4.14 Historical cost and accounting for the effect
of changing prices and current cost.
4.15 The entity's sections and branches.
4.16 Foreign currencies.
4.17 Research and development costs.
4.18 Consolidated financial statements.
4.19 Periodic financial reports.
4.20 Segment reports.
4.21 Analysis
of financial statements.
4.22 Partnerships.
Second : Accounting (2) : management accounting, cost accounting, governmental
accounting, accounting for non-for – profit entities, accounting information
systems and zakat and tax accounting :
- Management accounting and cost accounting :
1.1
Budgeting
and flexible budgeting.
1.2
Break
even and cost – volume – profit analysis.
1.3
Capital
budgeting techniques.
1.4
Performance
analysis.
1.5
Nature
of cost elements.
1.6
Allocating
costs and transfer price.
1.7
Process
costing and job order costing.
1.8
Standard
costing.
1.9
Joint
and by-product costing, spoilage, waste, and scrap.
1.10 Absorption and variable costing.
- Governmental accounting :
2.1
The
budget.
2.2
Funds.
2.3
Classification
of revenues and expenses.
2.4
Expense
and collection documents.
2.5
Accounting
entries.
2.6
Creditors
accounts, debtors accounts, and current accounts.
2.7
Closing
final accounts.
2.8
The
accounts of public organizations.
2.9
Controls
in governmental accounting.
- Non-for-profit entities :
3.1
Universities
and colleges.
3.2
Hospitals.
3.3
Voluntary
health and welfare units.
3.4
Other
non-for- profit units.
- Accounting information systems :
4.1
Accounting
information systems and its role in management decisions..
4.2
Functions
of accounting information systems.
4.3
Analysis,
design and
implementation of accounting information systems.
4.4
Implementation, initial operation
and follow up.
4.5
Collection,
entering and storing of data.
4.6
Electronic
data processing.
4.7
Control
technics in accounting information systems.
4.8
Accounting
software's and data bases.
- Zakat
and tax accounting :
5.1
Basic
foundation of zakat and tax.
5.1.1
Objectives
and characteristics of zakat and taxation.
5.1.2
The
general principles for zakat and taxation.
5.1.3
Zakat
and tax base.
5.1.4
Tax
evasion.
5.1.5
Zakat
and tax guarantees.
5.1.6
Duplication
of zakat and double taxation.
5.1.7
The
accounting zakat and tax profit.
5.1.8
Persons
subject to zakat and tax base.
5.1.9
Rate
of zakat and tax.
5.1.10
Measurement
bases for zakat and tax base.
5.1.11
Measurement
of zakat and tax base.
5.1.12
Uses
of zakat and tax.
5.2
Practical
applications on fixing zakat and tax liability :
5.2.1
Regulations,
circulars and decisions related to zakat and tax.
5.2.2
Persons
subject to zakat and tax.
5.2.3
Measurement
of zakat and tax base.
5.2.4
Preparation
and submission of zakat and tax return.
5.2.5
Examination
of zakat and tax return.
5.2.6
Fixing
zakat and tax liability.
5.2.7
Collecting
due tax and zakat.
5.2.8
Objection
on tax liability fixed.
5.2.9
The
issue of the temporary and the final certificate.
5.2.10
Penalties
for evasion and late payment.
Third : Auditing :
1.
Conceptual
frame work of auditing :
1.1
Nature
of auditing.
1.2
Auditing
theory.
1.3
Objectives
of auditing.
1.4
Auditing
standards.
1.4.1
General
standards.
1.4.2
Field
work standards.
1.4.3
Report
standards.
1.5
Code
of ethics and professional conduct.
1.6
Quality
review program.
1.7
Quality
control standards.
1.8
Comprehensive
auditing rules.
1.9
Audits
committees.
1.10 Auditing EDP systems.
1.11 Statistical sampling.
1.12 Operational auditing.
2.
Acceptance
on continuous of clients and planning the audit engagement :
2.1
Determine
the scope and nature of audit.
2.2
Evaluate
audit risk and ability of the auditor to carry it out.
2.3
Communication
with predecessor auditor.
2.4
Accept
or reject the engagement.
2.5
Document
the acceptance of the engagement (agreement letter).
2.6
Understand
the nature, activity and organization of the entity subject to audit.
2.7
Performing
analytical procedures for the purpose of engagement planning.
2.8
Preliminary
assess of materiality level.
2.9
Evaluate
framd and misstatement risk and the client's illegal
acts.
2.10 Study and understand internal control, assess
and document the risks thereof.
2.11 Determine financial statements certainties to
achieve the engagement objectives.
2.12 Prepare work plan indicating the nature,
timing and extent of audit tests.
2.13 Other matters.
2.13.1
Using
other auditors.
2.13.2
Using
an expert.
2.13.3
Internal
auditing.
2.13.4
Transactions
with related parties.
2.13.5
Segment
reports.
2.13.6
Periodic
reports.
3.
Implementing
audit test and gathering audit evidences :
3.1
Implement
required audit tests including analytical audit tests/tests of details of balances and
transactions/ confirmation of balances and transactions with third party/
monitoring of inventory and physical observation of assets, obtaining adequate
and sufficient evidences to support the auditor's opinion on the financial
statements.
3.2
Evaluate
commitment and contingent liabilities , and obtain and
evaluate a letter from the legal advisor.
3.3
Review
for subsequent events.
3.4
Obtain
the general disclosure letter.
3.5
Review
extra ordinary transactions at the end of the year.
3.6
Determine
matters that should be reported to the audit committee.
4.
Review
and document the engagement :
4.1
Perform
the analytical procedures.
4.2
Evaluate
the sufficiency and adequacy of evidences and document the results of the
engagement in order to determine the
following :
4.2.1
Ability
of the entity to continue as a going concern.
4.2.2
Whether
the financial statements are free from ay significant errors.
4.2.3
Whether
the financial statements comply with generally accepted accounting standard or
any other comprehensive accounting basis.
4.2.4
To
look into additional information associated with the financial statements.
4.2.5
Review
the work performed in order to provide reasonable basis that the objectives of
the engagement are realized.
5.
Preparation
of reports and letters :
5.1
Auditing
financial statements .
5.2
Special
reports.
5.3
Accounting
and review services.
5.4
Attestation.
5.5
Fraud,
errors and illegal acts.
5.6
Communication
with audit committees.
5.7
Management
letters.
5.8
Re-
issuance of auditor
reports.
5.9
Other
matters :
5.9.1
Subsequent
discovery of facts.
5.9.2
Subsequent
discovery of procedures not implemented.
Fourth
: Business law and
jurisprudence :
- Business law :
1.1
Definition
of regulations.
1.2
The
business law.
1.3
Contracts.
1.4
Bankruptcy.
1.5
Liquidation.
1.6
Regulations
related to the profession.
1.6.1
Companies
regulations.
1.6.2
Negotiable
instruments regulations.
1.6.3
Arbitration
regulations.
1.6.4
Bank
control regulations.
1.6.5
Commercial
agencies regulations.
1.6.6
Foreign
capital investment regulations.
1.6.7
CPAs'
regulations and professional companies regulations.
1.6.8
Labor
law and GOSI regulations.
1.7
Rights
and liabilities of creditors, debtors and guarantors according to business law.
1.8
Rights,
duties, liabilities, and responsibilities of a certified public accountant.
- Jurisprudence :
2.1
Definition
of Islamic jurisprudence.
2.2
The
Islamic jurisprudence rules.
2.3
Property
in Islam.
2.4
The
wealth.
2.5
Effects
of the contract after its existence.
2.6
Termination
of contract and its effects.
2.7
Bankrepay
2.8
Interdictions
and its divisions.
2.9
Rules
of evidence and its provisions.
2.10 Contracting rules for some contracts.
2.11 Inheritances.
Appendix (2)
General Guidances for
examination
Appendix (2)
First
: Before the examination :
1. Candidate shall be
assure of the following :
1.1
Be aware of the examination requirements and
procedures, by contacting the organization to obtain the information necessary
for sitting to the exam and be assure to complete all requirements which
include :
-
Completing
and submitting the application, at least, two weeks before the examination
date. After registration, candidate may postpone his participation only to the
next session, provided to inform the organization of his decision before the
end of the period specified for application.
-
Attach
a copy of his university degree certificate and his academic record.
-
Present
originals of the university degree certificate and the academic record.
-
Present
the identity card approved by each country.
-
Pay
the exam fees, which can not be refunded for any reason.
1.2
Organize
and administer study time effectively, by advance planning and preparing a list
of priorities.
1.3
Detailed
comprehensive study and full understanding of the theoretical and practical
aspects of all examinations material and topics, in addition to solution of
exercises during study.
1.4
To
be in a good state of mind and increase the level of confidence
, optimism and trust that you
will pass the exam.
1.5
Select
an appropriate approach you expect to use in performing the exam and answering
its questions and exercise it many times. Before the examination be assured
that you are relaxed and in a state of mental steadiness.
1.6
Study
the reasons expected to cause failure to pass all stage of the exam, analyze
such reasons and make every effort to avoid it before entering the exam.
Second
: Taking the examination :
1. Essay type questions :
Candidate must be
assured of the following :
1.1
Quickly
read all questions in order to become familiar with its content.
1.2
Time
should be allocated so that each question will have the exact time needed for
it.
1.3
Read
the question carefully, understand the required answer and identify the
significant and necessary data and main factors of the answer.
1.4
Begin
with the easy questions in an ascending manner taking in consideration the time
and period specified to each question.
1.5
Support
your answer with clear and understandable calculations, within the required
answer, considering that the grader has no idea about your understanding of the
questions or its solution.
1.6
Make
the maximum effort to solve the question and not to leave any question even if it is difficult or
not clear. If you finished your answers before time, try to stay in the room to
review your answers finally.
1.7
Answers
must be in legible handwriting, correct language and clear text.
- Multiple choice questions :
The candidate must be
assured of the following :
2.1
Effective
allocation of time in a way, consistent with all questions.
2.2
Read
the question carefully , understand the required
answer and identify the significant and necessary data and main factors of the
answer.
2.3
Be assure of full understanding of the question, its content,
and required answer and avoid misunderstanding the question.
2.4
Before
looking into multiple choices, determine the correct answer. If such answer is
not within the given choice select the best answer according your assessment.
2.5
Do
not change the first sight answer unless you are fully assure of the
correctness of such change.
2.6
Do
not leave any question blank , try to guess a suitable
answer.
Third
: Other guidances
:
The candidate must be
assured of the following :
3.1
Prior
to the start of the exam write and blacken your candidate number on the
specified space on each of the answer papers.
3.2
Don't
try , by any means, to cheat during the examination ,
because such act will expose you to penalty that may reach deprivation from
taking the exam.
3.3
Hand
the answer paper and questions paper to the proctor when you finish your
answers, and make sure to register your name on the register assigned for that
purpose.
3.4
Follow
all instructions whether informed in writing before the start of the exam or by
the examination supervisor during the exam. All candidates should adhere fully to
such instructions.
3.5
The
organizations shall provide the instruments, such as calculators, needed for
the exam
- Registration fees SR 1000 (currency of
residence country)
- Retaking fees SR 500
- Subject registration fees SR 200
In addition to the
registration fees or retaking fees registration fees will be paid for each
subject the candidate desired to register.
Comparative Analytical Study
For
The General Rules for GCCAAO Fellowship Examination
Comparative Analytical Study
- Objective and scope of the study :
The study aims to
determine and compare the general rules for fellowship examinations adopted by the
organization and professional bodies in GCC Countries and other international organizations.
These rules are to be studied, analyzed , determine
similarities and differences, and drive
conclusions and recommendations in order to prepare GCCAAO general rules for
fellowship examination, including the examination's subjects and content and
requirements for taking the exam.
The scope of study is
defined as follow :
-
Study
and analyze the rules adopted by professional organizations and societies in
GCC Countries.
-
Study
and analyze the rules adopted by some of the international professional
organization and associations.
-
Analytical
study to evaluate the experiences of GCC professional organizations with
respect to fellowship examination.
- Methodology of the study :
The study has been
implemented through a methodology that depends on the determination and the
analytical comparison of rules adopted by the organizations and professional
bodies in GCC Countries and on the guidances obtained
by referring to the products of some well know international organizations. The
study considered to make use of available studies on or for evaluating
examinations and similar experiences. The study has been conducted according to
the following stages :
Stage (1) : Collecting information's :
During this stage the
study determined the sources of information that would be collected and used in
making comparisons, deriving conclusions and preparing the proposed rules.
Those sources include the following :
-
Rules
adopted by professional organizations in GCC Countries. First the study
determine those GCC Countries in which there are profession organizations that
conduct independent fellowship examinations, and whether such examinations are
necessary for a CPA to practice his professional activity. It has been found
that Saudi Arabia, represented in SOCPA, has a fellowship examination organized
through the general rules for fellowship examinations and related appendices.Kuwait has "practicing the profession"
examination regulated by the Ministry of
Commerce and Industry. The Ministry of
defines the parties
that prepare it, grade it , supervise it and publish its results.
-
General
rules for fellowship examination adopted by international professional
organizations ;
The American fellowship
(CPA) and British fellowship (ACCA) has been included within the Comparative
analytical study. Although the American examination is unified for all states,
it should be noted that the details of the elements of some rules may be
different among the states. For this reason the study depended on the details
followed by the majority of the states.
-
Any
previous study conducted by the professional organizations in GCC Countries.
Stage (2) : General study and tabulation :
During this stage,
available informations has been studied and team
looked into finding the best way of tabulation that makes it easy to compare
the rules adopted by parties selected of the comparison.
Main elements (basic
constituents) were selected as basis of comparison, including
:
- Objective of the examination.
- Subjects of the examination.
- Date of holding the examination.
- Duration of the examination.
- Marks of the examination.
- Retaking of the examination.
- References and subjects of the examination.
- Preparation for the examination.
- Preparation of the examination questions and
model answers.
- Selecting the questions and model answers.
- Preparing final form of the examinations
questions and model answers.
- Supervision of the examination.
- Grading of the examination.
- Approval of the results of the examinations.
- Place of the examination.
- Education qualification of candidate.
- Fees of examination.
- Persons obtaining other professional fellowships.
Stage (3) : Detailed study and analysis :
The comparative
analytical study was conducted using the basic constituents stated in stage2
above. Base on comparison between those organization, observations and
conclusions were defined for each element separately.
When making the
comparison the following matters were taken in consideration
:
-
Comparison
and analysis are based on the elements that were already identified. Therefore,
there may be information related to the rules of specific exam, not included in
the comparative study due to nonexistence of direct relation with the
identified elements or due to the difficulty of relating it to those elements.
Those informations may be sued when preparing the
detailed procedures of the general rules.
-
The
comparison was made based on available information, therefore it is expected
that a specific information of a fellowship
examination may not appear on a comparison element.
-
The
information that are collected, studied, analyzed and used in the comparison
study are based on the actual information free of any touchs
except those due to translation or abbreviations made for the purpose of
embracing the information within the comparison element.
-
Based
on the comparison between the organizations and bodies under comparison,
observations and conclusions were defined for each element separately. These
observations and conclusions do not necessarily reflect specific approach that
should be adopted when preparing the rules, but they indicate the differences
between existing fellowship examinations due to specific environmental or
professional considerations or due to the difference in methodology followed by
the organization under comparison when preparing the rules.
-
When
preparing the comparison study, concentration was made on details and clarity
of information as much as possible, however , for the
American fellowship and due to difference in details between the
various states, considerations was given to what is adopted by the majority of
states with respect to the comparison element.
-
With
regard to the fellowship examination experience adopted by the organization and
societies in GCC Countries, a list was derived including the observations that
relate directly to the general rules. The existence of an observation does not
necessary means that it will be adopted with respect to the proposed rules,
particularly that some of observations contradict each other. However it will
be taken in consideration if found to be consistent with the bases that were
relied upon in the preparation of the proposed general rules.
- Outcomes of the study :
This
study concentrated on attaining the following outcomes :
3.1
Comparative
analytical study :
The following are the
most important conclusions attained by the comparative analytical study :
-
Desire
to raise the status of the fellowship examination and promote it in all
countries under comparison, by establishing clear, explicit and appropriate
criteria for defining the elements of the general rules regulating those
examinations.
-
Defining
only one level for the examination in such a way that includes all required
subjects and topics however an exception to this appears in the British
fellowship examinations.
-
It
is important not to hold the examination more than twice a year in order to
maintain its distinguish ability and high status.
-
To
keep the knowledge of the candidate updated as far as possible, by dropping the
subjects he passed\, if not all , after specific
period of time.
-
Measurement
of the candidate capabilities is not restricted to the accountancy and audit
but extended to include other related subjects such as business laws.
-
To
maintain quality and confidentiality along all stages of the exam preparation,
grading and publishing of results.
-
The
education requirements of the candidate should be consistent with the
professional repute and status hoped for the examination.
-
Holding
the exam in the sponsoring country and not in any other country. An exception
to this appears in the British fellowship examination.
Appendix (1) includes full
details of the comparison study and conclusions reached.
3.2
Analysis
of the assessment results of fellowship examinations in GCC Countries :
The following are the
most important results achieved :
-
Reconsideration
of the examination date, so as to be within a period appropriate for all
candidates. Times of work pressure such as the end of fiscal year of companies
should be taken in consideration. Also the last month of the Gregorian year is
inappropriate for holding the exam.
-
It
is necessary to look into dividing the subject of accounting in SOCPA
fellowship into two subjects due the various number of
topics that it includes.
-
Publishing
the results immediately after the examinations, and considering to publish it through more convenients
methods such as the internet.
-
Instead
of presenting the results as a whole for each subject it may broken-down in
order to give more details. For example if the subject consist of two papers
the results will be presented according to each paper, or may be presented
according to multiple choice questions and essay type questions.
-
Incorporating
business law with jurisprudence.
-
Simple
and clear drafting of questions with respect to language and technical aspects.
The questions shall cover the whole subject and should not concentrate on
specific sections and omit the others.
-
Considering
whether previous examination questions can be provided to candidates.
-
Considering
to find another method to measure the capability of
the candidate instead of the multiple choice method. Some comments, on the
other hand , claim for reducing the size and marks of
the essay questions and focusing on objective questions.
-
When
setting the questions, concentrate as far as possible, on local professional
environment. Try to avoid academic posing of questions.
-
There
are comments related to examination time for each subjects, and some comments requested increase or
decrease of questions.
3.3
GCCAAO
general rules for fellowship examinations :
GCCAAO general rules
for fellowship examination are presented in the section preceding the
comparative analytical study. For preparing the appendices provided in GCCAAO
general rules for fellowship examination we depended on the appendices of SOCPA
general rules for fellowship examination and related studies.
- Consultation :
Preparation of GCCAAO
general rules for fellowship examination is an important phase in the process
of organizing GCCAAO fellowship examination and a significant and substantial
matter before implementing the examinations.
Theses rules were
prepared in consistent with the accounting environment in GCC Countries and the
legal and economic changes in those countries, without omitting the professional
aspects adopted in other countries.
This consistency was
maintained along the stages of preparations until the completion of all details
and items of rules. However consideration should be given to incorporate future
effects and changes, and continuous review and updating of these rules will be
necessary in order to reach the best quality and consequently contribute in
enhancing the status of the profession in GCC Countries.