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Accounting Auditing
Quarterly Newsletter Issued by
GCC Accounting
and Auditing Organization
Second Issue (Rajab 1424 H-September 2003)
The Preparation of the Basic Constituents of
the Profession is Completed
Now it is the Financing Turn
To complete the Building
The
Provide members with all matters that make them able to promote their professional, academic and technical capabilities to its maximum level, in order to contribute effectively in using resources of member countries properly and face local and international changes with such capability and confidence that assists them to have influence on or be positively influenced by them and enables them to benefit from those changes.
In this Issue
Muscat Meeting Significant decisions
Approval of Conceptual framework and The strategic Plan Financing
Reaching final text of the Basic Constituents
of The Profession.
Information Media Between Professional The Visit of Board Members to Competition Requirements and Achieving H.H. Al Sheik Dr. Sultan Bin
Noble Objectives. Mohd. Al Qassemi, Memberof
U.A.E. Superme Council and
Governor of Al Shaja
Corresponces : Addressed to the Supervisor Accounting and Auditing Newsletter
Tel. + 96614784850 Fax + 96614761526
www.gccaao.org E-mail info@gccaao.org
Accounting
And Auditing profession to
.
The accounting and auditing profession is considered as one of the most significant professions, because it attributes trust to financial data and reports issued by entities and therefore acts as a safety valve to the national economy. These entities are the actual bases of the economy of any country, consequently it is necessary to establish a clear implement able framework for this profession. Which, in turn, will require regulating of the profession's objectives, concepts and standards to the extent that allow for unifying visions and therefore confidence will be given to the figures indicating the strength of the economy of intended country.
As the governments of GCC Countries are fully aware of the importance of developing and effecting the cooperation approach for which GCC Council is established to achieve integration and interconnection between these countries the council attempts to provide support and utilize available resources for the benefit of Gulf citizens in all vital areas, particularly the economic field, considering both present and the future time.
In this regard and to achieve desired objectives, efforts were made by concerned persons to utilized the most successful mechanisms to unify the laws and regulations and therefore be under a unified legislative roof and bylaws, with respect to economic area in general and professional fields in particularly. Consequently competent authorities in GCC Countries can understand these laws and regulations and work with likewise .
In consequence of this , concern is given, diligent attempts are sincerely made and therefore success is realized and the most significant phases are achieved, however multi efforts are required to be made in order to complete remaining issues for the ship to reach safety land.
Approval of the Conceptual Framework and Concluding to the final texts of Basic Constituents.
Oman capital, Muscat, hosted the sixth meeting of GCCAAO Board, held during the period June 1-4, 2003 chaired be H.E Abdul Aziz Bin Rashed Ibrahim Al RAshed, the Board Chairman. The chairman initiated the opening session by thanking the representatives of Oman Sultanate for the cordial reception and facilities provided for holding the meeting under which significant decisions were taken with respect to completion of the fundamental infrastructure of the profession.
Within the steps taken and stages completed in building the basic constituents in an attempt to organize the accounting and auditing profession in GCC Countries, GCCAAO completed the most important basic steps by approving the conceptual framework, concluding to the fundamental constituents of the profession and other significant matters that are discussed and the Board has taken a number of decisions with respect to it.
By approving the conceptual framework of accounting and auditing profession, GCCAAO achieved a historical move with respect to the basic constituents of profession, because it constitute the base for looking efficiently and effectively into other constituents. The approval is given after elaborated discussions and deliberations. A presentation was made by the consultant indicating the importance of the conceptual framework, the objectives and concepts of financial accounting, an explanation to the methodology adopted and the approach followed by the technical team that reviewed the work of the consultant.
Approval of the Budget and Organization chart
With respect to other achievement, the Board reached the final texts of other basic constituents (accounting standards, auditing standards, codes of ethics and professional conduct, general rules for GCCAAO fellowship examination, general rules for training and CPE, quality control standards and quality review program). The Board decided to distribute it in GCC Countries among accountants, auditors, universities, capital markets, related governmental bodies and users of financial reports including users of financial statements, and they will be requested to provide GCCAAO with their comments. Texts of the conceptual framework and other basic constituents may be seen on the organization's web site (ww. gccaao.org).
With respect to regulations for practicing the profession and joining GCCAAO membership the Board decided to postpone it until receiving the recommendations of the sub committee formed to look into certain matters that regulate GCCAAO relationship with national organizations and associations and foreign companies in GCC Countries in addition to financing and membership.
The Board decided to establish an advanced and most up to dated study and information center, to be used by beneficiaries and members to obtain information and to communicate with the organization. The organization's web site
shall be promoted so as to be a communication means between
GCCAAO, its members and users of its services. The Board looked inot the proposed
budget for the first financial period which begins on
The financial and Administrative Rules :
In order to enable GCCAAO be operated with respect to the financial and administrative affairs, the Board approved one of the most important basic work mechanism of the executive staff, which is the financial and administrative rules and the organization structure specifying the competences and functions of the administrative units, duties of employees and recruitment requirements.
Preparing Government Accounting Standards :
With respect to the development of government accounting and the preparation of relevant accounting standards, the Board considered its significance and assigned a consultant to prepare a simplified study addressing GCCAAO role with respect to this matter.
The Technical Committees :
This matter is postponed by the Board to the next meeting, until the completion of candidates' data base in order to be sufficient for formation of committees in compliance with the required numbers and categories.
Appointing Dr. Osama Al Haizan as executive staff manager :
The Board appointed Dr. Osama Bin Fahad Al Haizan as
executive Manager. Dr. Osama participated in preparing GCCAAO strategic plan
and followed up its implementation from the start, as assigned consultant. Dr.
Osama obtained his Ph.D. degree from
At the end of its sessions the Board sent a cable of gratitude to his majesty, Sultan Qabbos Bin Saeed, expressing GCCAAO and its Board of Directors thanks and appreciation to the Sultanate of Oman for hosting the meetings and for its continuous support to GCCAAO. /A similar cable was sent by the Board to H.E the Minister of Commerce in the Sultanate of Oman.
GCCAAO
relations with the national associations and organizations in GCC Countries and
the practicing of profession by foreign firms (foreign partners)
In pursuit of main objective for establishing GCCAAO to promote the accounting and auditing profession in GCC Countries and to achieve coordination and integration between them, the Board of Directors formed , from among its members, a sub committee to study the best method for organizing relationship with national associations and organizations in GCC Countries, to look for an adequate arrangement for foreign firms (foreign partners) to practice the profession in GCC Countries, and to consider financing methods, membership arrangements and fees. The recommendations shall be raised to Board for adoption and approval and consequently addressing competent authorities in GCC Countries.
The sub-committee held various meetings and decided, with respect to the relationship with the national associations and organizations, to focus on the experiences of similar organizations, identify similarity criteria that might be used in comparison and study of relation between similar organization if any. These may be used in constructing suitable recommendations that may be adopted by the Board for organizing relationship between GCCAAO and national associations and organizations. With respect of practicing the profession in GCC Countries by foreign firms (foreign partners), the sub-committee focused on setting accurate definition for national firm, foreign firm and identifying the factors necessary to describe a practicing firm, as national or foreign.
It focused also on performing a comparison between national and foreign firms to find out their contribution in developing the elements of the profession's constitutions in GCC Countries and to propose suitable arrangements for foreign firms (foreign partners) to practice the profession in GCC Countries. The committee assigned three consultants, Dr. Mohmed Al Sehali, Dr. Wallid Al Shibani and Mr. Abdullah Al Ahmadi, to carry out this assignment.
The study reached various recommendations, which is now under
study by the sub-committee and the finals recommendations will be raised to the
Board for discussion during its meeting that will be held in
With respect to the financing, the committee took the view that GCCAAO should reduce dependence on lump sum or interrupted contributions and must concentrate on continuous subscriptions and fees. Currently, the committee is attempting to raise to
the
Board a recommendation that the report intended to be
raised by the Board to GCC
Ministerial Committee (the
body supervising GCCAAO through
the periodical reports
as stated in Article (4) of
GCCAAO statute) , should
include the issuance of a government decision from each
country that there should be a continuous subscriptions
and fees to be paid by the bodies represented in GCCAAO
by the full members. Dr. Mohd. Al Saheli
The committee also reached a proposal with respect to opening GCCAAO voluntary membership to some categories, particularly licensed public accountants and auditors, persons working in the profession and related fields and students. The proposal will be raised to the Board which is expected to adopt it
The
Strategic Plan
.. and the Financing
GCCAAO has a mission and objectives that it attempts to realized. It is natural for such realization to require financial and morals supports. The moral support is represented in convincing benifiaries of GCCAAO services within GCC Countries of the significance of GCCAAO efforts, programs and services which acts in the favor of the economy of GCC Countries.
If such conviction is attained then material financing will be a spontaneous matter. After the diligent efforts made at the foundation stage GCCAAO expects to obtain such financial support without which it can not realize its mission and objectives or provide the anticipated services.
GCCAAO strategic plan adopted up to July 2003 was
extraordinary. It has been focusing on building the constituents of the
profession depending on the experiences of GCC Countries and therefore working
directly with competent authorities and
Obtaining
available
documents and studies prepared previously by GCC Secretriat General and
professional organizations.
However ,
for the near future and in order to realize its mission, GCCAAO attention shall
be focused on achieving consistency between realizing objectives and obtaining
sufficient financing, in such a way that assists in developing and implementing
the constituents of the profession.
Updating
the Plan for the years 2004-2008
GCC Strategic planning methodology is based on the existence of a five year plan, that is being updated yearly by adding one year when one year elapses. Accordingly
GCCAAO updated its plan from the year 2004. After stressing and stating GCCAAO mission and main objectives as provided in the previous plan, the main features of the updated 2004-2008 plan came as follow :
Unlike the objectives prepared for the previous stage, where GCCAAO focused on preparing the basic constituents of the profession in accordance with special methodology, sub-objectives were developed and updated to go along with the next stage during which GCCAAO is expected to focus on publishing and distributing the constituents achieved, provided that GCC Countries adopt and approve those constituents . It focused also on the completion of remaining basic constituents and development of those reached in accordance with the generally accepted methodology. The sub-objectives reflect GCCAAO concentration, in the next stage, on professional qualification through conducting GCCAAO CPA Exam. and implementing CPE and training programs.
The plan focuses also on completing the quality review programs and guidance and making efforts with GCC Countries in order to adopt and implement these programs and guidances.
The plan focused also on completing the studies and information center so as to satisfy the professionals needs and to be equipped with the most advanced communication devices to receive and send information. GCCAAO web site should be fast and effective in serving and interacting with members and beneficiaries :
The objectives focused also on serving and communicating with members. Unlike the strategy followed in preparing the basic constituents in 2003-2007 plan ,strategies that may go along with the natural status of achieving the objectives are used in the updated plan.
Financing :
Money is the sinew of life.
Without adequate financing the plans and studies will remain as mere ink on
paper. This is the the most significant and most risky aspect with respect to
the future of the organization and represents an obsession to GCCAAO. When we
consider the events and developments that caused the failure of large
companies, we will understand why GCCAAO is too eager to carry out its job effectively
in order to protect GCC Countries from such failures. Although the technical
and financial in government and privatesector, understood the importance of
work provided by GCCAAO for the benefit of the users of its services and the
benefit of economy in general , GCCAAO is still fighting to obtain a sufficient
fund that enables it performs its job perfectly.
It became clear to GCCAAO that
the best way is to perepare its strategic plan based on linking the objectives
to their costs and financing methods, as followed in 2003-2007 plan. As a
result the basic constituents of the profession were achieved againist a very
low cost. No fixed costs was shouldered by GCCAAO for the executive staff and
its manager. The work was carried on voluntary basis by some of the Board
members and the Board coordinator worked against nominal remuneration until the
exective Manager is appointed. The strategic plan and its implementation
programs were prepared depending on the dministrative support provided by GCC
Secretariat General and technical support provided by SOCPA which provided the
experts and consultants with all documents, information and studies concerning
the constituents of the profession in Saudi Arabia in different forms and as
requested by the consultants. Al Rashed firm (Consultants, certified
Accountants and auditors) provided a considerable support in this regard. The
voluntary contribution by the consultants, experts and others has had a
signifcant effect on reducing the cost to a remarkable extent.