GCC Accounting &
Auditing Organization
General
Rules for
Continuous
Professional Education (CPE)
(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. One of these constituents is
the establishment and preparation of the general rules for continuing
professional education (CPE). The organization assigned Dr. Ayman
Fathi al Gabari to prepare
those rules.
On
its meeting held during the period
The rules may be found on the organization
website (www.gccaao.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 on 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 continuing professional education.
Best Regards
The
executive manager
GCC Accounting and Auditing Organization
General Rules for Continuous Professional Education
(CPE)
(This form may be
filled at web site www.gccaao.org.)
Page No. (
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Comment / proposed amendment |
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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
General rules for continious
professional education (CPE)
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
|
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
|
|
2 |
Ahmed Jasem Al Abduly |
U.A.E |
|
3 |
Buty Ahmed Khadim |
U.A.E |
|
4 |
Ali Ahmed Radhi |
|
|
5 |
Abbas A. Al-Mohsin Radhi |
|
|
6 |
Dr. Jawahir Shahin Al madhaki |
|
|
7 |
H.E. Abdul Aziz Al Rahed Ibrahim (chairman) |
|
|
8 |
Ali Deghileep Al-Otaibi (replaced later by
Ahmed Mohammed Al Abdul Qader) |
|
|
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) |
|
|
17 |
Hamad Abdullah Al Ganim |
|
|
18 |
Abdul Latif Ahmed Al Ahmed |
|
|
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
General Rules for Continuous Professional Educations
(CPE)
Introduction of General Rules for Continuous Professional
Educations (CPE) :
Considering
the quick changes in the environment of the accounting and auditing profession
the various different effects imposed by the economical globalization,
complexity of operations governing business activities, all together required
prompt updating to the methods followed in the continuous development of
practicing of the audit and accounting profession. Therefore application of continuous professional
education (CPE) program became a pressing need to achieve professional quality.
First
: Main purpose of CPE :
1.
Provide reasonable assurance that
members of the profession in member countries can perform the services they
undertake with professional competence.
2.
Assist members of the profession to
fulfill their responsibilities in maintaining adequate knowledge and skills to meet the continuous
developments in the accounting and auditing profession.
Second
: Basic requirements of CPE :
1.
Member of professional organizations and
societies :
1.1 Members licensed to practice the
profession of accounting and auditing :
These members shall complete
(360) CPE points during three years provided not be less than (90) CPE points
for any year. Compliance can be achieved thought training programs and other
educational activities that are subject to the quality rules and standards
adopted by GCCAAO, in order to satisfy the CPE requirements.
1.2 Members not licensed to practice the
profession of auditing and accounting :
These members shall complete
(370) CPE points during three years provided not be less than (70) CPE points
for any year. Compliance can be achieved thought training programs and other
educational activities that are subject to the quality rules and standards
adopted by GCCAAO, in order to satisfy the CPE requirements.
1.3 New members of professional
organizations and societies :
1.3.1
New
members means those individuals who joined the professional organizations and
societies in member countries at a date subsequent to the approval date of the
CPE policies.
1.3.2
The
period for completion of CPE requirements starts by the end of the first year
of their association where they will be subject to the previous CPE policies.
1.4 Member want to change their status :
1.4.1
Means
those members who want to change their status from practitioners to non- practitioners
or conversely.
1.4.2
Member
of CPE points shall be applied to any new status effective from the date of
change of member status.
1.4.3
Members
who were inactive for not more than two years and want to restart their
activities, shall complete (90) CPE points before obtaining from the competent
authority the approval for changing their status, provided that the education
in the field of accounting and auditing is formal. Members who were inactive
for more than two years shall complete (150) CPE hours.
1.5 Reinstatement members :
1.5.1
Means
those individuals who lost their membership and want rejoin or come out of
retirement.
1.5.2
Shall
be subject the rules applied on new members and shall complete the number of
CPE point defined in (1.4.3) above concerning the members what to change their
status.
2.
Non-members of professional
organizations and societies :
2.1 Means any category subject to the CPE
requirements other than members of the professional organizations and
societies.
2.2 Non-members shall complete (180) CPE
points during three years provided not to be less than (50) CPE points for any
year. Compliance can be achieved thought training programs and other
educational activities that are subject to the quality rules and standards
adopted by GCCAAO, in order to satisfy the CPE requirements.
Third
: Grace Period :
1.
Members subject CPE requirements shall be
granted a grace period equivalent to three months following the end of the
period required for CPE points.
2.
If the number of points obtained during
the grace period exceeded the requirements of the minimum level to complete the
CPE hours, the difference in the number of points shall be treated as a balance
of points for completing subsequent periods.
Fourth
: Reporting to professional organizations and societies :
1.
Individuals subject to CPE requirements
(professional members) shall comply with the following :
1.1
Inform
the professional organizations an societies in their member countries yearly of
their completion of CPE requirements within a month from the end of the
Gregorian year, in accordance with the attached forms (forms 1,)
1.2
Keep
a record, for not less than five years form completion of CPE , (from no.3)
showing the following :
1.2.1
CPE
hours obtained during the year translated into CPE points in accordance with
basic requirements of CPE.
1.2.2
Details
of education activities obtained by the professional member (title, location,
date, main topics, sponsor).
1.2.3
The
record is for the purpose of submitting it to the organizations and societies
in the event that the member is selected to verify his compliance with CPE
requirements, in accordance with the periodic review carried by the
professional organizations and societies in member countries.
1.3
Evidences
supporting information provided in the record shall be for example, as fallow :
1.3.1
Conferences,
symposiums and CPE (the document issued by the sponsor).
1.3.2
Training
works letter of assignment from the beneficiary / implement-ing
party to prepare and implement the training works)
1.3.3
Research
work (document of approval of publication).
2.
Parties implementing CPE programs and
subjects shall abide to keep the following :
2.1
Record
of participation in CPE , for not less than five years from completion of the
CPE programs and subjects, indicating names of participants, date of
participation, number of education hours, actual hours of participation of
professional member, attending persons and their professional and academic
qualifications and location.
2.2
Copies
of education material.
2.3
Final
evaluation of the CPE program or subject, in accordance with the adopted
method.
2.4
The
record is for being submitted to the professional organizations and societies
in the event that its is requested to verify compliance of member with CPE
requirements.
Fifth
: Scope of CPE programs and subjects :
1.
Generally , any subjects or programs that
assist in improving the technical knowledge of the member , in the field of his
specialization, is acceptable to GCCAAO since it relates to the field of
accounting , auditing, professional consultations, specialized professional
areas, Zakat and tax, jurisprudence and business law.
2.
Programs that contribute in maintaining
and improving other technical capabilities is acceptable for CPE, such as
computer programs, human behavior, professional ethics, statistics and
management, and quality standards.
3.
CPE subjects and programs are divided
into the following :
3.1
Formal
CPE, which is based on participation and interaction between the learner and
other individuals. Usually it includes
an evaluation process conducted by various parties. Examples of that CPE are :
3.1.1
Specialized
professional programs held by GCCAAO and other specialized parties, provided to
be approved by GCCAAO or universities or those professional organization, in
GCC countries, that possess high professional quality standards.
3.1.2
Attending
or participating in conferences, symposiums and forum relating to the
profession of accounting and auditing.
3.1.3
Participation
in technical committees relating to the profession of accounting and auditing.
3.1.4
Prepare
books, researches, articles and work papers relating to the profession of
accounting and auditing.
3.1.5
Prepare
and conduct training programs relating to CPE.
3.1.6
Other
subjects.
3.2
Information
CPE, which is not based on interaction between the learner and other
individuals, but depends on self- study. Examples are :
3.2.1
Correspondence
learning .
3.2.2
Videotapes
relating to the profession.
3.2.3
Exchanging
professional articles and subjects between professional members.
3.2.4
3.2.5
Participating
in computerized leaving programs.
3.2.6
Reading
professional books and periodicals.
3.2.7
Other
subjects.
This type of learning should
relating to the profession of accounting and auditing.
Sixth
: Temporary non-compliance with CPE :
1.
Professional
members subject to CPE requirements may temporary non- comply with CPE requirements
for a specified period, provided to be requested from the competent authority
of the member's professional organization or society, two month before waiver,
to submit verifying reasons and to receive acceptance of the competent authority.
2.
Subject to its judgment, the professional
organization or society may acceptor reject the waiver when considering its
nature, reasons and duration. Reasons that may be acceptable, for example, are
:
-
Foreign
residency.
-
Heath
status.
-
Military
service.
-
Other
similar reasons.
Seventh
: Standards for CPE measurement:
1.
CPE hours stated in (second) shall be
translated into points.
2.
Three points will registered for each
hour of formal CPE, and one point for each hour of informal CPE. One hour of
CPE is equivalent to 50 minutes. If the formal CPE hour is more than 25 minutes
and less than 50 minutes then it will be translated into one CPE point.
3.
Informal CPE points shall not be more
then 15% of the total CPE points during three years, provided not to be more
than (15) points yearly.
4.
Points credited for preparing and
conducting training programs relating to CPE, shall not be more than 25% of the
total formal CPE points during three years, provided not to be more than (25)
points yearly.
5.
Writers of published books,
researches, articles and work papers
should receive CPE points for the time they spent in these activities, provided
such works be formally received and published by independent party. Credit for
those works shall not exceed 25% of the total CPE points during three years,
provided not to be more than (25) points yearly.
6.
In all above cases, CPE points submitted
by professional members must be approved by the competent authority of the
professional organization or society in member countries, in accordance with
the approved regulations and after being studied and analyzing the forms No.
(1,2) in the high of relent quality and measurement standards. The member shall
be informed of the points approved for formal CPE and for informal CPE, and of
those not approved and the reasons for disapproval (from No. 4)
7.
After two month from the end of the
Gregorian year, the professional organization or society shall determine, in
accordance with adopted regulations, those professional member who did not
submit forms No. (1,2), in order to present them to the competent authority so
as to take a decision towards them in accordance the laws and regulations
adopted in each country.
8.
After three months from the end of the
Gregorian year, the professional organization or society shall inform GCCAAO of
the results of the implementation of the CPE plan approved by GCCAAO, and of
implemented parts of any CPE plans prepared by the professional organization or
society. With respect to this area focusing may be on the following data :
·
Number
of professional members participating in the plan from members of professional
organizations or societies (partitions
and non- practitioners) and non-members of the professional organizations and
societies.
·
Number
of hours and points credited to professional members.
·
The
most critical obstacles facing the implementation of the plan, and suggestions
to overcome those obstacles.
·
The
most significant observations of participants with respect to the components of
the plan.
·
Suggestions
for future plans (new subjects, standard of implemented subjects, number of
training hours instructors, training teach ices, requirements for attending the programs).
·
Programs
implemented through the plans of the professional organization or society,
number of participants and comments of participant and instructors on those
programs.
·
Areas
of collaboration with professional organizations and societies in member
countries (participation in plans, exchange of instructors, exchange of
researches, participation in conferences, symposiums, and work shops).
-
Other similar reasons.
Eight
: Non- compliance with CPE requirements :
1.
Non – compliance with CPE requirements
shall subject the member to penalties in accordance with the legal and
regulatory rules adopted in member countries which may reach cancellation of
membership.
2.
Competent authority in member countries
shall undertake, in accordance with the adopted regulations, investigation with
respect to violations of CPA's regulations by members that do not adhere to CPE
requirements.
3.
When the membership is cancelled, for
any professional member, due to non-compliance with CPE requirements and if
such individual applied for reinstatement, he shall be treated as "new
members".
-
Other
similar reasons.
Ninth :
The provisions of these rules shall be effective from date approved by the
board of directors :
Appendix No. (1)
Implementation Procedures of CPE Programs
Introduction:
In
the light of GCCAAO mission to improve the performance of professional members
in member countries through, creating adequate opportunities for them to
improve their capabilities, encouraging them to contribute effectively in the
profession, finding out practical, fair and motivating method to convey
knowledge end experience to them form knowledgeable experienced professional
members, and finding out methods of interaction between the organization and
professional members, in such a way that allow the organization respond to
their requirements and assist them to develop through training and CPE.
Within
the frame of CPE general rules, the implementation mechanism may be defined as
follow :
First
: The education and training committee shall prepare annals plan for CPE
programs.
The
plan shows programs details, the activities that will be performed, means of
implementation, basic requirements, and indicating which of the training activities, is structured and
which is unstructured.
The
plan will be structured based on the actual needs of the professional
organization or societies in member countries.
Second : The plan will be announced
through the internet and at the professional organization and societies and
through other appropriate media.
Third : After being approved by the board, the plan
will be implemented at the beginning of the Gregorian year, in coordination with
the professional organizations and societies.
Forth : The plan shall chieve
the following main objectives :
1.
Contributing in improving the
performance of professional members, and finding out suitable resolutions for
the difficulties that encounter their performance.
2.
Encourage professional members to keep
pace with the developments achieved in the monitoring concept through informing
them of latest development, helping them to be creative and loading them
towards interacting with the experiences of advanced countries.
3.
Enhance collaboration between the
professional organization and societies in member countries, through exchange
of knowledge and experiences. In this regard, the following may be emphasized :
3.1
Exchange distinguished training experts
when implementing CPE program in member countries.
3.2
Coordination between member countries,
national, regional and international organizations such as universities and
institutes that possess distinguished capabilities in CPE.
Fifth : The main items of the annual plan with
respect to structured education include the following :
1.
Training program, focusing on the
following :
1.1
Programs objectives.
1.2
Programs levels.
1.3
Locations and timing.
1.4
Participants basic requirements,
particularly with respect to academic and professional qualifications.
1.5
Cost of program.
1.6
Number of hours and points credited for
the program.
1.7
The sponsor.
(Appendix No. (2) includes some guidance topics).
2.
Conferences
and symposiums, focusing on the following :
2.1
Objectives
of conferences and symposiums and related topics.
2.2 Locations, timing, participation
conditions, and fees.
2.3
Credited
points in the light of participation nature.
3.
Workshops,
focusing on the following :
3.1
Objectives
and contents.
3.2
Timing
and participation conditions.
3.3
Locations
and costs.
3.4
Credited
points.
Sixth : With respect to unstructured education, the
plan may indicate the following :
1.
Professional products such as books,
researches, periodicals and newspapers.
2.
Topics on the internet.
3.
Video records and digital video devices.
4.
Correspondence learning.
5.
Computerized educational programs.
6.
Discussing with professional members, the
developments that raised with respect to the profession.
Seventh : The committee, in coordination with the professional
organizations and societies in member bodies and through information gathering technics, shall present, analyze evaluate the results of
implemented CPE and training plan, underlining the most significant
developments and obstacles faced and proposing
the best methods to handle these matters.
Eight : The committee shall prepare standards, to be approved
by the board, for the procedures of choosing participants in accordance with
the nature of programs, their professional levels, instructors, training
material, and sponsors such as universities, specialized institutes, CPA firms
or others.
In
this regard, the following may be emphasized :
1.
Participants must be willing to attend
and interact with the CPE and training programs.
2.
Participants willing ness to develop and
improve monitoring works.
3.
Instructors are able to work
individually or as a team and willing to convey knowledge to others. Also they
must be able to present their ideas in a regular and logical way to insure
their effect on others.
4.
CPE and training programs sponsor shall
comply with provisions stated by the committee, particularly with respect to
registration, level, and objectives of the program, number of training hours,
content of training material, qualified instructors, evaluation process, and
using appropriate training methods.
5.
Ensuring of presented programs through
reviewing training material by professionals and academics other than those who
developed them. These reviews must occur
before the first presentation of these material and again after each
significant revision of the CPE programs, to assure that the programs are
technically accurate and current and address the stated learning objectives.
5.1
The training material consist, at
minimum, of the following :
5.1.1
Definition
of the training subjects, its objectives and description to its main elements.
5.1.2
Related
professional standards.
5.1.3
Detailed
description, in easy and clear language, to the elements of training subject
including adequate practical applications, to enable participants understand
the theoretical concept and again the necessary application skills.
5.2
The instructor's guide consist, at
minimum, of the following :
5.2.1
Brief
description of the subject and its significance.
5.2.2
Description
of the subject's elements and main points.
5.2.3
Presentation
approach and learning tools to be used.
5.2.4
Limited
time practical case and proposed solutions.
Ninth: The committee sets up
competent instructors from member countries, to contribute in implementing the
annual plans, considering their critical role in conveying practical
experiences and presenting professional work problems. In this regard emphasis
may be on standards defined by the international board for the standards of
training, performance and learning, used as basis for the examinations of
qualified technical instructor.
Tenth: Continuous exchange of
information between the professional organization and societies and the CPE and
training committee, due to its importance in continuous updating of the plan in
the light of the developments and outcomes of the monitoring concept and
professional organizations and societies. The most significant data that maybe emphasized in this regard are the following :
1.
Professional organizations and societies
requirement of expert, in the light current and future performance.
2.
Qualification level of the member
of the member of the professional
organizations and societies.
3.
Technical problems facing the
professional organizations and societies.
4.
Components outcomes of the training
systems of the accounting organizations and societies.
Appendix
No. (2)
Guidance
for some subjects that may be included in the plan
1.
In the field of business
understanding :
·
Understanding
the organizations and the environment in which the member works.
·
Interaction of individuals in organization and dynamic of
groups works.
·
Methods
of creation and changing in the bodies subject to auditing.
·
International
commerce and methods of work contracting and effect of globalization.
·
Role
of government and ethics of business.
·
Business
management strategies and electronic commerce.
·
Application
statistical and quantitative methods to solve business problems.
·
Quality
management systems.
·
Introduction
on software industry.
·
Introduction
on non-for-profit organizations.
·
Business
legal environment including laws related companies and financial and control regulations
and financial instruments.
2.
In field of accounting, tax and audit
requirements :
·
History
of the accounting profession and the accounting concept.
·
Content,
structure, meaning and usage of reports.
·
International
and national standards of accounting and auditing.
·
Internal
control systems.
·
Audit
sampling.
·
Financial
risks.
·
Introduction
on accounting and auditing of financial institutions.
·
Accounting
for financial deviates and hedging.
·
Control
concepts, methods and operations that give accuracy and integration of
financial data.
·
Zakat
and tax and its effect on financial and management decisions.
·
Nature
of audit and other services that assure correctness.
·
Ethical
and professional responsibilities.
·
Government
auditing.
3.
In the field of information
technology requirements.
·
Understanding
the principles of information technology.
·
Controlling
information technology and adequacy of the same.
·
Effectiveness
of information technology users.
·
Efficiency
of information technology managers, designers evaluators.
·
Building
information technology.
·
Managing
information technology.
·
Controlling
the status and ownership of systems.
·
Assessing
risks and activities.
·
Monitoring
compliance to control requirements.
·
Assessing
control environment.
·
Choosing
adequate control standards.
·
Assessing
system operation and control thereof.
·
Assessing
the status and ownership systems and control thereof.
4.
In the field of globalization and
analysis of financial markets ad investment
instruments :
·
Effect
of globalization of evaluation standards of investment performance on
management of foreign investments.
·
Financial
market and effect of globalization thereon.
·
Effect
of financial speculations and its effect on national economy.
·
Assessment
of investment opportunities.
·
Return
and risk of options.
5.
In the field of fighting fraud and
corruption :
·
Role
of controls in detecting fraud in financial statements.
·
Procedures
required for fighting corruption in public sector.
·
Procedures
for fighting money laundry.
6. In the field
of financial analysis
·
In
the field of financial analysis :
-
Initial
/ advanced financial analysis, as a controlling tool for investment
instruments.
-
Using
advanced financial analysis technics in evaluating
the performance of public establishments.
7. In the field
of environment accounting and continuous development :
·
Issues
of environment and continuous development.
·
Principles
of environmental accounting.
·
Environmental
audits.
·
Internal
auditor role in implementing environmental audits.
·
Review
of international agreements about the environment.
In this field if may be emphasized on the following :
1.
I order to achieve the maximum benefit
from those program through practical experiences it is preferred that before
commencing the implementing of those program, the participants should be on
their way to apply controlling tasks related to environment.
2.
The participates should be acquainted
with the environments issues that are subject of common concern within GCC
countries .
3.
The assistance of some of the specialist
in environmental aspects, within GCC countries, may seaked
for the implementation of these programs, in order to reflect the importance of
environment protection and its effect on development.
4.
The framework of environment auditing
programs shall be based on latest pronoun cements in this area.
8. In the field
of auditing of contracts :
·
Auditing
of international contracts.
·
Auditing
of consultation services contracts.
·
Auditing
of projects contracts.
·
Auditing
adjustment agreements related to contracts fulfillment.
In this field the following may be emphasized :
1.
Participant shall be acquainted of the
laws and regulations that govern contracting.
2.
Beside the aspects related to auditing
procedures, the conceptual framework shall include an outline of the legal
background of the nature of those contracts.
3.
The programs include acquaintance with
some contracts and knowing what actions were practically taken in regard.
9. In the field
of performance assessment :
·
Assessing
the performance of government projects.
·
Assessing
the performance of public investment projects.
·