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Include Left Surveillance Members Obligations Compliance
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Members
Obligation Compliance
This area highlights the obligations of a
member in ensuring compliance with the relevant by-laws of the
Institute:
General Compliance
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1. |
Attendance to Induction Course upon
Admission as Member
All professional
accountants upon admission as members of the
Institute are required to attend an Induction Course
organised by the Institute, within six (6) months of
admission. Please refer to
Section 400 of the
Institute’s By-laws. |
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2. |
Continuing Professional Education Audit
In order to maintain professional competence and
to ensure the exercise of due care at all times, a
professional accountant is required to participate
in CPE learning activities that are relevant to his
or her current and future work and professional
responsibilities. CPE requirements are applicable to
all professional accountants regardless of sector or
size of business in which they operate.
CPE
learning activities are those learning activities
that develop and maintain capabilities to enable
professional accountants to perform competently
within their professional environments.
Participation in CPE learning activities is
therefore vital in maintaining high standards and
public confidence in the profession.
All
professional accountants are required to complete at
least 120 CPE credit hours of relevant CPE learning
for every rolling 3 calendar year period, of which
60 CPE credit hours should be structured and
verifiable, and at least twenty (20) CPE credit
hours of such structured and verifiable CPE learning
should be obtained each calendar year.
A CPE audit will be conducted by the Institute
on a sample of professional accountants who will be
selected at random from the Institute’s records.
During each CPE audit, the randomly selected
professional accountants will be required to produce
evidence of their compliance with the CPE
requirements and as such all professional
accountants are required to maintain records of
their compliance with the CPE requirements.
Professional accountants are required to tender the
appropriate evidence of such compliance if called
upon to do so.
Please refer to
Section 410 of
the Institute’s By-laws. |
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3. |
Description and Designatory Letters
Every professional accountant in describing
himself or herself as an accountant in Malaysia
shall use the designations “Chartered Accountant”,
"Licensed Accountant" or “Associate Member” with the
designatory letters “C.A.(M)”, “L.A.(M)” or
“A.M.(M)” respectively.
Please refer to
Section
420 of the Institute’s By-laws. |
Practice related Compliance
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1. |
Description and Designatory Letters
A member in public practice shall describe his
or her firm as a firm of “Chartered Accountants” or
as a firm of "Licensed Accountants" as appropriate.
Every
member in public practice who signs any reports or
other documents in a professional capacity either as
an individual or for and on behalf of the firm shall
only use the designations “Chartered Accountant” or
“Chartered Accountants” or "Licensed Accountant" or
"Licensed Accountants" to describe that member in
public practice or the firm in the report or
documents.
Please refer to
Section
420 of
the Institute's By-laws. |
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2. |
Method of Practice
Every
member in public practice is required to –
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register his firm with the Institute by informing
the Institute in writing of the name and address of
his or her firm and the addresses of any branches
and any other relevant particulars requested by the
Institute; |
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inform the Institute of any changes in respect of
the particulars referred to in sub-paragraph (a)
within one (1) month thereafter; |
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if the firm is associated with any other firm of
accountants, register such association whether local
or overseas with the Institute and this must be
supported by evidence; |
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upon registration of his firm with the Institute,
lodge an annual return with the Institute by 31
January of each calendar year despite the fact that
there may be no changes in particulars to the firm. |
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to state his/her firm's number immediately after or
below the firm's name, in official letters,
accounts, invoices, official notices, publications,
bills of exchange, cheque, receipts, requisition
forms and other like documents issued by the firm. |
A member in public practice should not allow the member
firm including any branches of the member firm to be
under the management and control of a person who is
not a member of the Institute. It is the duty and
responsibility of a member in public practice to
ensure that any branch of his or her firm is under
the management and control of a member of the
Institute.
Please refer to
Section 500 of the
Institute’s By-laws. |
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3. |
Professional Indemnity Insurance
Every member in public practice is required to
ensure that his or her firm carries and maintains a
policy of professional indemnity insurance.
Every
member in public practice must maintain a policy of
professional indemnity insurance with a minimum
coverage of Ringgit Malaysia One Hundred Thousand
(RM100,000.00), upon commencement of public
practice.
Proof of such coverage is required
for the purpose of the annual renewal of the
member’s practising certificate pursuant to Rule 9
of the Malaysian Institute of Accountants
(Membership and Council) Rules 2001.
Please
refer to
Section 510 of the Institute's By-laws. |
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4. |
Continuity of Practice in the event of death
or incapacity of a Sole Practitioner
In order to protect the own interests of a sole
practitioner as well as the interests of the
clients, it is important for the sole practitioner
to enter into an arrangement with another member or
member firm as it will enable the practice to be
carried on with a minimum of dislocation in the
event of incapacity or death.
Such arrangements should be made
within two (2) years from the date the sole
proprietorship was set up and should provide, so far
as possible, for the practice to be continued as a
going concern until such time as the sole
practitioner recovers or the representatives of his
or her estate decide to dispose of the practice.
Please refer to
Section 520 of the Institute’s
By-laws. |
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5. |
Quality Assurance and Practice Review
Every member in public practice is required to
ensure that his or her firm complies with all
relevant professional standards for the purposes of
assurance as to the quality of the public practice
services provided by the firm whether through that
member, his or her partner(s) and/or employees. In
doing so, every member in public practice has to
ensure that the firm adopts and applies policies and
procedures designed to maintain adherence to
professional standards.
The professional standards
required to be maintained, observed and applied by a
member in public practice to the extent applicable
to the type of public practice services provided by
that member or the firm, include:
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(a) |
all standards and statements of professional conduct
and ethics in the form of the Institute's By-Laws in
issue from time to time; |
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(b) |
all approved standards whether issued by the Council
or otherwise, and all guidelines, statements and/or
circulars of best practices issued or prescribed by
the Council and/or the Institute from time to time. |
Practice Review
The objectives of the
Practice Review programme are -
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(a) |
to ensure that all members in public practice
maintain, observe and apply the relevant
professional standards, so as to assure that those
members in public practice, their firms and their
employees are competent, ethical, and exercise due
professional care in their professional work; |
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(b) |
to assist members in public practice to improve
their professional standards where necessary; and |
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(c) |
to identify areas where members in public practice
may require assistance in maintaining and observing
professional standards. |
All members in public practice and/or member firms are
required to submit to and undergo the Institute’s
Practice Review programme as established.
The
Practice Review programme will be conducted over a
cycle of not more than five (5) years or such other
period as determined by the Council in respect of
member firms which are selected at random from the
Institute’s records.
Practice Review
Fees
Each member in public practice and/or the
member’s firm is required to settle in full, the
fees if any, in respect of the practice review
conducted pertaining to that firm including any
interim fees, as may be charged and determined by
the Practice Review Committee for that firm. Such
fees are due and payable within 30 days of the date
of the invoice raised for this purpose.
The
fees, if any, that are charged for the practice
review are based on hourly rates as approved by the
Council on the recommendation of the Practice Review
Committee. Such fees are in respect of the time
involved in the planning, execution and reporting of
the practice review.
Please refer to
Section
550 of the Institute’s by-laws. |
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