ADVOKS GLOBAL · KENYA
Kenyan legislation
The Accountants (Standards of Professional Practice and Ethical Conduct) Regulations
Edition: 2022-12-31 · In force
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Part I – PRELIMINARY
1. Citation
These Regulations may be cited as the Accountants (Standards of Professional Practice and Ethical Conduct) Regulations.2. Interpretation
In these Regulations, unless the context otherwise requires —"Act" means the Accountants Act (Cap. 531);"committees" includes subcommittees, workgroups, work streams, steering committees or branch executive committees;"Council" has the meaning assigned to it under section 2 of the Act;"Continuous Professional Development Program" means the continuous maintenance, development and enhancement of the professional and personal skills, of Certified Public Accountants to enable the execution of professional and technical duties;"Disciplinary Committee" has the meaning assigned to it under section 2 of the Act;"firm" has the meaning assigned to it under section 2 of the Act;"Institute" has the meaning assigned to it under section 2 of the Act;"member" means a person who is registered with the Institute in accordance with sections 4 and 24 of the Act;"member in good standing," means a member of the Institute who has attained the requirements of the Institute’s continuous professional development program, paid the applicable fees and subscriptions and has no pending disciplinary case before the Disciplinary Committee; and"Registration Committee" means the Registration and Quality Assurance Committee established under section 13 of the Act.3. Objects and purpose
The objects and purpose of these Regulations shall be to provide for the means of administering the Act by the Council with respect to —(a)matters affecting the operations of the Institute and practice by members of the Institute; and(b)setting standards of professional practice and ethical conduct.Part II – PROFESSIONAL AWARDS OF THE INSTITUTE
4. Conferment of Fellowship and Honorary Fellowship
(1)The conferment of Fellowship and Honorary Fellowship by the Council pursuant to sections 4 and 6 of the Act shall be as set out in the First Schedule to these Regulations.(2)The Council may revise the First Schedule with the approval of the Cabinet Secretary.Part III – PROFESSIONAL STANDARDS OF PRACTICE BY MEMBERS
5. Professional ethics
(1)Every member shall comply with the standards of practice of the accounting profession and guidelines on ethical behavior set out in the Second Schedule.(2)The Council may revise the Second Schedule with the approval of the Cabinet Secretary.6. Standards of professional accountancy practice including accounting and auditing standards
(1)A member shall comply with the standards of professional accountancy practice, including accounting and auditing standards, as issued by the International Federation of Accountants or any other applicable regulatory or international standards.(2)Pursuant to section 9(3) of the Act, such standards of professional practice shall include —(a)Standards on Continuing Professional Development as set out in the Third Schedule;(b)Accountancy Practice Notes as set out in the Fourth Schedule;(c)Guidelines on Ethical Marketing and Advertising for Professional Accountants as set out in the Fifth Schedule; and(d)any other standards made by the Council from time to time with the approval of the Cabinet Secretary by Notice in the Gazette.(3)The Council may revise the Third Schedule with the approval of the Cabinet Secretary.7. Continuous Professional Development
(1)The Council shall maintain and improve the technical skills and abilities of the members of the Institute, through continuing professional development.(2)Not later than three months after each year, a professional accountant shall furnish the Institute with information on his or her continuing professional development activities for the preceding year.(3)Where a professional accountant fails to comply with this regulation, he or she shall be required to comply in the subsequent calendar year.(4)A professional accountant who is a member of the Institute and has attained the statutory retirement age,–(a)shall if he continues to practise as a professional accountant, meet all the requirements of professional practice; and(b)does not continue to practise as a professional accountant, if he does not meet the requirements set out by the Council in order to remain in the register.(5)A member who fails to comply with this regulation shall be deemed guilty of professional misconduct as prescribed under section 30 (1)(h) of the Act and shall be liable to disciplinary action.8. Guidelines on Practice Review
(1)Pursuant to regulation 6 (2) (b), the following shall guide Practice Review Standards, —(a)the name of the practicing firm shall be approved by the Council prior to submission to the Registrar of Companies for registration;(b)a member in practice shall sign on an assurance engagement or any other engagement in his or her own name on behalf of the firm and provide his or her Institute membership number and practice license number, whether they are a sole proprietorship or a partnership.(2)Notwithstanding sub regulation (1), a member in practice may sign using the name of the firm provided the name of the person signing is indicated in a prominent place below the signature.(3)An individual partner and firm shall be issued with a practicing certificate and licence issued by the Institute to practice accountancy in accordance with the Act and Regulations.(4)A member in practice who is suspended pursuant to a disciplinary process under the Act and Regulations shall hand over the activities of the firm to an interim manager approved by the Institute for the period of suspension in the case of a sole practitioner or to the other partners where there is more than one partner, as may be determined by the Council.(5)A member in practice shall be required to register all the branches of the firm with the Institute.(6)The resident person in charge of the branch shall be required to be a full member of the Institute.(7)The firm shall provide to the Institute, the details of the partner responsible for the quality of the work done at any of its branches.(8)The Council shall from time to time determine, how any other category of the accountancy practice shall sign off their professional work as set out in the Fourth Schedule.9. Ethical marketing and publicity in the accounting profession
A member of the Institute shall observe and apply the Guidelines on Ethical Marketing and Advertising for Professional Accountants as set out in the Fifth Schedule.10. Dispute resolution
(1)Where a dispute arises relating to the rights of a member against any other member, the Council, committees, committee members, but excluding disciplinary proceedings for professional misconduct under section 30 of the Act; the aggrieved party shall refer the dispute in writing to the Secretary to the Council.(2)Where the dispute involves the Secretary to the Council, the aggrieved party shall refer the dispute to the Chairperson.(3)Where the dispute involves the Chairperson, the aggrieved party shall refer the dispute to the Secretary to the Council.(4)The Secretary to the Council or Chairperson shall notify the relevant parties of the dispute within seven days of such referral and invite the parties to make attempts to reach an amicable settlement by negotiation, conciliation or mediation.(5)Where a dispute has been referred to the Council and the dispute cannot be resolved within six months, the Chairperson or the Secretary to the Council shall, within fourteen days submit the dispute to arbitration through the Chartered Institute of Arbitrators, Kenya Chapter or the Nairobi Centre for International Arbitration.(6)Where a dispute has been referred for arbitration and the dispute cannot be resolved within six months, the aggrieved parties may seek legal redress through the Court.Part IV – MEETINGS OF THE INSTITUTE
11. Conduct of meetings of the Institute and Council
(1)Pursuant to section 9 (4) of the Act, the meetings of the Institute shall be conducted as follows —(a)the conduct of meetings of the Institute shall be in accordance with the First Schedule of the Act and as set out in the Sixth Schedule; and(b)the conduct of meetings of the Council shall be in accordance with the Second Schedule of the Act and as set out in the Seventh Schedule.(2)A meeting of the Institute or Council may be held physically, virtually or a combination of both, as may be determined by the Council from time to time.