IFAC Education Committee Meeting Agenda Item 21.2

March 2005 – New York, United States

23 February 2005

Country Update

The Institute of Chartered Accountants of Pakistan

Training Regulations and Guidelines

1.Training Regulations and Guidelines have been revised in accordance with IES 5 requirements, IFAC Discussion paper on Practical Experience, and the best practices in vogue at major accounting institutes. These regulations will be effective upon approval amendments to CA Bye-laws, 1983.

The salient features include:

  • introduction of Training Organisation concept;
  • structured training in a way that there is a blend of work experience in core and non-core specified competencies and theoretical education;
  • planned competence based training in key technical areas and other approved training such as Personal and Professional Development in managerial & communication skills, and Ethics, Values and Attitudes alongwith duration of such training in each area;
  • employmentof named member(s) Responsible for Training; Counseling person(s) and supervisor(s) at each Training Organisation / office;
  • the pre-requisites for authorization and appraisal / monitoring process of Training Organisation;
  • gaining of experience in industrial / commercial and other suitable organizations, secondments and students exchange programmes for a limited duration;
  • formats for students’ training records to be maintained; and
  • transitional arrangements for SMPs have been provided.

International Education Standards

2.The Institute is compliant with IESs 1 to 6 with the following exceptions:

IES 5:Would be compliant when revised Training Regulations and Guidelines become effective upon approval of amendments to relevant bye-laws of ICAP by the government. This is expected by June this year.

IES 4:Ethics, Values and attitudes are embedded in ICAP syllabi and have also been included in the Training Regulations and Guidelines for imparting training in these areas. Once IFAC guidelines on IES4 are received it would be considered whether to introduce these as a subject in the curriculum or through a course of interactive workshops at which the students would be assessed before they can become members of ICAP.

Disclosure of Pass Marks at ICAP Examinations

3.In the past the Institute had followed the policy on non-disclosure of pass marks. However, in October 2004, it was decided to disclose pass percentage in each paper in the interest of transparency. A student is required to obtain fifty percent marks in each paper at all ICAP examinations.

Continuing Professional Development

4.A member survey was conducted through a questionnaire to receive views and suggestions for improvements of CPD activities, as well as, their mode of conduct. In this context a comparative analysis of the Institute’s CPD framework and the framework of other major institutes is also underway and provisioning of CPD programmes through video conferencing is under study.

An E-portal on ICAP’s website for member’s login and online technical discussion forum will be soon available.

Since the last country update, the Institute’sCommittees responsible for organizing CPD programs, which are also open to the public, organised seminars and workshops on: Business Success through Human Resource Management; Corporate Fraud – Responsibilitiesof the Board; Management and Auditors to Prevent and Deter Financial Crime; Leadership Qualities & Seeing Business Opportunities beyond the Financial numbers; Treasury Management; Islamic Banking – AComplete Business Solution; Mutual Funds & Investments in Capital Market; Islamic Business Values; Overview of the Changes in International Accounting Standards; Paradigm Shift in Taxation System; Money Market Operations; Accounting Profession-New Horizons; Earnings Per Share IAS-33; Impairment of Assets IAS-36; Virtual World Management Challenges; Collective Zakat System & Single Page Return; Concept of Islamic Banking; Investment Climate in Pakistan.

Some members of the Institute attended SAFA Conference on Corporate Governance in Colombo on 5 December 2004 and a paper was read by an ICAP Council member on “Corporate Governance through Market Demand: an approach beyond compliance”.

The Institute organized a two day joint conference of ICAP and ICAI on 14 / 15 January 2005 at Lahore on the theme – “Accounting Profession – New Horizons”. About thirty members of the Indian Institute and over three hundred members of ICAP attended the Conference at which eight presentations were made on topics of professional interest on: Education; Training; CPD; Regulatory Environment; Business Development including Cross Border Opportunities in Post WTO Scenario; and Marketing of the Profession – theWay Forward.

Members from the institute also attended a regional standard setters meeting with Chairman ISB on 23 February 2005 where papers were presented by members of the Institute on: “SAFA Countries Accounting Standards – Status vis-à-vis IAS/IFRS” and “Challenges faced and steps taken by SAFA Countries for speedy adoption of IAS/IFRs”

Student Exchange programme – ICAP / ICASL

5.Six students of the Institute of Chartered Accountants of Sri Lanka visited on a two month Student Exchange Programme from 20 June 2004 to 19 August 2004 to gain auditing experience in Oil and Gas industry. The visit was hosted by ICAP.

Seven students of ICAP visited India in December 2004 / January 2005 for a ten day study tour upon invitation of ICAI.

Nine Students of ICAI visited Pakistan on a seven day study tour in January 2005. The tour was hosted by ICAP.

Abdul Rahim Suriya

Member IFAC EDCOM

Prepared by: Claire Egan (February 2005) Page 1 of 4