MIA Comment Letter To IAASB ED Reporting On Audited Financial Statements

The MIA has recently submitted its comments on the International Auditing and Assurance Standards Board (IAASB) Exposure Draft (ED) Reporting on Audited Financial Statements: Proposed New and Revised International Standards on Auditing (ISAs).

The ED includes a new proposed ISA titled Communicating Key Audit Matters in the Independent Auditor’s Report. This proposed ISA directs auditors of financial statements of listed entities to communicate in their report those matters that, in the auditor’s professional judgment, were of most significance in the audit of the financial statements.
Among other enhancements, the IAASB is also proposing requirements for auditors to include specific statements about going concern in their reports, to make an explicit statement about the auditor’s independence from the audited entity and, for listed entities, to disclose the name of the engagement partner in the auditor’s report.

The MIA comment letter is downloadable by Members from the ‘MIA Comment Letters’ e-library on the Institute’s website which can be accessed after log in.

Members’ Christmas Drinks

On Thursday 5 December, the MIA organised its first Christmas drinks for Members. The social event was held at the Institute’s offices in Swatar and provided the 100 Members that attended, the opportunity to meet and network with fellow Members in a casual Christmassy atmosphere. A raffle sponsored by VIP was held that raised €275. These proceeds were given as a donation to L-Istrina.

During the event the Members of CPAs R US, the winning team of the Accountancy Bowling League, were presented with trophies by the MIA Secretary General Mr. Noel Zerafa.

CPE Survey

In November the MIA conducted a CPE survey amongst its Members. The survey was intended to capture the views of Members on their preferences for CPE events such as preferred days and times, CPE formats, topics etc. Over 300 Members participated in the survey such that the information that was collected provided valuable input in formulating the CPE programme for the period January – June 2014.

MIA Publishes CPE Programme For January To June 2014

The MIA has recently published its CPE Programme for the period January – June 2014. More details on each respective CPE event is available on MIA web however should you require any further information, do not hesitate to contact the MIA Secretariat on 2258 1900.

MIA-ICAEW Joint Event

MIA-ICAEW Joint EventOn 12 November 2013, the MIA and the Institute of Chartered Accountants in England and Wales (ICAEW) hosted a joint event, to mark the first anniversary of their collaboration agreement. This event discussed the Opportunities in Assurance – the International experience and their potential in Malta.

The Head of the ICAEW Audit and Assurance Faculty, Mr Henry Irving explained the standards and shared the experience and internationally applicable themes identified by ICAEW’s re:Assurance initiative. Mr Raphael Aloisio, Leader Financial Advisory at Deloitte and Mr Paul Giglio, Partner at Mazars Malta shared their experience of how assurance services have been offered and their further potential in Malta. Dr Martin Manuzi, ICAEW Regional Director, Europe, gave an update on the important EU context.

The four presentation sessions were followed by a panel discussion and question and answer session that enabled the panellists to exchange their views and engage with the audience on the subject matter.

Helpful Tips On CPE Reporting & Monitoring

In the last months the Institute was engaged in its annual CPE monitoring exercise as stipulated in the MIA CPE Regulations and acting also on behalf of the Accountancy Board as the approved CPE Body under Directive 1.

The Institute carried out a detailed review on a randomly selected sample of submitted CPE returns which were found to be in compliance with the annual CPE obligations for 2012. Selected members and/or warrant holders were requested to furnish the Institute with proofs of attendance to substantiate their CPE claim for 2012.

This section includes tips for members on CPE reporting and monitoring and explains what can be claimed as structured CPE and what documents to provide if an individual is requested to do so.
For an activity to be claimed as structured CPE, it should meet the following three criteria of Relevance, Measurability and Verifiability. If any of these criteria is missing, the hours will be categorised as unstructured CPE.

Any undertaken CPE activity must:

  • Be relevant to the individual’s circumstances and to the exercise of the profession and aims to increase the individual’s professional competence.
  • Have a defined number of hours (CPE hours) attributed to it.
  • Be verified by a competent source. It is advisable that records of activities undertaken are retained for a period of six years.

MIA organised and MIA accredited events are a guarantee that the courses can be claimed as structured CPE. Besides these one can also claim other events which amongst others include events organised by third party service providers, in-house courses within firms, training held abroad etc.

Care must be taken to claim only events which are relevant to the profession. One will be asked to explain the relevance of the CPE activity claimed if such is unclear. Always request a proof of attendance from the service provider, preferably a certificate of attendance, but should this prove to be problematic request an email or letter confirmation. Course invitations, registration e-mails, invoices or receipts are not considered as reliable proofs of attendance. Any verification should include the activity name, date and duration. The latter should include only the lecturing time and exclude the registration time and any breaks. If the verification document does not include the duration, retain the event’s brochure or agenda as you may need to present it in due course.

There are other activities besides face-to-face events that can be claimed as structured CPE under qualifying activities. Web-based learning is nowadays on the increase. Please be reminded that online activities can qualify as structured CPE if they include an assessment module. The verifiable CPE units that can be claimed are normally indicated by the service provider. It is advisable to retain the document confirming the measurability criteria along with the certificate confirming your successful completion of the assessment.

Webinar organisers normally record and monitor their sessions and eventually issue an email confirming participation. Retain this as a verification document. Webinar registration emails do not attest to the actual participation in the webinar.

Hours spent on technical committees or panels can only be claimed as structured CPE in cases where the committee can demonstrate a tangible output. It must also be clear that the person claiming the hours has contributed towards the end product. Ideally the evidence provided should include a confirmation letter issued by the committee’s chairperson confirming the dates and duration of attended meetings and the person’s contribution towards the tangible output. Time spent on informal and formal meetings where no output is evident will qualify as unstructured CPE.

One can also claim hours spent on lecturing preparation and lecturing given that the topic is related to the profession. Make sure not to exceed the quota of 40 hours within a 3-year rolling period and remember that only the first presentation of a lecture can qualify as CPE. Retain a copy of the notes and/or presentation handed out to participants and obtain a written confirmation of your input from your employer or from the company recruiting your services.

Time spent on furthering your studies in areas related to the profession can also be claimed as structured CPE. Distance learning information packs normally indicate the time required for course completion. Retain a log sheet with details of topics studied, dates and times. For local diploma courses, ask the service provider to provide you with a written declaration confirming the hours spent on lecturing for the given year.

With the exception of MIA organised and MIA accredited events, there might be some questioning about whether the activity falls under Core or Professional Development competency. Some think that core competency covers the area directly related to their work irrelevant to what position they hold. This is a misconception since core competency covers areas which are directly related to the accounting and auditing profession. It is advisable to refer to the CPE Regulations for further information.

Should you have any queries, please do not hesitate to contact the CPE and Relationship Officer on 2258 1900 or via email on [email protected]

New MIA Members

  • Ms. Stephanie Camilleri

Expelled Members

  • Mr. Richard Attard
  • Ms. Carol Suzette Austin
  • Mr. Christopher Brincat
  • Mr. Kevin Camilleri
  • Mr. Noel J. Cassar
  • Mr. Patrick Dato Mallia
  • Mr. Peter J Dimech
  • Mr. Edward Peter Fenech
  • Ms. Amy Grech
  • Ms. Fleurette Strommer Bonello
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