xx xx xx 2. Improve iCPAR’s capacity to comply with IFAC’s SMOs Establish and strengthen AQA at iCPAR iCPAR, MINECOFIN xx xx Use best endeavour to collaborate on curriculum development at tertiary institutions and universities for courses leading to iCPAR qualifications to narrow the gap between graduates and entry requirements for iCPAR qualifications iCPAR, HEC, training institutions including universities and practicing firms xx Make CPD relevant to needs of Rwanda especially SMPs, SMEs and cover topics on current developments in the law, standards and codes iCPAR xx xx xx Require monitored practical training to be a mandatory requirement of iCPAR professional qualification iCPAR, MINECOFIN, practicing firms xx Support IPSAS implementation by facilitating and organizing knowledge and training activities supportive of successful implementation of IPSAS, including establishing an effective Public Sector Commission at iCPAR chaired by a Government employee iCPAR, MINECOFIN xx iCPAR to advocate for inclusion of public sector subjects in curricula of tertiary institutions and universities iCPAR, MINECOFIN, training institutions xx iCPAR to form an Investigation Commission to support, but work independently of the Disciplinary Commission already in place iCPAR xx Further Strengthen the Profession, Education and Training 3. Make the Inspection Commission of iCPAR independent of iCPAR’s Governing Council (see para 53). iCPAR, MINECOFIN xx 4. Revise the legal status of the practicing firms in Rwanda iCPAR, MINECOFIN xx 5. Promote the profile and attractiveness of the accountancy profession in order to attract best talent from schools, colleges and universities iCPAR, practicing firms xx xx xx
the current requirement, iCPAR will need to constantly monitor and ensure no standards gaps develop between actual practices and internal standards and code. In the medium to long term period, review the current three year auditor rotation period. The rotation requirement should be restricted to PIE audits and the rotation cycle revised to a period that balances the need to manage audit costs and the need for audit continuity on the one hand with the need to manage possible threats to audit quality arising out of over familiarity with the client Enforce the statutory financial reporting framework for PIEs, SMEs and micro-sized entities after these entities have been defined. This should include the proactive monitoring and review of the quality of financial statements of SOEs and PIEs that are not regulated. The financial reporting framework required to be adopted by each SOE should be aligned to the nature of its operations, e.g. GBEs would use IFRS, while regulators and non-profit making government entities would use IPSAS. A specimen framework is shown below. If adopted, this would result in a differential financial reporting regime that requires entities to report according to a framework commensurate with the entity’s size, public interest responsibilities, and other circumstances. Table 7. Recommended Reporting Framework for Private and Public Sectors Entities Differentiated by Size and Level of Public Interest Private Sector Public Sector Entity Accounting/Auditing Framework Entity Accounting/Auditing Framework PIEs, including large private companies that meet the definition of a PIE Report in compliance with IFRS Mandatory audit in compliance with ISAs (GBEs) making entities Report in compliance with IFRS Mandatory audit in compliance with ISAs Report in Compliance with IPSAS Small and medium-sized entities Report using IFRS for SMEs Mandatory audit in compliance with ISAs (use IFAC Guide to Use of ISA in the Audit of SMEs) State-owned enterprises that qualify to use IPSAS, and Central and Local Government IPSAS Mandatory audit in compliance with ISAs or Supreme Audit Institution (SAI) standards. Report using “A Guide for Micro-sized Entities Applying IFRS for SMEs (2009)”.