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Regulation no. 4/2010 Regulation for the issuance of certificate of professional competence to private auditors and accountants

Regulation no. 4/2010

Regulation for the issuance of certificate of professional competence to private auditors and accountants

WHEREAS, the Office of the Federal Auditor General has been empowered, under the Office of the Federal Auditor General Establishment Proclamation No. 669/2010, to issue and renew certificates of professional competence to private auditors and accountants as well as to supervise the proper fulfillment of the activities of private auditors and accountants and to suspend and cancel their certificates of professional competence where they undertake their activities inappropriately;

WHEREAS, Article 22(1) of the Office of the Federal Auditor General Establishment Proclamation No. 669/2010 has provided that the Office of the Federal Auditor General discharge the above responsibility in accordance with a regulation to be issued by the House of People’s Representatives;

NOW, THEREFORE, in order to determine the procedure for the Office of the Federal Auditor General to issue and supervise certificate of professional competence of private auditors and accountants and to suspend and cancel of those inappropriately undertake their activities, the House of Peoples’ Representatives in accordance with the Office of the Federal Auditor General Establishment Proclamation No. 669/2010 Article 22(1) has issued this Regulation as follows

PART ONE GENERAL

1.    Short Title

This Regulation may be cited as the “Issuance of Certificate of Professional Competence to Private Auditors and Accountants Regulation No. 4/2010.”

2.    Definitions

In this Regulation unless the context otherwise requires:

1)    “Auditor General” or “Office’ means the Federal Auditor General or the Office of the Federal Auditor General;

2)    “Committee” or “the Committee” means a Committee established by the Federal Auditor General in accordance with this Regulation;

3)    “Professional Association” means any nationally or internationally recognized accountants’ and auditors’ association recognized by the Office of the Federal Auditor General;

4)    “Authorized Auditor” means an organization or individual authorized to provide auditing service in Ethiopia by the Office of the Federal Auditor General in accordance with the Proclamation No. 669/2010 and this Regulation;

5)    “Authorized Accountant” means an organization or individual authorized to provide accounting services in Ethiopia by the Office of the Federal Auditor General in accordance with the Proclamation No. 669/2010 and this Regulation.

6)     In this Regulation the reference in the masculine gender includes the feminine.

PART TWO

ESTABLISHMENT OF COMMITTEE

3.    Establishment of Committee

In accordance with this Regulation a Committee accountable to the Office of the Federal Auditor General shall be established to scrutinize the applications of accountants and auditors and recommend to the Federal Auditor General the issuance, renewal, suspension and cancellation of certificates of competence. Details shall be determined in accordance with the directive to be issued by the Office of the Federal Auditor General.

4.    Duties and Responsibilities of the Committee

The Committee shall have the following duties and responsibilities:

1/ to scrutinize applications of auditors and accountants who intend to engage in private accounting and auditing activities in accordance with this Regulation;

2/ recommend the issuance of certificates of competence to private auditors and accountants to the Federal Auditor General, when it confirms that the applicants are competent to practice privately in auditing or accounting activities in accordance with this Regulation;

3/ recommend to the Federal Auditor General the suspension or cancellation of certificates of competence of private auditors and accountants who violate the code of professional ethics and other conditions to suspend or cancel certificate of competence referred to under this Regulation;

4/ prepare criteria for minimum educational professional skill and experience requirements for issuing certificates of competence to private auditors or accountants and implement the same after approval by the Federal Auditor General;

5/ prepare and update a list of currently recognized accounting associations to use as a basis for determining criteria for selecting authorized auditors, submit the same timely to the Federal Auditor General and implement the same upon approval;

6/ prepare directives, as required, for the proper functioning of the committee; implement the same upon approval.

PART THREE

ISSUANCE, RENEWAL, SUSPENSION AND CANCELLATION OF CERTIFICATS OF COMPETENCE

5.    Issuance of Certificates of Competence

The Federal Auditor General shall issue certificates of competence to auditors or accountants who apply and are eligible to engage in private auditing or accounting activities. The Office of the Federal Auditor General shall issue directives regarding detailed criteria for issuing certificates of competence.

6.    Time Limitation for Renewal of Certificates of Competence

The Certificate of Competence of authorized auditor or accountant shall be renewed every year; failure to renew shall result in penalty. Certificates of Competence shall be renewed as follows:

1/ For authorized accountants:

a)    the Certificate of Competence shall be renewed without penalty within three months after the end of the Ethiopian fiscal year, from Hamle 1 to Meskerm 30;

b)    applications for which renewal period has elapsed shall be renewed after payment of penalty as follows;

i. from Hamle 1 to Meskerem 30 without penalty;

ii from Tikemt 1 to Sene 30 with penalty of Birr 50 per month;

iii Certificates of Competence not renewed for one year shall be cancelled.

c)    Certificates of Competence cancelled due to the expiration of the time for renewal may be renewed upon payment of one year penalty and renewal fee if recommended by the Committee after considerations of the reasons for non-renewal, and approval is obtained from the Federal Auditor General.

2/ for authorized private auditors:

a)    The Certificate of Competence shall be renewed without penalty within three months after the end of the Ethiopian fiscal year, from Hamle 1 to Meskerm 30;

b)    Applications for which renewal period has elapsed shall be renewed after payment of penalty and the time limitation for renewal and the rate of penalty shall be as follows:

i for the three months starting from Hamle 1 to Meskerm 30 without penalty:

ii from Tikemt 1 to Sene 30 it may be renewed upon payment of 500 Birr for each delayed month;

iii Certificate of Competence cancelled due to the expiration of the time for renewal may be renewed upon payment of penalty for the nine months Birr 4500 and renewal fee if recommended by the Committee after consideration of the reasons for non-renewal and approval is obtained from the Federal Auditor General.

3/ requirements for renewal of Certificate of Competence:

a)    Authorized private accountants have to provide written information about the status of their conditions of work;

b)    Authorized private auditors should provide renewed practicing certificate for the current year from national or international professional association to which they are members;

c)    Evidence of membership in a recognized accounting or auditing associations in Ethiopia.

7.    Conditions for the Suspension of Certificate of Competence

1/ Certificates of Competence issued to an authorized accountant or authorized auditor may be suspended due to the following reasons:

a)    it has been found that the internationally accepted and recognized code of professional ethics and rules has been violated;

b)    expected to fulfill after the certificate has been issued that the professional level requirements accepted by the Federal Auditor General has been proved unfulfilled;

c)    When confirmed that staff employed does not possess adequate knowledge about the profession;

d)    When convicted by a court for reasons of fraud or dishonest practices;

e)    When he is found not fit for work as established by a medical doctor;

f)    When change of address has not been notified within six months of the change; and

g)    Other conditions as has been set by the Office of the Federal Auditor General for the suspension of Certificate of Competence has been found committed.

2/ one of the reasons enumerated under sub-article (1) of this Article may be sufficient to suspend the Certificate of Competence for a period not more than three years in accordance with the recommendation of the disciplinary committee established as per the Code of Ethics issued by the Office of the Federal Auditor General.

8.    Re-instatement of a Suspended Certificate of Competence

The professionals who has served the suspension period and in accordance with the decision it has been ascertained that they have completed their term of suspension, they may apply for re-instatement of the Certificate of Competence as a new applicant.

9.    Conditions for the Cancellation of a Certificate of Competence

1/ A Certificate of Competence may be cancelled if it is established that the authorized accountant or auditor has committed one or more of the following:

a)    When the holder of the Certificate of Competence dies;

b)    The Certificate of Competence has been issued based on falsified documents or fraud;

c)    Practicing beyond the authorized level of practice;

d)    The Certificate of Competence has not been renewed within the specified period of renewal;

e)    When involved in activities which are in conflict or incompatible with the profession: details shall be specified in the directive to be issued by Office of the Federal Auditor General;

f)    Reasons for suspension of Certificate of Competence have been so grave that it has been established that the conditions cannot be improved by the authorized accountant or auditor;

g)    Has transferred the Certificate of Competence or the trade license to practice as a private accountant or auditor to another person or organization;

h)    due to other reasons which are determined by the Office of the Federal Auditor General to be sufficient to cancel the Certificate of Competence.

2/ One of the reasons enumerated under sub-article (1) of this Article may be sufficient to cancel the Certificate of Competence when confirmed and recommended by the discipline committee established by the Code of Ethics issued by the Office of the Federal Auditor General.

10.    Condition for the Re-instatement of Cancelled Certificate of Competence

A cancelled Certificate of Competence may be re-instated if the authorized accountant or auditor has repented having committed those conditions for the cancellation and vowed to improve his ethical behaviors as well as other conditions and when it is confirmed by the committee and approved by the Federal Auditor General.

PART FOUR

PAYMENT OF SERVICE FEE

11.    Amount of Service Fee

To cover operating expenses for paperwork and related other expenses during the issuance and renewal of Certificates of Competence the following payments shall be made by the applicant:

1/ Authorized Auditors

a)    Registration         Birr    50

b)    Issuance of Certificate      “    300

c)    Renewal of Certificate      “    150

2/ Authorized Accountants

a)    Registration         Birr     50

b)    Issuance of Certificate      “    150

c)    Renewal of Certificate     “     75

12.    Voluntary Return of Certificate of Competence

1/ If an authorized accountant or auditor to whom a certificate of competence has been issued, is unable to provide professional service for any reason may return the renewed Certificate of Competence temporarily or permanently to the Office of the Federal Auditor General.

2/ An authorized accountant or auditor may reclaim the Certificate of Competence returned, when the reasons for discontinuing the service have been resolved or avoided provided that he submits a written account of his activities during his absence.

PART FIVE

MISCELLANEOUS PROVISIONS

13.    Duty to Cooperate

Authorized auditors or accountants have the duty to cooperate when requested by the Office of the Federal Auditor General to enable it to ensure that they are in line with the professional standard, comply with professional code of ethics and charge fees compatible with the services as well as in accordance with laws and regulations. In addition, authorized accountants or auditors shall provide the following information when requested by the Office of the Federal Auditor General:

1/ audit reports of public enterprises;

2/ auditing report of its own activities;

3/ list of employees and salaries paid;

4/ other necessary information requested by Office of the Federal Auditor General.

14.    Prohibition to Render Accounting or Auditing Service without Certificate of Competence

Any person without being provided with Certificate of Competence in accordance with this Regulation from the Office of the Federal Auditor General is not allowed to engage in private audit or private accounting activities. Any person who provides private auditing or accounting service without Certificate of Competence from the Office of the Federal Auditor General shall be penalized in accordance with the appropriate law.

15.    Power to Issue Directives

In order to implement the provisions of this Regulation the Federal Auditor General has the power to issue:

1/ code of professional ethics;

2/ directives for monitoring the activities of private auditors and accountants; and

3/ other directives as required.

16.    Repealed Laws

The regulation for the issuance of the certificate of competence to private auditors and accountants issued in accordance with Proclamation No. 13/1987 is hereby repealed.

17.    Effective Date

This Regulation shall enter into force upon the date of publication in the Federal Negarit Gazeta

Done at Addis Ababa this 24th day of December, 2010

 

ABADULLA GEMEDA

SPEAKER OF THE HOUSE OF PEOPLE’S REPRESENTATIVES OF THE FEDERAL

DEMOCRATIC REPUBLIC OF ETHIOPIA

 

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12 replies »

  1. Hi Dear; could you send me via my email address information about skill & experience requirements for issuing certificates of competence to private accountants. (directive made by office of federal auditor general).

  2. every profession has easy criteria for example constraction,pharmacy even the health case but auditing&accountancy they make it big

  3. Hello Professionals
    I am eager to know the current regulation and proclamation to have the certificate of accountant by the audit general and its criteria. So, if you please just make me familiar with it and let me to proceed and start my step.
    Thank you very mach for your support.

    • Please browse the web ”www.aabe.gov.et” to registered for certification of authorized accountant /auditor

  4. Hello Dear,
    could you send me via my email address information about skill & experience requirements for issuing certificates of competence to private accountants?(directive made by office of federal auditor general).

  5. Hi Dear; could you send me via my email address information about skill & experience requirements for issuing certificates of competence to private accountants. (directive made by office of federal auditor general)

  6. Hi Dear; could you send me via my email address information about skill & experience requirements for issuing certificates of competence to private accountants. (directive made by office of federal auditor general).

  7. Hi Dear; could you send me via my email address information about skill & experience requirements for issuing certificates of competence to private accountants. (directive made by office of federal auditor general).

  8. I am not clear why renewal is denied if the authorized person is not engaged in practice. I belive that the certificate is given to substantiate the capacity of the person. Please consult the issuing authority the reason why they attached it with the trading lisence which has nothing to do with the capacity of the certified. One shoud get his lisence renewed without any requirement in as far as he /she has the required capacity.

  9. hi Abrish. first of all i would like to give you a great apreciation. then i want some materials from you. if you can please try to send via my email address. these materials are: International trade, clincal on right of child, clinical of prisoners and clinical on restoretive justice. thanks.

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