KAMPUCHEA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS AND AUDITORS

វទយ សថ នគណន យយករជន ញនងសវនករកមពជ KAMPUCHEA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS AND AUDITORS DELIVERING INTEGRITY AND TRUST Dr. SIEM Monileak 1

Agenda 01 INSTITUTIONAL DEVELOPMENT 04 WHAT IS INTEGRITY? 02 REGULATORY BODIES 05 WORKS DONE 03 KAMPUCHEA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS AND AUDITORS 06 DEVELOPMENT PLAN 2

Institutional Development 1999 2002 Research Committee for International Accounting Standards Law on Accounts, Their Audits, and Accounting Profession 2003 - NAC - KICPAA 2016 2017 Law on Accounting and Auditing National Accounting Council 2019 Kampuchea Institute of Certified Public Accountants and Auditors (KICPAAA)

REGULATORY BODIES OF ACCOUNTING AND AUDITING NATIONAL ACCOUNTING COUNCIL KAMPUCHEA INSTITUTE OF CERTIFIED ACCOUNTANTS AND AUDITORS (KICPAA)

WHO ARE WE? • ONLY ONE professional accountancy Organization in Cambodia • KICPAA is an ASSOCIATE MEMBER (2008) of International Federation of Accountants (IFAC) • KICPAA is a Premier MEMBER (2003) of ASEAN Federation of Accountants (AFA) 5

VISION To be a RECOGNIZED and TRUSTED professional accountancy organization (PAO) in the region. 6

MISSION • We are committed to upholding public interest through educating and governing our members with high competent professional and ethical standards, • To maintain the confidence of the public in the profession, 7 Your Date Here

CORE VALUES • Fairness • Accountability • Integrity • Respectfulness 8 Your Date Here

ROLES AND FUNCTIONS Membership Ethics Education Cooperation Other • Register and govern its members • Determine qualifications and conditions for becoming members • Provide, Suspend and Revoke the membership • Draft Code of Ethics • Monitoring the Ethical compliance of its members Protect professional value and public interest • In cooperation with NAC to develop and manage Cambodia CPA • Continuous professional Development for its members and public • In cooperation with national and international Develop and manage other qualification and training educational institution to promote accounting and program auditing profession • Work with regional and international professional accounting bodies to leverage and protect the profession • Participate as a member of the National Accounting Council 9

KICPAA members (June 2019) Firms: 56 Actives: 138 Affiliates: 26 Students: 14 KH: 25 KH: 61 KH: 14 KH: 13 FR: 31 FR: 77 FR: 12 FR: 1 10

NATIONAL AND INTERNATIONAL COOPERATION • Worked closely with the NAC to prepare ASEAN CPA registration framework in according to MRA on Accountancy Service. • MOU: KICPAA-NAC-ACCA • MOU: KICPAA-NAC-MIA • MOU: KICPAA-NAC-CPA Australia 11

WHAT IS INTEGRITY? • One of the fundamental principle of Code of Ethics for professional accountants (IFAC): integrity, objectivity, professional competence and due care, confidentiality, and professional behavior. • R 111. 1 A professional accountant shall comply with the principle of integrity, straightforward and honest in all professional and business relationships.

• R 111. 2 A professional accountant shall not knowingly be associated with reports, returns, communications or other information where the accountant believes that the information: a) Contains a materially false or misleading statement; b) Contains statements or information provided recklessly; or c) Omits or obscures required information where such omission or obscurity would be misleading. • R 111. 3 When a professional accountant becomes aware of having been associated with information described in paragraph R 111. 2, the accountant shall take steps to be disassociated from that information. 13

WHAT DO WE DO? 1. Sub-Decree on Code of Ethics for professional Accountants (2005) 2. Prakas on Committee for Ethics for Professional Accountants (2005) 3. Prakas on Quality Assurance and Monitoring Committee (2016) 4. Investigation and Disciplinary Committee at KICPAA 5. Comply with IFAC’s SMO 14

Sub-Decree on Code of Ethics for professional accountants (2005) • There are 38 articles • There are five (5) chapters • • Chapter 1: General provision (article 1 - 2) Chapter 2: Public interest (article 3 -4) Chapter 3: Fundamental principles (article 5 -23) Chapter 4: Threats and safeguards (article 24 -28) Chapter 5: Ethical conflict resolution (article 29 -33) Chapter 6: Disciplinary punishments (article 34 -35) Chapter 7: Final provisions (article 36 -38) 15

Prakas on Committee for Ethics for Professional Accountants (2005) • Ministry of Justice • KICPAA • NAC • Private entities 16

Prakas on Quality Assurance and Monitoring Committee (2016) 1. 2. 3. 4. 5. 6. NAC (4) NBC (1) KICPAA (7) SECC (1) MEF-GDI (1) GDT (1) 17

2017 Number of firms reviewed 3 PIEs 5 SMPs 2018 Number of firms reviewed 3 PIEs 6 SMPs 2019 Number of firms reviewed 3 PIEs Passed 2 0 Passed 1 2 Passed N/A Improvement needed 0 0 Improvement needed 1 2 Improvement needed N/A Failed 1 5 Failed 1 2 Failed N/A 18

• Five workshops have been done for our members • Audit Manual has been developed and distributed to our members • The audit quality review have been done by independent and experienced reviewers. 19

IFAC’s SMO 1: Quality Assurance 2. SMO 2: International Education Standards for Professional Accountants and Other Pronouncements issued by the IAESB 3. SMO 3: International Standards and Other Pronouncements issued by the IAASB 4. IESBA Code of Ethics for Professional Accountants 5. SMO 5: International Public Sector Accounting Standards and Other pronouncements issued by the IPSASB 6. SMO 6: Investigation and Discipline 7. SMO 7: International Reporting Standards and Other Pronouncements issued by the IASB 20

DEVELOPMENT PLAN KEY OBJECTIVES 1. To well govern the institute 1) with good talent management, operational 2) and financial sustainability 3) 4) 2. To creating values for 1) members 2) 3) 3. To inclusive membership, quality, and professional development 1) 2) 3) 4. To develop competency of 1) accounting profession to meet market demand 2) KEY STRATEGIES Revising the structure and roles within KICPAA’s Provide an enabling ICT infrastructure Review, update and develop administrative policies and procedures By-law (Internal regulation) Promote public awareness and publicity Develop membership regulation to align with new Sub-Decree of KICPAA Develop and implement membership attraction strategies implement Cambodia CPA program Launch and implement Accounting Technician Qualification (ATQ) develop CPD policy and program to meet the need of members and public develop and promote code of ethics for its members (adopt fully IFAC’s Code of Ethics) 21 work with universities /institutions to enhance

Thank you 22