STATEMENT BY MR. PETER LARGE AT THE SIGNING OF THE PRACTICE MONITORING AGREEMENT BETWEEN PAB, ICAJ, ICAC and ACCA.
I’m greatly honoured to be able to make a few remarks today on the occasion of the signing of this monitoring contract. I’m also a little humbled to be doing so in such distinguished company. A number of people in this room have worked for some years to get to this point and I feel very privileged to be here with you at the culmination of this work. Of course when I say culmination, it is only in respect of getting the agreement in place. In many respects the hard work starts now.
However, Sha Ali Khan – who is unable to be here today – and his team will now work very closely with PAB and ICAJ to get things going. You have my promise that Sha and his team will be with you every step of the way.
In advance of that detailed implementation work, I’d like to say a few words about ACCA’s approach to audit monitoring. ACCA’s monitoring methodology has been developed and tested over some 20 years. ACCA commenced audit monitoring in the UK in 1991. More recently we have worked with partner bodies in Africa, the Middle East, Europe, and of course, the Caribbean to provide monitoring systems.
Apart from obligations that have been imposed on accountancy bodies by the International Federation of Accountants (IFAC) through the promulgation of Statement of Membership Obligation No.1 (SMO 1) on Quality Assurance and International Standard on Quality Control No 1 (ISQC 1), The Public Accountancy Board (PAB) has a statutory responsibility (under Section 4 of the Public Accountancy Act) to “establish systems for the review of the products, methods and records of work of registered public accountants to ensure adherence to-
1. any prescribed standard of professional conduct;
2. established accounting and auditing standards;...”
An increase in public confidence in audit reports will confer substantial benefits such as facilitating inward investment and supporting the growth of the capital market in Jamaica.