ACCA has made two sets of changes to its Rulebook.
The changes effective 15 December 2024 affect the Code of Ethics and Conduct, reflecting revisions to the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (including International Independence Standards) on the definition of listed entities and public interest entities (PIEs), and technology. In addition, there are changes to Section 350, Custody of Client Assets, of the Code of Ethics and Conduct, which will be of interest to UK and Irish practitioners.
In the sub-section on Maintaining Records, a new Regulation 350.28 introduces a requirement that a firm must complete reconciliations of monies held by them through a client account at least every 50 days. It also sets out the balances that should be reconciled and the action that must be taken should any differences arise. The new regulation provides greater clarity on when ACCA can take regulatory action in cases of non-compliance.
Global Practising Regulations
There are also changes, effective 1 January 2025, that relate to all the regulations apart from the Royal Charter and Bye-laws.
The majority of the January changes arise from the decoupling of the Practising Certificate (PC) and Audit Qualification (AQ) in the UK, Jersey, Guernsey and Dependencies and the Isle of Man; Republic of Ireland; and Zimbabwe. In addition, a new process has been introduced that aligns with other recognised supervisory bodies and recognised accountancy bodies.
As a result, there are significant amendments to the Global Practising Regulations, in particular Annexes 1, 2 and 3, and the Audit Regulations relating to the UK and the Republic of Ireland.
Although members will now have the flexibility to apply for the AQ at the point at which they have achieved the required relevant audit experience and technical audit competences, either as part of their student training or after admission to membership, ACCA currently recommends that members continue to apply for an AQ when they apply for a PC.
Further information about the new process to become a statutory auditor in the UK, Jersey, Guernsey and Dependencies and the Isle of Man; Republic of Ireland; and Zimbabwe is provided on the Statutory Auditor Changes webpage.
