Accountants (Amendment) Bill

This Act is the Accountants (Amendment) Act 2022 and comes into operation on a date that the Minister appoints by notification in the Gazette.

Section 2 of the Accountants Act 2004 (called in this Act the principal Act) is amended by deleting subsection (2) and substituting the following subsection:“(2) In this Act, a reference to improper conduct by, of or on the part of, a public accountant, an accounting corporation, an accounting firm or an accounting LLP includes any breach of any code of professional conduct and ethics prescribed by order under section 64AA(1)(a).”.

Section 4 of the principal Act is amended —

by deleting the word “Schedule” in subsection (4) and substituting the words “First Schedule”; and

by deleting subsection (5).

Section 5(1) of the principal Act is amended —

by deleting paragraph (g) and substituting the following paragraphs:“(g)assist the Authority to determine, prescribe, issue, adopt and review —

the requirements to be applied by public accountants, accounting corporations, accounting firms and accounting LLPs in relation to —

the detection and prevention of money laundering or the financing of terrorism; and

the recording and reporting of transactions suspected of involving money laundering or the financing of terrorism,including any requirement necessary or expedient to give effect to any recommendation issued or adopted by the intergovernmental body known as the Financial Action Task Force relating to the prevention of money laundering and the financing of terrorism;

the requirements in respect of professional conduct and ethics applicable to public accountants, accounting corporations, accounting firms and accounting LLPs when providing public accountancy services, other than the matters assigned to the Oversight Committee by the Authority and set out in the code of professional conduct and ethics prescribed by order under section 64AA(1)(a); and

the standards, methods, procedures and other requirements to be applied by public accountants, accounting corporations, accounting firms and accounting LLPs when providing public accountancy services, other than any standard, method, procedure or requirement which is of a class or description specified in the Second Schedule;

administer programmes to review the compliance by —

accounting corporations, accounting firms and accounting LLPs with the quality control standards as defined in section 38B; and

public accountants, accounting corporations, accounting firms and accounting LLPs with the requirements relating to the detection and prevention of money laundering and the financing of terrorism,in accordance with Part 5A;”; and

by deleting the word “and” at the end of paragraph (i), and by inserting immediately thereafter the following paragraphs:“(ia)prescribe the code of professional conduct and ethics applicable to public accountants, accounting corporations, accounting firms and accounting LLPs;

prescribe any standard, method, procedure or other requirement which is of a class or description specified in the Second Schedule that is to be applied by public accountants, accounting corporations, accounting firms and accounting LLPs when providing public accountancy services; and”.

Section 13(3) of the principal Act is amended by deleting paragraph (b) and substituting the following paragraph:“(b)to comply with any order made under section 38(1) or (2)(b); or”.

Section 32 of the principal Act is amended —

by deleting the definition of “practice monitoring programme” and substituting the following definitions:“ “Oversight Committee’s professional standards assessment framework” means the assessment framework of the Oversight Committee to determine the extent of a public accountant’s compliance with the professional standards;“practice monitoring programme” means a programme to determine whether a public accountant has complied with the professional standards when providing public accountancy services;”; and

by deleting the definitions of “practice review” and “reviewer” and substituting the following definitions:“ “practice review” means a study, an appraisal, or a review carried out under a practice monitoring programme in respect of one or more aspects of the public accountancy services that are provided by a public accountant;“practice reviewer” means any individual who is appointed by the Oversight Committee under section 35 to carry out a practice review;“professional standards”, in relation to the provision of public accountancy services, means the standards, methods, procedures and other requirements that are prescribed by the Authority or Oversight Committee to be applied by a public accountant, an accounting corporation, an accounting firm and an accounting LLP when providing public accountancy services.”.

Section 33 of the principal Act is amended —

by deleting the words “and successfully pass the practice reviews carried out under the practice monitoring programme” in subsection (1); and

by deleting subsection (2) and substituting the following subsection:“(2) A public accountant undergoing a practice monitoring programme must pay any fee prescribed in connection with the administration of the practice monitoring programme.”.

Section 35 of the principal Act is amended —

by deleting the word “reviewer” and substituting the words “practice reviewer”; and

by deleting the word “reviewers” in the section heading and substituting the words “practice reviewers”.

Section 36 of the principal Act is amended —

by deleting the word “reviewer” wherever it appears in subsections (1) and (2) and substituting in each case the words “practice reviewer”; and

by deleting the word “reviewer’s” wherever it appears in subsection (2)(d) and substituting in each case the words “practice reviewer’s”.

Section 37 of the principal Act is amended —

by deleting the word “reviewer” in subsection (1) and substituting the words “practice reviewer”;

by deleting subsection (2) and substituting the following subsection:“(2) If, after considering the practice reviewer’s report under subsection (1), the Practice Monitoring Sub‑committee is of the opinion that —

the public accountant’s compliance with any of the professional standards is partially satisfactory under the Oversight Committee’s professional standards assessment framework; or

the public accountant’s compliance with any of the professional standards is not satisfactory under the Oversight Committee’s professional standards assessment framework,the Practice Monitoring Sub‑committee must submit a report of its opinion and recommendations to the Oversight Committee.”; and

by deleting the word “Reviewer” in the section heading and substituting the words “Practice reviewer”.

Section 38 of the principal Act is repealed and the following sections substituted therefor:“Where compliance with professional standards by public accountant is partially satisfactory or not satisfactory38.—

Where the Oversight Committee, after considering the report and recommendations of the Practice Monitoring Sub‑committee under section 37(2), is satisfied that the public accountant’s compliance with any of the professional standards is partially satisfactory under the Oversight Committee’s professional standards assessment framework, the Oversight Committee may make one or more of the following orders:

an order requiring the public accountant to undergo and satisfactorily complete any remedial programme specified or approved by the Oversight Committee in relation to his or her compliance with the professional standards;

an order requiring the public accountant to take any other steps specified by the Oversight Committee to improve the public accountant’s practice in relation to his or her compliance with the professional standards;

an order requiring the public accountant to give any undertaking in relation to his or her compliance with the professional standards that the Oversight Committee thinks fit;

any other order to improve the public accountant’s compliance with the professional standards that the Oversight Committee thinks necessary or expedient.

Where the Oversight Committee, after considering the report and recommendations of the Practice Monitoring Sub‑committee under section 37(2), is satisfied that the public accountant’s compliance with any of the professional standards is not satisfactory under the Oversight Committee’s professional standards assessment framework, the Oversight Committee may —

make any of the following orders:

an order cancelling the public accountant’s registration;

an order suspending the public accountant’s registration for a period not exceeding 2 years;

an order refusing to renew the public accountant’s registration;

in lieu of an order in paragraph (a)(i), (ii) or (iii), or in addition to an order in paragraph (a)(ii), make one or more of the following orders:

an order restricting the public accountant’s provision of public accountancy services in the manner that the Oversight Committee thinks fit for a period not exceeding 2 years;

an order requiring the public accountant to undergo and satisfactorily complete any remedial programme specified or approved by the Oversight Committee in relation to his or her compliance with the professional standards;

an order requiring the public accountant to take any other steps specified by the Oversight Committee to improve the public accountant’s practice in relation to his or her compliance with the professional standards;

an order requiring the public accountant to give any undertaking in relation to his or her compliance with the professional standards that the Oversight Committee thinks fit;

an order requiring the public accountant to send a copy of the order made under this subsection and served on him or her under subsection (8) (or any part of the second‑mentioned order determined by the Oversight Committee), to each person to whom the public accountant provided public accountancy services in respect of which the Oversight Committee is satisfied that the public accountant’s compliance with the professional standards is not satisfactory;

any other order to improve the public accountant’s compliance with the professional standards that the Oversight Committee thinks necessary or expedient.

Where the Oversight Committee has made an order under subsection (1), the Oversight Committee may, having regard to any change in circumstances or for other good reason —

revoke the order and make any one or more different orders under subsection (1); or

vary the order and make any one or more different orders under subsection (1) in addition to that order.

Where the Oversight Committee has made an order under subsection (2)(b), the Oversight Committee may, having regard to any change in circumstances or for other good reason —

revoke the order and make any one or more different orders under subsection (2)(b); or

vary the order and make any one or more different orders under subsection (2)(b) in addition to that order.

Where the Oversight Committee is satisfied that a public accountant has breached any order made under subsection (1), the Oversight Committee may make any of the following orders:

an order cancelling the public accountant’s registration;

an order suspending the public accountant’s registration for a period not exceeding 2 years;

an order refusing to renew the public accountant’s registration.

Where the Oversight Committee is satisfied that a public accountant has breached any order made under subsection (2)(b), the Oversight Committee may make any of the following orders:

an order cancelling the public accountant’s registration;

an order suspending the public accountant’s registration for a period not exceeding 2 years;

an order refusing to renew the public accountant’s registration.

Where the Oversight Committee makes an order to suspend the public accountant’s registration under subsection (5)(b) or (6)(b), the Oversight Committee may —

in the case of an order under subsection (5)(b) — also make one or more orders under subsection (1); or

in the case of an order under subsection (6)(b) — also make one or more orders under subsection (2)(b).

The Registrar must serve a copy of every order made under subsection (1), (2), (3), (4), (5), (6) or (7) on the public accountant concerned.

The Oversight Committee may cause any order (or the part of that order determined by the Oversight Committee) that is required to be sent by a public accountant to any person under subsection (2)(b)(v) to be sent to that person if the Oversight Committee has reason to believe that the public accountant has failed to do so.

The Oversight Committee must not make an order under subsection (2)(a), (5), (6) or (7) unless it has given the public accountant an opportunity to show cause against the proposed order.

An order of the Oversight Committee made under subsection (2)(a), (5), (6) or (7) does not take effect until the latest of the following:

one month after the date the order has been served on the public accountant;

the date specified by the Oversight Committee in the order as the date on which the order takes effect;

where an appeal against the order is made to the General Division of the High Court under subsection (12), the date immediately after the date the appeal has been determined or withdrawn.

Any public accountant who is aggrieved by an order of the Oversight Committee under subsection (2)(a), (5), (6) or (7) may appeal to the General Division of the High Court within a period of 30 days or within any further period that the General Division of the High Court may allow, after the order of the Oversight Committee has been served on the public accountant.

The decision of the General Division of the High Court on an appeal under subsection (12) is final.Refusal to undergo practice monitoring programme38A.—

If a public accountant refuses, without reasonable excuse (the burden of proof of which lies with the public accountant), to undergo a practice monitoring programme as required by the Oversight Committee, the Oversight Committee may by order suspend the public accountant’s registration for a period not exceeding 2 years.

An order of the Oversight Committee made under subsection (1) does not take effect until the latest of the following:

one month after the date the order has been served on the public accountant;

the date specified by the Oversight Committee in the order as the date on which the order takes effect;

where an appeal against the order is made to the General Division of the High Court under subsection (3), the date immediately after the date the appeal has been determined or withdrawn.

Any public accountant who is aggrieved by an order of the Oversight Committee under subsection (1) may appeal to the General Division of the High Court within a period of 30 days or within any further period that the General Division of the High Court may allow, after the order of the Oversight Committee has been served on the public accountant.

The decision of the General Division of the High Court on an appeal under subsection (3) is final.

In this section, without limiting the expression, a public accountant refuses to undergo a practice monitoring programme if the public accountant —

expressly informs a practice reviewer, the Oversight Committee or the Authority that he or she refuses to undergo the practice monitoring programme;

refuses to permit a practice reviewer to enter, at any reasonable hours in the day for the purposes of carrying out a practice review, the registered office or business premises of the accounting corporation, accounting firm or accounting LLP in which the public accountant practises as a public accountant;

refuses to comply with a requirement of a practice reviewer made under section 36(2)(a) or (b) within 14 days after the notice of the requirement has been served on him or her; (d)refuses to permit a practice reviewer to inspect, examine or make copies of or take any abstract of or extract from any record or document produced under section 36(2)(a) or (b); or

refuses, where a written notice requiring the public accountant to undergo a practice monitoring programme has been served on him or her under section 33(1), to respond to the notice within 14 days after the date the notice has been served or any longer period that the practice reviewer, the Oversight Committee or the Authority may allow.

This section only applies where a public accountant is required by the Oversight Committee on or after the date of commencement of the Accountants (Amendment) Act 2022 to undergo a practice monitoring programme.”.