The Accountants (Amendment) Act, 2022, together with three related regulations, came into effect on 1 Feb.
The Accountants (Amendment) Act is supported by the Accountants (Application for Membership) (Amendment) Regulations, 2023; and the Accountants (Disciplinary) (Amendment) Regulations, 2023.
Together, they allow the Cayman Islands Institute of Professional Accountants (CIIPA) to continue their effective oversight of the local practice of accounting.
The Accountants (Quality Assurance) (Amendment) Regulations, 2023 supports the local adoption and practice of new international standards for quality management regarding audits, reviews of financial statements, or other assurance or related service engagements and engagement quality reviews.
The Accountants (Quality Assurance) Regulations state that assurance engagements shall be conducted in accordance with standards issued by the International Auditing and Assurance Standards Board (IAASB).
In December 2020, the IAASB issued International Standard on Quality Management (ISQM) 1 regarding quality management for firms that perform audits or reviews of financial statements, or other assurance or related services engagements; and ISQM 2, regarding engagement quality reviews.
Firms were required to have systems of quality management designed and implemented in accordance with ISQM 1 by 15 Dec. 2022. ISQM 2 is effective for audits and reviews of financial statements for periods beginning on or after 15 Dec. 2022.
“These four amendments, which originated from CIIPA proposals, are in line with Government’s strategic broad outcome of improving our financial services as an industry product and economic driver for our Islands,” said Minister of Financial Services André Ebanks in a press release.
“Our Ministry continues to work with CIIPA and other stakeholders to ensure that the accounting regulatory regime remains clear, sensible and fair in its oversight of practitioners.”
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