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The Accountants (Quality Assurance) Regulations, 2016 made 23rd November, 2016 as amended by the Citation of Acts of Parliament Act, 2020 [Act 56 of 2020]. Consolidated with \u2014 Accountants (Quality Assurance) (Amendment) Regulations, 2019 made 20th September, 2019 Accountants (Quality Assurance) (Amendment) Regulations, 2023 made 31st January, 2023. Consolidated and revised this 31st day of December, 2023. Note (not forming part of these regulations): This revision replaces the 2020 revision which should now be discarded. Accountants (Quality Assurance) Regulations (2024 Revision) Arrangement of Regulations Accountants Act (2024 Revision) ACCOUNTANTS (QUALITY ASSURANCE) REGULATIONS (2024 Revision) Arrangement of Regulations Regulation 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_18\", \"num\": \"18.\", \"text\": \"ENDNOTES Accountants (Quality Assurance) Regulations (2024 Revision) Regulation 1 Accountants Act (2024 Revision) ACCOUNTANTS (QUALITY ASSURANCE) REGULATIONS\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_1\", \"num\": \"1.\", \"text\": \"Citation 1. These regulations may be cited as the Accountants (Quality Assurance) Regulations (2024 Revision).\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_2\", \"num\": \"2.\", \"text\": \"Definitions 2. In these regulations \u2014 \u201cassurance engagement\u201d means an agreement with a client to provide assurance services; \u201cassurance service\u201d means audit or review services or any engagement for which a licence to engage in public practice is required under the principalAct; \u201cassurance report\u201d means a document prepared following an audit or review that \u2014 (a) expresses the opinion of a public practice firm, whether expressed in the name of the firm or the name of the practitioner member on behalf of the firm, regarding the financial statements; or (b) asserts that no opinion on the financial statements can be expressed; \u201cassurance working papers\u201d means the record of assurance procedures performed, relevant evidence obtained and conclusions the practitioner member reached in providing assurance services; Regulation 2 Accountants (Quality Assurance) Regulations (2024 Revision) \u201caudit\u201d means planning and performing procedures and evaluating evidence for the purpose of obtaining reasonable assurance about whether the financial statements are free from material misstatement, whether due to fraud or error, and expressing an opinion on whether the financial statements are presented fairly, in all material respects, in accordance with an applicable financial reporting framework; \u201cauditing standards\u201d means the auditing standards referred to in an assurance report and includes any related, relevant quality management standards applicable to such auditing standards; \u201cbusiness day\u201d means any day except Saturday, Sunday or a day that is a public general holiday; \u201cclient\u201d means a person by whom a public practice firm or practitioner member is engaged to provide assurance services; \u201cdesignated professional\u201d means a person who performs work pursuant to an assurance engagement, including any partner, officer, director, employee, subcontractor or consultant; \u201cdocument\u201d means any physical embodiment of information and includes written documents, electronic or computerized data compilations and any disc, tape, film or other device in which sound, visual images or other data is embodied; \u201cfindings\u201d, in relation to a quality assurance review, has the meaning assigned in regulation 14(3); \u201cInstitute\u201d means the Cayman Islands Institute of Professional Accountants continued under section 3 of the principalAct; \u201cinvestigation\u201d means an investigation conducted pursuant to the Accountants (Disciplinary) Regulations (2024 Revision); \u201cmanaging partner\u201d means the senior person in charge of a public practice firm\u2019s overall practice, management and day-to-day operations; \u201cpractitioner member\u201d means a regular member who has been granted a licence pursuant to section 11 or 12 of the principalAct; \u201cprincipalAct\u201d means the Accountants Act (2024 Revision); \u201cprofessional standards\u201d means the standards referred to in regulations 5 and 6 and includes relevant auditing standards, other assurance standards that may be issued by an entity referred to in those regulations and any related quality management standards; \u201cpublic practice firm\u201d means a firm of public accountants and includes a registered firm and a person registered as a relevant sole practitioner under section 38 of the principal Act; \u201cpublic practice firm oversight body\u201d means the Auditors Oversight Authority established under the Auditors Oversight Act (2020 Revision) or an Accountants (Quality Assurance) Regulations (2024 Revision) Regulation 3 overseas professional accounting institute responsible for the regulation and oversight of audit quality; \u201cquality assurance review\u201d means a review performed by the Institute pursuant to regulation 8 including the matters referred to in regulation 11; \u201cquality assurance review team\u201d means the persons appointed by the Institute pursuant to regulation 9 to perform the quality assurance review; and \u201creview service\u201d means inquiries of clients or client personnel and analytical procedures applied to financial data in order to provide limited assurance on financial statements.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_3\", \"num\": \"3.\", \"text\": \"Quality assurance reviews of public practice firms 3. (1) A public practice firm shall be subject to a quality assurance review at least once in every six calendar-year period, the first of which periods shall begin with the year in which the firm becomes a public practice firm. (2) The Institute may subject a public practice firm to a shorter period for a quality assurance review if it determines a shorter period to be appropriate. (3) Repealed by regulation 2(b) of the Accountants (Quality Assurance) (Amendment) Regulations, 2019 [SL 37 of 2019]. (4) The Institute shall give a public practice firm notice in writing of the date of the firm\u2019s quality assurance review and of the names of members of the quality assurance review team at least 120 days prior to the commencement of the review. (5) Within ten business days of receipt of a notice pursuant to paragraph (4), a public practice firm shall provide to the Institute any information requested by it, including the names of clients and the professional standards used in the assurance engagement for each client.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_4\", \"num\": \"4.\", \"text\": \"Objection to appointment of quality assurance review team 4. (1) Within ten business days of receipt of a notice pursuant to regulation 3(4), a public practice firm may file an objection in writing to the Institute, including an explanation and evidence for the objection, on the grounds that one or more of the members of the quality assurance review team may be lacking objectivity. (2) The Institute shall consider any objection filed under paragraph (1), and may remove one or more members of the review team if satisfied that there is a reasonable basis for the objection. (3) The Institute shall notify the public practice firm of the names of any new member appointed to the review team following the removal of a member pursuant to paragraph (2). Regulation 5 Accountants (Quality Assurance) Regulations (2024 Revision) (4) Within ten business days of receiving a notice under paragraph (3), the public practice firm may file an objection in writing in accordance with paragraph (2), in relation to the appointment of a new member. (5) The Institute shall consider an objection under paragraph (4) in accordance with paragraph (2), but no further notice requirement shall apply.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_5\", \"num\": \"5.\", \"text\": \"Professional standards and conduct of assurance work 5. (1) A public practice firm, a practitioner member and any designated professional providing assurance services shall comply with \u2014 (a) the professional standards referred to in the public practice firm\u2019s assurance report; (b) any related quality management standards; and (c) any procedures established by the public practice firm. (2) An assurance engagement provided by a person or firm referred to in paragraph (1) shall be conducted in accordance with standards issued by \u2014 (a) the International Auditing and Assurance Standards Board; or (b) the Generally Accepted Auditing Standards promulgated by the Auditing Standards Board, a division of the American Institute of Certified Public Accountants, or with any standards assessed as equivalent to those standards by the Institute or the International Auditing and Assurance Standards Board. (3) Where a public practice firm uses professional standards expressed in a language other than English, the firm shall provide translations of the standards used, approved by the International Federation of Accountants.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_6\", \"num\": \"6.\", \"text\": \"Quality management standards 6. (1) A public practice firm shall comply with the International Standards on Quality Management issued by the International Auditing and Assurance Standards Board. (2)  A public practice firm shall prepare documentation that is \u2014 (a)  sufficient to provide evidence of compliance with the standards required under paragraph (1); and (b)  sufficient to enable the Institute to understand the nature, timing and extent of the public practice firm\u2019s procedures performed. (3)  A public practice firm shall retain documentation required under paragraph (2) for not less than five years. (4)  A public practice firm shall provide the documentation required under paragraph (1) as agreed with the Institute prior to the commencement of a quality assurance review of the public practice firm. Accountants (Quality Assurance) Regulations (2024 Revision) Regulation 7\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_7\", \"num\": \"7.\", \"text\": \"Ethical standards 7. A public practice firm, practitioner member and designated professional providing assurance services shall comply with the standards established by the Institute, the International Ethics Standards Board for Accountants Code of Ethics and any overseas professional accountancy institute to which that member belongs.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_8\", \"num\": \"8.\", \"text\": \"Quality assurance review process 8. (1) The Institute shall conduct a quality assurance review in order to assess a public practice firm\u2019s compliance with these regulations and with professional standards and related quality management standards in connection with the issuance of assurance reports. (2) In performing a quality assurance review, the quality assurance review team shall perform such procedures as the Institute determines are appropriate. (3) Subject to paragraph (4), the Institute may include in its quality assurance review consideration of any matters requested to be included by a public practice firm oversight body within or outside the Islands, if the Institute deems those matters appropriate. (4) Before including any additional matters referred to in paragraph (3) in the quality assurance review, the Institute shall first \u2014 (a) notify the public practice firm in writing that it intends to include them; and (b) obtain the public practice firm\u2019s consent in writing.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_9\", \"num\": \"9.\", \"text\": \"Appointment of the quality assurance review team 9. (1) In selecting and approving a quality assurance review team, the Institute shall ensure that persons appointed to the team have the necessary competencies to conduct quality assurance reviews, including \u2014 (a) appropriate professional education; (b) relevant professional experience; and (c) training on performing quality assurance reviews. (2) The Institute shall also take account of the following competencies and areas of expertise \u2014 (a) understanding professional standards and regulatory and legal requirements; (b) understanding the procedures established pursuant to regulation 8(2); (c) understanding of and practical experience in assurance engagements and quality assurance reviews; (d) appropriate technical knowledge, including knowledge of relevant information technology; Regulation 10 Accountants (Quality Assurance) Regulations (2024 Revision) (e) knowledge of specific industries; (f) ability to apply professional judgment; and (g)  understanding of, and experience relevant to, engagements of a similar nature and complexity. (3) The Institute shall assign a quality assurance review team leader for each quality assurance review, who shall \u2014 (a) supervise the conduct of the quality assurance review; (b) communicate the quality assurance review team\u2019s conclusions to the public practice firm; and (c) be responsible for preparing the quality assurance review report. (4) In selecting the members of the review team and in conducting a quality assurance review, the Institute and the quality assurance review team shall comply with the objectivity principles of the International Ethics Standards Board for Accountants Code of Ethics.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_10\", \"num\": \"10.\", \"text\": \"Confidentiality 10. (1) Neither the Institute nor any person acting on behalf of the Institute shall make use of or disclose to any person, other than persons working for the Institute or acting on its behalf \u2014 (a) the contents of a final assurance report, draft assurance report or assurance working paper; or (b) any files, books, documents, other materials or other information, classed as confidential or otherwise concerning the affairs of any public practice firm or its clients, if the information was obtained in the course of a quality assurance review, or pursuant to the granting of an approval under regulation 15(5). (2) Notwithstanding paragraph (1), the Institute or person acting on its behalf may make any disclosure permitted or required by law, including a disclosure under section 33 of the Accountants Act (2024 Revision) to a relevant person, as defined in that section.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_11\", \"num\": \"11.\", \"text\": \"Review methodology 11. (1) A quality assurance review, in relation to a public practice firm, shall include \u2014 (a) an assessment of the firm\u2019s system of quality management relating to assurance services; (b) repealed by regulation 7(a) of the Accountants (Quality Assurance) (Amendment) Regulations, 2023 (SL 8 of 2023); (c) repealed by regulation 7(a) of the Accountants (Quality Assurance) (Amendment) Regulations, 2023 (SL 8 of 2023); Accountants (Quality Assurance) Regulations (2024 Revision) Regulation 11 (d) a review of assurance working papers to evaluate \u2014 (i) the significant judgments made and the conclusions reached in the context of professional standards; and (ii) compliance with professional standards and regulatory and legal requirements; and (e) an assessment of the firm\u2019s compliance with accounting and auditing frameworks, to the extent that such standards are used in the engagements included in the scope of the review. (2) The Institute shall determine the scope of a quality assurance review and may exclude from the review a review of assurance working papers if satisfied that \u2014 (a) no assurance services have been provided during the period under review; and (b) the reduction in scope would not adversely affect the quality of any future assurance engagement. (3) The Institute may, in determining the scope of the quality assurance review, decide to rely on quality assurance reviews carried out by another public practice firm oversight body if \u2014 (a) the reviews include the same or a subset of clients, practitioner members and designated professionals as the Institute\u2019s quality assurance review would have included; (b) the public practice firm oversight body is at least equivalent to the Institute in terms of authority and powers with respect to quality assurance regulation and discipline; and (c) the report of the quality assurance review carried out by the public practice firm oversight body is provided to the Institute and is substantially equivalent in detail, as determined by the Institute, to a final quality assurance report issued by the Institute pursuant to regulation 14. (4) The Institute shall select the engagement files of the public practice firm to be reviewed having regard to \u2014 (a) the degree of reliance, if any, to be placed on the firm\u2019s system of quality management relating to assurance services; (b) the number of clients by whom the firm is engaged; and (c) the number and competence of practitioner members and designated professionals engaged by the firm to provide assurance services. Regulation 12 Accountants (Quality Assurance) Regulations (2024 Revision)\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_12\", \"num\": \"12.\", \"text\": \"Duty to cooperate in quality assurance reviews 12. (1) A public practice firm shall cooperate with the Institute in the performance of a quality assurance review and shall also require the following persons in the firm to cooperate \u2014 (a) practitioner members; (b) partners and directors or others in equivalent position whether engaged in public practice or not; and (c) designated professionals. (2) For the purposes of paragraph (1), cooperation includes complying with any request made by the Institute, except where such cooperation would result in a breach of the Accountants Act (2024 Revision) or regulations made thereunder, to \u2014 (a) provide access to any document that according to the relevant professional standards should be in the possession, custody or control of the firm or person referred to in paragraph (1); and (b) provide information by oral interview, written response or otherwise.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_13\", \"num\": \"13.\", \"text\": \"Failure to cooperate 13. (1) The Institute may subject a public practice firm that contravenes regulation 12 to an additional quality assurance review if \u2014 (a) the contravention prevented the Institute from completing a quality assurance review as scheduled in accordance with regulation 3; (b) the Institute determines that the non-compliance is due to circumstances beyond the control of the public practice firm; and (b) the scheduling of an additional review is necessary in order to meet the requirements of regulation 3. (2) A firm subjected to an additional quality assurance review under this regulation is liable to indemnify the Institute for costs incurred in order to conduct the additional review.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_14\", \"num\": \"14.\", \"text\": \"Reporting 14. (1) After completing a quality assurance review, the Institute shall make the draft report of the review available to the public practice firm that is the subject of the review, including \u2014 (a) any findings with respect to the public practice firm\u2019s system of quality management, or any specific assurance engagements reviewed; (b) any conditions imposed to improve the public practice firm\u2019s system of quality management relating to assurance services, pursuant to regulation 17; and Accountants (Quality Assurance) Regulations (2024 Revision) Regulation 15 (c) an explanation of the potential consequences of not complying with the conditions imposed, including the Institute\u2019s intention to refer any incident of non-compliance for investigation, if applicable. (2) The public practice firm shall, within fifteen business days after receipt of the draft quality assurance review report, or such longer period as the Institute may require, submit to the Institute a response, signed on behalf of the public practice firm by a person able to bind the firm, to each finding and condition, confirming the firm\u2019s intention to comply, or giving its reasons for not intending to comply. (3) For the purposes of this regulation, \u201cfindings\u201d include \u2014 (a) an act or practice, or omission to act, in violation of these regulations or professional standards that may have an adverse effect on the provision of assurance services; (b) an act or practice, or omission to act, in violation of the public practice firm\u2019s procedures that may have an adverse effect on the provision of assurance services; (c) a failure to supervise a designated professional appropriately, resulting in the commission of an act or an omission to act by the designated professional in violation of these regulations or professional standards that may have an adverse effect on the provision of assurance services; (d) a failure to comply with a request made by the Institute, where such compliance is necessary to conduct a quality assurance review; (e) a failure to comply with any applicable condition imposed by the Institute at the time of registration or as a result of a previous quality assurance review; and (f) a failure to cooperate with the Institute as required under regulation 12.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_15\", \"num\": \"15.\", \"text\": \"Quality assurance review report 15. (1) After reviewing the response sent by the public practice firm in accordance with regulation 14(2), the Institute may take such action with respect to the draft quality assurance review report as it considers appropriate, including \u2014 (a) adopting the draft report as the final report; or (b) issuing a revised draft report containing substantial or material revisions to the original draft report. (2) If the Institute issues a revised draft quality assurance review report, it shall give the public practice firm ten business days to review and respond in writing to the revised draft report. (3) The Institute shall attach to and make part of the final quality assurance review report the responses submitted by the public practice firm to the initial or any revised draft report, respecting issues that remain in the final report. Regulation 16 Accountants (Quality Assurance) Regulations (2024 Revision) (4) The Institute shall issue the final quality assurance review report and make a copy available to the public practice firm that is the subject of the report. (5) A public practice firm may not provide a copy of the report or any portion of it to any third party without the consent of the Institute; and for the purposes of this paragraph, a third party does not include other firms in the public practice firm\u2019s network of member firms. (6) The Institute may not provide a copy of a quality assurance review report to any third party without the consent of the public practice firm that is the subject of the report. (7) The Institute shall annually publish and make available to the public a report detailing the scope of the quality assurance review system, the number of public practice firms visited during the year and whether (and how many) public practice firms were referred for investigation as a result of a quality assurance review.\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_16\", \"num\": \"16.\", \"text\": \"Fees 16. (1) The Institute may charge a public practice firm a fee to cover the Institute\u2019s costs in carrying out a quality assurance review, and may bill the firm in instalments as the work is carried out. (2) The Institute may charge interest at the rate of 12% per annum on any balance that is unpaid within 21 days of the date of issue of an invoice for a fee under subsection (1).\", \"element\": \"section\", \"heading\": null}, {\"eId\": \"sec_17\", \"num\": \"17.\", \"text\": \"Imposing conditions 17. (1) The Institute may impose conditions on a public practice firm to address any findings in a quality assurance review respecting a violation or failure, taking into consideration the objective of ensuring quality in assurance engagements and the degree of culpability of the public practice firm, practitioner member or managing partner. (2) Conditions that may be imposed under this regulation include \u2014 (a) repealed by regulation 9(a) of the Accountants (Quality Assurance) (Amendment) Regulations, 2023 (SL 8 of 2023); (b) requiring additional continuing professional development for some or all practitioner members and designated professionals; (c) requiring additional quality assurance reviews; (d) prescribing a shorter quality assurance review cycle for a public practice firm; (e) restrictions on the type of assurance services a public practice firm can provide or the types of clients to which the firm can provide assurance services; Accountants (Quality Assurance) Regulations (2024 Revision) Regulation 18 (f) appropriate actions to respond to identified deficiencies of the system of quality management such that they are remediated on a timely basis; (g) assignment of a reviewer to oversee the work of one or more practitioner members or designated professionals of the public practice firm; (h) appointment of a person independent of the public practice firm to observe and report to the Institute on the firm\u2019s compliance with the principalAct, the regulations made under it and professional standards; (i) requiring the public practice firm to address specific quality-related matters on one or more assurance engagements, and to do so prior to the issuance of the assurance report on such engagements, if necessary; (j) prohibiting the public practice firm from accepting new clients for a specified period of time; (k) prohibiting the public practice firm from assigning one or more practitioner members or designated professionals to assurance engagements for a specified period of time or permanently; and (l) monetary assessments intended to indemnify the Institute for costs arising from imposing conditions (c), (d) or (h). (3) A public practice firm shall submit evidence or otherwise demonstrate to the Institute that it has complied with any condition imposed under this regulation within the period of time prescribed by the Institute following the issuance of the final quality assurance review report. (4) After reviewing any evidence submitted pursuant to paragraph (3), the Institute shall notify the public practice firm of its determination as to whether the public practice firm has complied with the conditions imposed under this regulation or has otherwise satisfactorily addressed the findings noted in the final quality assurance review report and shall give reasons for that determination. (5) If the Institute determines that the public practice firm has not complied with any condition or otherwise addressed the findings to its satisfaction, or has failed to make a submission to the Institute as required by paragraph (3), the Institute shall refer the public practice firm for investigation. (6) A public practice firm may, following the issuance of the final report, request that it be referred for investigation regarding its compliance with the professional and quality management standards and these regulations if the firm makes the request within thirty days of the expiry of any period of time set for compliance with any condition. 18. Referrals for investigation 18. (1) The Institute may refer a matter for investigation if, based on the information obtained during a quality assurance review in relation to a public practice firm, it considers that \u2014 Regulation 18 Accountants (Quality Assurance) Regulations (2024 Revision) (a) there is an immediate threat to the quality of the firm\u2019s assurance engagements; (b) the quality of the firm\u2019s assurance engagements has been impaired; (c) the firm has not complied with conditions and this presents a threat to the quality of its assurance engagements; or (d) the conditions imposed on the firm or which may be imposed on it under regulation 17 are not adequate to forestall a threat to the quality of its assurance engagements. (2) If the Institute decides to refer a public practice firm for investigation under paragraph (1), it shall provide notice to the firm of the proposed referral specifying one or more of the grounds for the referral. (3) Within ten business days of receiving a notice under paragraph (2), the public practice firm may, in writing \u2014 (a) admit to one or more of the grounds for referral in paragraph (1); or (b) notify the Institute that the firm wishes to make representations to the Institute pursuant to an investigation. (4) After considering any admission, notification or representation from the public practice firm submitted according to paragraph (3), the Institute may \u2014 (a) withdraw the referral for investigation and may impose conditions under regulation 17; (b) amend the grounds for referral for investigation; or (c) proceed with the referral for investigation, and the Institute shall notify the public practice firm of its decision. Publication in consolidated and revised form authorised by the Cabinet this 30th day of January, 2024. Kim Bullings Clerk of the Cabinet Accountants (Quality Assurance) Regulations (2024 Revision) ENDNOTES ENDNOTES Table of Legislation History: SL # Act\/Law # Legislation Commencement Gazette 8\/2023 Accountants (Quality Assurance) (Amendment) Regulations, 31-Jan2023 LG8\/2023\/s4 56\/2020 Citation of Acts of Parliament Act, 2020 3-Dec-2020 LG89\/2020\/s1 Accountants (Quality Assurance) Regulations (2020 Revision) 9-Jan-2020 LG4\/2020\/s2 37\/2019 Accountants (Quality Assurance) (Amendment) Regulations, 1-Oct-2019 LG35\/2019\/s1 64\/2016 30-Nov-2019 GE95\/2016\/s5 ENDNOTES Accountants (Quality Assurance) Regulations (2024 Revision) Accountants (Quality Assurance) Regulations (2024 Revision) ENDNOTES ENDNOTES Accountants (Quality Assurance) Regulations (2024 Revision) (Price: $4.00)\", \"element\": \"section\", \"heading\": null}], \"meta\": {\"notes\": null, \"workflow\": null, \"lifecycle\": {\"source\": \"#cilegis\", \"eventRef\": [{\"eId\": \"e_commence_2024_01_01\", \"date\": 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\"\/akn\/ky\/act\/sl\/2016\/64\/eng@2024-01-01.xml\", \"FRBRauthor\": [{\"as\": \"#editor\", \"href\": \"\/akn\/ontology\/canary\/organization\/editor\/cilegis\"}], \"FRBRformat\": \"application\/xml\"}}}, \"name\": \"act\", \"header\": {\"title\": \"Accountants (Quality Assurance) Regulations\", \"actNumber\": \"64 of 2016\", \"longTitle\": null}}, \"doc\": null, \"bill\": null, \"judgment\": null}}","akn_full_text":"CAYMAN ISLANDS\n\nAccountants Act\n(2024 Revision)\n\nACCOUNTANTS (QUALITY ASSURANCE)\nREGULATIONS\n(2024 Revision)\n\nSupplement No. 3 published with Legislation Gazette No. 4 dated 1st February, 2024.\n\nPage 2\nRevised as at 31st December, 2019\nc\n\nPUBLISHING DETAILS\nRevised under the authority of the Law Revision Act (2020 Revision).\n\nThe Accountants (Quality Assurance) Regulations, 2016 made 23rd November, 2016 as\namended by the Citation of Acts of Parliament Act, 2020 [Act 56 of 2020].\n\nConsolidated with \u2014\nAccountants (Quality Assurance) (Amendment) Regulations, 2019 made 20th\nSeptember, 2019\nAccountants (Quality Assurance) (Amendment) Regulations, 2023 made 31st\nJanuary, 2023.\n\nConsolidated and revised this 31st day of December, 2023.\n\nNote (not forming part of these regulations): This revision replaces the 2020 revision\nwhich should now be discarded.\n\nAccountants (Quality Assurance) Regulations (2024 Revision)\nArrangement of Regulations\n\nc\nRevised as at 31st December, 2023\nPage 3\n\nCAYMAN ISLANDS\n\nAccountants Act\n(2024 Revision)\nACCOUNTANTS (QUALITY ASSURANCE)\nREGULATIONS\n(2024 Revision)\nArrangement of Regulations\nRegulation\nPage\n1.\nCitation ......................................................................................................................................5\n2.\nDefinitions ..................................................................................................................................5\n3.\nQuality assurance reviews of public practice firms .....................................................................7\n4.\nObjection to appointment of quality assurance review team .......................................................7\n5.\nProfessional standards and conduct of assurance work .............................................................8\n6.\nQuality management standards .................................................................................................8\n7.\nEthical standards .......................................................................................................................9\n8.\nQuality assurance review process..............................................................................................9\n9.\nAppointment of the quality assurance review team ....................................................................9\n10.\nConfidentiality .......................................................................................................................... 10\n11.\nReview methodology ............................................................................................................... 10\n12.\nDuty to cooperate in quality assurance reviews ....................................................................... 12\n13.\nFailure to cooperate ................................................................................................................. 12\n14.\nReporting ................................................................................................................................. 12\n15.\nQuality assurance review report ............................................................................................... 13\n16.\nFees ........................................................................................................................................ 14\n17.\nImposing conditions ................................................................................................................. 14\n18.\nReferrals for investigation ........................................................................................................ 15\nENDNOTES\n17\nTable of Legislation History: .............................................................................................................. 17\n\nAccountants (Quality Assurance) Regulations (2024 Revision)\nRegulation 1\n\nc\nRevised as at 31st December, 2023\nPage 5\n\nCAYMAN ISLANDS\n\nAccountants Act\n(2024 Revision)\nACCOUNTANTS (QUALITY ASSURANCE)\nREGULATIONS\n\n1.\nCitation\n1.\nThese regulations may be cited as the Accountants (Quality Assurance) Regulations\n(2024 Revision).\n2.\nDefinitions\n2.\nIn these regulations \u2014\n\u201cassurance engagement\u201d means an agreement with a client to provide\nassurance services;\n\u201cassurance service\u201d means audit or review services or any engagement for\nwhich a licence to engage in public practice is required under the principalAct;\n\u201cassurance report\u201d means a document prepared following an audit or\nreview that \u2014\n(a)\nexpresses the opinion of a public practice firm, whether expressed in the\nname of the firm or the name of the practitioner member on behalf of the\nfirm, regarding the financial statements; or\n(b) asserts that no opinion on the financial statements can be expressed;\n\u201cassurance working papers\u201d means the record of assurance procedures\nperformed, relevant evidence obtained and conclusions the practitioner member\nreached in providing assurance services;\n\nRegulation 2\nAccountants (Quality Assurance) Regulations (2024 Revision)\n\nPage 6\nRevised as at 31st December, 2023\nc\n\n\u201caudit\u201d means planning and performing procedures and evaluating evidence for\nthe purpose of obtaining reasonable assurance about whether the financial\nstatements are free from material misstatement, whether due to fraud or error,\nand expressing an opinion on whether the financial statements are presented\nfairly, in all material respects, in accordance with an applicable financial\nreporting framework;\n\u201cauditing standards\u201d means the auditing standards referred to in an assurance\nreport and includes any related, relevant quality management standards\napplicable to such auditing standards;\n\u201cbusiness day\u201d means any day except Saturday, Sunday or a day that is a public\ngeneral holiday;\n\u201cclient\u201d means a person by whom a public practice firm or practitioner member\nis engaged to provide assurance services;\n\u201cdesignated professional\u201d means a person who performs work pursuant to an\nassurance engagement, including any partner, officer, director, employee,\nsubcontractor or consultant;\n\u201cdocument\u201d means any physical embodiment of information and includes\nwritten documents, electronic or computerized data compilations and any disc,\ntape, film or other device in which sound, visual images or other data is\nembodied;\n\u201cfindings\u201d, in relation to a quality assurance review, has the meaning assigned\nin regulation 14(3);\n\u201cInstitute\u201d means the Cayman Islands Institute of Professional Accountants\ncontinued under section 3 of the principalAct;\n\u201cinvestigation\u201d means an investigation conducted pursuant to the Accountants\n(Disciplinary) Regulations (2024 Revision);\n\u201cmanaging partner\u201d means the senior person in charge of a public practice\nfirm\u2019s overall practice, management and day-to-day operations;\n\u201cpractitioner member\u201d means a regular member who has been granted a\nlicence pursuant to section 11 or 12 of the principalAct;\n\u201cprincipalAct\u201d means the Accountants Act (2024 Revision);\n\u201cprofessional standards\u201d means the standards referred to in regulations 5 and\n6 and includes relevant auditing standards, other assurance standards that may\nbe issued by an entity referred to in those regulations and any related quality\nmanagement standards;\n\u201cpublic practice firm\u201d means a firm of public accountants and includes a\nregistered firm and a person registered as a relevant sole practitioner under\nsection 38 of the principal Act;\n\u201cpublic practice firm oversight body\u201d means the Auditors Oversight\nAuthority established under the Auditors Oversight Act (2020 Revision) or an\n\nAccountants (Quality Assurance) Regulations (2024 Revision)\nRegulation 3\n\nc\nRevised as at 31st December, 2023\nPage 7\n\noverseas professional accounting institute responsible for the regulation and\noversight of audit quality;\n\u201cquality assurance review\u201d means a review performed by the Institute pursuant\nto regulation 8 including the matters referred to in regulation 11;\n\u201cquality assurance review team\u201d means the persons appointed by the Institute\npursuant to regulation 9 to perform the quality assurance review; and\n\u201creview service\u201d means inquiries of clients or client personnel and analytical\nprocedures applied to financial data in order to provide limited assurance on\nfinancial statements.\n3.\nQuality assurance reviews of public practice firms\n3.\n(1) A public practice firm shall be subject to a quality assurance review at least once\nin every six calendar-year period, the first of which periods shall begin with the\nyear in which the firm becomes a public practice firm.\n(2) The Institute may subject a public practice firm to a shorter period for a quality\nassurance review if it determines a shorter period to be appropriate.\n(3) Repealed by regulation 2(b) of the Accountants (Quality Assurance)\n(Amendment) Regulations, 2019 [SL 37 of 2019].\n(4) The Institute shall give a public practice firm notice in writing of the date of the\nfirm\u2019s quality assurance review and of the names of members of the quality\nassurance review team at least 120 days prior to the commencement of the\nreview.\n(5) Within ten business days of receipt of a notice pursuant to paragraph (4), a\npublic practice firm shall provide to the Institute any information requested by\nit, including the names of clients and the professional standards used in the\nassurance engagement for each client.\n4.\nObjection to appointment of quality assurance review team\n4.\n(1) Within ten business days of receipt of a notice pursuant to regulation 3(4), a\npublic practice firm may file an objection in writing to the Institute, including\nan explanation and evidence for the objection, on the grounds that one or more\nof the members of the quality assurance review team may be lacking objectivity.\n(2) The Institute shall consider any objection filed under paragraph (1), and may\nremove one or more members of the review team if satisfied that there is a\nreasonable basis for the objection.\n(3) The Institute shall notify the public practice firm of the names of any new\nmember appointed to the review team following the removal of a member\npursuant to paragraph (2).\n\nRegulation 5\nAccountants (Quality Assurance) Regulations (2024 Revision)\n\nPage 8\nRevised as at 31st December, 2023\nc\n\n(4) Within ten business days of receiving a notice under paragraph (3), the public\npractice firm may file an objection in writing in accordance with paragraph (2),\nin relation to the appointment of a new member.\n(5) The Institute shall consider an objection under paragraph (4) in accordance with\nparagraph (2), but no further notice requirement shall apply.\n5.\nProfessional standards and conduct of assurance work\n5.\n(1) A public practice firm, a practitioner member and any designated professional\nproviding assurance services shall comply with \u2014\n(a)\nthe professional standards referred to in the public practice firm\u2019s\nassurance report;\n(b) any related quality management standards; and\n(c)\nany procedures established by the public practice firm.\n(2) An assurance engagement provided by a person or firm referred to in paragraph\n(1) shall be conducted in accordance with standards issued by \u2014\n(a)\nthe International Auditing and Assurance Standards Board; or\n(b) the Generally Accepted Auditing Standards promulgated by the Auditing\nStandards Board, a division of the American Institute of Certified Public\nAccountants,\nor with any standards assessed as equivalent to those standards by the Institute\nor the International Auditing and Assurance Standards Board.\n(3) Where a public practice firm uses professional standards expressed in a\nlanguage other than English, the firm shall provide translations of the standards\nused, approved by the International Federation of Accountants.\n6.\nQuality management standards\n6.\n(1) A public practice firm shall comply with the International Standards on Quality\nManagement issued by the International Auditing and Assurance Standards\nBoard.\n(2)  A public practice firm shall prepare documentation that is \u2014\n(a)  sufficient to provide evidence of compliance with the standards required\nunder paragraph (1); and\n(b)  sufficient to enable the Institute to understand the nature, timing and extent\nof the public practice firm\u2019s procedures performed.\n(3)  A public practice firm shall retain documentation required under paragraph (2)\nfor not less than five years.\n(4)  A public practice firm shall provide the documentation required under\nparagraph (1) as agreed with the Institute prior to the commencement of a\nquality assurance review of the public practice firm.\n\nAccountants (Quality Assurance) Regulations (2024 Revision)\nRegulation 7\n\nc\nRevised as at 31st December, 2023\nPage 9\n\n7.\nEthical standards\n7.\nA public practice firm, practitioner member and designated professional providing\nassurance services shall comply with the standards established by the Institute, the\nInternational Ethics Standards Board for Accountants Code of Ethics and any\noverseas professional accountancy institute to which that member belongs.\n8.\nQuality assurance review process\n8.\n(1) The Institute shall conduct a quality assurance review in order to assess a public\npractice firm\u2019s compliance with these regulations and with professional\nstandards and related quality management standards in connection with the\nissuance of assurance reports.\n(2) In performing a quality assurance review, the quality assurance review team\nshall perform such procedures as the Institute determines are appropriate.\n(3) Subject to paragraph (4), the Institute may include in its quality assurance\nreview consideration of any matters requested to be included by a public\npractice firm oversight body within or outside the Islands, if the Institute deems\nthose matters appropriate.\n(4) Before including any additional matters referred to in paragraph (3) in the\nquality assurance review, the Institute shall first \u2014\n(a)\nnotify the public practice firm in writing that it intends to include\nthem; and\n(b) obtain the public practice firm\u2019s consent in writing.\n9.\nAppointment of the quality assurance review team\n9.\n(1) In selecting and approving a quality assurance review team, the Institute shall\nensure that persons appointed to the team have the necessary competencies to\nconduct quality assurance reviews, including \u2014\n(a)\nappropriate professional education;\n(b) relevant professional experience; and\n(c)\ntraining on performing quality assurance reviews.\n(2) The Institute shall also take account of the following competencies and areas of\nexpertise \u2014\n(a)\nunderstanding professional standards and regulatory and legal\nrequirements;\n(b) understanding the procedures established pursuant to regulation 8(2);\n(c)\nunderstanding of and practical experience in assurance engagements and\nquality assurance reviews;\n(d) appropriate technical knowledge, including knowledge of relevant\ninformation technology;\n\nRegulation 10\nAccountants (Quality Assurance) Regulations (2024 Revision)\n\nPage 10\nRevised as at 31st December, 2023\nc\n\n(e)\nknowledge of specific industries;\n(f)\nability to apply professional judgment; and\n(g)  understanding of, and experience relevant to, engagements of a similar\nnature and complexity.\n(3) The Institute shall assign a quality assurance review team leader for each quality\nassurance review, who shall \u2014\n(a)\nsupervise the conduct of the quality assurance review;\n(b) communicate the quality assurance review team\u2019s conclusions to the\npublic practice firm; and\n(c)\nbe responsible for preparing the quality assurance review report.\n(4) In selecting the members of the review team and in conducting a quality\nassurance review, the Institute and the quality assurance review team shall\ncomply with the objectivity principles of the International Ethics Standards\nBoard for Accountants Code of Ethics.\n10.\nConfidentiality\n10. (1) Neither the Institute nor any person acting on behalf of the Institute shall make\nuse of or disclose to any person, other than persons working for the Institute or\nacting on its behalf \u2014\n(a)\nthe contents of a final assurance report, draft assurance report or assurance\nworking paper; or\n(b) any files, books, documents, other materials or other information, classed\nas confidential or otherwise concerning the affairs of any public practice\nfirm or its clients,\nif the information was obtained in the course of a quality assurance review, or\npursuant to the granting of an approval under regulation 15(5).\n(2) Notwithstanding paragraph (1), the Institute or person acting on its behalf may\nmake any disclosure permitted or required by law, including a disclosure under\nsection 33 of the Accountants Act (2024 Revision) to a relevant person, as\ndefined in that section.\n11.\nReview methodology\n11. (1) A quality assurance review, in relation to a public practice firm, shall include \u2014\n(a)\nan assessment of the firm\u2019s system of quality management relating to\nassurance services;\n(b) repealed by regulation 7(a) of the Accountants (Quality Assurance)\n(Amendment) Regulations, 2023 (SL 8 of 2023);\n(c)\nrepealed by regulation 7(a) of the Accountants (Quality Assurance)\n(Amendment) Regulations, 2023 (SL 8 of 2023);\n\nAccountants (Quality Assurance) Regulations (2024 Revision)\nRegulation 11\n\nc\nRevised as at 31st December, 2023\nPage 11\n\n(d) a review of assurance working papers to evaluate \u2014\n(i)\nthe significant judgments made and the conclusions reached in the\ncontext of professional standards; and\n(ii) compliance with professional standards and regulatory and legal\nrequirements; and\n(e)\nan assessment of the firm\u2019s compliance with accounting and auditing\nframeworks, to the extent that such standards are used in the engagements\nincluded in the scope of the review.\n(2) The Institute shall determine the scope of a quality assurance review and may\nexclude from the review a review of assurance working papers if\nsatisfied that \u2014\n(a)\nno assurance services have been provided during the period under review;\nand\n(b) the reduction in scope would not adversely affect the quality of any future\nassurance engagement.\n(3) The Institute may, in determining the scope of the quality assurance review,\ndecide to rely on quality assurance reviews carried out by another public\npractice firm oversight body if \u2014\n(a)\nthe reviews include the same or a subset of clients, practitioner members\nand designated professionals as the Institute\u2019s quality assurance review\nwould have included;\n(b) the public practice firm oversight body is at least equivalent to the Institute\nin terms of authority and powers with respect to quality assurance\nregulation and discipline; and\n(c)\nthe report of the quality assurance review carried out by the public practice\nfirm oversight body is provided to the Institute and is substantially\nequivalent in detail, as determined by the Institute, to a final quality\nassurance report issued by the Institute pursuant to regulation 14.\n(4) The Institute shall select the engagement files of the public practice firm to be\nreviewed having regard to \u2014\n(a)\nthe degree of reliance, if any, to be placed on the firm\u2019s system of quality\nmanagement relating to assurance services;\n(b) the number of clients by whom the firm is engaged; and\n(c)\nthe number and competence of practitioner members and designated\nprofessionals engaged by the firm to provide assurance services.\n\nRegulation 12\nAccountants (Quality Assurance) Regulations (2024 Revision)\n\nPage 12\nRevised as at 31st December, 2023\nc\n\n12.\nDuty to cooperate in quality assurance reviews\n12. (1) A public practice firm shall cooperate with the Institute in the performance of a\nquality assurance review and shall also require the following persons in the firm\nto cooperate \u2014\n(a)\npractitioner members;\n(b) partners and directors or others in equivalent position whether engaged in\npublic practice or not; and\n(c)\ndesignated professionals.\n(2) For the purposes of paragraph (1), cooperation includes complying with any\nrequest made by the Institute, except where such cooperation would result in a\nbreach of the Accountants Act (2024 Revision) or regulations made thereunder,\nto \u2014\n(a)\nprovide access to any document that according to the relevant professional\nstandards should be in the possession, custody or control of the firm or\nperson referred to in paragraph (1); and\n(b) provide information by oral interview, written response or otherwise.\n13.\nFailure to cooperate\n13. (1) The Institute may subject a public practice firm that contravenes regulation 12\nto an additional quality assurance review if \u2014\n(a)\nthe contravention prevented the Institute from completing a quality\nassurance review as scheduled in accordance with regulation 3;\n(b) the Institute determines that the non-compliance is due to circumstances\nbeyond the control of the public practice firm; and\n(b) the scheduling of an additional review is necessary in order to meet the\nrequirements of regulation 3.\n(2) A firm subjected to an additional quality assurance review under this regulation\nis liable to indemnify the Institute for costs incurred in order to conduct the\nadditional review.\n14.\nReporting\n14. (1) After completing a quality assurance review, the Institute shall make the draft\nreport of the review available to the public practice firm that is the subject of the\nreview, including \u2014\n(a)\nany findings with respect to the public practice firm\u2019s system of quality\nmanagement, or any specific assurance engagements reviewed;\n(b) any conditions imposed to improve the public practice firm\u2019s system of\nquality management relating to assurance services, pursuant to regulation\n17; and\n\nAccountants (Quality Assurance) Regulations (2024 Revision)\nRegulation 15\n\nc\nRevised as at 31st December, 2023\nPage 13\n\n(c)\nan explanation of the potential consequences of not complying with the\nconditions imposed, including the Institute\u2019s intention to refer any incident\nof non-compliance for investigation, if applicable.\n(2) The public practice firm shall, within fifteen business days after receipt of the\ndraft quality assurance review report, or such longer period as the Institute may\nrequire, submit to the Institute a response, signed on behalf of the public practice\nfirm by a person able to bind the firm, to each finding and condition, confirming\nthe firm\u2019s intention to comply, or giving its reasons for not intending to comply.\n(3) For the purposes of this regulation, \u201cfindings\u201d include \u2014\n(a)\nan act or practice, or omission to act, in violation of these regulations or\nprofessional standards that may have an adverse effect on the provision of\nassurance services;\n(b) an act or practice, or omission to act, in violation of the public practice\nfirm\u2019s procedures that may have an adverse effect on the provision of\nassurance services;\n(c)\na failure to supervise a designated professional appropriately, resulting in\nthe commission of an act or an omission to act by the designated\nprofessional in violation of these regulations or professional standards that\nmay have an adverse effect on the provision of assurance services;\n(d) a failure to comply with a request made by the Institute, where such\ncompliance is necessary to conduct a quality assurance review;\n(e)\na failure to comply with any applicable condition imposed by the Institute\nat the time of registration or as a result of a previous quality assurance\nreview; and\n(f)\na failure to cooperate with the Institute as required under regulation 12.\n15.\nQuality assurance review report\n15. (1) After reviewing the response sent by the public practice firm in accordance with\nregulation 14(2), the Institute may take such action with respect to the draft\nquality assurance review report as it considers appropriate, including \u2014\n(a)\nadopting the draft report as the final report; or\n(b) issuing a revised draft report containing substantial or material revisions\nto the original draft report.\n(2) If the Institute issues a revised draft quality assurance review report, it shall give\nthe public practice firm ten business days to review and respond in writing to\nthe revised draft report.\n(3) The Institute shall attach to and make part of the final quality assurance review\nreport the responses submitted by the public practice firm to the initial or any\nrevised draft report, respecting issues that remain in the final report.\n\nRegulation 16\nAccountants (Quality Assurance) Regulations (2024 Revision)\n\nPage 14\nRevised as at 31st December, 2023\nc\n\n(4) The Institute shall issue the final quality assurance review report and make a\ncopy available to the public practice firm that is the subject of the report.\n(5) A public practice firm may not provide a copy of the report or any portion of it\nto any third party without the consent of the Institute; and for the purposes of\nthis paragraph, a third party does not include other firms in the public practice\nfirm\u2019s network of member firms.\n(6) The Institute may not provide a copy of a quality assurance review report to any\nthird party without the consent of the public practice firm that is the subject of\nthe report.\n(7) The Institute shall annually publish and make available to the public a report\ndetailing the scope of the quality assurance review system, the number of public\npractice firms visited during the year and whether (and how many) public\npractice firms were referred for investigation as a result of a quality assurance\nreview.\n16.\nFees\n16. (1) The Institute may charge a public practice firm a fee to cover the Institute\u2019s costs\nin carrying out a quality assurance review, and may bill the firm in instalments\nas the work is carried out.\n(2) The Institute may charge interest at the rate of 12% per annum on any balance\nthat is unpaid within 21 days of the date of issue of an invoice for a fee under\nsubsection (1).\n17.\nImposing conditions\n17. (1) The Institute may impose conditions on a public practice firm to address any\nfindings in a quality assurance review respecting a violation or failure, taking\ninto consideration the objective of ensuring quality in assurance engagements\nand the degree of culpability of the public practice firm, practitioner member or\nmanaging partner.\n(2) Conditions that may be imposed under this regulation include \u2014\n(a)\nrepealed by regulation 9(a) of the Accountants (Quality Assurance)\n(Amendment) Regulations, 2023 (SL 8 of 2023);\n(b) requiring additional continuing professional development for some or all\npractitioner members and designated professionals;\n(c)\nrequiring additional quality assurance reviews;\n(d) prescribing a shorter quality assurance review cycle for a public\npractice firm;\n(e)\nrestrictions on the type of assurance services a public practice firm can\nprovide or the types of clients to which the firm can provide assurance\nservices;\n\nAccountants (Quality Assurance) Regulations (2024 Revision)\nRegulation 18\n\nc\nRevised as at 31st December, 2023\nPage 15\n\n(f)\nappropriate actions to respond to identified deficiencies of the system of\nquality management such that they are remediated on a timely basis;\n(g) assignment of a reviewer to oversee the work of one or more practitioner\nmembers or designated professionals of the public practice firm;\n(h) appointment of a person independent of the public practice firm to observe\nand report to the Institute on the firm\u2019s compliance with the principalAct,\nthe regulations made under it and professional standards;\n(i)\nrequiring the public practice firm to address specific quality-related\nmatters on one or more assurance engagements, and to do so prior to the\nissuance of the assurance report on such engagements, if necessary;\n(j)\nprohibiting the public practice firm from accepting new clients for a\nspecified period of time;\n(k) prohibiting the public practice firm from assigning one or more\npractitioner members or designated professionals to assurance\nengagements for a specified period of time or permanently; and\n(l)\nmonetary assessments intended to indemnify the Institute for costs arising\nfrom imposing conditions (c), (d) or (h).\n(3) A public practice firm shall submit evidence or otherwise demonstrate to the\nInstitute that it has complied with any condition imposed under this regulation\nwithin the period of time prescribed by the Institute following the issuance of\nthe final quality assurance review report.\n(4) After reviewing any evidence submitted pursuant to paragraph (3), the Institute\nshall notify the public practice firm of its determination as to whether the public\npractice firm has complied with the conditions imposed under this regulation or\nhas otherwise satisfactorily addressed the findings noted in the final quality\nassurance review report and shall give reasons for that determination.\n(5) If the Institute determines that the public practice firm has not complied with\nany condition or otherwise addressed the findings to its satisfaction, or has failed\nto make a submission to the Institute as required by paragraph (3), the Institute\nshall refer the public practice firm for investigation.\n(6) A public practice firm may, following the issuance of the final report, request\nthat it be referred for investigation regarding its compliance with the\nprofessional and quality management standards and these regulations if the firm\nmakes the request within thirty days of the expiry of any period of time set for\ncompliance with any condition.\n18.\nReferrals for investigation\n18. (1) The Institute may refer a matter for investigation if, based on the information\nobtained during a quality assurance review in relation to a public practice firm,\nit considers that \u2014\n\nRegulation 18\nAccountants (Quality Assurance) Regulations (2024 Revision)\n\nPage 16\nRevised as at 31st December, 2023\nc\n\n(a)\nthere is an immediate threat to the quality of the firm\u2019s assurance\nengagements;\n(b) the quality of the firm\u2019s assurance engagements has been impaired;\n(c)\nthe firm has not complied with conditions and this presents a threat to the\nquality of its assurance engagements; or\n(d) the conditions imposed on the firm or which may be imposed on it under\nregulation 17 are not adequate to forestall a threat to the quality of its\nassurance engagements.\n(2) If the Institute decides to refer a public practice firm for investigation under\nparagraph (1), it shall provide notice to the firm of the proposed referral\nspecifying one or more of the grounds for the referral.\n(3) Within ten business days of receiving a notice under paragraph (2), the public\npractice firm may, in writing \u2014\n(a)\nadmit to one or more of the grounds for referral in paragraph (1); or\n(b) notify the Institute that the firm wishes to make representations to the\nInstitute pursuant to an investigation.\n(4) After considering any admission, notification or representation from the public\npractice firm submitted according to paragraph (3), the Institute may \u2014\n(a)\nwithdraw the referral for investigation and may impose conditions under\nregulation 17;\n(b) amend the grounds for referral for investigation; or\n(c)\nproceed with the referral for investigation,\nand the Institute shall notify the public practice firm of its decision.\nPublication in consolidated and revised form authorised by the Cabinet this 30th\nday of January, 2024.\nKim Bullings\nClerk of the Cabinet\n\nAccountants (Quality Assurance) Regulations (2024 Revision)\n\nENDNOTES\n\nc\nRevised as at 31st December, 2023\nPage 17\n\nENDNOTES\nTable of Legislation History:\nSL #\nAct\/Law #\nLegislation\nCommencement\nGazette\n8\/2023\n\nAccountants (Quality Assurance) (Amendment) Regulations,\n2023\n31-Jan2023\nLG8\/2023\/s4\n\n56\/2020\nCitation of Acts of Parliament Act, 2020\n3-Dec-2020 LG89\/2020\/s1\n\nAccountants (Quality Assurance) Regulations (2020 Revision)\n9-Jan-2020\nLG4\/2020\/s2\n37\/2019\nAccountants (Quality Assurance) (Amendment) Regulations,\n2019\n1-Oct-2019 LG35\/2019\/s1\n64\/2016\nAccountants (Quality Assurance) Regulations, 2016\n30-Nov-2019 GE95\/2016\/s5\n\nENDNOTES\nAccountants (Quality Assurance) Regulations (2024 Revision)\n\nPage 18\nRevised as at 31st December, 2023\nc\n\nAccountants (Quality Assurance) Regulations (2024 Revision)\n\nENDNOTES\n\nc\nRevised as at 31st December, 2023\nPage 19\n\nENDNOTES\nAccountants (Quality Assurance) Regulations (2024 Revision)\n\nPage 20\nRevised as at 31st December, 2023\nc\n\n(Price: $4.00)","akn_extracted_at":"2026-06-22 15:38:04.704627+00","cms_id":"2016-0064","law_type":"subordinate","year":"2016","number":"64","title":"Accountants (Quality Assurance) Regulations","status":"in_force"},"provenance":{"files":[{"file_id":"5583","expr_id":"550","kind":"akn_xml","filename":"2016-0064_2024 Revision .akn.xml","source_url":null,"storage_path":"\/Users\/q\/kyleg-data\/working\/SUBORDINATE\/2016\/2016-0064\/2016-0064_2024 Revision .akn.xml","content_md5":"3f102390bfc08496c5a2e6e758f7f0ca","byte_size":"33337","http_last_modified":null,"fetched_at":"2026-06-22 15:38:04.878103+00"},{"file_id":"1099","expr_id":"550","kind":"pristine_pdf","filename":"2016-0064_2024 Revision .pdf","source_url":"\/cms\/images\/LEGISLATION\/SUBORDINATE\/2016\/2016-0064\/2016-0064_2024 Revision .pdf","storage_path":"\/Users\/q\/kyleg-data\/pristine\/SUBORDINATE\/2016\/2016-0064\/2016-0064_2024 Revision .pdf","content_md5":"f630a8851aa576fb3336825601cf1cfd","byte_size":"916363","http_last_modified":null,"fetched_at":"2026-06-21 23:09:33.600921+00"},{"file_id":"1100","expr_id":"550","kind":"working_pdf","filename":"2016-0064_2024 Revision .pdf","source_url":"\/cms\/images\/LEGISLATION\/SUBORDINATE\/2016\/2016-0064\/2016-0064_2024 Revision .pdf","storage_path":"\/Users\/q\/kyleg-data\/working\/SUBORDINATE\/2016\/2016-0064\/2016-0064_2024 Revision .pdf","content_md5":"f630a8851aa576fb3336825601cf1cfd","byte_size":"916363","http_last_modified":null,"fetched_at":"2026-06-21 23:09:33.600921+00"}],"paragraph_count":10,"latest_history":null},"quality":{"expr_id":"550","doc_id":"550","quality_state":"needs_review","quality_score":"84","needs_human_review":"t","deterministic_categories":"{duplicate_text,page_header_footer_noise}","llm_categories":"{truncated_text,other}","repair_actions":"{collapse_duplicate_text,manual_review,reextract_full_text,strip_page_furniture}","finding_severity_counts":"{\"low\": 1, \"medium\": 1}","finding_summary":"Sample shows likely truncation of a definition and stray pricing footnote; 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