Institute of Certified Management Accountants of Sri Lanka

Only members of the Institute of Chartered Accountants of Sri Lanka (CA Sri Lanka) are authorized to conduct statutory audits in Sri Lanka. Although CMA Sri Lanka is not responsible for establishing a quality assurance (QA) review system, the institute supports the adoption and implementation of a QA system that is aligned with SMO 1 through dialogue with those responsible—CA Sri Lanka and the Sri Lanka Accounting and Auditing Standards Monitoring Board. As of 2017, a Board member of CMA Sri Lanka has been appointed to the Quality Assurance Board of CA Sri Lanka.

CMA Sri Lanka members who hold the Chartered Accountant designation and perform audits are subject to the quality control requirements stipulated by CA Sri Lanka. CMA Sri Lanka indicates that it supports it members via the publication of technical materials on quality assurance mechanisms in its CMA Journal. CMA Sri Lanka also provides ongoing support with the implementation of ISA 220 and ISQC 1 for its members benefit.

Current Status: Sustain

CMA Sri Lanka is responsible for establishing initial professional development (IPD) and continuing professional development (CPD) requirements for its students and members and for ensuring that its overall education and training is in line with the IES. Since 2011, CMA Sri Lanka indicates that it has continuously reviewed its requirements to ensure they meet those of the international standards. The institute reports that in 2016 it carried out a comprehensive revision of its syllabus against relevant requirements of the revised IES to align with the new international requirements. The new syllabus was launched in January 2017, and CMA Sri Lanka reports that its IPD and CPD program is aligned with the revised IES.

In 2013, CMA Sri Lanka’s CPD Compliance Committee completed a review of IES 7 to identify gaps and to make recommendations for improvement. Subsequently, an online CPD recording system was introduced in 2015 to track member’s fulfillment of CPD requirements. CMA Sri Lanka raises awareness of the importance of CPD and informs members of sanctions for non-compliance. For CPD, the institute offers a wide range of seminars and training for its members, including web-based modules. CMA Sri Lanka indicates it has updated the subjects in its CPD program to include the newly adopted auditing standards, topics on integrated reporting, and management accounting.

With effect from March 2018, CMA Sri Lanka is partnering with Pearson VUE to conduct its exams online. As its curriculum and syllabus have been updated to incorporate the revised IES, CMA Sri Lanka has been offering seminars to its external tuition providers and lecturers on the updates.

CMA Sri Lanka intends to build connections with other accountancy bodies regarding the recognition of the CMA qualification and where exemptions granted may be granted and reciprocated. In addition, the institute continues to assess the suitability of training providers and to increase the number of training partners to enable candidates to meet practical experience requirements. CMA Sri Lanka reports that there is an ongoing program to inform training organizations and members about all new requirements. CMA Sri Lanka reports that arrangements are being made with the Chartered Institute of Certified Public Accountants (CIPFA) where CMA students and members can obtain a qualification in public-sector accounting by sitting for certain subjects within the CIPFA curriculum.

Finally, CMA Sri Lanka indicates that it participates in the international standard-setting process by forwarding comments on IAESB-issued exposure drafts.

Current Status: Sustain

Under the Sri Lanka Accounting and Auditing Standards Act No. 15 of 1995, the Institute of Chartered Accountants of Sri Lanka (CA Sri Lanka) is responsible for setting auditing standards to be applied in Sri Lanka and only its members may conduct statutory audits. CA Sri Lanka has adopted the 2016 version of the ISA as SLAuS with modifications due to national requirements. CMA Sri Lanka reports that it uses its best endeavors to encourage and support CA Sri Lanka’s efforts to adopt the ISA and assists CA Sri Lanka in the translation process.

While CMA Sri Lanka members are not eligible to undertake audit and assurance services of specified business enterprises’, there are a large number of its members who provide support services to practicing auditors. To support these members, the institute provides access to the standards as well as pronouncements and other technical resources issued by the IAASB through the CMA Sri Lanka website with appropriate approvals. In addition, CMA Sri Lanka raises its members and students’ knowledge and understanding of the SLAuS and standard-related topics by providing continuing professional development courses and other pre- and post-qualification learning opportunities.

Current Status: Sustain

CMA Sri Lanka is responsible for establishing ethical requirements for its members. As of February 2018, CMA Sri Lanka reports that it has adopted the 2012 IESBA Code of Ethics, which is made available on its website, and a review of the 2016 Code of Ethics is being undertaken with a view to adopt by May 2018.

CMA Sri Lanka reports that its revised syllabus and curriculum incorporates the Code of Ethics. In addition, the institute organizes seminars and workshops on ethical requirements. CMA Sri Lanka disseminates the Code of Ethics as well as revisions and proposed amendments via circulars, emails, and CMA Sri Lanka’s CMA Journal. CMA Sri Lanka also publishes case studies and other educational material on ethics and related topics in the Members’ Section of the website. Once the 2016 Code has been adopted, CMA Sri Lanka has plans to provide training and updates to its members on the changes.

The institute further assists members’ compliance with CMA Code of Ethics through the establishment of a committee comprised of Senior Fellow members of CMA Sri Lanka which serves to provide advice to members confronted with serious ethical conflict dilemmas. In 2016, CMA Sri Lanka reported it had planned to develop and circulate a set of ethical conflict resolution guidelines to assist members to better resolve ethical conflicts; however, this activity has been delayed until August 2018.

CMA Sri Lanka reports it participates in the international standard-setting process by reviewing and responding to exposure drafts issued by IESBA.

In the next update of its SMO Action Plan, CMA Sri Lanka is encouraged to ensure once the new Code has been adopted, that it incorporates the new requirements into its educational program.

Current Status: Execute

CMA Sri Lanka has no responsibility in adopting public sector accounting standards in Sri Lanka, which are the Sri Lanka Public Sector Accounting Standards (SLPSAS) jointly adopted by the Institute of Chartered Accountants of Sri Lanka (CA Sri Lanka) and the Ministry of Finance and Planning. It also notes that it does not participate in the standard-setting function for this area and for this reason, reports that its influence on the adoption of public sector accounting standards is limited.

Nonetheless, CMA Sri Lanka has stated its commitment to adoption of IPSAS and formally indicated its position in written communications to the Ministry of Finance and the Auditor General. In its communications, the institute offered its support and requested an appointment of a CMA Sri Lanka member to the Public Sector Accounting Standards Committee. CMA Sri Lanka reports that it is still awaiting a reply on this request.

The institute supports implementation of the adopted standards by providing access to both IPSAS and the SLPSAS along with other technical resources on its website with the consent of the owners of copyrighted material. It also updates its members and students on the latest developments in public sector accounting via the web, e-circulars, and the CMA Journal.

In addition, CMA Sri Lanka has been collaborating with the Public Sector Wing of CA Sri Lanka to conduct seminars on the importance of adopting Public Sector Accounting Standards and has updated the Certified Management Accountant (CMA) curriculum to include a section on public sector accounting standards in its new syllabus. CMA Sri Lanka reports that arrangements are being made with the Chartered Institute of Certified Public Accountants (CIPFA) where CMA students and members can obtain a qualification in public-sector accounting by sitting for certain subjects within the CIPFA curriculum.

CMA Sri Lanka participates in the international standard-setting process by reviewing and responding to exposure drafts issued by the IPSASB.

Current Status: Sustain

CMA Sri Lanka is responsible for establishing an investigative and disciplinary (I&D) system for its members. As of February 2018, CMA Sri Lanka reports that upon making revisions towards the Rules and Regulations for its members in 2015, its I&D system incorporates the SMO 6 requirements. CMA Sri Lanka’s I&D mechanism includes a Disciplinary Appeal Board, which implements procedures to allow members to appeal decisions and sanctions.

The institute has adopted a proactive, information and complaints-based approach. In addition to receiving complaints, the institute also established procedures to collect information from newspapers and other sources on misconduct by members. The institute also publishes the complaint procedures on its website for the public. Its members are kept informed on updates to ethical requirements, new disciplinary rules and procedures, and sanctions for non-compliance as the institute indicates it regularly disseminates information on these topics.

Current Status: Sustain

The Institute of Chartered Accountants of Sri Lanka is legally responsible for setting corporate accounting standards in Sri Lanka, which are the Sri Lankan Financial Reporting Standards (SLFRS) that reflect the 2017 International Financial Reporting Standards (IFRS) with modifications.

CMA Sri Lanka supports the implementation of SLFRS through a range of activities. It established a Professional Technical Standards Committee to oversee matters related to financial reporting and auditing standards. It formally offers support to the standard-setting and the public oversight bodies via requests to serve on their governing boards. With respect to participation in international standard-setting, CMA Sri Lanka states that it assembles a working group to prepare comments on new exposure drafts, which upon approval of the Professional Technical Standards Committee and its Council is are forwarded to the IASB.

In order to enhance the implementation of SLFRS, CMA Sri Lanka assists members and students by providing access to financial reporting standards, related pronouncements and technical resources via its website; compiling and disseminating briefing notes on selected financial reporting standards; producing a regular column on technical updates in the institute’s CMA Journal; covering IFRS in its initial professional development and continuing professional development (CPD) offerings; organizing a seminar series on financial reporting standards for small and medium-sized enterprises (SMEs) to members, students, and other interested stakeholders; and providing training, via CPD activities, on SLFRS and training for SMEs on the SLFRS.

Current Status: Sustain