Institute of Chartered Accountants of Scotland

The Financial Reporting Council and the four Recognised Supervisory Bodies in the United Kingdom, ACCA, CAI, ICAEW, and ICAS, share responsibility for the quality assurance review system governing statutory audits in accordance with the Companies Act 2006 and the Statutory Auditors and Third Country Auditors Regulations 2016 (SI 2016/649). These bodies operate monitoring systems designed to ensure that audit firms comply with applicable auditing and ethical standards and are subject to oversight by the Financial Reporting Council.

The Financial Reporting Council carries out quality assurance reviews of audits of major public interest entities through its Audit Quality Review team. Recognised Supervisory Bodies, including ICAS, are responsible for monitoring audit firms that perform other statutory audits. As part of the regulatory oversight framework, ICAS provides the Financial Reporting Council with regulatory plans and monitoring reports outlining the outcomes of its regulatory and quality assurance activities.

ICAS operates a monitoring program for registered audit firms to assess compliance with auditing standards, ethical requirements, and regulatory obligations. The institute maintains policies and procedures governing its quality assurance review process and periodically reviews these arrangements to ensure continued alignment with SMO 1 requirements and regulatory expectations.

ICAS supports the quality assurance framework by providing training to staff involved in monitoring activities to ensure they remain informed of developments in auditing standards, regulatory requirements, and professional ethics. The institute also maintains systems for collecting regulatory information from firms, including electronic annual returns, which support its monitoring and supervisory activities.

To assist members and regulated firms in complying with professional requirements, ICAS provides technical resources, guidance, and professional communications on audit and assurance matters. The institute also contributes to discussions on audit policy and regulatory developments through participation in consultations and engagement with relevant stakeholders.

Current Status: Sustain

Recognised Qualifying Bodies deliver the initial and continuing professional education requirements for statutory auditors in the United Kingdom. The Financial Reporting Council maintains oversight of these arrangements and has cooperation agreements with the principal professional accountancy bodies in the jurisdiction, including ACCA, the Chartered Institute of Management Accountants, the Chartered Institute of Public Finance and Accountancy, ICAEW, CAI, and ICAS, as well as the Association of International Accountants, in relation to oversight of initial professional development and continuing professional development requirements for professional accountants.

Several professional accountancy organizations in the jurisdiction, including ACCA, CAI, ICAEW, ICAS, CIPFA, AAT, the Chartered Institute of Management Accountants, and the Institute of Financial Accountants, indicate that their professional qualification programs align with the International Education Standards issued by the International Accounting Education Standards Board.

ICAS delivers its Chartered Accountant qualification through a structured program that combines academic study, professional examinations, and practical work experience. The institute is responsible for developing and maintaining the qualification syllabus, preparing educational materials, and administering examinations. ICAS periodically reviews and updates its education and training arrangements to ensure that they reflect developments in professional practice and international education standards.

The institute also engages in benchmarking and collaboration with other professional accountancy organizations to ensure that its qualification framework continues to reflect the knowledge, skills, and professional values expected of newly qualified accountants.

Continuing professional development is mandatory for ICAS members and is designed to ensure that members maintain and enhance their professional competence throughout their careers. ICAS provides a range of learning resources, training programs, and online courses to support members in meeting CPD requirements and maintaining professional competence.

Through these arrangements, ICAS supports the implementation of international education standards and promotes high-quality professional education and training for its members.

Current Status: Sustain

The Financial Reporting Council is responsible for issuing auditing standards in the United Kingdom in accordance with the Companies Act 2006 and the Statutory Auditors and Third Country Auditors Regulations 2016. All statutory audits must be conducted in accordance with International Standards on Auditing (UK) issued by the Financial Reporting Council. ISAs (UK) are based on the International Standards on Auditing issued by the International Auditing and Assurance Standards Board, with certain additions reflecting UK company law and regulatory requirements.

Although ICAS does not have direct responsibility for the adoption of auditing standards in the United Kingdom, it supports the adoption and implementation of international auditing standards through a range of professional activities. ICAS maintains technical committees and professional staff dedicated to audit and assurance matters that contribute to the institute’s responses to consultations and support members in understanding developments in auditing standards.

ICAS promotes the adoption and implementation of standards issued by the IAASB by disseminating information on new and revised standards and related guidance through its professional communications, website, and publications. The institute provides implementation support through technical guidance, training programs, webinars, podcasts, and other learning resources designed to assist members in applying auditing standards in practice.

The institute also engages in international standard-setting processes by communicating IAASB exposure drafts and consultation documents to members and submitting responses to consultations. Through these activities, ICAS contributes to the development and implementation of high-quality auditing and assurance standards.

Current Status: Sustain

In accordance with their charters and by-laws, professional accountancy organizations in the United Kingdom are authorized to establish ethical requirements for their members. Professional accountancy organizations in the jurisdiction indicate that their ethical frameworks are aligned with the International Code of Ethics for Professional Accountants issued by the International Ethics Standards Board for Accountants and that they maintain ongoing processes to review and incorporate revisions to the Code where they are not in conflict with national laws and regulations.

ICAS has adopted a Code of Ethics based on the International Code of Ethics issued by the International Ethics Standards Board for Accountants. The institute maintains processes to ensure that its ethical framework remains aligned with developments in international ethical standards and continues to address SMO 4 requirements.

ICAS supports the implementation of ethical requirements by providing information, guidance, training, and other professional resources to its members. Updates are communicated through newsletters, technical publications, and online resources, and ethical principles are incorporated into the institute’s professional qualification syllabus.

The institute also promotes awareness and application of ethical principles in practice through case studies, guidance materials, webinars, and professional events addressing ethical challenges faced by accountants. Members have access to support mechanisms, including an ethics helpline service that provides confidential advice on ethical dilemmas.

ICAS contributes to the international standard-setting process by participating in consultations on ethical standards, including exposure drafts issued by the International Ethics Standards Board for Accountants and consultations issued by the Financial Reporting Council. Through these activities, ICAS gathers feedback from its membership and contributes to the development of ethical standards for the profession.

Current Status: Sustain

HM Treasury is responsible for establishing accounting policies and standards for the preparation of central government financial statements in the United Kingdom. For local government, the Chartered Institute of Public Finance and Accountancy and the Local Authority Scotland Accounts Advisory Committee work together through the CIPFA/LASAAC Local Authority Code Board to develop the Code of Practice on Local Authority Accounting in the United Kingdom. The Code of Practice is based on UK-adopted IFRS and draws on International Public Sector Accounting Standards and other relevant financial reporting guidance.

Although ICAS does not have direct responsibility for the adoption or implementation of International Public Sector Accounting Standards in the United Kingdom, the institute supports the development and promotion of high-quality public sector financial reporting. ICAS contributes to the work of the International Public Sector Accounting Standards Board through participation in consultations and by providing technical input on developments in public sector reporting.

ICAS maintains professional groups and policy teams that monitor developments in public sector accounting and coordinate the institute’s responses to IPSASB consultations. These groups consider national and international developments in public financial reporting and their implications for different public sector entities.

The institute raises awareness of IPSAS developments among its members through professional publications, technical updates, and other communications. Information on developments in public sector accounting standards is disseminated through ICAS publications and professional communications to support members in understanding developments in public sector financial reporting.

Through these activities, ICAS promotes awareness of IPSAS and contributes to discussions on the development and implementation of high-quality public sector accounting standards.

Current Status: Sustain

In accordance with their charters and by-laws, professional accountancy organizations in the United Kingdom are authorized to establish systems of investigation and discipline for their members in cases of noncompliance with applicable professional standards and ethical requirements. Professional accountancy organizations in the jurisdiction, including ACCA, the Chartered Institute of Management Accountants, the Chartered Institute of Public Finance and Accountancy, and the Institute of Financial Accountants, report that they operate investigation and disciplinary systems that align with the requirements of SMO 6.

ICAS maintains an investigation and disciplinary framework for its members to address complaints, allegations of misconduct, and breaches of professional standards. The institute periodically reviews its disciplinary arrangements to ensure that they remain effective and aligned with regulatory expectations and SMO 6 requirements.

ICAS participates in the Financial Reporting Council’s Accountancy Scheme, an independent disciplinary framework for the UK accountancy profession. Under this scheme, cases involving significant public interest considerations may be referred to the Financial Reporting Council for independent investigation and prosecution.

ICAS’s disciplinary framework includes an Investigation Committee responsible for reviewing cases of alleged misconduct. The committee includes lay representation to support the public interest and promote independence and transparency in the disciplinary process. ICAS also operates procedures for reviewing cases that are closed without referral to the Investigation Committee to ensure that decisions are consistent with principles of fairness and accountability.

Information on ICAS’s investigation and disciplinary procedures, including investigation regulations, disciplinary tribunal procedures, and appeals processes, is publicly available on the institute’s website. ICAS also publishes disciplinary outcomes and notices to promote transparency and maintain public confidence in the profession.

ICAS undertakes activities to monitor and improve the effectiveness of its disciplinary processes, including reviewing feedback and considering stakeholder perspectives to enhance understanding and awareness of the investigation and discipline framework.

Current Status: Sustain

The Financial Reporting Council is responsible for issuing accounting standards in the United Kingdom in accordance with the Companies Act 2006. IFRS as adopted for use in the United Kingdom are required for the consolidated financial statements of companies whose securities are admitted to trading on a regulated market. Other entities apply UK accounting standards issued by the Financial Reporting Council, including Financial Reporting Standards developed for entities of different sizes and reporting requirements.

Although ICAS does not have direct responsibility for the adoption of International Financial Reporting Standards in the United Kingdom, the institute supports the development and implementation of high-quality financial reporting standards. ICAS engages with government and regulatory bodies on developments related to financial reporting and contributes to discussions on mechanisms for the adoption and endorsement of IFRS in the United Kingdom.

ICAS promotes awareness and implementation of IFRS by providing training programs, technical guidance, and professional resources for its members and the wider finance community. The institute disseminates information on new and revised standards, exposure drafts, and discussion papers issued by the International Accounting Standards Board through its professional communications and website.

ICAS also contributes to the international standard-setting process through technical panels and professional groups that review IASB consultations and coordinate responses on behalf of the institute. Through these activities, ICAS supports the adoption and effective implementation of international financial reporting standards.

Current Status: Sustain