Institute of Chartered Accountants of the Maldives

Under the Maldives Chartered Accountants Act of 2020 and the Regulation for Statutory Audit and Assurance Services in the Maldives (2021), the Institute of Chartered Accountants of the Maldives (CA Maldives) is responsible for establishing and conducting the quality assurance review function. The Audit and Licensing Committee (ALC) of CA Maldives is tasked with this function.

As of 2024, CA Maldives reports that its Quality Assurance Review (QAR) framework has been developed following the SMO 1 benchmark but is not yet operational. Plans are in place to operationalize the QAR. The relevant standards—ISQM 1, 2, and ISA 220 (revised)—are also adopted.

Prior to the establishment of CA Maldives, the Auditor General’s office was conducting reviews of licensed audit engagements and firm-led audit work. With the establishment of CA Maldives and revisions to regulations giving CA Maldives the mandate to regulate the profession, CA Maldives is continuing the work of reviews outside the Auditor General’s remit.

CA Maldives has plans reach out to other PAOs to organize awareness raising events to learn about the operations around quality assurance and how it can be effectively implemented in the Maldives. These institutes include ICAI India, ICAP Pakistan, Malaysian Institute of Certified Public Accountants (MICPA), and ICAB Bangladesh. In addition, the institute has plans to raise awareness among statutory auditors to ensure they understand the objectives of the QAR and the importance of effectively maintaining and implementing an appropriate quality management system.

CA Maldives also has begun the implementation of its QA project in mid-2024 that will support training to relevant staff on QA processes and support implementation via training on the procedures to auditors. CA Maldives has recruited staff to support this workstream and a Quality Assurance Manual has been drafted. CA Maldives management is also in the process of putting together a team to focus on QA reviews. Overall, CPD training around quality management (and previously quality control) is offered on an annual basis to its members.

Overall, it is recommended that CA Maldives focuses on its education programming. CA Maldives is to provide an update on its plans to learn from other jurisdictions and the status of these conversations.

Current Status: Execute

Under the Maldives Chartered Accountants Act of 2020, CA Maldives is responsible for establishing IPD and CPD requirements. The Act provides CA Maldives as the body responsible for establishing entry requirements into the profession. A national professional accountancy program and qualification does not yet exist and professional accountants in the jurisdiction are already qualified and hold membership with specific foreign institutions that are members of IFAC. These institutions include ACCA, CIMA, CPA Australia, CAANZ, AICPA, CA Sri Lanka, ICAI India, ICAEW, and CIPFA. The CA Maldives Membership Regulation R-121 of 2020 establishes the criteria for membership, rights and obligations of members, and the procedure for membership application, rejection, and removal of members.

Membership with CA Maldives is awarded to members in good standing of an IFAC member body recognized by the institute. New member applications are assessed on a case-by-case basis for compliance with the current membership criteria of PAOs that adopt the IES. By utilizing this approach, this allows CA Maldives to ensure that the competency of its members aligns with those of other IFAC members.

As CA Maldives completed its application for IFAC membership, the institute completed IFAC’s Accountancy Education Self-Assessment and reports ongoing progress to align with the IES. CA Maldives reports that the government has established a policy and plans to localize the accountancy profession and the IES will be referenced in any further progress to this initiative. This will include plans to establish a local qualification program and set their own practical training experience requirements. CA Maldives reports that it will be working with the Ministry of Higher Education and Labor and Skills Development on this initiative. Part of this initiative includes already ongoing and future discussions with universities to ensure that local accountancy programs consider the principles of the IES in their revision and development. Engagement with the local universities and input into local curriculum is supported by the local government. CA Maldives is working to develop a competency framework to localize the accountancy profession, which is expected to be implemented under the supervision of the first elected council. The expected timeline for the implementation of the framework is by 2025.

CA Maldives does not have a formal agreement with PAOs for the recognition of qualifications or joint educational programs. However, it has an Mou with ICAI India to offer courses and training for CA Maldives members. CA Maldives in collaboration with the Ministry of Higher Education, Labor, and Skills Development, currently offer an ongoing scholarship program supporting students to obtain qualifications with the Association of Chartered Certified Accountants (ACCA) and the Chartered Institute of Management Accountants (CIMA). Additionally, CA Maldives has also collaborated with the Ministry of Economic Development to offer a scholarship program supporting students in achieving the qualifications of AAT, ACCA, and CIMA.

CA Maldives offers over 30 plus CPD hours of its own training and events annually for its members. CA Maldives also shares updates and pronouncements by the various international standard-setting boards and other institutions with its members to keep them informed of developments.

CA Maldives is to provide an update on its journey to localize the accountancy profession: what steps have been taken and what have been the key learnings from this journey.

CA Maldives is encouraged to consider developing agreements with other PAOs to formalize the recognition of qualifications and to explore other opportunities such as joint-educational programming or other resources.

Current Status: Execute

Under the Maldives Chartered Accountants Act of 2020, CA Maldives is responsible for establishing auditing standards in the Maldives. As of 2024, the latest ISA are adopted.

CA Maldives offers training CPD and technical events to support implementation. These are events focused on audit quality and understanding the ISA. CA Maldives also reports that it has developed training courses and guides to support members around understanding the ISA.

CA Maldives publishes quarterly updates for its members on the standards. CA Maldives publishes quarterly updates to disseminate information from the standard-setting boards to its members and CA Maldives participates in the international standard-setting process by providing feedback and responding to the IAASB.

CA Maldives plans to further implementation support with the development of a discussion forum on the institute’s website to allow members to raise queries and discuss audit-related matters.

CA Maldives reports that during the following periods, published guidance were developed for members:

• Q3 - July - September 2022 updates
• Q4 - October - December 2022 updates
• Q1 - January - March 2023 updates
• Q2 - April - June 2023 updates
• Guidelines for Auditors of Electoral Candidates

Current Status: Sustain

Under the Maldives Chartered Accountants Act of 2020, the Institute of Chartered Accountants of the Maldives is responsible for adopting ethical requirements. CA Maldives adopts the International Code of Ethics for Professional Accountants as issued by IESBA.

CA Maldives offers CPD training and technical events focused on ethics and disseminates relevant updates and information to its members via quarterly newsletters and updates on its website. CA Maldives reports that it provides feedback and responds to IESBA Exposure Drafts.

Current Status: Sustain

Under the Public Finance Act of 2006, the Ministry of Finance is responsible for setting public sector accounting standards in the Maldives. Currently, the government of Maldives has adopted cash-basis IPSAS and is undertaking a four-year project to move to accrual-basis IPSAS. The first set of financial reporting on accrual accounting is targeted to be completed by 2025.

Under the Chartered Accountants Act, CA Maldives is given the mandate to provide technical assistance to authorities that are responsible for establishing public sector accounting standards. CA Maldives also conducts training on various accounting and auditing standards including new and amended standards. Trainings are targeted to wider industry including preparers and practitioners. To support the transition to accrual accounting, i updates on the IPSAS are shared by CA Maldives and the institute also responds and provides feedback to IPSASB Exposure Drafts.

CA Maldives is to continue engaging and encouraging the Ministry of Finance in its effort to move to accrual accounting.

Current Status: Sustain

The Maldives Chartered Accountants Act of 2020 provides the Institute of Chartered Accountants of the Maldives (CA Maldives) with the responsibility to establish an investigation and disciplinary (I&D) system for professional accountants in the Maldives. The Council, Ethics Committee, Appeals Committee, and the management team of CA Maldives is responsible for managing this system, which CA Maldives reports is fully compliant with SMO 6 requirements.

An I&D system in the Maldives has been operational for two years and has reviewed two cases since its inception. Staff assessment of the system is that it partially aligns with SMO 6 requirements and gaps exist due to the maturity of the system. Since its establishment, CA Maldives has been drafting regulation and related guidance on Complaint Handling and Conducting Investigations, and a Rules of Procedure of the Ethics Committee. It is expected that the draft guidance will be published in 2024 and will subsequently provide training.

SMO 6 requires the following:

As it relates to having a separate investigation committee and a disciplinary tribunal. In CA Maldives case, the independent disciplinary tribunal carries out the hearings related to the case and passes judgements on the cases. Representation from the investigation committee in the form of a lawyer or senior staff of CA Maldives managing the investigation processes acts as prosecution in disciplinary tribunal hearings. The disciplinary tribunal is expected to have a permanent legally qualified person or legal advisor during disciplinary proceedings. Legal advisors are also required for the tribunal to advice on evidential, procedural, and other matters such as burden and standard of proof necessary to support the conclusions of the investigation committee.

The CA Maldives Ethics Committee conducts the investigations and proposes actions to be taken to the Council. As CA Maldives does not have a disciplinary tribunal, the CA Maldives Council is currently tasked with undertaking the role of the disciplinary tribunal. Hearings will be heard by the Council. Procedures for conducting hearings by the Council has not been developed. CA Maldives reports that this will be solved once draft regulation for complaint handling and conducting investigations is issued.

Regarding awareness activities, CA Maldives plans to conduct awareness sessions once regulations and related guidance are published. CA Maldives plans to conduct sessions focusing on the IESBA Code with the support of an independent expert. The training will include CA Maldives complaint handling and investigation procedures from its Ethics Committee.

CA Maldives is to provide an update on the drafting of guidance for the I&D system. Once these guidance and procedures are published, CA Maldives is to update IFAC on plans for awareness raising and training for its members.

Current Status: Execute

The Maldives Chartered Accountants Act of 2020 establishes CA Maldives with the responsibility to adopt accounting standards in the Maldives. As of 2024, the latest IFRS and IFRS for SMEs are adopted in the Maldives.

CA Maldives offers CPD training and events to support implementation. It publishes quarterly newsletter on technical standards and indicates participation regarding IASB exposure drafts.

Current Status: Sustain