Emirates Association for Accountants & Auditors (EAAA)

The Emirates Association of Accountants and Auditors (EAAA) has no direct responsibility pertaining to audit quality assurance (QA) reviews. EAAA reports to (i) monitor and review developments related to best practices in QA review processes; (ii) provide the SMO 1 checklist to entities responsible for QA reviews to support alignment; (iii) meet with regulators regularly to promote alignment with SMO 1 requirements at the jurisdiction level; (iv) disseminate updates on new and revised standards issued by IAASB; and (v) provide technical support.

Since 2020, EAAA has been meeting with the Ministry of Economy (MoE), Central Bank, Dubai Financial Services Authority (DFSA), and Securities and Commodities Authority (SCA), to operationalize a UAE-wide QA review system by March 31, 2025. A National Committee of Quality Assurance with representation from each of the relevant authorities will be established to streamline audit oversight and QA requirements.

EAAA also continues to work with international professional accountancy organizations (PAOs) operating in the UAE for knowledge-sharing purposes, and to coordinate efforts towards implementation of ISQM and ISA 220 (revised). To support its members with implementation, EAAA provides its members with continuing professional development courses that highlight the importance of the quality assurance in ensuring audit quality and maintaining public trust in the profession. The programs include the requirements of the ISQM 1 & 2 and relevant ISAs. In 2024, it plans to organize a workshop targeting ISQM implementation using IFAC’s Quality Management implementation toolkit for SMPs.

EAAA is encouraged to continue engaging with the various regulators to support the establishment of a unified QA review system in line with SMO 1 requirements, particularly in areas where gaps were identified. EAAA is also encouraged to continue advocating for representation at the National Committee of Quality Assurance.

Current Status: Review & Improve

In the United Arab Emirates (UAE), EAAA shares responsibility for implementation of initial professional development (IPD) and continuing professional development (CPD) requirements with the Ministry of Economy (MoE).

MoE requires all licensed auditors to fulfill 30 hours of CPD annually, 12 of which should be administered by EAAA specifically on IFRS, ISA and law and tax. EAAA plans to incorporate IES 8 requirements into the CPD program to address the needs of members who are performing the role of Engagement Partners by end of Q1 2024. EAAA also reports that it is in the process of considering a new entry qualification through the development of an Accounting Technician level exam for junior-level accountants to widen the scope of its membership base.

EAAA offers its Working and Affiliate members a UAECA qualification which is an outcome of the Joint Examination Scheme (JES) agreement with ACCA and is reviewed annually to ensure continued alignment with the 2019 revised IES. EAAA is also in the process of assessing alignment of the existing professional education programs other than UAECA against 2019 revised IES together with universities, the Ministry of Education, and Ministry of Economy by end of Q1 2024.

EAAA maintains ongoing processes for reviewing international education developments, and since 2020, has been meeting regularly with the Ministry of Economy and other key stakeholders to encourage alignment with 2019 revised IES at the jurisdiction level.

EAAA should provide an update on the abovementioned plans that are expected to be completed by Q1 2024—namely assessment of alignment of professional education programs other than UAECA against 2019 revised IES; plans to incorporate IES 8 requirements into the CPD program; and plans to consider new entry Accounting Technician qualification. EAAA is also encouraged to completed the IES Checklist developed by IFAC which may be useful in progressing with the adoption of the revised requirements of the IES, especially IES 2, 3, 4 and 8 that are effective as of January 2021.

Current Status: Review & Improve

While ISA are adopted as issued by IAASB in the jurisdiction, a secondary resolution that specifically adopts ISQM 1, 2, and ISA 220 revised is currently pending approval.

In the meantime, EAAA focuses on supporting implementation of the standards and providing members with the most recently translated versions of the standards.

ISA (including ISQM 1, 2, and ISA 220) are included in EAAA’s educational programming, which is updated on a regular basis to reflect any revisions or updates in the international standards. EAAA also encourages education providers to incorporate ISA as issued by IAASB in their education material.

EAAA provides online resources and webcast recordings dedicated to audit and assurance topics to help members stay up to date on current audit and assurance trends, developments, and regulatory requirements. These resources include newsletters and technical articles published in EAAA’s Quarterly E-Magazine. Furthermore, EAAA states that it has an integrated continuing professional development program for audit practitioners that includes online, and in-house training and it affirms that its training is regularly enhanced to include material and content on new standards.

Lastly, EAAA reports to be in the process of reviewing ISA for Less Complex Entities (LCE) issued by IAASB to assess its applicability to the UAE context by end of Q1 of 2024.

EAAA is encouraged to report on the results of its evaluation of the applicability of ISAs for Less Complex Entities in the UAE. EAAA is also encouraged to participate in the standard-setting process by providing comments on IAASB consultations and Exposure Drafts.

Current Status: Sustain

With the IESBA Code of Ethics adopted by law, EAAA focuses on supporting implementation of the standards and providing members with the most recently translated versions of the standards available in Arabic (2021 Handbook).

EAAA reports that it incorporates the latest IESBA Code of Ethics into its examination scheme and syllabus and updates its continuing professional development program course offerings and training materials on an ongoing basis to include new and revised ethical requirements. By end of Q1 2024, EAAA plans to include a link to the 2023 IESBA Code of Ethics Handbook on its website in addition to publishing illustrative case studies and other ethics training material for members to access.

EAAA employs several awareness and training initiatives to support its members in understanding and applying the ethical requirements. This includes online and in-person trainings on ethics and governance; access to resources and tools, including an info-sheet on NOCLAR; and disseminating newsletters and technical articles.

EAAA reports to provide its members with IESBA’s exposure drafts for comment.

EAAA is encouraged to provide an update on including the link to the latest Code of Ethics handbook (2023) on its website, as well as illustrative case studies and other ethics training materials to support members with implementation.

Current Status: Sustain

EAAA is not authorized to set public sector accounting standards, but it has been proactive in this area despite this. The Ministry of Finance, in accordance with Federal Law No. 26 of 2019 on Public Finance Management, adopted accrual-basis IPSAS as issued by IPSASB for all public sector entities.

EAAA collaborates on an ongoing basis with other professional organizations in the region to exchange experiences related to implementation of IPSAS. It has also signed strategic partnerships with the Chartered Institute of Public Finance and Accountancy (CIPFA) and the Association of Chartered Certified Accountants (ACCA) to offer EAAA members CIPFA’s IPSAS Diploma and/or ACCA’s IPSAS certificate upon completing the training programs.

In 2024, it plans to conduct a train-the trainer event using IFAC’s Train the Trainers: Introduction to IPSAS resource to enhance the delivery of IPSAS training programs.

To support its members in the public sector, EAAA reports that it (i) incorporates IPSAS in its continuing professional development (CPD) program; (ii) disseminates the latest Arabic version of the IPSASB Handbook; (iii) publishes manuals that include topics addressed in training seminars; and (iv) publishes newsletters or announcements on its website to promote awareness and understanding of new and revised standards.

Lastly, EAAA encourages its members to participate in the international standard-setting process by submitting comments on Exposure Drafts issued by IPSASB.

Current Status: Sustain

There are multiple stakeholders involved in the investigation and disciplinary (I&D) processes of auditors in the United Arab Emirates (UAE) in accordance with various laws. Prior to 2023, EAAA had not yet operated an I&D system of its own for its members as it relied on the Association of Chartered Certified Accountants (ACCA) and other professional accountancy organizations operating in the jurisdiction. However, it has since gained greater regulatory authority in the jurisdiction with the passage of Ministerial Resolution No. 111-2 of 2022 which allowed for EAAA to establish Membership Investigation Committee Charter and Procedures in April 2023.

The Membership Investigation Committee is responsible for addressing the complaints against members for violations of EAAA Bylaws and other policies. The committee comprises members that are appointed by the Board for a three-year term. EAAA has the authority to investigate complaints, impose disciplinary measures, and report to the Board on outcomes of investigations. The sanctions that it may impose include warnings, public reprimands, suspension of membership or termination of membership.

EAAA reports to be in the process of executing plans by end of Q1 2024 to better support its members—namely (i) publishing new and enhanced Member Investigation Committee complaint and investigation procedures and guidance on how to lodge complaints on the EAAA website; and (ii) conducting awareness-raising sessions for members on processes.

EAAA also reports to be in the process of executing several plans by end of Q1 2024 to better align with SMO 6 requirements, including: (i) updating the Rulebook to accommodate EAAA’s Code of Ethics and Conduct; (ii) enhancing existing Member Investigation Committee Procedures by implementing control sheets, complaint forms, investigation checklists, conflict of interest declaration, establishment of clear timeframes for the investigation and disciplinary processes, and including a list of specific violations into the procedures; (iii) separate the investigative committee from the disciplinary committee; (iv) develop Terms of Reference for the Complaints and Investigation Committee members; (v) establish a formal communication channel with the Ministry of Economy to relay information pertaining to EAAA members that are undergoing I&D by the MoE; (v) incorporate a larger scope of ethics, integrity, professionalism and due care topics in the continuing professional development plan for 2024; and (vi) publish the results of the investigations and decisions.

In the meantime, EAAA continues to keep members informed of all provisions of the current I&D processes that are operational (Dubai Financial Services Authority (DFSA), Abu Dhabi Accountability Authority (ADAA), Security and Commodities Authority (SCA)), the ethics code, and other applicable professional standards along with the consequences of non-compliance through an appropriate communications plan, which includes the UAECA Program and other information sessions.

As a matter of priority, EAAA should provide an update on its abovementioned plans, particularly those that are expected to be completed by end of Q1 2024. When appropriate, EAAA may also consider plans to advocate for the establishment of a unified national system that can investigate and discipline all professional accountants (not just auditors) in line with SMO 6.

Current Status: Execute

The EAAA has no direct authority for adoption of IFRS in the United Arab Emirates (UAE), which are the adopted standards in the UAE and Financial Free Zones for all companies. EAAA focuses on promoting the implementation and understanding of the standards.

EAAA disseminates IFRS and IFRS for SMEs-related materials to universities to encourage its incorporation in the accounting curricula and signed a strategic partnership with ACCA to offer ACCA’s IFRS Diploma and/or certificate upon completing the applicable training programs. EAAA also offers its own Diploma in IFRS.

EAAA provides its members with resources, such as the 2022 Arabic translation of the IFRS Standards, tools and templates related to financial reporting in addition to offering in-person and online continuing professional development (CPD) training that covers financial reporting topics and the latest standards. EAAA also shares information on standard updates through its e-newsletter, magazine, technical articles, and email communications to further raise awareness. EAAA also advocates for and encourages the practice of integrated reporting.

As for supporting standard-setting processes, EAAA regularly seeks its members’ input on IASB Exposure Drafts.

Current Status: Sustain