Licensing Procedures
Licensing of Auditors Procedures
1.0 Status of Procedures
These procedures are constrained by the requirements of the Financial Reporting Act 2004, the Licensing of Auditors Charter and the Policies adopted by the FRC in respect of licensing of Auditors. They are not intended to be all encompassing and highlight particular issues only. In case of any inconsistency, the abovementioned documents prevail. These procedures may be amended by the FRC and the FRC CEO.
2.0 General Basis for Procedures
The FRC is expected to ensure issues related to auditing practices in Mauritius are communicated fully, in particular to professional accountants and public interest entities and other regulators. The FRC will seek input from affected stakeholder groups when developing the licensing of auditors procedures, which will require explanatory information, forms, consideration of and timing of communications to and from the FRC with the applicants, the audit firms and with the MIPA.
3.0 Information
As part of the licensing of auditors process, the FRC need to determine and assess the capacity of the applicant to perform the audit functions which deals with education, practical experience and to be a fit and proper person. Furthermore, it may be necessary for the FRC to seek confirmation of personal data, qualifications, work experience, periods of employment and/or references with the MIPA, the Accountancy body with which the applicant qualify, offices / firms and referees named in the application as well as further information concerning experience in audit work, audit procedures and relevant CPD undertaken/planned.
As a minimum, the following shall be required.
3.1 General Information
General information sheet for application to be Licensed Auditor
General information sheet for application for Approval of a Firm Name
General information sheet for Transition Applicants
Audit Licence eligibility information (Audit qualification)
General information sheet for application for Approval of a Firm Name
General information sheet for Transition Applicants
Audit Licence eligibility information (Audit qualification)
3.2 Applicant Information – Licencee
Information required for initial application to be a licensed auditor
Form for initial application
Form for Renewal
Define where original documents are required
Clarify what documents need to be certified and by whom
Form for Renewal
Define where original documents are required
Clarify what documents need to be certified and by whom
Technical issues relating to the issue of a licence, requiring details
- Explanation of applicant’s role in forming an audit opinion;
- Identification of complex issues the applicant has dealt with;
- Explanation how applicant meets any required competency standard
- Example of how applicant has demonstrated competency (information / log book)
- Applicant’s non-statutory audit experience.
Information linked to the successful application – re continued obligations
3.3 Applicant Information – Transition Licencee
Form/s for application during transition period
Form to gather information on firm practice management and the licensed auditors’ practices to achieve audit quality and independence
Information linked to the successful application – re continued obligations
Transition provisions expiry date – (20 January 2007)
Form to gather information on firm practice management and the licensed auditors’ practices to achieve audit quality and independence
Information linked to the successful application – re continued obligations
Transition provisions expiry date – (20 January 2007)
3.4 Applicant Information – Approval of Audit Firm Name
Define where original documents are required
Clarify what documents need to be certified and by whom
Information required for application for approval of Firm Name
Form for application for approval of firm name
Form for changing or updating information
Process for checking firm names
Registration of foreign firms
Information linked to the successful application
Clarify what documents need to be certified and by whom
Information required for application for approval of Firm Name
Form for application for approval of firm name
Form for changing or updating information
Process for checking firm names
Registration of foreign firms
Information linked to the successful application
4.0 Who may not be a Licensed Auditor
As detailed in the FRC policies relating to licensing of auditors, where the Council refuses to issue a licence to an applicant under section 33 or 35, it shall, by notice in writing, inform the applicant of its refusal as soon as practicable. The FRC will give reasons for the refusal of a licence.
The circumstances that will lead to a refusal of a licence include:
- Conviction of an offence involving dishonesty or fraud;
- Removal from a trust role;
- Incapacity by mental illness;
- Disciplinary action taken against the applicant.
4.1 Conviction of an offence involving dishonesty or fraud;
4.2 Removal from a trust role
4.3 Incapacity by mental illness;
4.4 Disciplinary action taken against the applicant
5.0 Lodgements, Notifications and Provision of Information
5.1 Definition of ‘lodged’
5.2 Lodging the annual statement
5.3 Definition of ‘notification’
5.4 Notifying FRC about contraventions under the Act
5.5 Co-operation with the FRC and its Panels regarding provision of information and assisting investigations and inspections.
6.0 Resignations, Cessations, Cancellations of Licence, Refusal to Grant a Licence, Reinstatements
6.1 Notifications timing and process to FRC for resignation of a licensed auditor, cessation of audit firm name, and /or cancellation / suspension of a licence
6.2 Removal from register timing and publication (as soon as possible)
6.3 Refusal procedure, notification, appeal process (if possible)
6.4 Establish reinstatement criteria and process according to initial new application process
7.0 Form Matters and Definitions
7.1 Explanation of what is ‘correct and complete’
7.2 Explanation of what is required from a referee (eg can the referee verify all the competences required and in what form and time frame (3 months)
7.3 Explanation of what is considered adequate practical experience
7.4 Explanation of what is considered continuing professional development
7.5 Explanation of what is adequate professional indemnity insurance
7.6 Explanation of “Fit and Proper”
7.7 Explanation of “Responsible person”
7.2 Explanation of what is required from a referee (eg can the referee verify all the competences required and in what form and time frame (3 months)
7.3 Explanation of what is considered adequate practical experience
7.4 Explanation of what is considered continuing professional development
7.5 Explanation of what is adequate professional indemnity insurance
7.6 Explanation of “Fit and Proper”
7.7 Explanation of “Responsible person”
8.0 Disciplinary Matters
8.1 Consideration for cancellation or suspension of a licence
8.2 Complaints procedures
9.0 Other Matters
9.1 FRC acceptance of externally developed competency standards
9.2 FRC Process Matters
What the FRC will do with the information and in what time frame
Notification if more information is required
Protocols for treatment of proprietary information
Process for review overseas applications
Process for handling matters referred to FRC by other regulators
Time and response to request for registration and licence
Notification if more information is required
Protocols for treatment of proprietary information
Process for review overseas applications
Process for handling matters referred to FRC by other regulators
Time and response to request for registration and licence
9.3 Register Procedures
Process for keeping the register current – incorporating additions, resignations and removals, especially changes due to removal of practising certificate, actions impairing the ‘fit and proper’ status and / or inability to meet the specified requirements of the FRC or its delegated authority.
Determine what information will be made public on the Register such as Auditor or Firm QA procedures; those under investigation or sanction; latest review general results; audit client history.
Online access for checking register
Register will be kept and open for public scrutiny
Determine what information will be made public on the Register such as Auditor or Firm QA procedures; those under investigation or sanction; latest review general results; audit client history.
Online access for checking register
Register will be kept and open for public scrutiny
9.4 Relationships
Reporting from APMP
Relations with the MIPA
Relations with the FSC
Relations with the ROC
Relations with the BOM
Relations with the SEM
Relations with the IASB
Relations with IFAC / IAASB
Relations with the MIPA
Relations with the FSC
Relations with the ROC
Relations with the BOM
Relations with the SEM
Relations with the IASB
Relations with IFAC / IAASB
9.5 Fees
Fee schedule and fee approval process
Fees for online application and renewal (hard copy to be sent)
Fees for hard copy application and renewal
Billing and payment procedures
Fees for online application and renewal (hard copy to be sent)
Fees for hard copy application and renewal
Billing and payment procedures
9.6 Warrants and legal position of FRC re information
Explain legal position if information in information sheets is not accurate.