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IS Chartered
Accountant
Journal of ISCA | September 2014
IS CHARTERED ACCOUNTANT
SEPTEM BER 20 14
SINGAPORE ACCOUNTANCY
CONVENTION 2014
Ethics Forum Accounting Conference Singapore
Integrated Reporting Auditing & Assurance Accountancy
Forum Conference Awards
www.factsoftware.sg
PRESIDENT’S MESSAGE
Commitment,
duty, passion
Serving with heart
Dear members,
August was a busy month for the nation, are noteworthy as they encourage us mentioned the expanding participation
the profession and the Institute. to pause and reflect – a deliberation numbers at our CPE courses, as well as
As a nation, we celebrated that is often the precursor of improved members who have stepped forward
Singapore’s 49th birthday, and honoured efficiency. This is because the process to offer their services to the Institute.
the people who have contributed to the is typically underlined by a passion or These are all examples of an informed
city-state with the National Day Awards. belief, which along with commitment, membership that is committed and
For the profession, the Singapore fuels the action to bring a mission or passionate, and takes responsibility not
Accountancy Convention 2014 project to fruition. only for its own development but also
brought together about 1,400 industry Modern Singapore is a prime for the advancement of the profession
luminaries, distinguished guests example of what passion and and industry.
and delegates while the Singapore commitment can do. The pioneer For members who were not at the
Accountancy Awards Dinner, which generation has laid the foundation for Singapore Accountancy Convention,
saw close to 700 guests, unveiled the a thriving, independent city-state, and we have a summary of the proceedings,
recipients of the inaugural Singapore as a nation, we are very grateful to our and the profiles of the Singapore
Accountancy Awards. The Singapore elders for their contributions. It is now Accountancy Awards recipients here.
Accountancy Awards commends our duty and commitment to ensure To further strengthen the
individuals and firms that embody that their golden years are enjoyed in capabilities of public accountants,
excellence, promote good practices and comfort and peace. In this respect, the ACRA has announced more stringent
strengthen the branding of the business government has established the pioneer registration requirements. From
and profession. generation package and announced 1 February 2015, applicants’ years of
Earlier in May, the People’s various initiatives. work experience must include specific
Association had also marked the efforts At his National Day Rally speech, audit management experience which
of grassroots organisations (GROs) Prime Minister Lee Hsien Loong also will be made mandatory. The details of
in promoting social cohesion and paid tribute to the pioneer generation. the upcoming changes, as well as other
community bonding among residents His speech centred on three broad information directly relevant to your
with the PA WeCARE Awards; many themes – creating opportunities work, are available in this issue.
of our members serve in these award- for Singaporeans to realise their As a national accountancy body,
winning GROs. potential, ensuring sufficiency during we are committed to improving the
Our heartiest congratulations to retirement, and making Singapore a standing and standard of the profession
the award-winning members whose home for everyone. In our ongoing locally and globally, serving our
good works have been recognised. And effort to provide members with useful members as an advocate and partnering
to the many more unsung heroes who information, we have produced a special them in their accountancy journey.
continue their unwavering service to bulletin featuring the key points of Similarly, as stakeholders, members play
the nation, profession and community PM Lee’s speech with this journal issue. a vital role in enriching the accounting
in various capacities, we are also proud Commitment, passion and service landscape. Together, we can work
of you. are closely associated with the towards establishing Singapore as a
Awards are visible citations of accounting profession – the Singapore vibrant business and accountancy hub.
achievement; they are also helpful Accountancy Convention 2014 was
in setting benchmarks and raising well attended while the Singapore Gerard Ee
standards. But beyond the celebratory Accountancy Awards attracted a strong FCA (Singapore)
events and public declarations, awards field of nominees. I had previously president@isca.org.sg
September 2014 1
CONTENTS
MERIT AWARD EXCELLENCE
FRONT COVER OF AWARD
THE YEAR (TRADE) BEST COVER
Sep 2014 DESIGN
APA
2014 2013
FOCUS
18 Singapore
Accountancy
Convention 2014
ISCA’s capstone event
18
brought together about 1,400
stakeholders and industry
luminaries to discuss
developments in the key
disciplines of accounting,
auditing, ethics and
integrated reporting
Singapore Accountancy Convention 2014
44 Celebrating
Excellence in
Accountancy IN TUNE
The inaugural Singapore
Accountancy Awards honoured
individuals and businesses 4 2014 National Day Awards
that epitomise excellence, 6 2014 PA WeCARE Awards
promote good practices, and 8 ACRA Raises Quality Bar for
strengthen branding of the Public Accountants
profession and industry 10 SIT Signs MOUs with Accounting
15
Industry Leaders
50 Honouring 11 Singapore has New Centre for
Members’ Excellence in Taxation
Contributions 12 ISCA Members Make Clean Sweep 14 ISCA Breakfast Talk: Strategy in Ethics
ISCA Awards 2014 recognised of Best CFO Award at Singapore 15 Gain Heaps on Tax with SIATP
members for having made major Corporate Awards 2014 16 New ISCA Members Receive
contributions to the Institute and 14 ISCA and CPA Australia Celebrate Rousing Welcome
accountancy profession 30 Years of Dinner Talk Series 17 ISCA Calendar of Events
2 IS Chartered Accountant
IS CHARTERED ACCOUNTANT
COUNCIL MEMBERS EDITORIAL TEAM
VIEWPOINT Advisor Teo Ser Luck
President Gerard Ee
Editor
Jennifer Toh
Vice President R. Dhinakaran Email: editor@isca.org.sg
Treasurer Ho Tuck Chuen Deputy Editor
Members Chan Hon Chew, Pauline Chee
Frankie Chia, Michael Chin, Assistant Editor
Ho Yew Kee, Paul Lee, Eugene Chan
Lee Shi Ruh, Lee Wai Fai, Members
Lim Kexin, Vincent Lim, Chan Sze Yee
Max Loh, Anthony Mallek, Kang Wai Geat
Ong Pang Thye, Sim Hwee Cher, Joelle Loy
Tam Chee Cheong, Betsy Tan
52
Tan Khoon Guan Joyce Tang
Anne Tay
PRINCIPAL OFFICERS
Chief Executive Officer PUBLISHER
Lee Fook Chiew Institute of Singapore
Chief Operating Officer Chartered Accountants
Goh Puay Cheh 60 Cecil Street, ISCA House,
52 Asia-Pacific Tax 59 The Strategic CFO
Executive Director Singapore 049709
(Corporate Services)
Complexity Survey 2014 The modern CFO is able to help Janet Tan
Executive Director
Tel: (65) 6749-8060
Fax: (65) 6749-8061
A Deloitte tax survey that looks at shape strategy, drive innovation, (Technical Knowledge Email: isca@isca.org.sg
trends and criteria that influence harness technology and create Centre & Quality Assurance) Website: www.isca.org.sg
Lim Ai Leen
investment decisions in Asia-Pacific value to support and sustain Executive Director
markets in the aftermath of the business over the long term (Policy & Strategic PUBLISHING & DESIGN CONSULTANT
Planning/Industry
global financial crisis Development)
Yee Cheok Hong
56 Government
Executive Director MCI(P) 190/05/2013
(Professional Accountants PPS 709/09/2012 (022807)
Schemes for SMEs in Business (PAIB)
Development)
ISSN 2010-1864
Tips on how SMEs can optimise Danielle Yew
available benefits in the ICV ADVERTISING
EDITORIAL ADVISORY PANEL VMI Media International
scheme, as well as explore the
59
Chairman Diana Teo
less popular categories in the PIC Gerard Ee Hp: 9389-5235
Deputy Chairman Email:
and PIC+ schemes Tan Hun Tong teodiana3333@yahoo.com.sg
Members
Cheng Nam Sang PRINTING COMPANY
TECHNICAL EXCELLENCE Ho Tuck Chuen
Keung Ching Tung Edmund
Times Printers Private Limited
Paul Lee
Luke Lim
62 Technical Highlights 68 Singapore IFRS
Convergence The views expressed in IS Chartered Accountant
64 IFRS 15 Revenue Singapore-incorporated journal do not necessarily represent those of the
Institute of Singapore Chartered Accountants (ISCA).
from Contracts with companies listed on SGX must No responsibility is accepted by the Institute or its staff
Customers apply a new financial reporting for the accuracy of any statement, opinion or advice
IFRS 15 introduces a new revenue framework identical to the IFRS contained in the text or advertisements, and readers are
advised to rely on their own judgement or enquiries, and
recognition model for contracts with for annual period beginning on to consult their own advisors in making any decisions
customers which replaces most of or after 1 January 2018 which would affect their interests. No part of this
the current revenue recognition publication may be reproduced, stored in a retrieval
system, or transmitted in any form or by any means,
guidance under IFRS and US GAAP electronic, mechanical, photocopying, recording or
otherwise, without the prior written permission of ISCA.
68
IS Chartered Accountant journal welcomes contributions
and letters. These may be edited for clarity or length.
Articles, letters and requests to reproduce articles
appearing in IS Chartered Accountant journal should
be sent to Editor, IS Chartered Accountant, Institute of
FIRST LOOK Singapore Chartered Accountants, 60 Cecil Street, ISCA
House, Singapore 049709 or email: editor@isca.org.sg.
64 72 Books & Quiz
ERRATUM
SUBSCRIPTIONS
It was stated in the President’s Message (August 2014) that Singapore SINGAPORE OVERSEAS SINGLE ISSUE
S$164 S$190 S$16
is moving towards becoming a global accountancy hub in 2010. It for 12 issues for 12 issues (including GST)
a year a year
should have read: “As Singapore moves towards becoming a global (including GST, (including
accountancy hub in 2020, it is important for the profession as a handling and handling and
postage charges) postage charges)
whole to continually advance.” We are sorry for the error.
September 2014 3
NATIONAL DAY
AWARDS 2014
The Meritorious Service Medal 2014 The Public Administration Medal (Bronze) 2014
MR PO’AD BIN SHAIK ABU BAKAR MATTAR MR TANG LEE HUAT
Member Ministry of Defence
Council of Presidential Advisers Deputy Director (Defence Finance)
Defence Finance Organisation
Ministry of Defence
The Public Service Star (Bar) 2014
DR ANDREW LEE TONG KIN
Ministry of Education
MS FRANCES CHEANG CHIN NEO JP, BBM, PBM Associate Professor of Accounting (Practice)
Ministry of Social and Family Development School of Accountancy
Honorary Treasurer Singapore Management University
National Council of Social Service
MISS PEGGY LOW POH CHOO
Ministry of Transport
The Public Service Star 2014 Deputy Director
Finance Corporate Development Division
Ministry of Transport
MR QUEK SEE TIAT PBM
Ministry of National Development
Chairman MS CHUA CHEN YUN
Building and Construction Authority Ministry of Transport
Assistant Director, Internal Audit
Maritime and Port Authority of Singapore
MR LIM HOW TECK PBM
Ministry of the Environment and Water Resources
Board Member
Public Utilities Board The Commendation Medal 2014
MISS CHIO SHEOK HWEE
The Public Administration Medal (Silver) 2014 Auditor-General’s Office
Senior Assistant Director
Auditor-General’s Office
MDM GOH POH GEK
Ministry of Education
Financial Controller MS SHIRLYNN LOO MUI HOON
Financial Management Branch, FD Div Supreme Court
Ministry of Education Deputy Director (Strategic Planning & Policy)
Strategic Planning & Policy Directorate
Supreme Court
MS LIM HUEY FANG
Ministry of National Development
Deputy Director (Arrears Management)
Housing Management Group
Housing & Development Board
MISS GOH KAH LENG
Prime Minister’s Office
Deputy Director (Finance)
Finance Department
Monetary Authority of Singapore
4 IS Chartered Accountant
The Singapore National Day Awards are a means of recognising
the various forms of merit and service to the country. This year,
a total of 3,354 Individuals in 19 award categories received
National Day honours. ISCA is proud to announce that 29 of
our members were conferred awards for their outstanding service
and merit to the country.
On behalf of the Institute of Singapore Chartered Accountants,
ISCA President Gerard Ee would like to extend his heartfelt
congratulations to our award recipients. We are proud of you!
The Public Service Medal 2014 The Long Service Medal 2014
MR TAN WANG CHEOW MDM LEE YIM MAY
Aljunied GRC Ministry of Defence
Patron Group Head
Bedok Reservoir-Punggol CCC Ministry of Defence
MR PATRICK KOK SOON FATT MS TAN LIN
Bishan-Toa Payoh GRC Ministry of Education
Member Deputy Director
Thomson-Toa Payoh CCC SP Business School
Singapore Polytechnic
MS DIANA PANG LI YEN
East Coast GRC MS SNG SIOK BENG
Chairperson Ministry of Finance
Fengshan CC WEC Principal Tax Officer
Corporate Tax Division
Inland Revenue Authority of Singapore
MR TIEW CHEW MENG
CDC — South West
District Councillor MDM CHOW SIEW FAH
South West CDC Ministry of National Development
Deputy Director (Costing)
Development & Procurement Group
MR CHALY MAH CHEE KHEONG Housing & Development Board
Ministry of Law
Chairman
Singapore Land Authority Board MDM CHEAH LAI CHAN
Ministry of National Development
Principal Accountant
MR CHEY CHOR WAI Finance Group
Ministry of Social and Family Development Housing & Development Board
Former Chairman
Dover Park Hospice Governing Council
MDM NG SOOK YIN
Ministry of National Development
MR GAUTAM BANERJEE Director (Management Reporting,
Ministry of Trade and Industry Budget & Administration)
Senior Managing Director and Co-Chairman Finance Group
of the Asia Operating Committee, Blackstone Housing & Development Board
Chairman of Blackstone Singapore
MDM WONG PECK WOON
Ministry of National Development
Deputy Director (Financial Reporting)
Finance Group
Housing & Development Board
MR SOH PECK LIN
Ministry of Trade and Industry
Learning Specialist
Finance and Compliance
Singapore Tourism Board
MR LOCK WIN CHONG
Ministry of Transport
Senior Manager
Government Collections
& Refunds
Corporate Services
Land Transport Authority
SEPTEMBER 2014 5
2014 PA
WeCARE AWARDS
The People’s Association (PA) Awards scheme recognises the efforts of the grassroots
organisations (GROs) in carrying out activities and programmes aligned with the PA and GROs’
mission of reaching out to residents through promoting social cohesion and community bonding.
The WeCARE Award, where CARE stands for Channels, Ages, Races and Estates, is a
constituency-based award which honours the outreach of the constituencies, as well as how
balanced the outreach is, in terms of age, race and estate.
As an Institute, ISCA cares about Singapore and the community in which we live, work and
play. In 2010, we signed a Memorandum of Understanding with PA to encourage our members to
volunteer with PA’s GROs, where they can contribute their skills in aid of the community; GROs
also benefit from having professional expertise to oversee their finances.
We are pleased that more than 50 of our members have served and continue to serve in
various capacities in the constituencies that have been recognised for their good work.
ISCA MEMBERS SERVING IN CONSTITUENCIES THAT
RECEIVED THE 2014 WeCARE AWARDS
PLATINUM
MS TIONG SAI LAN, JOYCE MISS CHUI QING MUNN MISS ONG MEI PING
Executive Member, Lucky Heights NC Assistant Treasurer, Nee Soon Central CCMC Member, Tampines West CCC
Bedok Assistant Treasurer, Nee Soon Central Zone 1 RC Tampines West
Treasurer, Nee Soon Central CC YEC
MS LOO LUCY Nee Soon Central MISS SOONG WEE CHOO
Treasurer, Bishan North CCC Treasurer, Tiong Bahru CCMC
Bishan North MS GRACE LU YUHONG Treasurer, Tiong Bahru CC BFC
Member, Pasir Ris East CCC Tanjong Pagar-Tiong Bahru
MISS TAN SHU CHUIN, NICOLE Pasir Ris East
Assistant Treasurer, Bishan North CCC MR LIM TECK LENG, DARRELL
Bishan North MDM SUMITA TRIPATHI Associate Member, Silat RC
Executive Member, Brontosaur RC Member, Tanjong Pagar-Tiong Bahru C2E
MDM YAP FONG PENG, MAYPLE Pasir Ris West Tanjong Pagar-Tiong Bahru
Grassroots Member, Canberra Zone 2 RC
Canberra MS NG LI HUI, JUNE MR TAN TIAN SOO
Secretary, Pioneer CCC Treasurer, Teck Ghee CCMC
MS TEO SIEW LUAN, RUTH Pioneer Teck Ghee
Member, Cheng San-Seletar CCC
Cheng San-Seletar MDM LIM MOOI KHIM MR TEI TONG HUAT
Assistant Treasurer, Queenstown CCC Assistant Treasurer, Telok Blangah CCC
MDM SEAH GEK CHOO Treasurer, Queenstown C2E Telok Blangah
Treasurer, Kampong Glam CCMC Treasurer, Queenstown CC WEC
Kampong Glam Queenstown MDM TUNG SIEW SHEONG
Treasurer, Thomson-Toa Payoh C2E
MDM LIM SIEW LI, LELAINA MISS SRIMAJANI (JAN WONG) Thomson-Toa Payoh
Auditor, Moulmein Watten NC Assistant Treasurer, Anchorvale CCMC
Moulmein Sengkang West MISS LING BEE YEN, ALLYSIA
Auditor, Toa Payoh East CCC
DR LIM SING YONG Toa Payoh East
Assistant Treasurer, Sengkang West CCC
Treasurer, Anchorvale CCMC MR KOH WEE KEONG
Sengkang West Assistant Treasurer, Whampoa CCC
Member, Whampoa CCMC
MISS TO SOR PENG Whampoa
Treasurer, Tampines East Zone 1 RC
Tampines East
6 IS Chartered Accountant
GOLD
MR TOK SOON LEONG MDM WONG SZE WAI MISS NGO SIEW POD
Member, Braddell Heights CCC Assistant Treasurer, Bukit Panjang CCC Auditor, Kampong Ubi CCMC
Treasurer, Braddell Estate NC Bukit Panjang Auditor, Eunosville NC
Braddell Heights Kembangan-Chai Chee
MR LIM KIM SENG
MR CHENG WENG HONG Treasurer, Jalan Senang NC MR KWA TEOW HUAT, PHILIP
Member, Bukit Batok CCC Kembangan-Chai Chee Treasurer, Punggol South CCC
Bukit Batok Punggol South
MDM NG MEI YEN
MDM LIN XIAORONG Treasurer, Kembangan-Chai Chee CCC MR CHOW CHEW SENG
Assistant Treasurer, Bukit Batok CCC Assistant Treasurer, Lorong Melayu NC Treasurer, Zhenghua CCC
Bukit Batok Kembangan-Chai Chee Auditor, Zhenghua-Jelapang RC
Zhenghua
MR FONG YU KEONG, ALVIN MR ONG WOON PHENG
Assistant Secretary, Toh Guan View RC Treasurer, Kampong Ubi CCMC
Bukit Batok East Kembangan-Chai Chee
SILVER
MR LIM KIM HOE MR TEO WEE TEE MISS LIM KEXIN
Executive Member, Admiralty Zone 7 RC Assistant Treasurer, Changi Simei CCC Grassroots Member, Serangoon CCC
Admiralty Auditor, East View Garden NC Serangoon
Changi Simei
MR WONG TENG KAY MR CHONG SIMON
Assistant Treasurer, Bukit Timah CC SCEC MISS TEO HUI JING Assistant Treasurer, Hwi Yoh Court RC
Bukit Timah Associate Member, Telok Kurau Zone 1 NC Serangoon
Joo Chiat
MDM TONG JUN LIN MR TAN HOCK TENG
Member, Bukit Timah CCC MDM CHONG CHIN FAH Treasurer, Tanglin-Cairnhill CCC
Bukit Timah Treasurer, Mountbatten CCC Tanglin-Cairnhill
Mountbatten
MR QUAH BOON WEE MR TIMBER YEH
Assistant Treasurer, Cashew Zone 2 RC MR PERIAKARUPPAN ARAVINDAN Treasurer, Tanglin NC
Cashew Treasurer, Mountbatten C2E Tanglin-Cairnhill
Mountbatten
MS SOH LI LIAN MDM LIM BEE HUI, JOANNE
Auditor, Changi Simei CCC MR WU BANG WEN (LIN MEIHUI)
Changi Simei Auditor, Punggol East CCC Executive Member, Farrer Holland NC
Punggol East Ulu Pandan
MR GOH SHER WEE MR TING CHOON YEW
Treasurer, Serangoon CCC Member, Ulu Pandan CCC
Serangoon Chairman, Mount Sinai NC
Ulu Pandan
SEPTEMBER 2014 7
IN TUNE
INDUSTRY NEWS
ACRA Raises Quality Bar
for Public Accountants
T
he Accounting and Chief Executive, ACRA, on August 1
highest quality. Audit opinions rest
Corporate Regulatory at the Singapore Accountancy on sound judgement and healthy
Authority (ACRA) has Convention 2014 organised by skepticism, the application of which
announced more stringent ISCA. The change will ensure closer
can only be gained through adequate
requirements for Public Accountants, alignment of the practical experience
and relevant experience. ACRA is
which will kick in from 1 February 2015. requirements of a PA’s core raising the bar to ensure that all new
Aspiring PAs will have to acquire responsibility to ensure high quality
public accountants are sufficiently
more years of work experience, audits of financial statements.
experienced for their responsibility.”
including specific audit management “Audit is a cornerstone of public
The revised requirements were
experience which will be made confidence in capital markets,”
drawn up in consultation with the
mandatory. The new requirements said Mr Yap. “We must ensure that
professional accountancy bodies
were announced by Kenneth Yap, audits in Singapore remain of the
and representatives from both large
and small audit firms.
The changes are also
s in line with current
market practice, where
Audit opinions rest on most audit managers
sound judgement and tend to accumulate
healthy skepticism, more than the current
the application of requirement of three
years of practical audit
which can only be
experience before
gained through applying to become
adequate and a PA.
relevant experience Although the new
practical experience
requirements will
apply to all applications received
on or after 1 February 2015, ACRA
is announcing them now to help
aspiring PAs prepare in advance.
The requirements will be prescribed
in the Accountants (Public Accountants)
Rules under the Accountants Act.
PHOTO SHUTTERSTOCK
More information about future changes to the
qualification requirement for PA registration
is available at www.acra.gov.sg/Public_
Accountants/News_and_Events/Future_
Changes_to_the_Qualifications_Requirement_
for_Registration_as_a_Public_Accountant.
8 IS Chartered AccountantThis chart is available online.
Please scan the QR code
with a QR code reader to view
the chart on your mobile device.
KEY DIFFERENCES BETWEEN CURRENT AND NEW REQUIREMENTS TO REGISTER AS A PA
Current requirements New requirements
2,500 hours (approximately 2 years) of qualifying audit experience (QAE) after obtaining
full membership of ISCA or, in the case of applicants who are non-ISCA members (that is,
members of other accountancy professional bodies or those who had not yet applied for ISCA
3 years of experience membership), after having completed an equivalent amount of post-qualification experience.
(including at least 2 years Applicants who gain the Singapore QP or recognised equivalent professional qualification after
after final exams) 1 January 2019 will need to have gained their 2,500 hours of QAE after they have completed
the qualification.
[In practice, this generally means that applicants will have at least 5 years of work
experience (3 years to gain full membership of ISCA or to complete the practical experience
requirements as part of the Singapore QP and 2 years of QAE)].
Applicants will be required to have QAE. QAE is experience in audit management, audit quality
review, and senior technical roles, such that the applicant would have performed the key audit
Audit management experience functions (KAF) in planning, leading the engagement and forming and reporting conclusions
is not mandatory and opinions.
Those relying on experience in audit quality review and senior technical roles must have
at least 1,250 hours (approximately 1 year) of recent experience in KAF.
1 of the 3 years experience need All of the experience must have been gained under the supervision of an Audit Principal (AP).
not be “structured”, that is, need A declaration is required from one or more APs that the applicant has
not be obtained and recorded a) Completed 2,500 hours of QAE, and
under the supervision of an b) Competently and independently performed the KAF under the AP’s oversight.
approved public accountant.
The AP should have 5 years of experience as a public accountant, and not have failed a practice
An Approved Principal must have
review with the following sanctions:
5 years of experience. There is no
• Hot review order (unless the Public Accountants Oversight Committee agrees otherwise)
requirement to have passed his
• Restriction
practice review under the Practice
• Suspension
Monitoring Programme.
• Cancellation
12 months of continuous
At least 1,250 hours (approximately 1 year) of experience must be gained with the same AP
experience must be gained under
or firm.
the same Approved Principal.
At least 1 year of experience must be
gained in Singapore to ensure that
At least 1,250 hours (approximately 1 year) of QAE must be gained in Singapore.
applicants are conversant with local
laws and regulations.
The experience must be gained
within 7 years and, of these,
The QAE must be gained in the 5 years immediately preceding application.
1 year must be gained within
the last 3 years.
There is an alternative
discretionary category, where
applicants with at least 6 years of
experience but whose experience Discretionary category to be removed. However, there will be an avenue for exemptions
does not fit existing requirements, supported by particular reasons about why the applicant could not meet the required criteria.
will be approved if the PAOC
considers the experience to be of
sufficient breadth and depth and
sufficiently recent.
September 2014 9IN TUNE
INDUSTRY NEWS
Accountancy sector’s needs. The
SIT Signs MOUs
programme enables students to
find employment for IWSP during
the peak auditing period, and helps
with Accounting
employers alleviate their work
load during peak season. IWSP
can benefit employers as it can
Industry Leaders
function as an extended probation
period, providing the firms with
cost-effective means of evaluating
future employees. In turn, students
can benefit from the enriching
S
ingapore Institute of Lee Fook Chiew, CEO of ISCA, experience and better understand
Technology (SIT) has and Quek See Tiat, Chairman of how the profession operates,” said
inked MOUs with Industry Advisory Committee, SIT ISCA CEO Mr Lee.
Accounting industry Accountancy degree programme. “Our industry partners have
leaders, commemorating its strong Mr Quek is the Chairman of the shown great support for our degree
partnership with industry and Building and Construction Authority, programmes since they were
strengthening industry support for and Former Partner and Deputy launched this year. Working together
its Bachelor of Accountancy with Chairman, PwC Singapore. on the IWSP enables us to tailor the
Honours degree programme. The MOUs will bolster support IWSP to fit the manpower needs of
SIT sealed agreements with Baker for SIT’s Integrated Work Study individual companies. I look forward
Tilly TFW, BDO, Deloitte & Touche, EY, Programme (IWSP) by providing to our continued partnership, and
Foo Kon Tan Grant Thornton, KPMG students with the opportunity to to welcoming the new generation
Services, Nexia TS, PKF-CAP, PwC, develop specialist skills through of accountants who will face
RSM Chio Lim, and UHY Lee Seng Chan hands-on experience. “It is their industry with confidence,”
& Co. The MOUs were signed on commendable that SIT has tailored said Professor Tan Thiam Soon,
August 19, and witnessed by the Accountancy IWSP to fit the President, SIT.
The Ceremony was attended by representatives from the various organisations and SIT President Prof Tan Thiam Soon (5th from
left), and witnessed by ISCA CEO Lee Fook Chiew (6th from left), and BCA Chairman Quek See Tiat (11th from left), in his capacity as
Chairman of Industry Advisory Committee, SIT Accountancy degree programme.
10 IS Chartered AccountantSingapore has
New Centre
forExcellence
in Taxation At the signing ceremony for the new Centre for Excellence in
Taxation were (from left) SMU President Prof Arnoud De Meyer;
IRAS Commissioner Dr Tan Kim Siew, and Tax Academy of
Singapore CEO Eng-Tay Geok Lee.
I
n an initiative that moves Helmed by SMU Professor of to produce multi-disciplinary
Singapore one step closer to Accounting and ISCA Honorary research on international taxation
becoming a global accountancy Technical Advisor Sum Yee Loong from the legal, economic and
hub for Asia Pacific, Singapore as Centre Director, SMU-TA CET public policy perspectives. It will
Management University (SMU), in aims to produce robust research receive the support of a Technical
partnership with the Tax Academy of in international and regional tax Advisory Panel comprising leading
Singapore, launched a new Centre for issues for policy development and academics and practitioners,
Excellence in Taxation (SMU-TA CET) engagement of the international both local and international,
on August 5. The move is supported tax community. It will partner with extensive experience and
by the Inland Revenue Authority of members of the academia, industry knowledge of global tax trends
Singapore (IRAS). leaders and government officials and issues.
September 2014 11IN TUNE
ISCA NEWS
ISCA Members Make Clean Sweep
of Best CFO Award at Singapore
Corporate Awards 2014
I
SCA members Lee Wai Fai, Report Award and Best CFO Award. year, our heartiest congratulations
Phillip Choo and Dominic Siu Corporate governance is integral go to the ISCA members for having
were conferred the Best CFO to a country’s development, and received the Best CFO Award:
Award in their respective Josephine Teo, Senior Minister of + Lee Wai Fai, Group Chief
categories at the Singapore Corporate State for Finance and Transport, had Financial Officer and Managing
Awards (SCA) 2014. Their win was shared at the SCA Seminar 2014 on Director of United Overseas
announced at the SCA Gala Dinner May 19 that excellence in corporate Bank Ltd (company with market
held at Resorts World Convention governance is part of a culture of capitalisation of $1 billion and
Centre, Sentosa, on July 15, and doing right, and a contribution to a above);
witnessed by more than 800 guests well-functioning economic sector + Phillip Choo, Chief Financial
from government agencies, trade that puts a premium on trust and Officer of Rotary Engineering
associations and both private and integrity. This sentiment underlied Ltd (company with market
public companies. President Tony Tan this year’s Awards. capitalisation of $300 million
Keng Yam was the guest-of-honour. to less than S$1 billion), and
Now in its ninth year, the key CONGRATULATIONS TO THE + Dominic Siu, Group Chief Financial
objectives of the SCA are to recognise BEST CFO AWARD WINNERS Officer of MTQ Corporation
and honour companies listed on the The Best CFO Award honours CFOs Ltd (company with market
Singapore Exchange (SGX) as well who played a significant role in capitalisation of $300 million
as outstanding individuals for their supporting, advocating and promoting or less).
pursuit of excellence in corporate good corporate governance,
disclosure and governance. It is disclosure and transparency, and In an exclusive interview, the Award
jointly organised by ISCA, Singapore are exemplary role models in recipients shared their thoughts about
Institute of Directors (SID) and The corporate financial disclosure by their win.
Business Times, and supported by going beyond the regulatory financial
both Accounting and Corporate reporting requirements. In addition, ISCA: How do you feel about
Regulatory Authority (ACRA) and it recognises CFOs who help create winning the award?
SGX. ISCA continues to perform the long-term sustainable shareholder Lee: It is an honour to be given this
role of Secretariat for the Best Annual value for their organisations. This prestigious industry award but I do not
see this as a personal achievement.
This Award is an affirmation of my
The Singapore Corporate Awards comprises five key awards: work and also an endorsement of
+ Best Annual Report Award UOB’s disciplined approach to growing
+ Best Investor Relations Award its business. Through prudence, hard
+ Best Chief Executive Officer Award work and well-timed investments, UOB
+ Best Managed Board Award has built a solid franchise across Asia.
+ Best Chief Financial Officer Award I am proud to have been a part of
UOB’s growth in the last 25 years.
The Best CFO Award is given to the top CFO in each of the three award categories
according to their company’s market capitalisation, namely $1 billion and above; Choo: I am very thankful to God for
$300 million to less than $1 billion, and $300 million or less. His grace and favour shown to me. In
addition, I feel deeply honoured and
12 IS Chartered Accountantstakeholders. In short, a CFO’s role
has become more strategic. It used
to be 70% operational and 30%
strategic, but it is now the other way
around, where much more time is
spent on strategic analysis.
The banking sector has undergone
tremendous changes since the
2008 global financial crisis. The
step-up in regulatory and compliance
requirements in recent years is having
an impact on the business models of
banks. CFOs of banks today need to
provide an objective voice on financial
performance, especially in the areas
of controlling costs, managing capital
ISCA members and winners of the Best CFO Award Dominic Siu, MTQ Corporation;
Lee Wai Fai, UOB, and Phillip Choo, Rotary Engineering (2nd, 4th and 5th from left and maintaining liquidity, which have
respectively), with judges Dr Ernest Kan, Immediate Past President, ISCA (1st from left), become a critical focus for banks
and Alan Chan, CEO, Singapore Press Holdings (centre) in recent years amid the evolving
banking landscape.
appreciative of my Chairman, Audit global macro trends, anticipate
Committee, staff and my family for the impact such trends would have Choo: A good CFO today must be
their support. This recognition is to be on business, and be able to guide able and willing to perform multiple
shared with them. the organisation to grow within roles, from being a strategic business
prescribed risk perimeters. partner to serving as the financial
Siu: Very much surprised and of guardian as well as the ethical
course deeply honoured; a strong Choo: I believe the openness and conscience of the organisation. We
recognition of the achievements over communication with all stakeholders are always called upon to integrate
the last few years! to build trust and confidence in my finance and business strategies, assist
company and in me have helped me the CEO to utilise available resources
ISCA: What has contributed greatly. This is particularly important and navigate the organisation through
to your win? in my case, as I had helped the challenges and change. Topping this
Lee: I would attribute this award to company navigate through a rough off is the constant need to obtain buy-
two things – experience and a strong patch, and worked together with the in and communicate effectively with
team. I have had the opportunity to team to achieve a strong recovery. all stakeholders such as the board,
gain knowledge in different areas of bankers, auditors and investment
the bank across the region through Siu: I think focus and discipline community. And the CFO is expected
job rotations during the early days played key parts in what was achieved to remain level-headed and sane at
of my career. That experience has at the personal level. It goes without the same time!
equipped me with an in-depth saying that the support and hard work
understanding of the banking business of my colleagues were also key to the Siu: In my mind, one of the key
and has helped lay the foundation for successes we have had so far. roles of the CFO is risk management,
my work as a CFO. which is an essential part of the
Importantly, I have a strong team ISCA: What do you think corporate planning and management
of people who keeps me abreast of is the role of a CFO in process. Another key role is
and prepared for the changes in the today’s context? communication. Communication does
business and regulatory landscape Lee: Today, a CFO has to think not only encompass the traditional
across the region. The role of a CFO is long term, understand regulatory reporting functions but also includes
no longer just about reading numbers; changes, formulate strategies, and articulating the financial performance
a good CFO needs to understand communicate simply and clearly to to various stakeholders.
September 2014 13IN TUNE
ISCA NEWS
ISCA and CPA Australia Cutting the cake to mark the 30th
Celebrate 30 Years of
anniversary of the CPD Dinner
Talk series were ISCA member and
ex-Council Member Loh Hoon Sun
Dinner Talk Series
(centre), with CPA Australia “pioneer
generation” and current members.
organising the talk’s content and
I
SCA and CPA Australia committee, Loh Hoon Sun FCPA speakers. Since then, subsequent
celebrated a major milestone in (Aust.), FCA (Singapore), current ISCA committees, comprising members
style at the Conrad Centennial member and ex-Council Member of and secretariat representatives from
Ballroom on July 1, when it then-ICPAS, to cut the anniversary both ISCA and CPA Australia, have
marked the 30th anniversary of the cake. “This Dinner Talk series has continued to meet biannually to
Continuing Professional Development proven to be an excellent platform organise the dinner talks.
(CPD) Dinner Talk series. for members to network and build ISCA’s partnership with CPA
To commemorate the event, in friendships,” said Mr Loh. Australia in part helped to increase
addition to the regular participants, ISCA has been a long-time the growth and popularity of the
some 20 CPA Australia “pioneer collaborator of CPA Australia’s. In series as it introduced the Institute’s
generation” members had joined in a partnership which kicked off in members to the talks, and also
the celebration to catch up with old 2002, the CPA Australia Dinner advertised the talks through
friends, reminisce about the good Talk evolved into the Joint Dinner the Institute’s various publicity
old times and enjoy a sumptuous Talk co-organised by ISCA and CPA channels. Today, the talks attract a
dinner. Together, they accompanied Australia, when Mr Loh chaired the constant monthly turnout of some
the first chairman of the Dinner Talk first committee that was tasked with 250 participants.
ISCA BREAKFAST TALK
Strategy
in Ethics
B
right and early on August 13,
over 90 members eagerly
made their way to ISCA
House for the monthly
ISCA Breakfast Talk. The topic socially responsible ways,” he said. Over 90 members attended the
that morning was “Dialogue Although “many CEOs quote Breakfast Talk to learn about strategy
in ethics from Prof Dr Foo Check Teck.
on Strategy in Ethics”, led by Sun Tzu’s strategies for success in
Professor Dr Foo Check Teck. business, too few realise that the as advocated by Sun Tzu.
“We face constant challenges in Art of War also strongly emphasises Members responded well to
the 21st century not only in terms of ethical guidelines in all forms of the session, commenting more
physical and mental performance competition,” he highlighted. As a than once that it was interesting
but also on an ethical level with chartered accountant needs to be and illuminating. For certain, they
respect to our moral behaviour. even more ethically responsive, he gained valuable knowledge and a
We expect our Chairmen, Board provided a glimpse of the mindset better understanding of Sun Tzu’s
of Directors and CEOs to act in that an accountant ought to adopt, Art of War.
14 IS Chartered AccountantSpeakers and panellists at ISCA-SIATP Annual Tax Forum included
(from left) ISCA Deputy Director John Lim; IRAS Assistant Commissioner
Wilson Ong; Mazars LLP Senior Consultant Dominique Kon-Sun-Tack;
EY Partner Chai Wai Fook; ISCA Honorary Technical Advisor Prof Sum
Yee Loong; SIATP Assistant Director Joanna Wong; EY Partner Tan Bin Eng,
and IRAS Manager Julia Chew.
Gain Heaps on Tax
with SIATP
T
he Singapore Institute Separately, an Authors Boost Accredited Tax Advisor (Income Tax & GST)
of Accredited Tax Clarity session facilitated by Ong Sim Ho engaged the participants in a
lively discussion of the AQQ case and the
Professionals (SIATP) Irving Aw, author of LexisNexis implications on advisory practice.
escalated its efforts to Annotated Statutes of Singapore
promote tax excellence through a – GST Act, explored the indirect For more information on achieving
galore of tax events in July. taxation for e-commerce and how tax excellence, visit www.siatp.org.sg
The month started with a Singapore measures up in relation today and sign up to be an accredited
Tax Excellence Decoded session to international developments. tax professional.
on maximising the benefits of The month
Productivity and Innovation Credit concluded with a
(PIC) with Partners from Ernst and lively discussion
Young Solutions LLP, Tan Bin Eng, on the AQQ case
also an ASEAN Leader for Business which was facilitated
Incentives, and Chai Wai Fook, also an by Accredited Tax
Accredited Tax Advisor (Income Tax). Advisor (Income Tax
The inaugural ISCA-SIATP Annual & GST) Ong Sim Ho
Tax Forum for small and medium- who deep-dived into
sized enterprises was a great the case specifics and
success. Led by a panel of thought more importantly,
leaders with expertise in PIC, PIC highlighted the
Lawyer and author Irving Aw examined the issues
errors and Innovation & Capability advisory practice surrounding the current domestic treatment of
Voucher, they shared their knowledge implications post- e-commerce transactions for Singapore GST, and
with the audience. AQQ. recent international developments.
September 2014 15IN TUNE
ISCA NEWS
New ISCA
Members Receive
Rousing Welcome
C
lose to 70 new members More importantly, the session
attended the New Members’ provided new members with a better
Night on June 19 at ISCA understanding of the many ways that
House. The event was ISCA provides support to prepare
designed to welcome new members them for the changing demands of ISCA President Gerard Ee spoke
to the ISCA family, celebrate their the profession, thus helping them about the Institute’s multi-faceted
professional achievements and stay ahead of their game. roles, and how it supports members
provide an overview of the Institute’s ISCA President Gerard Ee, in their accountancy journey.
multi-faceted roles in the global along with the Institute’s senior
and national accountancy arenas. management members, extended a warm welcome to the new members.
Mr Ee spoke about strengthening
ISCA’s role as a thought leader and
★ championing projects that will help
shape the profession. He advocated
“The reason I wanted to the outcomes approach, and
take up the CA (Singapore) provided relatable examples from his
qualification is because vast experience on how businesses
Singapore is at the centre of an can thrive if they understand their
exciting Southeast Asia region strategic outcomes and priorities.
and I can keep in touch with Raising the standing of the Institute
all the latest developments will also help elevate the regard that
through this membership.” others have of ISCA members.
YOSHIO EHARA Dinner provided an opportunity
CA (Singapore)
for lively discussions with like-minded
Manager of Internal Audit Office (Tokyo),
The Bank of Tokyo-Mitsubishi UFJ Ltd professionals; it was also the time to
showcase creativity and knowledge
★
“CA (Singapore) provides
good job opportunities
and is respected
and recognised
internationally.”
TAKUJI KOBAYASHI
CA (Singapore)
Senior Manager,
SCS Global Professionals (S) Pte Ltd
Memory, wit and speed proved to be the winning combination
for the team which topped the ISCA Quiz.
16 IS Chartered Accountant★
“The CA (Singapore)
brand makes me stand out
among other professionals.”
LEE KIAN JOO (left)
CA (Singapore)
Executive,
Sony Asia Pacific Pte Ltd
RAIS BIN MAHMUD (right)
CA (Singapore)
Accounts Supervisor,
Acronis Asia Pte Ltd
of the Institute through the ISCA treasured memories in the form
Quiz. The winning team portrayed of photographs of the Certificate
excellent team spirit as they proved Presentation Ceremony. The event
to be faster and more innovative was well received with many
than other teams in submitting their members giving it the thumbs-up for
answers. being interesting and engaging.
The New Members’ Night was We would like to thank our new
a light-hearted session which members for joining us at this event.
provided a platform to build We look forward to supporting you
lasting connections with other CA in your development as a member of
Members engaging in lively discussion (Singapore). Members took home the accountancy profession.
Members Engagement and Events
Calendar of Events 2014
Sep:08 Upcoming Events Members’ Privileges
ISCA Breakfast Talk
10 ISCA Breakfast Talk 8
GST Risk Management and
Sep Sustainability Reporting Oct
Harnessing Technology Bintan Lagoon Resorts
10% off best available rates for
17 ISCA Mingles 9 ISCA Engagement with
accommodation and F&B
Sep Understanding Wills & Trust Oct Deloitte & Touche
19 Body Contours
SSQC Workshop 10
ISCA Engagement with EY Enjoy a complimentary Deep Cleansing
Sep Oct
Face Spa or Slimming Contour Wrap or
25 15 Back De-Stress Massage
ISCA New Members’ Night ISCA Mingles
Sep Oct
National Geographic
26 ISCA-DBS Working Capital Accelerating Business Growth Through Enjoy special subscription rates of up to 43% off
Sep Advisory Seminar 17 Technology
Privé
Oct SMP Dialogue: Beyond the Status Quo – Enjoy 40% off 1st-time trial and
4 Lessons for SMPs 20% off ala-carte services
18 The Wine Company
IPG Closing Ceremony
Oct 10% savings on all food & wine for dine-in and
Limited spaces are available for each event and they
are on a first-come-first-served basis. 30% savings on wine by bottle for takeaway
6
International Accountants’ Day
Nov
Dates and events are subject to change without prior
notice. 12
ISCA Breakfast Talk
Nov
For more details For more details
http://corp.isca.org.sg/membership/events-calendar 19 http://members.isca.org.sg/MemberPrivilege.asp
ISCA Mingles
Nov
29
ISCA Games Closing Ceremony September 2014 17
NovFOCUS
SINGAPORE ACCOUNTANCY CONVENTION 2014
Singapore
Accountancy
Convention 2014
Staying Ahead of the Curve
IN
light of a business landscape that
is becoming increasingly complex
and highly regulated, this year’s
Singapore Accountancy Convention
2014 explored the pertinent
issues and challenges that the
profession is facing. At the core of
these discussions was a desire to
make �inancial reporting, and the
profession as a whole, more relevant to stakeholders.
As such, the Convention sought to provide practitioners
with an understanding of the developments that matter Delegates received their Convention materials during registration.
most, in the key disciplines of accounting, auditing, ethics
and integrated reporting. Raising the level of awareness of
these key topics would help accountants to stay ahead of Delegates heard and learnt from a distinguished
the curve in a fast-evolving environment. roster of speakers including Professor Arnold Schilder,
18 IS Chartered AccountantISCA President Gerard Ee gave the opening address
at the Singapore Accountancy Convention 2014.
Chairman, International Auditing and Assurance
Standards Board, and Hans Hoogervorst, Chairman,
International Accounting Standards Board.
This year’s Convention also saw the winners
of the inaugural Singapore Accountancy Awards.
The Awards recognises outstanding practices and
individuals in the profession. Meeting old friends and making new ones, the Convention provided a
Here are the highlights of the Convention, good platform for networking.
which took place from July 30 to August 1, at
Marina Bay Sands.
September 2014 19FOCUS
SINGAPORE ACCOUNTANCY CONVENTION 2014
ISCA Ethics
“Furthermore, given the changing
business landscape and ongoing
economic uncertainty, accountants
may often �ind themselves in situations
Forum
where they have to choose between
ful�illing economic interests and
ethical considerations. They may
also be presented with opportunities
The Profession’s Commitment to where they may be tempted to take
Strengthen Public Confidence advantage of other parties for personal
gain despite knowing that it is ethically
unsound to do so,” said Mr Ee.
“ Therein lies one of the
T
he �irst day of sector, and the profession has over recurring issues faced by
the Singapore the years developed a Code of Ethics
Accountancy to de�ine what it means to be ethical.
our profession when it
Convention 2014 “Even so, mastering this aspect of our comes to ethics. What it
kicked off with profession remains challenging as means to carry out our jobs
a topic that has ethics is rather amorphous in nature, with honesty, integrity,
generated much going beyond guidelines and structures
interest in the to relate to the intrinsic personal
objectivity, due care and
media and the ethical values held by each and every confidentiality will vary
profession, especially in recent times. accountant,” he said. across individuals.”
In the years since the global
�inancial crisis led to the collapse of
�inancial institutions and staggering
losses for investors, the ethical
practices of the corporate world
have come under increased scrutiny.
As the guardians of good corporate
governance, the accountancy
profession has not been spared.
Professional accountants today
have to deal with a multitude of
challenging ethical issues from auditor
independence to money-laundering.
In his opening address to the ISCA President
Convention’s ISCA Ethics Forum on Gerard Ee, in his
July 30, Gerard Ee, President, ISCA, opening address, said
that ethics forms
said that ethics forms the foundation of the foundation of
professional conduct in the accountancy professional conduct.
20 IS Chartered AccountantPRESENTATION
A GLOBAL CODE OF ETHICS
JAMES SYLPH
Recently-retired Executive Director of
Professional Standards & External Relations,
International Federation of Accountants
T
he high-pro�ile ethical failures at Enron, WorldCom
and Satyam, where creative accounting was utilised
to achieve dishonest ends, have led many to question
whether the accountants and auditors involved had ful�illed
their �iduciary responsibilities.
In light of these developments, James Sylph, the recently- He noted that while accounting standards are becoming
retired Executive Director of Professional Standards & more uniform globally, IESBA’s ethical standards are still
External Relations, International Federation of Accountants some way off from universal adoption. “Many national
(IFAC), addressed the future expectations of the profession. regulators believe that their local codes are better understood
“The global �inancial crisis came as a shock and surprise to and have history behind them. They feel that if they use an
many parties. Every party has to ask itself the question of international code, they would have a lot more questions than
what can be done better to enhance audit quality and increase are worth answering,” he said.
public con�idence,” he said. He added that the IESBA Code is a living document that
“We are �irst and foremost a global profession. We changes according to an evolving environment, and while
speak as one voice and we do have the public interest in most people think that the IESBA Code is focused on auditor
mind. That is part of our mandate and we have to raise our independence, it is actually much broader than that.
game. Complacency is not an option.” He went on to detail He went on to highlight several areas in IESBA’s current
the response of the International Ethics Standards Board work programme for the IESBA Code, which is targeted at
for Accountants (IESBA) to the ethical challenges facing both auditors and Professional Accountants in Business
the profession. IESBA is an independent standard-setting (PAIB). For instance, IESBA is addressing three priority
body that serves the public interest by setting robust, issues with respect to PAIB, with an exposure draft for
internationally-appropriate ethics standards, including approval expected in January 2015. These issues include:
auditor independence requirements, for professional + Pressure by superiors and others to engage in unethical
accountants worldwide. These are compiled in the Code of or illegal acts;
Ethics for Professional Accountants (IESBA Code) handbook. + Responsibility of PAIB to produce �inancial reports that
are faithful representations of the
economics of transactions, and
GLOBAL ADOPTION OF IESBA CODE + Facilitation payments and bribes.
Status Total Asia/Oceania
number IESBA is proposing a cooling-off
period for key audit partners (KAPs)
Adopted 84 Australia, Bangladesh*, Brunei Darussalam, Cambodia,
Fiji, Hong Kong SAR, Japan, Kazakhstan, Kyrgyzstan, on audit of public interest entities
Malaysia, Mongolia, Nepal, New Zealand, Philippines, (PIE). This would involve a �ive-year
Russian Federation, South Korea, Sri Lanka*, Uzbekistan cooling-off for Engagement Partners
Committed 14 India, Pakistan*, Papua New Guinea, Singapore, (EPs) and two years for all other KAPs.
to Adopt Sri Lanka* An exposure draft for this proposal is
Based on 15 China (mainland), Pakistan*, Vietnam expected to be issued soon.
IESBA Code On the hotly-debated issue of
auditors providing non-assurance
Process of 19 Bangladesh*, Indonesia, Sri Lanka*, Taiwan, Thailand
Convergence services to clients, he said, “Some
* Country has more than one professional body at different stages of convergence
countries will say you can’t do any other
• Member of G-20 work for the client if you are the auditor.
September 2014 21FOCUS
SINGAPORE ACCOUNTANCY CONVENTION 2014
But other countries say it is in the public interest to use his of laws and regulations to an appropriate authority.
knowledge for non-assurance stuff.” Among other proposals, An August 2012 exposure draft proposal that
IESBA is considering the withdrawal of emergency exception requires auditors to disclose to an appropriate authority
provisions regarding bookkeeping and tax services. when there is suspected non-compliance with laws and
IESBA will also be reviewing the structure of the regulations has faced signi�icant pushback from various
IESBA Code to enhance its usability. He noted that many stakeholders, he shared. “Some – mostly regulators – say
practitioners believe that “it is a good code, but not easy that this is exactly what you should do, while auditors
to understand”. and audit �irms say that you should tear up the proposal
One key ethical dilemma facing the profession pertains to and start all over again.” This has prompted IESBA to hold
whistle-blowing – more speci�ically, when a public accountant three roundtables around the world to obtain more views
should override con�identiality and report non-compliance from the ground.
ISCA ETHICS COMMITTEE Members
Kwok Wui San, Chairman, Ethics Committee; Interim Chair,
Pursuant to the announcement of the reconstitution of the IESBA, and Partner, PwC
ISCA Ethics Committee (EC) at the ISCA Ethics Forum,
Singapore Accountancy Convention 2014, the first ISCA EC Sajjad Akhtar, Managing Partner, PKF-CAP,
meeting was held on August 15 at the ISCA Boardroom. At the and Chairman, PKF International
meeting, ISCA President Gerard Ee shared his belief that ethics Patrick Ang, Deputy Managing Partner, Rajah & Tann
is the most important topic for the accountancy profession David Gerald, President & CEO,
because it tells people what is right and wrong, and reaffirmed Securities Investors Association (Singapore)
ISCA’s position to raise ethical standards for the accountancy
profession in Singapore. Ong Bee Yen, Partner, Assurance & Advisory Service,
Kwok Wui San, Chairman of ISCA EC, also explained the Deloitte & Touche
objectives and strategic direction of the EC. The focus of the Tan Seng Choon, Partner, Assurance & Professional Practice, EY
EC in the coming months would be to revise the ISCA Code of
Professional Conduct and Ethics, and issue a pronouncement Observers
to professional accountants in Singapore on the requirements Uantchern Loh, Chief Executive,
and guidelines on anti-money laundering and countering the Singapore Accountancy Commission
financing of terrorism.
Julia Tay, Deputy Chief Executive, ACRA
Do look out for further updates on the above projects
from the ISCA EC. Richard Teng, Chief Regulatory Officer, Singapore Exchange
(from left) Uantchern Loh, Tan Seng Choon, Julia Tay, David Gerald, ISCA President Gerard Ee, Kwok Wui San, Sajjad Akhtar,
Patrick Ang, Richard Teng, ISCA CEO Lee Fook Chiew; not in picture: Ong Bee Yen
22 IS Chartered AccountantPRESENTATION
THE SINGAPORE
PERSPECTIVE
KWOK WUI SAN
Chairman, ISCA Ethics Committee,
Interim Chair, IESBA, and Partner, PwC
P
roviding a local point of view on the issue of ethics
was Kwok Wui San, Chairman, ISCA Ethics Committee;
Interim Chair, IESBA, and Partner, PwC.
“The IESBA Code is the benchmark which Singapore
should aspire to as a minimum. If we look at the IESBA Code, it that the reconstituted ISCA Ethics Committee would
deals with principles of behaviour and standards of practice,” commence work in August. The committee’s �irst priority
he said. will be to get Singapore’s ethics standards up to the
He noted that Singapore is aiming to converge its own international benchmark. It also aims to provide guidance
code of ethics with IESBA’s by year’s end. “I don’t think we are and interpretation of ethics standards and raise awareness
lagging behind; we have regulations that are stricter than the of such standards. (See facing page “ISCA Ethics Committee”).
IESBA Code in some areas, but until we align our ethics code “Singapore is at a stage that if you want to be an
with the IESBA Code, we can’t say we are ahead of the curve.” accountancy hub, the profession must be seen to be trusted
He also urged the profession to kickstart the process of and relevant. And ethics plays a big part in upholding that
international convergence. In this regard, he revealed image,” he said.
PRESENTATION
AUDITOR INDEPENDENCE
RUTH PICKER
Asia Pacific Risk Management Leader, EY Australia
being paid by the company being audited and determined
by its management, there was an apparent con�lict of
interest for auditors. She added that it was not uncommon
for auditors to be pressured by management to overlook
certain issues. One simple solution to this conundrum
was to let the company’s audit committee, and not its
management, set the audit fee.
I
n her presentation, Ruth Picker, Asia Paci�ic Risk To cope with such challenges, Mrs Picker said that EY’s
Management Leader, EY Australia, tried to answer the code of conduct prohibits the �irm from working with clients
question of what impartial judgement means for auditors that do not share its values regardless of what may or may
and whether it can really exist. not be acceptable in a particular country. “We do not subject
“How do we protect auditors to allow them to display ourselves to undue pressure to do (unethical) things,” she
that objectivity?” she asked. She said that with audit fees summed up.
September 2014 23You can also read
