IFAC-ISCA Singapore Investigation and Discipline Systems workshop

1. © 2021 ISCA
AFA IFAC SMO Workshop 3:
SMO 6
Investigation and Discipline
7 December 2021

2. © 2021 ISCA
SMO 6 – Investigation and Discipline
Obligations
 IFAC member bodies are required to comply with the Statements of
Membership Obligations (SMOs)
Scope
 IFAC Board requires and IFAC member body to have investigation and
disciplinary system in place to provide for investigation and discipline of
those who fail to exercise and maintain professional standards
Applicability Framework
 Direct Responsibility – implement all the requirements of this SMO
Requirements and Application Guidance
 IFAC member bodies shall identify and undertake actions to have a just
and effective investigative and disciplinary system in place for their
members

3. ISCA‘s Investigation and
Disciplinary Process

4. © 2021 ISCA
Scope of the Investigation and Disciplinary
System
• Includes Members and Students (who are enrolled as a student with the
Institute)
• Investigation and Disciplinary Action is embedded in our Institute
(Membership and Fees Rules)
• Ethics Pronouncement EP100 Code of Professional Conduct and Ethics is
part of the Institute (Membership and Fees) Rules – Third Schedule
• All ISCA members must adhere to EP100, which is modelled after the
Code of Ethics for Professional Accountants issued by the IEASBA of the
IFAC.
• EP100 also encompasses any Singapore provisions included in the Code
of Professional Conduct and Ethics for Public Accountants and Accounting
Entities issued by ACRA.

5. © 2021 ISCA
Fundamental Principles of EP100
Integrity
Objectivity
Professional
Competence
and Due Care
Confidentiality
Professional
Behaviour

6. © 2021 ISCA
Disciplinary Action Taken Against
Misconduct
Performed professional
work or duties of
employment inefficiently
or incompetently
Disciplinary
proceedings by
ACRA or other
professional body
Contravened
rules or bye-laws
or EP100
Non-compliance
with order of DC
or Appeal
Committee

7. © 2021 ISCA
Misconduct includes
Act or omission likely to bring discredit to himself, the
Institute or the accountancy profession
Guilty in court of an offence which would bring discredit
to himself, the Institute or the accountancy profession
Civil proceedings to have acted fraudulently or dishonestly

8. © 2021 ISCA
Initiation
Complaints-Based
• General public
• Members
• Government agencies
• SGX
Information-Based
• Found guilty by a Court
• Civil proceedings
• Disciplinary proceedings by ACRA or
another professional body

9. © 2021 ISCA
Process
Complaint
Investigation
Process
Disciplinary
Process

10. © 2021 ISCA
Investigation Process
Appointment of
IC
(3 Members and
1 Lay Person)
IC may require
Member/Student to answer
queries in writing or furnish
documents or further
information
Concludes that there is a
prima facie case and
frame the relevant
allegations
Refers case to Disciplinary
Committee

11. © 2021 ISCA
Disciplinary Process
Appointment
of DC
(3 Members
and 1 Lay
Person)
Notice of Hearing
served on
Member/Student
Member/Student has
not less than 14 days
to submit written
explanation prior to
Hearing
DC decides on the
sanction after Hearing

12. © 2021 ISCA
Possible sanctions imposed on Members
• Name removed from Register and cease to be member;
• Registration as Member be suspended for such period as the DC may
decide;
• Fined a sum not exceeding $50,000, which shall be paid within 28 days
from the date of the order;
• Censured;
• Complete any professional development course at his own expense;
• Obtains advice or professional assistance from such source as the DC
thinks appropriate;
• No further action to be taken;
• In the case of Members who is a public accountant, the finding be referred
to ACRA with the recommendation that the Member’s registration be
suspended or cancelled; or
• Make such other order as the DC considers appropriate, including, in the
case of an order for exclusion from membership, a recommendation that
no application for the readmission be entertained before the end of a
specified period.

13. © 2021 ISCA
Possible sanctions imposed on Students
• Declared unfit to be s Student and that he be removed from the student
register or that his registration as a Student be suspended for such period
as the DC may determine;
• Any period as may be determined by the DC shall not be recognized as
part of the student’s professional experience;
• Shall not sit for any examination or examinations of the Institute for such
period as the DC may determine;
• Results of an examination or examinations of the Institute sat by him be
withheld from him permanently or, if he has been notified of them, that
they be deemed to be void;
• Censured;
• Fined a sum to be determined by the DC, which shall be paid within 28
days from the date of the order;
• Declared unfit to become a Member of the Institute and that the
registration of his training contract be cancelled;
• Such other order as the DC considers appropriate; or
• No further action be taken on the case.

14. © 2021 ISCA
Rights of Appeal
• A Member or Student may appeal against a finding or order of a DC ONLY
on the following grounds:
– DC erred in law or in the interpretation of the Rules or applicable
regulations; or
– Significant fresh evidence is available that was not available to the
Member or Student concerned at the time of the hearing and which he
could not at that time have been expected with reasonable diligence to
have obtained; or
– There has been a failure on the part of the DC to follow the prescribed
procedures for the hearing in accordance with the Rules and the DC”s
decision has been prejudiced by this failure; or
– An order of exclusion or suspension, on in the case of a Student, a
declaration of unfitness for membership, was manifestly excessive in
all the circumstances.
• Appeal has to be filed within 28 days from the date the written notice of the
DC’s decision was served on him.

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