RESTRICTED
WORLD TRADE S/WPPS/W/7/Add.21
28October 1996
ORGANIZATION
(96-4696)
Working Party onProfessional Services Original: English
COMMUNICATION FROM SINGAPORE
Response tothequestionnaire ontheaccountancy sector
Thefollowing communication iscirculated attherequest ofSingapore.
________
I. GENERAL
1. What aretheprofessional titles ofaccountants inyour country? Arethese professional
titles protected? Please specify how.
“Certified Public Accountant ”
Only fullmembers oftheInstitute ofCertified Public Accountants ofSingapore (ICPAS or
“Institute ”),which include practising andnon-practising members, canusethedesignation todescribe
themselves asaccountants. Practising members areCertified Public Accountants registered withthe
Public Accountants Board (PAB or“Board ”).
2. How istheaccountancy sector regulated inyour country: bylaw,professional self-
regulation, acombination ofboth?
Theaccountancysectorisregulatedbyacombinationofbothlawandprofessionalself-regulation.
Therules arefound inPABRules 1989 andtheICPAS Rules 1989 respectively.
3. Arethere anyprovisions toprotect company names, whether national orforeign, inyour
country?
Theapproval offirmnames, whether national orforeign, comes under thejurisdiction ofthe
Board. Public accountants arenotallowed toincorporate companies.
4. What aretheprofessional bodies inyour country? Aretheyrecognised bylawasa
regulatory ordisciplinary body fortheaccountancy profession inyour country, orare
these functions fulfilled byother institutions (please specify)?
Under theAccountants Act1987, twoseparate bodies areestablished. They arethePublic
Accountants Board andtheInstitute ofCertified Public Accountants ofSingapore. Theprimary role
oftheBoard isthatofregistration andcontrol ofpublic accountants while theInstitute isresponsible
forthetechnical development andadvancement oftheprofession.S/WPPS/W/7/Add.21
Page2
5. Howmany members dothese professional bodies have? What istheestimated proportion
ofthose:
- inpublic practice
- inindustry orcommerce
- inthepublic sector
- ineducation
- unoccupied (retired, etc.)
- other
AsattheendofMay1996,theInstitutehadatotalmembershipof9912members.Theestimated
proportions areasfollows:
(a) inpublic practice:
(ii) public accountants: 6.7%
(ii) professional staff: 14.8%
(b) inindustry orcommerce: 45.4%
(c) inthepublic sector: 6.3%
(d) ineducation: 2.0%
(e) unoccupied (retired, etc.): 2.8%
(f) other: 22.0%
AsattheendofMay1996, there were 656public accountants registered withtheBoard.
6. What isthescope ofactivities regularly practised byaccountants inyour country?
- statutory audit
- audit ofmergers
- audit ofcontributions inkind
- public sector audit
- other audits
- accounting
- insolvency practice
- taxadvice
- taxrepresentation
- investment advice
- consulting
- expert witness inaccounting
- other
Alllisted inthequestion except public sector audit which isdonebytheAuditor-General ’s
Office.S/WPPS/W/7/Add.21
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7. Which ofthese activities areregulated inyour country?
Statutory audit, insolvency andliquidation workastheserequire licence before onecanperform
theactivities.
8. Which ofthese activities arereserved bylawtoaccountants, shared byaccountants with
other professions (please specify), orevenforbidden toaccountants inyourcountry, e.g.
byfullprohibition orbynotallowing cumulation ofcertain activities which areconsidered
incompatible ormutually exclusive?
Thepreserved functions ofapublic accountant areaccounting, auditing andtaxation (taxadvice
andtaxplanning). However, lawyers canalsocarry outthework ofataxconsultant.
II. QUALIFICATION REQUIREMENTS
9. What arethequalification requirements forthese activities inyour country interms of
university/higher education degree, practice andprofessional exam? Specify thenumber
ofyears required foreachelement, andthedifferences according totheactivities (audit,
insolvency, tax,etc.)covered bythequalification.
Formembership admission totheInstitute andregistration withtheBoard, anapplicant must
either:
(a) havepassed thefinalexamination ofanyofthefollowing localbodies:
(i) theSingaporePolytechnicfortheprofessionaldiplomaandforthedegreecourse
fortheyears 1961 to1969;
(ii) theUniversity ofSingapore forthedegree ofBachelor ofAccountancy;
(iii) theNanyang University ofSingapore forthedegree ofBachelor ofCommerce
(Accountancy) orBachelor ofAccountancy except thatanapplicant whohas
obtained thedegree ofBachelor ofCommerce (Accountancy) fromNanyang
University prior to1969 shallhavealsopassed suchqualifying examinations
astheCouncil maydetermine;
(iv) theNationalUniversityofSingaporeforthedegreeofBachelorofAccountancy;
(v) theNanyang Technological Institute forthedegree ofBachelor ofAccountancy;
(vi) theInstitute ofCertified Public Accountants ofSingapore (formerly the
Singapore Society ofAccountants) -Chartered Association ofCertified
Accountants oftheUnited Kingdom Joint Scheme;
(vii) theNanyang Technological University forthedegree ofBachelor of
Accountancy orMaster ofBusiness Administration (Accountancy);
(viii) theICPAS Professional Examination1;or
1TheICPAS Professional Examination isopen tograduates from accredited overseas universities whohave
notpassed theforeign professional examinations recognised bytheInstitute in(b)formembership purposes.S/WPPS/W/7/Add.21
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(b) havepassed thefinalexamination inaccountancy ofoneofthefollowing foreign bodies
oritsrecognised equivalent:
(i) theInstitute ofChartered Accountants ofScotland (ICAS);
(ii) theInstitute ofChartered Accountants inEngland &Wales (ICAEW);
(iii) theInstitute ofChartered Accountants inIreland (ICAI);
(iv) theChartered Association ofCertified Accountants (ACCA/CACA);
(v) theInstitute ofChartered Accountants inAustralia (ICAA);
(vi) theAustralian Society ofCertified Practising Accountants (ASCPA);
(vii) theNewZealand Society ofAccountants (NZSA);
(vi) theCanadian Institute ofChartered Accountants (CICA);
(ix) theAmerican Institute ofCertified Public Accountants (AICPA);
(x) theChartered Institute ofManagement Accountants oftheUnited Kingdom
(CIMA), except thatCIMA members applying tobeadmitted asapractising
member shallpassthefollowing subjects:
(aa) Advanced Financial Accounting;
(bb) Auditing andInvestigations,
andshallhavealsopassed suchother examination andfulfilsuchrequirements asmay
bedetermined bytheBoard ortheCouncil (where appropriate). These requirements
include,inter-alia,attendingapre-admissioncourseconductedbytheInstitute,satisfying
minimum periods ofpractical experience andinthecaseofaholder ofarecognised
foreign professional qualification in(b)above, satisfying theCouncil/Board ofhis
proficiency inSingapore company andtaxlawsexcept thatheshallnotberequired
topassanexamination onthese subjects ifhehasnotlessthantwoyears ofrelevant
localexperience.
(i) Structured Practical Experience
- ForPractising Membership withtheInstitute andregistration withtheBoard
(a) afterpassing thequalifying examination oritsrecognised equivalent
setoutabove, notlessthantwoyears ofstructured practical experience
inareas ofaccounting, auditing andtaxation; or
(b) notlessthanfouryears ofstructured practical experience inareas of
accounting, auditing andtaxation, ofwhich atleastoneyearisacquired
afterpassing thequalifying examination, inapublic accountant ’soffice
orinthepublic sector oranyother organisation recognised bythe
Board/Council.S/WPPS/W/7/Add.21
Page5
- ForNon-practising Membership withtheInstitute
(a) after qualifying, notlessthan twoyears ofstructured practical
experience; or
(b) notlessthanfouryears ofstructured practical experience, ofwhich
atleastoneyearisacquired afterpassing thequalifying examination,
inapublic accountant ’soffice orinthepublic sector oranyother organisation
recognised bytheBoard/Council.
(ii) Unstructured Practical Experience -without having tocomplete thelogbook
- ForPractising Membership withtheInstitute andregistration withtheBoard
(a) after qualifying, notlessthanthree years'experience inareas of
accounting, auditing andtaxation inapublic accountant 'soffice; or
(b) notlessthanfiveyears'experience, inareas ofaccounting, auditing
andtaxation inapublic accountant 'soffice ofwhich atleasttwoyears
areobtained afterpassing thequalifying examination.
- ForNon-practising Membership withtheInstitute
(a) afterqualifying, notlessthanthree years; or
(b) notlessthanfiveyears,
ofaccounting experience inapublic accountant 'soffice orinapublic sector
oranyother organisation recognised bytheCouncil.
10. Arethere anypre-conditions tomeet tostarttheprofessional education: minimum age,
particular diploma ortitle,prior education, registration withaprofessional body, payment
ofafee,other (please specify)?
Please seeanswer 9above.
11. What arethesubjects tobecovered bytheeducation: accounting, audit, tax,general
law,economics, ethics, information technology, other (please specify)?
TheICPAS pre-admission course covers thefollowing 5modules:
(a) Professional ethics
(b) Legal framework
(c) Taxation
(d) Auditing
(e) Accounting standardsS/WPPS/W/7/Add.21
Page6
III. TECHNICAL STANDARDS AND ETHICS
12. Inrelation towhich activities donational standards exist(audit, accounting, insolvency,
other)? Please specify their main policy objectives.
NationalstandardsexistinSingaporeinrespectofaccountingandauditing.Nonationalstandards
existinSingapore inrespect ofinsolvency.
TheStatements ofAccounting Standard issued bytheInstitute describe methods ofaccounting
forapplication toallfinancial statements intended togiveatrueandfairviewofthefinancial position
andresults ofanentity.
TheStatements ofAuditing Guideline issued bytheInstitute areguidance statements onwhat
constitutes generally accepted auditing practices andontheform andcontent ofaudit reports.
13. Which body orinstitution develops these standards andmonitors their implementation?
What aretheconsequences ofabreach ofthestandards (fortheprofessional, forclients,
etc.)?
TheInstitute develops standards andmonitors compliance. TheBoard, forthepurpose of
discharging itsfunction ofregulating thepractice oftheaccountancy profession bypublic accountants,
adopts thestandards andguidelines issued bytheInstitute. Depending onthenature ofabreach of
thestandards, amember oftheInstitute maybecounselled, fined and/or suspended. Similarly, public
accountants maybecensured, fined and/or suspended ifheisinbreach ofanyprofessional codeof
ethics andstandards.
Standards havenolegalbacking inSingapore though forclients listed ontheStock Exchange
ofSingapore (SES), theSESmaysanction theclient fornon-compliance withtheSESlisting rules.
14. Aretheinternational standards developed byIFAC (International Education Standards
andGuidelines, International Standards onAuditing) andIASC (International Accounting
Standards) recognised orusedinyourcountry? Ifyes,please explain how. Ifno,please
explain why.
Singapore adopts most, ifnotall,international accounting andauditing standards asnational
requirements butonlyafteranappropriate national dueprocess. Thetextsoftheinternational standards
areusually unchanged although apreface orexplanatory foreword maybeadded which deals with
specific national issues ormodifications totheinternational standards.
15. Inrelation towhich activities does aparticular ethical code exist (audit, accounting,
insolvency, other)? Please specify itsmain policy objectives.
Ageneral codeofethics exists andapplies toallprofessional work performed byamember
oftheInstitute andapublic accountant regardless ofwhether thework isperformed foraclient or
anemployer.
Those whopursue avocation inwhich knowledge andskills areoffered intheservice ofthe
affairs ofothers haveresponsibilities andobligations tothose whorelyonandareaffected bytheir
work. Itisthedutyofagoverning professional body oraregulatory board toidentify those
responsibilities andobligations andcodify them forthebenefit ofboththeproviders andrecipients
ofsuchskills. Thecodeofethics prescribed bytheInstitute/Board seeks tomeetthatduty.S/WPPS/W/7/Add.21
Page7
TheInstitute andtheBoard Rules grant members/public accountants theright tousethe
designation “Certified Public Accountant ”.Such rightimposes onmembers/public accountants the
obligation tomaintain highstandards ofprofessional conduct known tobeassociated with, andexpected
of,theprofession.
Thecodeofethics expresses theprofession ’srecognition ofitsresponsibility tothepublic,
toclients, andtocolleagues. Itguides members/public accountants intheperformance oftheir
professional responsibilities andexpresses thebasic tenets ofethical andprofessional conduct.
16. Which body orinstitution develops thiscode andmonitors itsimplementation? What
aretheconsequences incaseofbreach oftheethical codebyaprofessional orafirm?
TheInstitute andtheBoard eachdevelops acodeofethics foritsmembers/public accountants
andmonitors compliance.
Allegations ofbreaches ofthecodeofethics areinvestigated bytheInstitute and,ifacase
isproven, sanctions maybeenforced bytheInstitute, suchasafineand/or suspension ofthemember(s)
concerned. Inaddition, members inpublic practice (i.e.public accountants) must comply withthe
Board Rules andmaybesimilarly sanctioned iffound tobeinbreach.
17. Arethere restrictions onmarketing, solicitation, advertising?
There arerestrictions onmarketing, solicitation andadvertising. These aresetoutinparagraph
5ofthethirdschedule totheInstitute andBoard Rules.
18. Arethere restrictions onfee-setting (minimum/maximum levels imposed, indicative scale,
etc.)?
Norestrictions existpersebutmembers aretosetfeeswhich areafairreflection ofthework
performed taking intoaccount:
(a) theskillandknowledge required forthetypeofwork involved;
(b) theleveloftraining andexperience ofthepersons necessarily engaged onthework;
(c) thetimenecessarily occupied byeachperson engaged onthework; and
(d) thedegree ofresponsibility andurgency thatthework entails.
Members arenottoaccept norcharge feessetonapercentage orcontingent basis.S/WPPS/W/7/Add.21
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IV. LICENSING REQUIREMENTS AND PROCEDURES
19. Apart from thequalification requirements, what arethelicensing requirements for
individuals inyour country?
Anapplicantmustpassoneoftherecognisedprofessionalexaminationslistedinanswer9above.
Other requirements include thefollowing:
- must apply tobeamember oftheInstitute
- must register withtheBoard foracertificate ofregistration
- must obtain audit/liquidator license from theMinister ifthepublic accountant wish
tocarry outaudit orliquidation work
- public accountants areencouraged tosubscribe toaprofessional indemnity insurance
- theapplicant isrequired totakeastatutory declaration atthetimeofapplication for
registration asapublic accountant thatheisnotsubject toanycriminal investigation
oranundischarged bankrupt. Thisprovision ismade under section 57(2)(a) and(c)
oftheAccountants Act
Section 12(1) oftheAccountants Actstates thatnoperson shall beregistered asapublic
accountant bytheBoard ifheisunder theageof21years orifintheopinion oftheBoard, heisnot
ofgoodcharacter orreputation orisengaged inanybusiness oroccupation inconsistent withtheintegrity
ofapublic accountant.
20. Arethere anyconditions imposed tobeeligible formembership oftherelevant professional
body(ies)? Please specify.
Please seeanswer 9above.
21. Arethere specific licensing requirements forprofessional firms?
There arenospecific licensing requirements forprofessional firmforthefollowing:
- minimum capital -No
- number ofpartners -No
- membership ofaprofessional body -Yes,asstipulated insection 18oftheAct
- registration withtheministry oranyother institution -Yes,withtheBoard
- professional indemnity insurance -Notcompulsory
- voting rights -NosincetheBoard doesnotholdanyannual general meeting forpublic
accountants
- management/administration ofthefirm-No
22. Cananapplication forlicensing befiledatanytimeoftheyearorarethere specific dates
torespect? Howlongdoesittaketocomplete thewhole licensing procedure? Please specify
incaseofdifferences between individuals andfirms.
Anapplication forlicensing canbefiledatanytimeoftheyear. Thewhole licensing procedure
would takeabout 3months tocomplete foranindividual.S/WPPS/W/7/Add.21
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23. Arethere differences interms oflicensing requirements and/or procedures, according
totheactivities covered bythelicence (audit, insolvency, etc.)? Please specify. What
kindofdocumentation isnecessary/accepted? Aredocuments issued inother countries
acceptable? Please specify.
There arenodifferences interms oflicensing requirements and/or procedures according to
theactivities covered bythelicence. However, theissuance ofaudit licence would precede overthat
oftheinsolvency licence.
24. What happens when thelicensing conditions arenolonger respected bytheindividual
orthefirm?
TheMinister mayrevoke thelicences orreject theapplicant 'sapplication forrenewal ofthe
licences.
V. RECOGNITION OFQUALIFICATIONS
25. Arethere anypossibilities fortaking account ofqualifications acquired byforeign
professionals inanother country? Arethere bilateral agreements withother countries
inthisrespect?
Theonlyforeign professional qualifications recognised bytheInstitute andtheBoard arethose
listed inanswer 9(b)above. There arenobilateral agreements withother countries inthisrespect.
26. Arethere anyautomatic recognition ormutual recognition agreements between your
professional bodies andtheir counterparts inother countries? Ifso,please specify the
main characteristics ofsuchagreements; ifnot,please explain why.
There arenoautomatic recognition ormutual recognition agreements withcounterparts inother
countries.
27. Where possibilities oftaking account offoreign qualifications exist, isafulllocal
examination oralocaltraining exceeding 12months required? Please specify. Isalocal
licence always necessary topractice aregulated accountancy activity? Please specify when
thisisnotthecase.
Nofulllocal examination isrequired forholders ofrecognised professional qualifications.
However, theymustsatisfy therequirements ofproficiency inlocallaws, relevant years ofworking
experience andthecompletion ofthepre-admission course asexplained inanswer 9.
28. What aretheaccreditation/licensing requirements imposed onforeign professionals
authorised topractice intheirhome country? Maycertain (regulated) activities becarried
outonthebasis ofaforeign licence?
Anyforeigner whowants topractise inSingapore mustsatisfy therequirements foradmission
asapublic accountant /practising member listed inanswers 9and19above.S/WPPS/W/7/Add.21
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VI. REGULATIONS GOVERNING THE ESTABLISHMENT OFACOMMERCIAL
PRESENCE
29. Arethere anyrestrictions ontheform under which onecanestablish (partnership,
incorporation, other)? Please specify.
Abody corporate isnoteligible forregistration asapublic accountant under theAccountants
Act1989, andtherefore, itfollows thattheformapublic accountant under which heorsheistopractise
canbeeither asoleproprietorship orapartnership.
30. Arethere restrictions onforeign direct investment andownership, including restrictions
applying tonotlocally qualified individuals orfirms? Please specify.
Notapplicable inviewofanswer 29.
31. Isthere arequirement ofaminimum number orpercentage oflocal directors, managers
orstaff(please specify)?
Notapplicable inviewofanswer 29.
There isnorequirement forstafformanagers ofpublic accounting firms tobelocal. However,
thepublic accountant must beregistered under theAccountants Act1987.
32. Arethere restrictions ontheability oflocally established firms todevelop international
relations (membership ofaninternational network, association withforeign firms, etc.)?
Please specify.
There arenorestrictions ontheability ofpublic accountants todevelop international relations.
33. Istheuseofinternational orforeign names restricted forfirms?
According totheCode ofProfessional Conduct andEthics intheThird Schedule tothe
Accountants Act1987, subject toapproval bytheBoard, apublic accountant istopractise either in
hisorhispartners ’names, afirmname under which hewould beentitled topractise before 11February
1989 orwhich isderived from thenames ofpresent orformer partners ofthefirmwhoareorwere
public accountants, orsuchother name asapproved bytheBoard.
VII. REGULATIONSGOVERNINGTHEENTRYANDTEMPORARYSTAYOFNATURAL
PERSONS FOR THE PURPOSE OFSUPPLYING ACCOUNTANCY SERVICES
34. Istheentry andstayofprofessionals subject tolabour market tests oranyother
restrictions? Please specify.
Theentry andstayofprofessionals arenotsubject tolabour market tests.
35. Isthere anyprocedure facilitating thetemporary entry andstayofprofessionals tosupply
accountancy services? Please explain.
There isaneedtofulfil Singapore ’simmigration requirements.S/WPPS/W/7/Add.21
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36. Arethere anyrestrictions onhiring oflocal professionals byforeign firms and
professionals? Please explain.
There arenorestrictions onhiring oflocalprofessionals byforeign firms andprofessionals.
VIII. NATIONALITY/RESIDENCY REQUIREMENTS
37. Isacondition ofnationality/citizenship imposed topractice certain activities, tostartan
education, toobtain alicence, tobecome member ofaprofessional body, etc.? Please
specify.
There arenonationality/citizenship requirements.
38. Isacondition ofestablishment, prior residency orresidency imposed topractice certain
activities, toobtain alicence, tobecome member ofaprofessional body, etc.? Please specify
theconditions andthedefinition ofestablishment, residency, etc.when relevant. Isit
possible tohave aprofessional establishment inmore thanonecountry?
Approval ofestablishment comes under thepurview oftheBoard.
Under paragraph 7oftheBoard Rules, itisstated thatnoperson shallbeentitled toregistration
unless hesatisfies theBoard that:
(a) heiscarrying onorisabout tocarry onthepublic practice ofaccountancy inSingapore
byplacing hisservices asanaccountant atthedisposal ofthecommunity, butnot
entirely atthedisposal ofanyoneindividual, firmorcorporation;
(b) heismaintaining orisabout tomaintain anoffice orplace atwhich hisservices may
beengaged; and
(c) heisavailable orisabout tomake himself available toundertake work onbehalf of
anymember ofthepublic.
Itispossible tohaveaprofessional establishment inmore thanonecountry.