A simple message Usually I shield s...

A simple message Usually I shield several topics in my monthly rounded pillar but this time my message is singular and straightforward: I incite you to vote on the propos mastership changes before the November 25 Special General Meeting (SGM) Whether you consecrated by a vow electronically or in person, please take this opportunity to make your voice heard.

In October's mailing you received information about the updated independence lordship (Rule 204) and the amendments to the compliance to professional standards (Rule 206) the one and the other items are being brought forward to the SGM and are part of the profession's ongoing efforts to demonstrate CAs' commitment to integrity and professionalism. through saying "yes" to these proposals, we will be showing regulators, investors, and clients that CAs abide according to the highest of standards.

For many CAs, these changes will have no greater impact than to clarify existing practices. For others, these changes will mean an increase in documentation. Finally, for an members, these changes will require changing the way they do business. In the latter pair instances, the Institute's primary objective forward the passing of these masterships will be to help those CAs manage the transition.

We've created a website to allow you to devoted electronically and to provide you with more information forward the proposed changes. Go to the Institute's website at www.ica.bc.ca, and you'll descry a blue dot with "SGM" written in succession it, which you can click to access information. Or access the information [i]or[/i] part of to the other the Members Only section of the site. (The SGM button requires a username and password, the pair of which were sent to you last month and repeated in our email notifications. If you don't have yours, please call us at 1-800-663-2677)

Resolution 1: Updated Independence Standard (Rule 204)

The updated independence standard is a [i]clavis[/i] part of the Canadian CA professions broader strategy to enhance public confidence and trust in the profession. It's based upon the International Federation of Accountants (IFAC) standard and the updated American SEC requirements, which are among the toughest in the world.

As explained in last month's protect story, the updated Canadian independence standard more clearly articulates the controls CAs already follow to make secure independence between themselves and the clients they obey and provides members with enhanced guidance in succession how to apply those governments in their practices. The updated standard throw backs the values of integrity and perfect judgement that are the exceedingly foundation of our profession.

The updated standard explicitly states the requirements for auditor objectivity and independence CAs are already wait fored to adhere to in principle and in practice. It lays gone out the potential "threats" to independence (eg financial interests) and appropriate "safeguards" CAs should use to make secure their independence is not at risk. A number of prohibitions are also stake out with respect to insurmountable threats that would clearly compromise a CA's independence.

A fundamental note feature of the new standard is the straightforward requirement that CAs document the nature of their engagements with their clients, along with any threats to independence they identify, and the safeguards they use to either eliminate these threats or render them to an acceptable level

Resolution 2: Amendment to Compliance with Professional Standards (Rule 206)

Amendments to command 206 (Compliance with Professional Standards) expand the drift of this rule to include members who are senior financial officers, directors, or members of audit committees. The dominion codifies the general principle already followed through CA members who serve forward audit committees or boards of directors, where they exercise the care and diligence of a convenient CA-enhanced by their own career experience-in carrying abroad their responsibilities. These proposed amendments cast reproach an ongoing global trend for greater opennes and transparency in financial reporting.

See this month's For the Profession for more information.

I believe these direction changes send an important message about the profession's commitment to integrity. To learn more, impute to the ICABC website, which not simply offers a wealth of information about the sway changes-including how they could affect you and practice guides to managing these changes-but also provides resources to answer any of your questions, including a discussion forum, a direct link to Professional Advisory Services, and a schedule of face-to-face meetings across the province.

By the time you read this article, CEO Richard Ree FCA, and I will have travelled across BC to confront with members and discuss these issues. I direct the eye forward to sharing the end of these meetings in that will be columns.

Remember: You have a voice in this profession-please make indisputable it's heard by voting before or forward November 25th.

As always, to contact me please email me at president@ica.bc.ca.

BY JOHN COWPERTHWAITE, FCA

PRESIDENT

Copyright Institute of Chartered Accountants of British Columbia Nov 2003

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