Presentation by Mousa Sindaha, Member, Compliance Advisory Panel, for SMO Workshop, February 13, 2016, in San Jose, Costa Rica.

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Addressing the SMO’s: Jordan
experience
Mousa Sindaha, Member, Compliance
Advisory Panel
SMO Workshop
San Jose―Costa Rica
February 13, 2016

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Location of Jordan

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Jordanian Map

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Information : Jordan
• Area
– 89,342 KM
• Population (2015)
– 9.5 million (6.6 Jordanians)
• Government
– constitutional monarchy

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Economics of Jordan
• GDP
– 40 billion US$
• Per Capita
– 6,115 US$
• Unemployment
– 12.6%

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• Auditors and Accounting Firms
– Palestine Companies Ordinance No. (29) of 1929
– Companies registration Law of 1927
• Section 105 No 4 (West Bank)
• License to practice from municipality (East Bank)
– Certified Auditors Practice Law No. (10) of 1961
• Audit Bureau records
Historical and Regulatory Environment; the
Accounting Profession in Jordan

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• JACPA
– Founded by law No. (32) of 1985 Law of Auditors Profession,
according to article 18, after enacting regulation.
– Regulation of JACPA issued in 1987 then founded 1988
– Law of Regulating Certified Accounting Profession No (27) of 2003
Jordan Association of CPA’s (JACPA)

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• Legal adoption
- No specific articles
- Inspection rather than QA
- Adoption of a system
- Checklist review (field & office)
• Maintaining on going process
- Limitations (financing, implementation, criteria)
- Audit documentation toolkit (Pack PE KE)
SMO 1: Quality Assurance

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• JACPA compliance
- Complaints
- Selection system
- Sector selection
- Planned projects
- Cross country teams
- Audit documentation toolkit
SMO 1: Quality Assurance Implementation

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• Qualification requirements
- University graduate (business related)
- Two years college graduate
- Professional Qualification (graduate)
• Professional Exam (2 papers)
• Practical Experience
- 3 years JCPA or 7 years in public sector
SMO 2: Educational Standards

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• Deficiencies of accounting education in Jordan compared
to International Accounting Educational Standards
- Technical competence (governance risks, business environment)
- Professional skills (soft skills)
- Professional value (ethics)
- Professional skepticism and judgment
SMO 2: Assessment of Educational Standards

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• On going process
- 20 hours CPD (Free courses)
- Updates of IFRS & ISA
- Other courses (Business related)
- Technical paper published in a magazine
- Standards Translation (IASCA)
- Conference every two years.
SMO 2: Compliance with Educational Standards

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• Yearly updates
• Translation
• Quality checklist
• Audit automation
• Training
SMO 3: Auditing Standards

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• Different translations
• Definition of Independence
• Legal issues
• Training
SMO 4: Ethics Standards

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• Training
• Cooperation with government team
• Jordan fiscal reform project (5 years)
• Adoption of IPSAS funded by USAID
• Governmental Financial MIS system
SMO 5: IPSAS

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• Complaint
• Investigation Committee
• Inspection Committee
• Investigation/Inspection reports
SMO 6: Investigation

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• Disciplinary Committee (appointed yearly)
• Review reports
• Disciplinary actions
• Objections in administrative courts / court of appeal
SMO 6: Discipline

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• Yearly updates
• Training courses
• Translation
• Compliance checklist
SMO 7: IFRS

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• Action plan (2011,2013, 2014)
• Updates & approval by BOD
• Regulatory limitations
• Compliance of SMO improvements
SMO’s Compliance

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Questions and Answers?