Accountants Act

Section Interpretation

Section Meetings of the institute Section The meetings of the institute shall be held in accordance with the First Schedule to this Act.

Section The council Section The governing body of the institute shall be a council which shall consist of eleven members, one of whom shall be elected the president of the council . The commissioner, the treasury officer of accounts, the Auditor General and the commissioner of education shall be members of the council .

Section Members of the council Section Where an appointed or elected member dies or ceases to be a member of the council other than by effluxion of time— One member of the council shall be appointed by the Minister , while eight members shall be elected by the members of the institute at the annual general meeting. Of the eight members elected under subsection (1), five members shall be practising accountants. The council shall, during its first meeting, elect, from among the elected members, a president and a vice president . The elected and appointed members of the council shall hold office for three years and shall be eligible for reelection or reappointment. A member of the council , other than the ex officio members, may resign his or her office by writing, addressed to the president and in case of the president , addressed to the secretary. Where an elected or appointed member of the council ceases to be a member of the institute , he or she shall cease to be a member of the council . if that member was an appointed member , the Minister shall appoint another person to fill the vacancy; if that member was an elected member , the council shall co-opt a member of the institute...

Section Functions of the council Section The functions of the council shall be— to admit members to the institute ; to approve courses of study; to provide for the registration of students of the institute and qualifications for registration; to supervise and regulate the practical training and education carried out under the institute ; to issue certificates and licences to be issued under this Act; to maintain and publish the roll of members of the institute ; to supervise the registration and maintain a register of certified public accountants of Uganda and associated accountants of Uganda and to publish their names in the Gazette ; to ensure the maintenance of professional standards among members of the institute and to take steps to acquaint the members with methods and practices necessary to maintain those standards; to promote the usage of internationally accepted accounting and related standards in Uganda and to make suitable adaptation where necessary; to secure international recognition of the institute ; to maintain a library or libraries of books and periodicals relating to accountancy and allied subjects and to encourage the publication of similar books and periodicals...

Section Meetings of the council Section Meetings of the council shall be in accordance with the Second Schedule to this Act.

Section Establishment of the institute Section There is established an institute to be known as the Institute of Certified Public Accountants of Uganda which shall be a body corporate having perpetual succession and may sue or be sued in its corporate name. The institute may hold, acquire or dispose of any property, movable or immovable.

Section Seal of the institute Section The institute shall have a common seal which shall be kept in the custody of the secretary and which shall not be affixed to any document except by order of the council . The seal of the council shall be authenticated by the signatures of the president and secretary in the presence of two other members of the council who shall sign the document independently of the signature of any person who may have signed the document as a witness.

Section Functions of the institute Section The functions of the institute shall be— to regulate and maintain the standard of accountancy in the country; and to prescribe or regulate the conduct of accountants in Uganda.

Section Membership of the institute Section The institute shall have the following categories of membership— A person shall be eligible for membership of the institute who— The council may provide that— full membership; associate membership; and honorary membership. passes the qualifying examinations conducted by the board under this Act for membership of the institute and completes practical training prescribed by the council ; or is a member of a society or institute of accountants approved by the council as being a society or institute with a status equivalent to that of the institute . a specific class of members of a society or institute of accountants approved as being a society or council with a status equivalent to that of the institute shall be eligible for membership; or a member of a specific society or institute of accountants shall not be eligible for membership of the institute unless he or she undergoes training of practical experience that may be prescribed by the council . The council may set qualifications for associate membership of the institute or may provide that a specified class of members of a society or institute may qualify for associate membership of the...

Section Enrollment Section A person who is eligible for membership of the institute under section 5 may make an application to the council for enrollment as a full member or associate member, and the council shall, if it is satisfied that the applicant is an eligible person, direct the secretary to enroll the applicant as a full member or associate member of the institute on payment of the enrollment fee and the annual subscription fee. The secretary shall enroll the applicant and issue a certificate of enrollment to the person enrolled.

Section Disqualification from enrollment Section No person shall be enrolled or continue to be a member of the institute — if he or she has been adjudged by a competent court to be of unsound mind; if he or she is an undischarged bankrupt; if he or she has been convicted of a serious criminal offence or an offence involving fraud or dishonesty.

Section Registration Section A person enrolled under section 6 shall, on presentation of the certificate of enrollment to the registrar, be registered as a certified public accountant of Uganda, and his or her name shall be entered on the register of accountants.

Section Certified public accountant of Uganda Section A person enrolled as a full member under section 6 and registered under section 8 may use the title "certified public accountant of Uganda" (CPA(U)) after his or her name.

Section Establishment of the examinations board Section There is established a board to be known as the Public Accountants Examinations Board which shall consist of— two qualified accountants from the teaching staff of Makerere University; two members of the council ; one representative from the Ministry responsible for education; one representative each from two internationally recognised institutes of accountants to be determined from time to time by the Minister on the advice of the council ; one representative from the Uganda National Examinations Board; and the secretary to the Uganda National Examinations Board, who shall be the secretary to the board. The Minister shall, on the advice of the council , appoint a chairperson from among the members of the board.

Section Functions of the examinations board Section The functions of the examinations board shall be— to determine the syllabuses and curricula in respect of examination in the subjects of study; to conduct public accountants examinations; to appoint examiners and moderators of examinations; to make rules governing the public accountants examinations; to do any other thing that is connected with the conducting of accountants examinations.

Section Secretary of the institute Section There shall be a secretary to the institute who shall be appointed by the council on terms and conditions that may be determined by the council . The secretary shall be the chief executive officer of the institute and shall be a full-time employee of the institute . The secretary shall be responsible for recording the minutes of the general meetings and of all the meetings of the council and shall keep custody of all the documents of the institute and the council .

Section Registrar of accountants Section The Auditor General shall be the registrar of accountants under this Act.

Section Other staff Section The institute shall have other officers and employees as may be appointed by the council , and the officers and employees shall hold office on terms and conditions that may be determined by the council .

Section Eligible persons for first enrollment Section At the commencement of this Act, and before the council prescribes the qualifying examination and the societies equivalent to the institute — a person who is not a member of any of the institutes specified in the Fifth Schedule to this Act but who— a member of any of the institutes specified in the Fifth Schedule to this Act may, on application to the interim council , be enrolled a full member of the institute ; or has practical experience in accountancy or audit; and is practising accountancy or audit or is employed in the field of accountancy or audit, may, on application to the interim council , be enrolled as an associate member of the institute . Where any of the institutes referred to under subsection (1) has more than one class of membership, only professionally qualified persons shall be eligible for enrollment.

Section Interim president and council Section The Minister shall, within three months after the commencement of this Act, appoint a person eligible for membership, to be— interim president of the institute ; and interim secretary of the institute . A person appointed under subsection (1) shall hold office until the election of a president who shall be elected at the first general meeting. The interim secretary shall, as soon as is practicable, inform the ex officio members of their membership on the council . The interim president , the interim secretary and the ex officio members shall form the interim council . The interim council shall carry out the necessary initial organisation for the establishment of the institute .

Section First enrollment Section The interim president shall, with the advice of the interim council , and as soon as is practicable, publish a notice in at least two widely read newspapers calling persons eligible for first enrollment to send applications for enrollment. The interim president shall, within three months after the notice under subsection (1), and with the advice of the interim council , enroll eligible persons as first members of the institute . A person enrolled as a first member shall, on enrollment, pay an enrollment fee and an annual subscription fee to be determined by the interim council .

Section Contribution to establishment of the institute Section The interim council may, at any time before the first general meeting, require the first members of the institute to pay any sum of money to the institute as contribution to the establishment and running of the institute .

Section First general meeting Section At the first general meeting— The interim president shall, after completion of the first enrollment of members and after making the necessary initial organisation for the establishment of the institute , convene the first general meeting of the institute . The first general meeting shall be convened not later than twelve months from the commencement of this Act. the interim president shall present to the members a report on the progress of the institute since its establishment which shall include a statement of the institute ’s finances; the members shall elect the members of the council .

Section Handing-over by interim council Section The interim council shall hand over all powers and responsibilities to the elected council as soon as is practicable after the election of the council .

Section Practising accountancy Section A person shall be deemed to practise accountancy if he or she, for payment, whether by himself or herself or in partnership with another person— No person shall practise accountancy in Uganda unless he or she possesses a practising certificate or a practising licence issued under this Act. offers to perform or performs services involving the auditing, verification or certification of financial accounting or related statements; renders professional service or assistance on matters of principle, accounting procedure or certification of financial facts or data; or renders any service which in accounting principles or byelaws made by the council are services amounting to practising accountancy. A public officer or any other employee shall not be deemed to have practised accountancy if, through the course of his or her employment, he or she does any of the acts referred to in subsection (2).

Section Certificate of practice Section A person enrolled and registered under this Act may apply to the council for a certificate of practice. An application for a certificate of practice shall be in a form prescribed by the council and addressed to the secretary. The council shall, after being satisfied that the applicant is an enrolled and registered person and on payment of the prescribed fee, grant a certificate of practice to the applicant. A certificate issued under subsection (3) shall be valid from the date of issue to the 31st day of December of the calendar year in which it is issued and may be renewed on application by the accountant . The council shall not grant a certificate of practice to a firm of accountants.

Section Renewal of certificate Section Where no application for the renewal of a certificate is made within three months from the beginning of the year for which the certificate is renewable, the secretary shall, by registered mail, send a notice to the accountant concerned— The council may, on the advice of the disciplinary committee and after due inquiry, refuse to renew a certificate of practice. notifying him or her that the certificate has not been renewed for that year; and inquiring whether that accountant has ceased to practise accountancy,

Section Licence of practice Section A person who— was engaged in the public practice of accountancy and registered under the Companies Act but who does not qualify to be a full member of the institute under this Act; or is an associate member under this Act, may apply to the council for a licence of practice. An application for a licence of practice shall be in a form prescribed by the council and shall be addressed to the secretary. The council may, after being satisfied that the applicant is a proper and fit person and on payment of the prescribed fee, grant a licence of practice to the applicant. A licence issued under subsection (3) shall be valid from the date of issue to the 31st day of December of the calendar year in which it is issued and may be renewable on application by the accountant . The council shall not grant a licence of practice to a firm of accountants.

Section Renewal of licence Section Where no application for the renewal of a licence is made within three months of the new calendar year for which the licence is renewable, the secretary shall, by registered mail, send a notice to the accountant concerned— The council may, on the advice of the disciplinary committee , after due inquiry, refuse to renew a licence of practice. notifying him or her that the licence has not been renewed for that year; and inquiring whether that accountant has ceased to practise accountancy,

Section Associate accountant of Uganda Section A person issued a licence of practice under section 23 shall be known as an associate accountant of Uganda (AA(U)) and may use that title after his or her name.

Section Establishment of a disciplinary committee Section There is established a disciplinary committee consisting of five members, one of whom shall be the chairperson. Members of the disciplinary committee shall be appointed by the council from members of the institute , but the chairperson shall be appointed from among members of the council . A member of the disciplinary committee shall hold office for one year and shall be eligible for reappointment.

Section Complaints against accountants Section A complaint or an allegation against an accountant which if proved would constitute professional misconduct may be made to the disciplinary committee by the council or any person. Upon receipt of a complaint, the secretary shall, as soon as is practicable, refer the matter to the committee; and the committee shall fix a date for the hearing of the complaint. The disciplinary committee shall give the accountant against whom the complaint or allegation is made an opportunity to be heard and shall furnish him or her with a copy of the complaint and any other relevant document at least seven days before the date fixed for the hearing.

Section Secretary to the disciplinary committee Section The secretary to the council shall be the secretary to the disciplinary committee .

Section Procedure of the disciplinary committee Section The procedure to be followed by the disciplinary committee shall be as provided under the Third Schedule to this Act.

Section Committee’s decision Section After hearing the complainant and the accountant to whom the complaint relates and after considering the evidence adduced, the committee may dismiss the complaint if no ground for a disciplinary action is disclosed or if a ground for a disciplinary action is disclosed, impose any or a combination of the following penalties— that the accountant be admonished; that the certificate or licence of the accountant be suspended for a specified period not exceeding two years; that the accountant be suspended from membership of the institute for a specified period not exceeding two years; that the accountant pay a fine that may be determined by the committee; that the accountant pay compensation that may be determined by the committee to any person who may have suffered loss as a result of the misconduct; that the name of the accountant be struck off the roll of accountants.

Section Report to the council Section The committee shall, on conclusion of the case, make a report of its findings, in writing, to the council ; and the council shall deliver to the complainant and the accountant to whom the complaint relates a copy of the report of the committee as soon as is practicable.

Section Appeal to the High Court Section An appeal made under this section shall be— An accountant or complainant aggrieved by the decision or order of the committee may appeal against the decision or order of the committee to the High Court within three months from the date on which the report of the committee was delivered to that accountant or complainant. made by petition in writing under the hand of the accountant or complainant; and heard and decided upon by a judge of the High Court after summary hearing.

Section Implementation of the committee’s orders Section Where the council strikes off the name of an accountant from the roll— The council shall be responsible for the implementation of the committee’s orders. the certificate of membership and that of practice of a certified public accountant shall stand cancelled, and the council shall require that person to return the certificate to the council ; or the certificate of membership and the licence of practice of an associate accountant shall stand cancelled, and the council shall require that person to return the licence to the council .

Section Funds of the institute Section The funds of the institute shall consist of— registration and annual subscription fees from members of the institute ; fees and other monies paid for services rendered by the institute ; grants, gifts or donations to the institute ; and money borrowed by the institute for the performance of its functions. All monies of the institute shall be managed through a fund to be established by the council for the purpose. The institute may operate a bank account in a bank determined by the council , and the account shall be operated in a manner decided by the council .

Section Borrowing power Section The council may borrow money on terms that may be agreed upon by the council for the performance of the functions of the institute .

Section Investment Section The council may invest monies of the institute in any securities issued or guaranteed by the Government or in any other securities approved by the council .

Section Financial year Section The financial year of the institute shall be the calendar year that is the twelve months beginning from the 1st day of January and ending on the 31st day of December each year.

Section Accounts and audit Section The institute shall keep proper books of account, and shall prepare the annual financial statement of accounts for the immediately preceding financial year not later than the 31st day of March in the following year. The statement of accounts shall be audited by a practising member of the institute , not being a member of the council , that may be appointed by the institute at the annual general meeting. An auditor appointed under subsection (2) shall have the same powers and duties as are conferred upon an auditor appointed under section 160 of the Companies Act. The council shall furnish to the Minister and each member of the institute the audited accounts for the preceding year, together with the auditor’s report, not later than the 31st of May each year.

Section Annual subscription fee Section The annual subscription fee shall be determined by the council , from time to time, and shall be due and payable to the secretary— in case of first enrollment, at the time of enrollment; in any other case, on the 1st day of January in each year. All other fees shall be determined by the council and payable to the secretary. The council may strike off the name of an accountant from the roll if the annual subscription fee remains unpaid by that accountant for a period exceeding four months from the time it is due.

Section Registers Section The registrar shall maintain separately the following registers in which shall be entered particulars that the council may prescribe— a register of certified public accountants; a register of accountants holding certificates of practice; a register of accountants holding licences of practice. The registrar shall, at the beginning of each year, cause to be published in the Gazette the up-to-date registers at the close of the previous year as soon as is practicable.

Section Extract from the register Section Any extract from the register which is certified by the registrar under his or her hand shall be received in a court or tribunal without any further proof of its contents. An accountant may get an extract from the register on payment of the prescribed fee.

Section Alteration of the register Section The registrar may— make any corrections in the register as may be necessary; remove from the register the name of a deceased person; remove from the register the name of a person whose name has been ordered to be removed under this Act; with the consent of the person concerned, remove from the register the name of a person who has ceased to practise. Where the registrar has reason to believe that an accountant has ceased to practise, he or she may send to that registered person a notice by registered post inquiring whether that person has ceased to practise in Uganda; and if no reply is received by the registrar within six months from the date of the notice, the registrar shall remove from the relevant register the name of that person. The council shall, for the purposes of subsection (2), furnish the registrar with any relevant information that may be in its possession.

Section Other committees Section The council may appoint other committees from among its members and members of the institute to deal with specific matters of the institute . The chairperson of a committee appointed under subsection (1) shall be a member of the council . The council may regulate the proceedings of the committees appointed under subsection (1).

Section Inspection of offices Section The council may, at any time, whether before or after granting a certificate or licence of practice, inspect the premises or offices of an accountant to ascertain whether the premises are suitable for carrying on the business of accountancy and whether the accountant is able to supervise his or her subordinates working in premises other than his or her office.