PrintCase Studies
Background
Institute bye-laws require CIPFA members engaged in public practice to hold a Practice Certificate. The CIPFA definition of Public Practice as included in the Practice Regulations:
- For the purposes of these Regulations, a Member shall be regarded as engaging in Public Practice where he or she provides, or holds, or allows himself or herself to be held out to provide, accountancy services to a person or entity who is not their employer.
- 'Accountancy services' includes services requiring or making use of accountancy or related skills, including accounting, auditing, taxation, and financial management.
- In considering whether a Member is engaged in Public Practice and providing accountancy services, regard shall be had to guidance issued by the Institute Council.
Members holding Practice Certificates will be required to participate in the Institute's Practice Assurance Scheme.
The following scenarios aim to outline some circumstances where members will, and will not, be required to hold a Practising Certificate.
The definitions relating to the scope of the services that require Members to hold a practising certificate will be available here shortly.
If you believe your own circumstances may require you to hold a Practising Certificate, but the scenarios below do not quite equate to your situation, and you would like some advice, please e-mail the Institute at practiceassurance@cipfa.org.
Scenario 1
AB Consulting Ltd provides internal audit and financial accounting consultancy services to a wide range of public and private sector organisations.
Mr A is the sole director and sole employee of AB Consulting Ltd. As director of a corporate entity engaged in public practice, he will be required to hold a practice certificate.
Scenario 2
Mrs B has recently retired from employment in local authority finance and is now engaged exclusively as a self-employed financial trainer to a number of authorities.
These activities do not fall within the definition of public practice, so Mrs B will not be required to hold a practice certificate.
Scenario 3
Mr D has joined together with Mrs E and Mr F (both also CIPFA members) to form a partnership providing a range of finance and audit services.
As CIPFA members engaged in activities falling within the definition of public practice, all three will be required to hold Practice Certificates.
Scenario 4
Mr G is a public sector partner at a Big 4 accountancy firm. The firm is already subject to a Practice Assurance scheme operated by another CCAB accountancy body.
As a partner of a firm engaged in public practice, Mr G will be required to hold a Practice Certificate. However as his firm is registered for Practice Assurance with another CCAB body, Mr D will not be required to pay the registration or annual fees, and will not normally receive a review visit, although CIPFA reserves the right to investigate for example in the case of a complaint. Mr D will need to complete the Annual Return, to confirm no changes to his situation.
Scenario 5
Mr H is a retired member, who acts as auditor to his local cricket club. Mr H receives a £100 honorarium for his duties.
Mr H will not be required to hold a Practice Certificate.
Scenario 6
Mrs K undertakes a series of temporary/interim appointments via a recruitment agency. She is employed by the agency.
Mrs K will be required to hold a Practising Certificate dependent on the services provided.