4. The Second Schedule to the principal Rules is amended —| (a) | by inserting, immediately after paragraph 1, the following paragraph:1A. In this Schedule, unless the context otherwise requires —| “foreign qualifying audit experience” has the meaning assigned by paragraph 3A; |
| “specified accounting entity” means an accounting entity, which has implemented its quality controls in accordance with the Singapore Standard on Quality Control 1, and those quality controls have been reviewed by the Authority to the Authority’s satisfaction.”; |
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| | (b) | by deleting the word “or” at the end of sub-paragraph (x) of paragraph 2(a), and by inserting immediately thereafter the following sub‑paragraph:| “(xi) | the Singapore Qualification Programme prescribed by the Singapore Accountancy Commission; or”; and |
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| | (c) | by deleting paragraph 3 and substituting the following paragraphs:| “Requisite qualifying audit experience |
3.—(1) The Oversight Committee must not register any person as a public accountant unless the Oversight Committee is satisfied that the person (referred to in this paragraph and paragraphs 3A and 3B as the applicant) has, at the time of the applicant’s application — | (a) | acquired the requisite qualifying audit experience referred to in sub-paragraph (2); | | (b) | submitted the declarations referred to in paragraph 3B; and | | (c) | satisfied such conditions as the Oversight Committee thinks fit. |
(2) Subject to sub-paragraphs (3) to (8), the requisite qualifying audit experience comprises 2,500 hours of qualifying audit experience which satisfies all of the following conditions:| (a) | all of the qualifying audit experience is acquired in the period of 5 years immediately before the date of the application; | | (b) | all of the qualifying audit experience (other than foreign qualifying audit experience) —| (i) | in a case where the applicant is a member of the Institute of Singapore Chartered Accountants (ISCA) before the applicant starts to acquire the qualifying audit experience —| (A) | is acquired while the applicant is a full member of the ISCA; or | | (B) | is acquired only after the applicant has satisfied the requirements as to practical experience that are set out in ISCA’s membership rules for qualifying as a Chartered Accountant of Singapore; or |
| | (ii) | in a case where the applicant is not a member of the ISCA before the applicant starts to acquire the qualifying audit experience, is acquired only after the applicant has acquired the practical experience which the Oversight Committee has determined to be equivalent to the requirements as to practical experience that are as set out in ISCA’s membership rules for qualifying as a Chartered Accountant of Singapore; |
| | (c) | all of the qualifying audit experience acquired in performing any key audit function (other than foreign qualifying audit experience) is acquired by the applicant in relation to one or more audit engagements each under the direct supervision of an audit principal, who is also the engagement partner of the audit engagement; | | (d) | at least 1,250 hours of the qualifying audit experience —| (i) | comprise experience in performing any key audit function; and | | (ii) | is acquired —| (A) | under the direct supervision of the same audit principal; or | | (B) | under the direct supervision of one or more audit principals in the same accounting entity; |
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| | (e) | not more than 1,250 hours of the qualifying audit experience is foreign qualifying audit experience; | | (f) | where any qualifying audit experience (other than foreign qualifying audit experience) is acquired under the direct supervision of an audit principal in an accounting entity, other than a specified accounting entity, the audit principal does not, at any time during the period when the qualifying audit experience is acquired, directly supervise more than 4 pupils, unless otherwise allowed by the Oversight Committee in any particular case; | | (g) | all the qualifying audit experience (other than foreign qualifying audit experience) is acquired by the applicant under the direct supervision or overall oversight of one or more audit principals, as the case may be, under such conditions as may be specified by the Oversight Committee; | | (h) | in acquiring all of the qualifying audit experience (other than foreign qualifying audit experience), the applicant has independently and competently, to the satisfaction of the applicant’s audit principal or audit principals, as the case may be —| (i) | performed all the key audit functions; and | | (ii) | if applicable, carried out the audit quality review role or audit technical role, or both, as the case may be. |
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| (3) Where an audit principal with whom an applicant is a pupil subsequently ceases to be an audit principal under rule 6A(3), any qualifying audit experience acquired by the applicant when he is a pupil of the audit principal before such cessation may be taken into account for the purpose of determining whether the applicant has satisfied sub‑paragraph (1)(a). |
(4) Where —| (a) | any qualifying audit experience in performing any key audit function is acquired by an applicant in a specified accounting entity; and | | (b) | an audit principal in that accounting entity has overall oversight of the applicant’s acquisition of the qualifying audit experience, |
| (i) | any such qualifying audit experience is to be treated as satisfying sub-paragraph (2)(c) if the experience is acquired by the applicant in relation to one or more audit engagements each under the direct supervision of a public accountant, who is also the engagement partner of the audit engagement; and | | (ii) | any period of at least 1,250 hours of such qualifying audit experience is to be treated as satisfying sub-paragraph (2)(d)(ii) if the experience is acquired —| (A) | under the direct supervision of the same public accountant, whether or not the public accountant is an audit principal; or | | (B) | under the direct supervision of one or more public accountants in the same accounting entity, whether or not the public accountants are audit principals. |
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(5) Any qualifying audit experience in performing any key audit function acquired by an applicant before 1 February 2015 in relation to an audit engagement under the direct supervision of any of the following persons, who is the engagement partner of the audit engagement, is to be treated as qualifying audit experience in performing a key audit function acquired in relation to an audit engagement under the direct supervision of an audit principal who is the engagement partner of the audit engagement, for the purpose of sub-paragraph (2)(c):| (a) | a public accountant, who is an approved principal within the meaning of rule 2 in force immediately before 1 February 2015; | | (b) | a public accountant in a specified accounting entity which, at all times when the qualifying audit experience was acquired, had in place quality controls implemented in accordance with the Singapore Standard on Quality Control 1, and those quality controls have been reviewed by the Authority to the Authority’s satisfaction. |
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| (6) For the purposes of sub-paragraph (2)(h) as it applies to a case referred to in sub-paragraph (5), the reference to the applicant’s audit principal is to be read as the public accountant referred to in sub-paragraph (5)(a) or (b), as the case may be. |
| (7) The Oversight Committee may, in any particular case allow any qualifying audit experience acquired by an applicant before 1 February 2015, which does not comply with sub-paragraph (2), to be reckoned as any part of the requisite qualifying audit experience of the applicant. |
(8) Despite sub-paragraph (2)(e), the Oversight Committee may disallow reckoning any foreign qualifying audit experience acquired by the applicant as part of his requisite qualifying audit experience if —| (a) | any complaint relating to any professional or occupational misconduct has been made against the applicant with any professional body in any country or territory; | | (b) | disciplinary proceedings relating to any profession or occupation have been commenced against the applicant in any country or territory; or | | (c) | the applicant has been the subject of disciplinary action relating to any profession or occupation in any country or territory. |
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| (9) The Oversight Committee may, for the purposes of considering an applicant’s application, require the applicant to provide such particulars and records of his acquisition of his qualifying audit experience, in such form and manner as the Oversight Committee may determine. |
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| Foreign qualifying audit experience |
3A.—(1) For the purposes of paragraph 3, foreign qualifying audit experience is qualifying audit experience acquired by the applicant which satisfies all of the following conditions:| (a) | the qualifying audit experience is acquired by the applicant in the course of auditing any financial statements in a foreign audit entity; | | (b) | the country or territory in which the foreign audit entity is registered or licensed adheres to auditing standards which the Oversight Committee considers to be equivalent to the standards applicable in Singapore; | | (c) | the Oversight Committee is satisfied with the quality of the qualifying audit experience having regard to one or more of the following factors:| (i) | whether the foreign audit entity has implemented, or has taken steps to implement, quality controls in accordance with standards which the Oversight Committee considers to be equivalent to the standards applicable in Singapore (including the Singapore Standard on Quality Control 1); | | (ii) | whether the foreign audit entity has been subject to any audit inspection carried out by or on behalf of the regulator of the audit profession in the country or territory of its registration or licensing, and whether the regulator is satisfied with the findings of such audit inspection; | | (iii) | whether the Oversight Committee is of the opinion that the foreign audit entity is of good standing in the country or territory of its registration or licensing; | | (iv) | whether the qualifying audit experience would meet the criterion of the practical experience required for qualifying the applicant as an auditor in the country or territory in which the applicant has acquired the qualifying audit experience. |
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| (2) In this paragraph, “foreign audit entity” means an entity which is established in a country or territory outside Singapore and is licensed or registered in a country or territory outside Singapore to audit financial statements. |
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3B.—(1) An applicant must provide all of the following declarations to the Oversight Committee:| (a) | a declaration by the applicant that —| (i) | the applicant has acquired the requisite qualifying audit experience; and | | (ii) | specifically, in acquiring such qualifying audit experience, the applicant has independently and competently —| (A) | performed all the key audit functions; and | | (B) | if applicable, carried out the audit quality review role or audit technical role, or both, as the case may be; |
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| | (b) | a declaration by the audit principal or, in a case where the applicant was directly supervised by more than one audit principal, each of those audit principals, stating —| (i) | the number of hours of qualifying audit experience acquired by the applicant under the direct supervision of the audit principal; and | | (ii) | specifically, whether in acquiring such qualifying audit experience, the applicant has independently and competently —| (A) | performed the relevant key audit functions; and | | (B) | if applicable, carried out the audit quality review role or audit technical role, or both, as the case may be, |
| to the satisfaction of the audit principal. |
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(2) Where the whole or any part of the qualifying audit experience of an applicant consists of qualifying audit experience referred to in paragraph 3(4), the applicant must obtain a declaration by the audit principal referred to in paragraph 3(4)(b) stating —| (a) | the number of hours of qualifying audit experience acquired by the applicant under the direct supervision of the public accountant or public accountants, as the case may be; and | | (b) | specifically, whether in acquiring the qualifying audit experience, the applicant has independently and competently —| (i) | performed the relevant key audit functions; and | | (ii) | if applicable, carried out the audit quality review role or audit technical role, or both, as the case may be, |
| to the satisfaction of the audit principal.”. |
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