Question Tag: Dual Role

i) Functions of ICAG:

1. Ensuring that audits are performed only by ‘fit and proper persons’ who act with professional integrity by offering high standard examinations.
2. Requiring that members carry out their audit work in accordance with appropriate technical standards, setting standards for members.
3. Ensuring auditors remain technically competent and up to date with modern practices through offering training and continuous education programs.
4. Maintaining a list for members and investigating complaints about members, sanctioning them when necessary.

ii) Discussion of the dual role exercised by ICAG:

• The self-regulation aspect has sparked debate, with concerns that the institute cannot effectively sanction its members, suggesting that this function be handed to a neutral body.
• In other jurisdictions, governments appoint bodies to deal with complaints against professional members, as it is believed that small professional communities may not rigorously discipline their members.
• Proponents argue that if professional bodies can maintain ethical standards, they can sanction members appropriately. However, this would require strong internal structures, including sufficient funding for regulation.