REGULATION ON REGISTRATION OF PUBLIC INTEREST ENTITY AUDITORS PUBLISHED

November 28, 2021


The Regulation for Registration of Public Interest Entity Auditors of Institute of Chartered Accountants of the Maldives was published in the Government Gazette on 22 November 2021. The Regulation is made pursuant to the authority granted to CA Maldives under The Maldives Chartered Accountants Act 2020 (Law no. 13/2020).

The regulation defines Public Interest Entities (PIEs), sets out the eligibility criteria for registration as PIE auditors, procedures for registration and requirement for quality reviews.

The most noteworthy provisions of the Regulation include the following:

Definition of Public Interest Entities (PIEs)

As per the Regulation the below listed entities will be considered Public Interest Entities (PIEs) where the financial statements of such entities must be audited by an auditor registered under this Regulation.

  1. An entity whose shares, stock or debt are quoted or listed on a regulated market; or
  2. An entity that is subject to financial statement audit under the Regulation on the Audit and Accountability of SOEs issued by the AGO; or
  3. An entity that regulates financial institutions under the powers granted by legislation; or
  4. An entity that regulates financial or capital markets under the powers granted by legislation; or
  5. An entity regulated by the MMA; or
  6. An entity not regulated by the MMA that holds assets in a fiduciary capacity for a broad group of outsiders; or
  7. A fund that is regulated by CMDA; or
  8. An entity that is defined by regulation or legislation as a PIE.
Eligibility Criteria for PIE auditors

The Regulation establishes the following requirements for audit firms intending to register as PIE auditors.

Must have an Engagement Partner that:

  • is a licensed full-time partner
  • have 5 years of experience in external auditing (including 2 years at an audit firm)
 Nominate an Engagement Quality Reviewer (EQR):

  • having 5 years of experience in external audit and;
  • and is a member in good standing of a member body of IFAC recognised by CA Maldives
 Nominate a responsible person for firms quality management system

(the engagement partner may assume this role)

 The audit firm shall have at least 5 full-time staff (including partners)

Other important provisions of the Regulation

The Regulation stipulates that:

  • The registration of the PIE Auditor will have a validity period of 3 years from the date of issue.
  • PIE registered Auditors must submit an Annual Return to confirm any changes in the compliance requirements
  • Quality reviews of PIE audit engagements and PIE auditors will be carried out in accordance with procedures established by the Admissions and Licensing Committee (ALC) of CA Maldives
  • The ALC has the discretion/power to review the quality:
    • of PIE audit engagement(s) conducted by Registered PIE Auditor(s)
    • of at least one firm-level quality review every three years
Effective Date

The Regulation is in force from 22 November 2021.