Memorandum of Understanding Between CPA Ireland and CPA Sri Lanka

1. Introduction

1.1 This Memorandum of Understanding (MOU) is made and entered into on this 01st day of February 2013 between:

The Institute of Certified Public Accountants in Ireland (CPA Ireland), 17 Harcourt Street, Dublin 2, Ireland;


The Institute of Certified Public Accountants – Sri Lanka (CPA Sri Lanka) 108A, H. Sri Nisshanka Mawatha, Colombo 06, Sri Lanka

hereinafter called “the Parties”.

1.2 The bodies

1.2.1 The Institute of Certified Public Accountants in Ireland (CPA Ireland), founded in 1943, is one of the main Irish accountancy bodies with in excess of 5,000 members and students. Its current Membership operates in Public Practice, Industry, Financial Services and the Public Sector and CPAs work in over 32 countries around the world. Members of the Institute of Certified Public Accountants in Ireland, irrespective of jurisdiction in which they operate, are expected to adhere to the highest standards of professional ethics. As an IFAC member body, the CPA Code of Ethics is consistent with the IFAC Code in every material respect.CPA oversight extends to members in every jurisdiction and it is an implicit condition of membership of CPA Ireland that all members comply with the Institute’s Memorandum, Articles of Association, Bye Laws, Codes of Professional Conduct, Mandatory CPE Requirements and all other requirements compliance with which distinguishes CPAs as members of a self regulatory body which is itself fully compliant with the Statements of membership Obligations (SMOs) of IFAC.

The Institute is active in the profession at national and international level participating in the Consultative Committee of Accountancy Bodies – Ireland – CCAB (I) and together with other leading accountancy bodies the Institute was a founding member of the International Federation of Accountants (IFAC) – the worldwide body. The Institute is also a member of the Federation des Experts Comptables Europeens (FEE), the representative body for the main accountancy bodies in 25 European countries.

The Institute fulfils its statutory role as a recognised body by overseeing the professional activities of its members in practice, and ensuring that education and training standards are maintained. As the first accountancy body, in Ireland or the United Kingdom, to introduce a mandatory regime of Continuing

Professional Education the Institute ensures that all CPAs remain at the leading edge throughout their careers. The Institute provides a quality service to its members and students, which has been recognised through the award and maintenance of ISO 9001:2000.

1.2.2 The Institute of Certified Public Accountants of Sri Lanka (CPA Sri Lanka) is an independent, national institute with international perspectives, dedicated to the promotion of the highest accounting, finance, auditing, taxation and ethical standards. It is committed to promote the art and science of accounting and to provide quality education and training for students to advance their knowledge, skills and capabilities to meet the changing needs of modern society.

CPA Sri Lanka was incorporated under the Companies Act, Number 17 of 1982, pursuant to section 21, and the Companies Act, Number 7 of 2007 as a company limited by guarantee and not having a share capital. It commenced its operation in June 2010 and has members and students working in many parts of the world. Its current membership operates in Public Practice, Industry, Commerce and Public Sector.

Members of CPA Sri Lanka are required to observe proper standards of professional conduct and fundamental principles of professional ethics. CPA Sri Lanka is committed to becoming an IFAC member body and the CPA Sri Lanka Code of Ethics has been developed in accordance with the IFAC Code. Members of CPA Sri Lanka are bound by the requirements of CPA Sri Lanka’s Memorandum, Articles of Association, Bye Laws, Code of Ethical Professional Conduct, CPD Requirements and all other requirements. CPA Sri Lanka provides an infrastructure which supports the profession and enables members to meet the needs of the evolving global environment and safeguard the public interest.

1.2.3 CPA Ireland and CPA Sri Lanka share common and strong interests in the advancement of the profession of accountancy, especially in relation to the maintenance and strengthening of professional and educational standards. As an established member body of the International Federation of Accountants (IFAC), CPA Ireland shares the IFAC vision of strengthening the global profession and is committed to supporting the long term development of CPA Sri Lanka. CPA Sri Lanka shares the IFAC objective to serve the public interest by strengthening the profession and contributing to the development of strong international economies. CPA Sri Lanka is committed to working towards IFAC membership and compliance with the IFAC SMOs. This Memorandum is developed at the request of CPA Sri Lanka which expressly invited CPA Ireland to provide the CPA Ireland qualification in Sri Lanka and to work towards a Mutual Recognition Agreement between the two bodies.

2. Scope

2.1 Under the terms of this Memorandum, the parties agree, in principle, to cooperate and assist each other, on a case by case basis and subject to agreement by the Parties in advance, in the fields of education, training, examination, accounting, auditing and related areas, ethics and member body development.

2.2 In order to complete the provisions of this Memorandum the Parties accept the obligation to:

2.2.1 Undertake activities of common interest and exchange information about current domestic developments verbally and/or in writing.

2.2.2 Observe confidentiality with respect to the information disclosed in the course of performance of this Memorandum as well as any data shared between the parties.

2.2.3 Bind themselves not to perform any action that may directly or indirectly cause damage to the other Party’s reputation or interests.

3. Roles

3.1 CPA Ireland, in order to complete the undertakings of this Memorandum, accepts the obligation to:

3.1.1 Accept student registrations for CPA Ireland from students who are based in Sri Lanka, subject to satisfying the student registration criteria of CPA Ireland.

3.1.2 Approve, subject to satisfying CPA Ireland criteria, suitable educators to offer education on the CPA syllabus in Sri Lanka.

3.1.3 Approve, subject to satisfying CPA Ireland criteria, suitable training partners to train CPA Ireland trainees in Sri Lanka.

3.1.4 Offer CPA Ireland professional level examinations subject to demand, at a centre in Sri Lanka, (the determination of all matters relating to CPA Ireland examinations rests with CPA Ireland), such examinations to be offered at a time simultaneous with other CPA Ireland examinations being held elsewhere.

3.1.5 Provide marketing material and advice to CPA SRI LANKA to allow CPA SRI LANKA market the CPA Ireland qualification in accordance with CPA Ireland guidelines, in Sri Lanka.

3.1.6 Assist CPA Sri Lanka in its development as a professional body and share governance and other materials with CPA Sri Lanka. The agreement does not convey any rights or entitlements to CPA Sri Lanka with regards to the use of any intellectual property of CPA Ireland.

3.1.7 Support CPA Sri Lanka in working towards becoming an IFAC member.

3.1.8 In relation to paragraphs 3.1.1 and 3.1.2 above, within the jurisdiction of Sri Lanka the registration of students and selection of suitable educators, subject to satisfying the relevant criteria of CPA Ireland, will be handled exclusively by CPA Sri Lanka.

3.2 CPA Sri Lanka, in order to complete the undertakings of this Memorandum, accepts the obligation to:

3.2.1 Promote the CPA Ireland qualification in Sri Lanka to prospective students of CPA Ireland.

3.2.2 Support CPA Ireland in the registration process of CPA Ireland students to an agreed protocol which is determined by CPA Ireland.

3.2.3 Assist CPA Ireland in the administration of CPA Ireland examinations at a centre in Sri Lanka.

3.2.4 Assist CPA Ireland by either applying to become an approved CPA Ireland educator in its own right, or sourcing suitable quality educators and applying CPA Ireland’s Quality Approval process to such educators.

3.2.5 Adopt, with suitable modification for local requirements, the Formation levels of the CPA Ireland syllabus and examinations for use as the CPA Sri Lanka Formation level syllabus, whilst maintaining standards of examination equivalent to CPA Ireland.

3.2.6 Accept the CPA Ireland training requirements as the training requirements for entry as a member of Sri Lanka.

3.2.7 Develop a pathway for corporate governance change which would see CPA SRI LANKA develop a governance model which is appropriate for a professional body seeking IFAC membership.

3.2.8 Work towards membership of IFAC.

4. Consideration

4.1 CPA Ireland accepts all of the costs involved in offering the professional level examinations to CPA Ireland students in Sri Lanka and in servicing any members of CPA Ireland, to a level equivalent to CPA Ireland members elsewhere, who are based in Sri Lanka. As in other jurisdictions, CPA Ireland members who are based in Sri Lanka will be encouraged and facilitated by, CPA Ireland, to collaborate and network to their mutual advantage. Such networking can be facilitated by CPA Ireland through access to exclusive internet based networking forums for CPAs and, with the express approval from CPA Council and when critical mass satisfies the need, with a physical regional structure supported and administered by CPA Ireland. CPA Ireland is committed to providing Institute to member, member to Institute and member to member communication at every opportunity to facilitate the sharing of professional knowledge.

4.2 CPA Ireland may appoint any third party or agent, whether a member of CPA Ireland or otherwise, to review the operation of any aspect of this Memorandum or to act on behalf of CPA Ireland in Sri Lanka.

4.3 CPA Sri Lanka will receive an amount equivalent to 25% of each and every registration and/or exemption fee for a student of CPA Ireland whose application is processed as per paragraph 3.2.2 of this Memorandum. CPA Ireland will make such payments to CPA Sri Lanka on a quarterly basis, in arrears, and all such payments will be supported by reference to the CPA Ireland students so registered. CPA Ireland and CPA Sri Lanka may reach agreement on discounts to such fees for any promotional period. All fees are designated in Euro.

5. Other Conditions

5.1 This Memorandum will commence on 00th Month 201? and shall continue for a period of 4 years until 00 Month 201? subject to the termination conditions at 5.2 below. This agreement may be extended or modified subject to the agreement of both parties at that time. For the avoidance of any doubt, CPA Ireland will have a duty of care to all CPA Ireland members and students who are resident in Sri Lanka irrespective of whether this MOU continues in effect.

5.2 There will be an interim review of this MOU to consider both parties performance of and satisfaction with the arrangements described therin.

5.3 This Memorandum can be terminated in the following circumstances:

  • On the request of one of the Parties with two month’s written notice,
  • In case either one of the Parties has terminated its activities.

5.4 Any alterations or additions to this Memorandum can only be deemed valid if made in writing and signed by both Parties hereto.