1 - USAid

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Draft new by-laws;
Deloitte PCE-I-802-99-00008-00 Page 6
Establish and implement procedures to review applications and approve members of the Association;
Draft a professional code of ethics, establish procedures for investigating complaints concerning violations
of ethics, establish the process to be followed in rendering judgments and enforcing penalties (note:
disciplinary procedures cannot be implemented until Phase Two - when the Accounting and Auditing Law
is signed by the Executive).
Establish procedures and requirements for continuing education;
Offer continuing education courses on a formalized basis;
Publish and disseminate documents from the various committees (e.g. code of ethics), determine members'
information needs and publish/disseminate bulletins or newsletters with that information in a timely fashion;
and
Establish and implement procedures to enable the Association to become self-sustaining.
The Contractor shaII provide limited financial support to the Association for selected items of recurrent costs (office
rent, office equipment, and communication costs and supplies) for the duration of this three-year activity; however,
such support will decrease each year. It is expected that the Contractor will provide training assistance to the
Association on how to raise funds or collect revenues through a variety of means, thereby enabling the Association
to become self sufficient by the time USAID support for recurrent costs is scheduled to end.
Support to the Society
The Society will exercise the authority and responsibility for establishing auditing standards, ethics, and professional
qualifications required for the examination and certification of financial statements by public accountants. The
ultimate purpose of the Society will be to ensure that public accountants, certified by the Association, will perform
audits in accordance with International Standards of Auditing and express opinions on financial statements prepared
in accordance w_ith lAS promulgated by the:: ~alt:!stinian FASB.
Organization and Membership: Membership in the Society should eventually be limited to Certified Public
Accountants who have passed a uniform CPA examination comparable to that conducted in the United States.
Initially, there will be a membership transition period during which accountants who have been licensed to practice
auditing by the Palestinian Authority will be admitted as members of the Society. Members who are "grandfatbered"
into membership in the Association should not be permitted to use the title "Certified Public Accountant", but should
be encouraged to avail themselves of training opportunities and to sit for the CPA exam when it is offered by the
Society.
The Society will continue to have a board of directors elected by the members and an organizational structure
modeled, in part, on the American Institute of Certified Public Accountants (AICPA). Committees will be formed
for (1) establishing international standards for auditing, (2) establishing a code of professional ethics and disciplinary
--procedures for non-conforinance, (3) developing continuing professional education requirements as a conqition for
renewal of membership, (4) publishing pronouncements of the Society to ensure that members and others are aware
of requirements, and (5) writing and administering CPA examinations and recommending successful candidates for
Palestinian Authority licensing of practitioners.
Functions: committees of the Society will perform functions as follows: