Professional Oversight Board
Encyclopedia
The Professional Oversight Board (POB) is a UK
regulatory body specializing in the accounting, auditing
and actuarial
profession
s. It is a part of the Financial Reporting Council
(FRC), the independent regulator of corporate governance
and reporting in the UK.
and public confidence in the financial governance of business
organizations. The Board provides assurance that professional accountancy bodies are properly setting standards and enforcing discipline
for their members, in accordance with the Companies Act 2006
and other statutory requirements. The POB can carry out inspections on behalf of the FRC, but if any shortcomings are found, sanctions can only be imposed by the professional bodies. However, if a complaint raises concerns that a professional accountancy or actuarial body may have breached significantly its own standard procedures in the handling of a complaint about their member, the POB will normally seek the comments of the relevant body and look at papers relating to the case as appropriate. The Board will then normally write to the complainant to tell them the outcome of their consideration of the matter and whether the body proposes to take any action based on their comments. The POB does not have the power either to overturn any decision which the body has made in a case or to direct how the body should handle a case.
The Board also operates an Audit Inspection Unit (AIU) that oversees auditing organizations and makes recommendations for appropriate regulatory actions by governmental and professional authorities. As part of its oversight of the actuarial profession, the Board monitors the activities of actuarial organizations with regard to the education, discipline, ethical
standards and continuing professional development
of their members. The Board also seeks to provide a framework for the evaluation of the quality and effectiveness of actuarial work.
In 2011, the Board published information for the first time about shortcomings in self-regulation by particular institutes. Press reports highlighted comments about ACCA
, which had implemented recommendations to improve its examination syllabus, but needed to pay greater attention to continuing monitoring of members who had registered as auditors some years ago.
.
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
regulatory body specializing in the accounting, auditing
Financial audit
A financial audit, or more accurately, an audit of financial statements, is the verification of the financial statements of a legal entity, with a view to express an audit opinion...
and actuarial
Actuary
An actuary is a business professional who deals with the financial impact of risk and uncertainty. Actuaries provide expert assessments of financial security systems, with a focus on their complexity, their mathematics, and their mechanisms ....
profession
Profession
A profession is a vocation founded upon specialized educational training, the purpose of which is to supply disinterested counsel and service to others, for a direct and definite compensation, wholly apart from expectation of other business gain....
s. It is a part of the Financial Reporting Council
Financial Reporting Council
The Financial Reporting Council is the UK's independent regulator responsible for promoting high quality corporate governance and reporting to foster investment.-Structure:...
(FRC), the independent regulator of corporate governance
Corporate governance
Corporate governance is a number of processes, customs, policies, laws, and institutions which have impact on the way a company is controlled...
and reporting in the UK.
Functions
The Board's state d purpose is to support the FRC's goal of investorInvestor
An investor is a party that makes an investment into one or more categories of assets --- equity, debt securities, real estate, currency, commodity, derivatives such as put and call options, etc...
and public confidence in the financial governance of business
Business
A business is an organization engaged in the trade of goods, services, or both to consumers. Businesses are predominant in capitalist economies, where most of them are privately owned and administered to earn profit to increase the wealth of their owners. Businesses may also be not-for-profit...
organizations. The Board provides assurance that professional accountancy bodies are properly setting standards and enforcing discipline
Discipline
In its original sense, discipline is referred to systematic instruction given to disciples to train them as students in a craft or trade, or to follow a particular code of conduct or "order". Often, the phrase "to discipline" carries a negative connotation. This is because enforcement of order –...
for their members, in accordance with the Companies Act 2006
Companies Act 2006
The Companies Act 2006 is an Act of the Parliament of the United Kingdom which forms the primary source of UK company law. It had the distinction of being the longest in British Parliamentary history: with 1,300 sections and covering nearly 700 pages, and containing 16 schedules but it has since...
and other statutory requirements. The POB can carry out inspections on behalf of the FRC, but if any shortcomings are found, sanctions can only be imposed by the professional bodies. However, if a complaint raises concerns that a professional accountancy or actuarial body may have breached significantly its own standard procedures in the handling of a complaint about their member, the POB will normally seek the comments of the relevant body and look at papers relating to the case as appropriate. The Board will then normally write to the complainant to tell them the outcome of their consideration of the matter and whether the body proposes to take any action based on their comments. The POB does not have the power either to overturn any decision which the body has made in a case or to direct how the body should handle a case.
The Board also operates an Audit Inspection Unit (AIU) that oversees auditing organizations and makes recommendations for appropriate regulatory actions by governmental and professional authorities. As part of its oversight of the actuarial profession, the Board monitors the activities of actuarial organizations with regard to the education, discipline, ethical
Business ethics
Business ethics is a form of applied ethics or professional ethics that examines ethical principles and moral or ethical problems that arise in a business environment. It applies to all aspects of business conduct and is relevant to the conduct of individuals and entire organizations.Business...
standards and continuing professional development
Professional development
Professional development refers to skills and knowledge attained for both personal development and career advancement. Professional development encompasses all types of facilitated learning opportunities, ranging from college degrees to formal coursework, conferences and informal learning...
of their members. The Board also seeks to provide a framework for the evaluation of the quality and effectiveness of actuarial work.
History
Before 5 May 2006, the Board was known as the Professional Oversight Board for Accountancy. The name change reflected the Board's additional responsibility for oversight of the actuarial profession from that date.In 2011, the Board published information for the first time about shortcomings in self-regulation by particular institutes. Press reports highlighted comments about ACCA
Association of Chartered Certified Accountants
Founded in 1904, the Association of Chartered Certified Accountants is the global body for professional accountants offering the Chartered Certified Accountant qualification . it is one of the largest and fastest-growing global accountancy bodies with 147,000 members and 424,000 students in 170...
, which had implemented recommendations to improve its examination syllabus, but needed to pay greater attention to continuing monitoring of members who had registered as auditors some years ago.
Management
The Board contains members from a wide range of backgrounds. Paul George is its Director, and John Kellas is interim chair following the death of Dame Barbara MillsBarbara Mills
Dame Barbara Jean Lyon Mills, DBE, QC was a British barrister. She held various senior public appointments including Director of Public Prosecutions, and was widely seen as a pioneer for women gaining such appointments in the higher echelons of the legal profession...
.