Accounting and Auditing Assessment
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Sub-Saharan Africa
Sub-Saharan Africa, home to more than 1 billion people, half of whom will be under 25 years old by 2050, is a diverse ...
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Publication
Republic of Rwanda : Accounting and Auditing
(Washington, DC, 2008-06-19)This report is an assessment of the corporate sector accounting, financial reporting, and auditing practices within Rwanda. This Report on the Observance of Standards and Codes (ROSC) is benchmarked to International Financial Reporting Standards (IFRS) and International Standards on Auditing (ISA) and draws on international experience and good practices to assess the strengths and weaknesses of the institutional underpinnings of corporate financial reporting and make policy recommendations. This assessment is mainly aimed at preparing a road map for institutional capacity building including development of the accountancy profession for bolstering the corporate sector accounting, financial reporting, and auditing in Rwanda. Rwanda is making considerable effort to align its accounting and auditing practices with internationally accepted standards and codes. Along with its growing economy, Rwanda must take effective steps for strengthening all the pillars of the infrastructure of accounting and auditing in line with the international good practices. The ROSC review findings reveal that there are varying compliance gaps in both accounting and auditing practices in Rwanda. These gaps stem from lack of clearer understanding among practicing accountants and auditors about the requirements of internationally accepted standards, inadequate technical capacities of the regulators, absence of implementation guidance, lack of independent oversight of the auditing profession, and shortcomings in professional education and training. The Institute of Certified Public Accountants of Rwanda (ICPAR) will assume the role of the self-regulatory professional accountancy body in the country. -
Publication
Mozambique Report on the Observance of Standards and Codes: Accounting and Auditing
(World Bank, Washington, DC, 2008-06-16)This report provides an assessment of the strengths and weaknesses of the existing financial reporting infrastructure that underpins financial accounting and auditing practices in Mozambique. The assessment focuses on six pillars of financial reporting infrastructure: statutory framework, professional education and training, accountancy profession, accounting standards, auditing standards, and monitoring and enforcement of the applicable standards. The main purpose of this assessment is to assist the development and implementation of a country action plan for strengthening institutional capacity with attendant effect on enhancing corporate financial reporting in Mozambique. All the corporate entities in Mozambique, including investments with foreign participation, are affected by a serious shortage of qualified accountants and trained accounting technicians. Best estimates are that there are less than 50 fully qualified accountants working in Mozambique (mostly in the Maputo area), and that of these only 2 are citizens of Mozambique. Most of the corporate financial statements in the country are therefore prepared by accounting technicians whose level of skill and training is variable. At one extreme, a limited number of accounting technicians have completed training, which has not prepared them nearly at the level of a qualified accountant; and at another extreme, many technicians have no formal training. Most of the financial statement audits in the country are primarily carried out by representatives of the 6 international networks. The lack of senior-level local staff within those networks is of concern particularly as regulators lack any capacity to monitor the quality of financial reporting. -
Publication
Ethiopia : Accounting and Auditing
(World Bank, Washington, DC, 2007-11)This Report on Observance of Standards and Codes (ROSC) provides a review of the accounting and auditing practices and the institutions underpinning the accounting and auditing environment in the corporate sector in Ethiopia. The review drew on best international practices and makes policy recommendations aimed at improving the quality of financial reporting in the country. There are some notable efforts in Ethiopia aimed at improving the quality of financial information. One is aimed at establishing accounting and auditing standards for the private sector under the auspices of the Office of the Federal Auditor General (OFAG). Another is aimed at improving the capacity for public finance management under the auspices of the Ethiopian Civil Service College (ECSC). Work is also ongoing on revision of the Ethiopian Commercial Code under the auspices of the Ministry of Justice. The aim of this ROSC has been to complement the existing efforts by producing a holistic evaluation of all necessary pillars for a strong financial reporting infrastructure. While this report focuses mainly on corporate sector accounting and auditing, it also recognizes the need to ensure a well coordinated Commercial Code under the auspices of the Ministry of Justice. The aim of this ROSC has been to complement the existing efforts by producing a holistic evaluation of all necessary pillars for a strong financial reporting infrastructure. While this report focuses mainly on corporate sector accounting and auditing, it also recognizes the need to ensure a well coordinated approach to develop (i) accounting and auditing standards; and (ii) education and training systems in accounting and auditing, in the public and private sectors. -
Publication
Malawi : Accounting and Auditing
(Washington, DC, 2007-06)This report is based on the findings of a review of accounting and auditing standards and practices in Malawi's corporate sector. The review exercise focused mainly on the strengths and weaknesses of the institutional framework that supports the corporate financial reporting system in the country; a review of Government accounting and auditing practices is outside the scope of this report. This report provides policy recommendations to improve accounting and auditing practices, including strengthening enforcement mechanisms to ensure compliance with accounting and auditing requirements. The key policy recommendations include: 1) Reviewing the Companies Act to provide for up-to-date requirements for financial reporting, and to ensure that there is room/flexibility to incorporate updates as they arise; 2) Reviewing the Public Accountants and Auditors Act to strengthen the regulatory functions of the Malawi Accountants Board (MAB), and reorganizing MAB into an effective independent oversight institution; 3) Putting in place arrangements to require public interest entities to apply IFRS for financial reporting, and to adopt simplified financial reporting requirements for SMEs in Malawi; 4) Enhancing the technical capacity of the professional accountancy body so that it can better support practitioners and institute the required international standards; and 5) Supporting the leading education and training institutions-Department of Accountancy in the University of Malawi and Malawi College of Accountancy-with teaching materials and faculty development, so that they can feed the market with quality graduates and can conduct research for developing the profession in line with up-to-date international practice. -
Publication
Republic of Botswana : Accounting and Auditing
(Washington, DC, 2006-05)This accounting and auditing report, part of the Observance of Standards and Codes (ROSC) for the Republic of Botswana, provides an assessment of accounting and auditing practices within the corporate sector in Botswana with reference to the International Financial Reporting Standards issued by the International Accounting Standards Board, and International Standards on Auditing issued by the International Federation of Accountants. Botswana has made considerable efforts in aligning its accounting and auditing practices with internationally accepted standards and codes. Corporate accounting and disclosure practices have considerably improved over the last 5 years. Monitoring and enforcement of financial reporting requirements in the banking sector have contributed to improved transparency of the financial sector. Even with progress, there is room for further improvements. The report highlights areas that need attention for strengthening the infrastructure of accounting and auditing practices in Botswana. The report concludes with recommendations to integrate with regional and sub-regional initiatives, wherever applicable, to share resources in order to strengthen accounting and auditing practices in Botswana. -
Publication
Sierra Leone : Accounting and Auditing
(Washington, DC, 2006-05)This report provides an assessment of accounting and auditing practices in Sierra Leone with reference to the International Financial Reporting Standards (IFRS) requirements issued by the International Accounting Standards Board, and International Standards on Auditing (ISA) issued by the International Federation of Accountants. This assessment is positioned within the broader context of the country's institutional framework and capacity needed to ensure the quality of corporate financial reporting. Efforts are necessary for strengthening the capacity of the regulators and ensuring compliance with applicable standards and codes. The accounting and auditing practices in Sierra Leone need to develop in line with a growing economy, as well as with international best practice. With the exception of banks and similar financial institutions, there is no legal mandate for other corporate entities to follow IFRS in preparation of financial statements and ISA in conducting audits. There are varying compliance gaps in both accounting and auditing practices. These gaps are likely to stem from lack of clearer understanding of professional accountants, inadequate technical capacities of the regulators, absence of implementation guidance, lack of independent oversight of the auditing profession, and shortcomings in professional education and training. Sierra Leone's accounting profession is dominated by members of the Association of Chartered Certified Accountants of the United Kingdom. -
Publication
Tanzania : Accounting and Auditing
(Washington, DC, 2005-04)This report provides an assessment of accounting and auditing practices within the context of the Tanzania institutional framework, to ensure the quality of corporate financial reporting. Various weaknesses and encouraging advancements were identified in the course of the review. Company legislation is outdated. A revised Act provides for modernized requirements but has shortcomings and is still not effective. Some laws specify particular accounting requirements that do not align with International Financial Reporting Standards/International Accounting Standards (IFRS/IAS). Parastatals lack a single statutory financial reporting act and there is no law, or regulatory body monitoring financial reporting by pension funds. On a positive side, the Auditors and Accountants Act has facilitated the development of an enabling environment for strong accounting practices, and the mandatory appointment of professional accountants for entities meeting thresholds. Another positive development was the adoption of IFRS/IAS and International Standards on Auditing (ISA) in 2004. However, full compliance is not yet readily achieved and national ethical requirements for auditors have not kept up to date with international developments. While the National Board of Accountants and Auditors (NBAA) has made a significant contribution to accountancy development over the past decade, the professional education however, is not yet in line with International Educational Standards, and neither is the NBAA able to function effectively either as a regulator, or, a professional accountancy body. The policy recommendations provided in this report focus on improving the statutory framework, strengthening enforcement mechanisms, upgrading professional education and training, and enhancing capacity of regulatory and professional bodies. Establishing an independent oversight body is a major recommendation. The oversight body would be responsible for adoption, monitoring, and enforcement of IFRS/IAS - based and ISA-based accounting and auditing practices of public interest entities. In addition, stakeholders should agree on criteria to clarify which entities should be eligible to use the standards of the International Accounting Standards Board for small- and medium-size enterprises, when available. -
Publication
Republic of Uganda : Accounting and Auditing
(Washington, DC, 2005-02)This report provides an assessment of accounting and auditing practices within the context of the Uganda institutional framework, to ensure the quality of corporate financial reporting. The accountancy profession in Uganda is young, but growing rapidly. Accounting and auditing practices in Uganda suffer from institutional weaknesses in regulation, compliance, and enforcement of standards and rules. Various weaknesses were identified in the laws and regulations governing financial reporting. Adopting International Accounting Standards (IAS) and International Standards on Auditing (ISA) in 1998 was a positive development. However, full compliance with IAS (and subsequently International Financial Reporting Standards) is not yet readily achieved, and there is inadequate adherence to auditing standards and professional ethics. Apart from the financial institutions and listed companies, monitoring and enforcement mechanisms are ineffective. These factors, as well as inadequate accounting education at university level, lack of learning materials on the international standards, and a lack of monitored and controlled practical training, have contributed to weaknesses in the financial reporting and auditing regime. The policy recommendations in this report focus on improving the statutory framework, strengthening enforcement mechanisms, upgrading professional education and training, and enhancing capacity of regulatory and professional bodies. A major recommendation is the establishment of an independent oversight body. The oversight body will be responsible for adoption, monitoring, and enforcement of IFRS/IAS-based and ISA-based accounting and auditing practices of public interest entities. -
Publication
Ghana : Accounting and Auditing
(Washington, DC, 2004-06-19)This report provides an assessment of accounting and auditing practices within the context of the Ghana institutional framework to ensure the quality of corporate financial reporting. The accounting and auditing practices in Ghana suffer from institutional weaknesses in regulation, compliance, and enforcement of standards and rules. Various weaknesses were identified in the laws and regulations governing financial reporting. Although Ghana Accounting and Auditing Standards have been based on International Accounting Standards and International Standards on Auditing, respectively, they are outdated and gaps exist in comparison with the international equivalents. Furthermore, national ethical requirements for auditors are not in line with international requirements. Full compliance with Ghana National Accounting Standards is not readily achieved; some listed companies inappropriately claim compliance with International Accounting Standards. There is inadequate adherence to auditing standards and professional ethics. Apart from the banking sector practice, monitoring and enforcement mechanisms are ineffective. These factors, as well as poor quality accounting education and training, have contributed to weaknesses of the financial reporting and auditing regime. The policy recommendations provided in this report focus on improving statutory framework, strengthening enforcement mechanisms, upgrading professional education and training, and enhancing capacity of regulatory and professional bodies. -
Publication
Nigeria : Accounting and Auditing
(Washington, DC, 2004-06-17)This report assesses accounting and auditing practices within the context of the Nigerian institutional framework to ensure the quality of corporate financial reporting. There is a multiplicity of laws and bodies for the regulation of accounting, financial reporting, and auditing requirements of companies, including differential financial reporting requirements for small companies. However, the accounting and auditing practices in Nigeria suffer from institutional weaknesses in regulation, compliance, and enforcement of standards and rules. Nigerian Accounting Standards (SAS) have not been reviewed or updated in line with current international standards, and in many cases the national and international standards are not equivalent. Compliance with more lenient national accounting standards is achieved, however with some exceptions. National auditing standards do not exist; auditors are advised to follow International Standards on Auditing (ISA) although such compliance is not mandatory, and there appears to be inadequate adherence to auditing standards and professional ethics. Furthermore, ethical codes for auditors in Nigeria are not in line with international requirements. Except within the banking sector, monitoring and enforcement mechanisms are very weak. These factors, as well as poor accounting education and training, have contributed to weaknesses of the financial reporting and auditing regime.