Publication: Cambodia : Accounting and Auditing
Date
2007-05
ISSN
Published
2007-05
Author(s)
World Bank
Abstract
This report provides an assessment of
accounting and auditing practices within the corporate
sector in Cambodia with reference to the International
Financial Reporting Standards (IFRS) issued by the
International Accounting Standards Board (IASB), and the
International Standards on Auditing (ISA) issued by the
International Federation of Accountants (IFAC). This
assessment is positioned within the broader context of the
Cambodia's institutional framework and capacity needed
to ensure the quality of corporate financial reporting
Cambodia is putting in place an institutional framework with
regard to accounting, auditing, and financial reporting
practices. However, institutional weaknesses in regulation,
compliance, and enforcement of standards and rules still
exist. The accounting and auditing statutory framework
suffers from inconsistencies among different laws. Although
the national accounting standards and auditing standards are
based on IFRS, and ISA, respectively, they appear outmoded
and have gaps in comparison with the international
equivalents. There are varying compliance gaps in both
accounting and auditing practices. These gaps could
primarily stem from lack of clearer understanding by
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. There
is little awareness of the importance of quality financial
information in Cambodia. Financial reporting is driven
primarily by complying with requirements of shareholders,
obtaining bank loans, and satisfying the taxation regime.
Auditing in Cambodia is perceived as an exercise of little
value. The law does not outline which standards should be
followed in conducting audits. Cambodia's accounting
profession is largely dominated by the members of the
Association of Chartered Certified Accountants of the United
Kingdom. The Kampuchea Institute of Certified Public
Accountants and Auditors is in its early stage of
development and should be geared to contribute in creating
an enabling environment for high-quality corporate financial
reporting and auditing practices in the country.
Citation
“World Bank. 2007. Cambodia : Accounting and Auditing. © Washington, DC. http://openknowledge.worldbank.org/entities/publication/28264c82-14cb-5567-a4ba-cb306055b9e8 License: CC BY 3.0 IGO.”