World Bank2012-06-132012-06-132007-05https://hdl.handle.net/10986/7917This 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.CC BY 3.0 IGOACCESS TO CAPITALACCESS TO FINANCINGACCOUNTACCOUNTABILITYACCOUNTANCYACCOUNTANCY FIRMSACCOUNTANTACCOUNTANTSACCOUNTINGACCOUNTING CURRICULAACCOUNTING CURRICULUMACCOUNTING FIRMACCOUNTING PERIODACCOUNTING POLICIESACCOUNTING PRINCIPLESACCOUNTING RECORDSACCOUNTING STANDARDACCOUNTING STANDARDSACCOUNTING TREATMENTACCOUNTSACCOUNTS RECEIVABLESADEQUATE DISCLOSUREADVERTISINGAMOUNT OF COLLATERALATTESTATIONAUDIT COMMITTEESAUDIT ENGAGEMENTSAUDIT EVIDENCEAUDIT RISKAUDIT STANDARDSAUDITED FINANCIAL INFORMATIONAUDITED FINANCIAL STATEMENTSAUDITINGAUDITING PROCEDURESAUDITING PROFESSIONAUDITING STANDARDSAUDITORSAUDITSBALANCE SHEETBANK FINANCINGBANK LOANBANK LOANSBANK RESTRUCTURINGBANK SUPERVISIONBANKING LAWBANKING RISKSBANKING SECTORBANKING SERVICESBANKING SUPERVISIONBANKING SYSTEMBANKSBOARDS OF DIRECTORSBOOKKEEPINGBORROWERBUSINESS COMMUNITYBUSINESS FORECASTSCAPACITY BUILDINGCAPITAL ADEQUACYCAPITAL MARKETCAPITAL MARKET DEVELOPMENTCAPITAL MARKETSCASH FLOWCERTIFIED PUBLIC ACCOUNTANTSCHECKSCOLLATERALSCOMMERCIAL BANKSCOMMERCIAL ENTERPRISESCOMPANY LAWCOMPLIANCE GAPSCONSOLIDATED FINANCIAL STATEMENTSCONSOLIDATIONCONTINGENT LIABILITIESCORPORATE GOVERNANCECREDIT HISTORIESCREDIT LOSSESCREDITORCREDITOR RIGHTSCREDITORSDEBTDEPOSITSDEPRECIATIONDEVELOPMENT BANKDISCLOSURE REQUIREMENTSDUE DILIGENCEECONOMIC DEVELOPMENTENABLING ENVIRONMENTENFORCEMENT MECHANISMENFORCEMENT MECHANISMSENFORCEMENT PROCESSENFORCEMENT SYSTEMEQUIPMENTEXTERNAL AUDITORSFAIR VALUEFAIR VALUESFIDUCIARY RESPONSIBILITYFINANCIAL ASSETFINANCIAL ASSETSFINANCIAL CRISESFINANCIAL CRISISFINANCIAL INSTITUTIONSFINANCIAL INSTRUMENTFINANCIAL INSTRUMENTSFINANCIAL MANAGEMENTFINANCIAL PERFORMANCEFINANCIAL RATIOSFINANCIAL REPORTINGFINANCIAL REPORTING STANDARDSFINANCIAL STABILITYFINANCIAL STATEMENTFINANCIAL STATEMENTSFINANCIAL SYSTEMFISCAL DEFICITFISCAL DISCIPLINEFISCAL POLICYFOREIGN CURRENCIESFOREIGN CURRENCYFOREIGN CURRENCY EXPOSUREFOREIGN DIRECT INVESTMENTFUTURE CASH FLOWSFUTURE CREDITGLOBAL ECONOMYGOOD PRACTICESGOVERNMENT BUDGETGOVERNMENT REGULATIONGROSS DOMESTIC PRODUCTHUMAN RESOURCEIMAGEINADEQUATE DISCLOSUREINFORMATION TECHNOLOGYINSTITUTIONAL CAPACITIESINSURANCEINSURANCE COMPANIESINSURANCE INDUSTRYINTANGIBLEINTANGIBLE ASSETSINTEREST RATEINTERNATIONAL ACCOUNTING STANDARDSINTERNATIONAL ACCOUNTING STANDARDS COMMITTEEINTERNATIONAL DEVELOPMENTINTERNATIONAL DEVELOPMENTSINTERNATIONAL INVESTORSINTERNATIONAL MARKETINTERNATIONAL STANDARDINTERNATIONAL STANDARDSINVENTORIESINVENTORYINVESTINGINVESTMENT CLIMATEINVESTMENT FUNDSINVESTMENT REGIMEISSUANCELAWSLEGAL AUTHORITYLEGISLATIONLEGISLATIVE FRAMEWORKLENDERSLENDING DECISIONSLIMITED LIABILITYLIMITED PARTNERSHIPLOANLOAN APPLICATIONLONG-TERM ASSETSLONG-TERM INVESTMENTMACROECONOMIC ENVIRONMENTMANDATESMARKET ECONOMYMARKET EFFICIENCYMARKET PARTICIPANTSMARKET VALUEMATURITYMICROFINANCEMICROFINANCE INSTITUTIONSMINORITY INVESTORSMONETARY FUNDNATIONAL BANKOPERATING EXPENSESOPERATING LEASESPENALTIESPENSIONPENSION FUNDSPOTENTIAL INVESTORSPRESENT VALUEPRIVATE COMMERCIAL BANKSPRIVATE INVESTMENTPRIVATIZATIONPRUDENTIAL REGULATIONSPRUDENTIAL REQUIREMENTSPRUDENTIAL SUPERVISIONQUALITY ASSURANCEQUALITY CONTROLREGULATORY FRAMEWORKREORGANIZATIONREPAYMENTREPAYMENT CAPACITYRETURNSREVENUE MOBILIZATIONSECURITIESSECURITIES REGULATIONSHAREHOLDERSSPECIALIZED BANKSSTATUTORY AUDITORSSUBSIDIARIESSUPERVISORY BOARDTAXTAX FRAMEWORKTAX REFORMTAXATIONTERRORISMTRANSPARENCYTURNOVERVALUATIONWorld Bank10.1596/7917