The professional associations should be more proactive in the implementation of the accounting and auditing reforms through increased quality and improved perception of the profession by the business community. This could include: Making twinning arrangements with institutes and associations in other countries Establishing peer-review mechanisms within the respective associations for better quality audits. Committing to compliance with Statements of Membership Obligations or IFAC’s similar requirements. Partnering with industry, trade and commerce chambers to engage in dialogue with the Government and regulators to facilitate the accounting and auditing reforms. Partnering with other stakeholders and perhaps development partners in knowledge sharing activities for accountants on accounting standards, for auditors on auditing standards and for businesses and investors on the importance of this agenda. Accounting and Auditing Standards The national accounting standard-setting process should be made more participatory and sustainable. The standard-setting approach should be expanded to provide for broader consultation with preparers, users and auditors of financial statements as well as tax experts. Furthermore, sufficient time should be allowed for public consultations, with all such discussions and feedback being transparent. Consideration should be given to the sustainability of the standard-setting process together with clarification of the way future revisions will be made to keep the standards up-to-date. As adopting the IFRS for SMEs would allow national standard setters to benefit from the rigorous and participatory process followed by the IASB, national standards setters may find it more effective to refocus their attention into participating in this process and expressing their needs to IASB, rather than developing their own customised solutions. The process for adopting accounting and auditing standards should be streamlined. The Law on Accounting and Law on Auditing Activity between them require the use of IFRSs, ISAs and Code of Ethics. However, the legislation requires translations of these IFAC’s standards or any updates to them to be published in the Official Monitor and there is currently a backlog of standards and their updates for publication. The Ministry of Finance should make sure that all updates enter into force on a timely basis. Monitoring and Enforcement The capacity of the Public Registry needs strengthening. The Public Registry is responsible for ensuring that companies comply with the financial reporting and transparency provisions of the Law on Accounting. However, the Public Registry has neither the capacity nor the resources to fulfil these responsibilities, which would initially require that: The Public Registry is provided with the necessary IT infrastructure to collect, process and publish the financial statements required by the Law;
The professional associations should be more proactive in the implementation of the accounting and auditing reforms through increased quality and improved perception of the profession by the business community. This could include: Making twinning arrangements with institutes and associations in other countries Establishing peer-review mechanisms within the respective associations for better quality audits. Committing to compliance with IFAC’s Statements of Membership Obligations or similar requirements. Partnering with industry, trade and commerce chambers to engage in dialogue with the Government and regulators to facilitate the accounting and auditing reforms. Partnering with other stakeholders and perhaps development partners in knowledge sharing activities for accountants on accounting standards, for auditors on auditing standards and for businesses and investors on the importance of this agenda. Accounting and Auditing Standards The national accounting standard-setting process should be made more participatory and sustainable. The standard-setting approach should be expanded to provide for broader consultation with preparers, users and auditors of financial statements as well as tax experts. Furthermore, sufficient time should be allowed for public consultations, with all such discussions and feedback being transparent. Consideration should be given to the sustainability of the standard-setting process together with clarification of the way future revisions will be made to keep the standards up-to-date. As adopting the IFRS for SMEs would allow national standard setters to benefit from the rigorous and participatory process followed by the IASB, national standards setters may find it more effective to refocus their attention into participating in this process and expressing their needs to IASB, rather than developing their own customised solutions. The process for adopting accounting and auditing standards should be streamlined. The Law on Accounting and Law on Auditing Activity between them require the use of IFRSs, ISAs and IFAC’s Code of Ethics. However, the legislation requires translations of these standards or any updates to them to be published in the Official Monitor and there is currently a backlog of standards and their updates for publication. The Ministry of Finance should make sure that all updates enter into force on a timely basis. Monitoring and Enforcement The capacity of the Public Registry needs strengthening. The Public Registry is responsible for ensuring that companies comply with the financial reporting and transparency provisions of the Law on Accounting. However, the Public Registry has neither the capacity nor the resources to fulfil these responsibilities, which would initially require that: The Public Registry is provided with the necessary IT infrastructure to collect, process and publish the financial statements required by the Law;
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