2012年-世界发展银行全球_Cape_Verde_Report_on_the_Observance_of_Standards_and_Codes___Accounting_and_Auditing_32页_756kb

Summary of the ROSC A&A Report on Cape Verde

Core Content

The Report on the Observance of Standards and Codes (ROSC A&A) on Cape Verde assesses the current state of financial reporting infrastructure, focusing on the statutory framework, professional education and training, accountancy profession, accounting standards, auditing standards, and monitoring and enforcement mechanisms. The main objective is to support the development of a country action plan aimed at improving the quality of corporate financial reporting in Cape Verde.

Main Purpose

The report seeks to identify strengths and weaknesses in the existing financial reporting system and provides policy recommendations to strengthen institutional capacity, improve accounting and auditing standards, and ensure compliance with international practices. It emphasizes the importance of aligning national practices with International Financial Reporting Standards (IFRS) and International Standards on Auditing (ISA).

Key Findings

Legal and Regulatory Framework

• Cape Verde introduced a Commercial Code in 1999 and Corporate Tax Law to govern accounting and financial reporting.
• Companies are required to maintain organized accounting records and submit annual returns to the Registrar of Companies.
• The National Commission of Accounting Regulation (CNNC), established in 2008, oversees accounting standards and issues.
• The National Accounting Standards and Financial Reporting (SNCRF) were adopted in 2008 to harmonize accounting practices and bring them closer to IFRS.
• Tax reporting heavily influences financial reporting, as compliance with tax requirements is often seen as sufficient for financial reporting compliance.
• The Bank of Cape Verde mandated IFRS for banks and insurance institutions, but micro-finance institutions remain unregulated.

Accounting and Auditing Standards

• IFRS is applied in banking and insurance sectors, but not in all public interest entities.
• Non-public interest entities use an adapted version of IFRS, which contains significant gaps.
• There is no mandatory application of ISA in Cape Verde, and compliance is not enforced.
• CPD programs are not active at the Professional Institute of Certified Auditors and Accountants (OPACC).
• The number of certified auditors is limited, with only 30 individuals registered, mostly from international audit networks.

Professional Capacity and Education

• There is a scarcity of professionally qualified accountants (e.g., certified public accountants).
• Accounting technicians are more numerous, but they do not provide assurance to the public in the same way as auditors.
• The curriculum in accounting and management schools lacks integration of IFRS and ethics.
• OPACC needs to be restructured to meet IFAC membership requirements and to improve its training, monitoring, and enforcement programs.

Financial Reporting Quality

• There is no tradition of financial analysis in Cape Verde, and credit-rating agencies are absent.
• Banks do not rely on corporate financial statements but rather on collateral to manage credit risks.
• The Stock Exchange has limited capacity to review IFRS-based financial statements and is regulated by the Bank of Cape Verde, which may hinder its independence.

Policy Recommendations

A. Modernize the Statutory Framework

• Mandate IFRS for all public interest entities.
• Use IFRS for SMEs for non-public interest entities.
• Empower regulators with authority to enforce compliance with standards.
• Harmonize legislation with the tax framework and provide guidance on reconciling accounting profit/loss with taxable profit/loss.

B. Strengthen Institutional Capacity and Academic Curriculum

• Transform OPACC into a modern professional organization.
• Update curricula to include IFRS and ethics.
• Implement a training-of-trainers program to develop IFRS experts and CPD mechanisms.
• Disseminate guidance notes on the local implementation of IFRS.

C. Improve Financial Reporting and Oversight Arrangements

• Build capacity at the Bank of Cape Verde to regulate micro-finance institutions.
• Empower the Registrar of Companies to require annual audited financial statements.
• Establish a Financial Reporting Council to monitor and enforce compliance with IFRS and ISA.
• Develop the technical skills of the Supreme Audit Institution to audit State-Owned Enterprises.
• Enhance the capacity of the Stock Exchange to review IFRS-based financial statements.
• Ensure independence of the Stock Exchange from the central bank.

Conclusion

The report outlines a comprehensive set of policy recommendations to improve the institutional framework, professional education, and enforcement of accounting and auditing standards in Cape Verde. These recommendations aim to enhance financial transparency, corporate governance, and investor confidence in the country's financial reporting system. A multidisciplinary steering committee is recommended to coordinate the accountancy reform and ensure the implementation of the ROSC recommendations.

Key Entities and Responsibilities