2014年-世界发展银行全球_Chad_Report_on_the_Observance_of_Standards_and_Codes___Accounting_and_Auditing_38页_1mb

Summary of the Chad Accounting and Auditing ROSC Report (April 2014)

Core Content

This report provides an assessment of the current state of accounting and auditing standards and practices in Chad, highlighting challenges and recommending actions to improve the profession. It is based on a study conducted between March and April 2013 in Ndjamena, with input from Chadian authorities, the accounting profession, and the private sector. The report outlines the need for stronger legal frameworks, professional development, and alignment with international standards to enhance the credibility and efficiency of financial reporting and auditing in the country.

Main Issues and Challenges

• Lack of Professional Regulation:

  • The accounting and auditing profession in Chad is not adequately regulated. Many practitioners operate illegally and do not meet international standards.
  • Only one Certified Public Accountant (of France) exists in Chad, with 22 CEMAC-accredited accountants and approximately 50 individuals accredited by the Court of Appeal of Ndjamena. However, these qualifications do not align with any clear reference framework.
  • A national association of chartered accountants has not been established, despite CEMAC regulations requiring it.
  • The existing ANECAT association is not very active and lacks the necessary authority and structure to represent the profession effectively.

• Inadequate Legal and Regulatory Framework:

  • The legal and institutional framework for accounting and auditing has not evolved significantly since the adoption of the OHADA accounting system and CEMAC community regulations in the early 2000s.
  • There is a lack of enforcement mechanisms to ensure compliance with existing regulations.
  • No legal provision exists for the establishment of approved management centres (CGAs), which are essential for ensuring transparency and reliability in SME financial reporting.
  • Public enterprises are not effectively regulated due to insufficient human and financial resources.

• Weak Accounting and Auditing Standards:

  • Accounting standards have remained largely unchanged since the late 1990s, with limited updates to reflect economic and legal developments.
  • There is a need to adopt IFRS for public interest entities such as banks, insurance companies, and public enterprises.
  • SMEs require updated accounting laws aligned with international standards, particularly given their significant role in the private sector.

• Insufficient Training and Education:

  • The quality of accounting and auditing education is inadequate. Public education systems have not established a sub-regional public accountancy certification similar to the WAEMU DECOFI curriculum.
  • Private schools offering accounting training lack quality control and verification.
  • The number of students obtaining the French public accountancy diploma is low due to poor student quality and high training costs.

• Poor Access to Financial Reports:

  • Many businesses do not file audited financial statements, as there is no legal obligation or control mechanism to enforce this.
  • The lack of a central balance sheet office and the absence of a system to collect and provide financial reports hinder transparency and accountability.
  • The Court of Accounts lacks the capacity to effectively supervise public enterprises.

Key Recommendations

National Level Recommendations

1. Establish a Functional National Accounting Standards Commission (CNPC)

   • Collaborate with the OHADA Permanent Secretariat and the planned national association of chartered accountants to ensure the CNPC operates effectively.
   • Ensure alignment with IPSAS and international standards in the long term.

2. Create a National Association of Chartered Accountants

   • Adopt the draft decree currently under consideration by the authorities to establish a national association of chartered accountants.
   • Ensure the association aligns with CEMAC and IFAC standards.

3. Implement a Continuous Professional Training (CPT) Program

   • Develop and implement a CPT plan for members of the accounting profession in line with IFAC IAESB standards.
   • Coordinate with ANECAT and private institutions to harmonise curricula and improve training quality.

4. Ensure Access to Financial Reports

   • Set up CGAs through public-private partnerships involving the Chamber of Commerce and the national association of chartered accountants.
   • Improve the capacity of the Court of Accounts to supervise public enterprises.
   • Establish an electronic record-keeping system for the Court Registry to facilitate financial report collection and access.

5. Adopt Quality Control and Ethics Standards

   • Require the national association of chartered accountants to implement a quality control system aligned with international standards.
   • Ensure the enforcement of a code of ethics and professional standards.

6. Enhance Governance of Public Enterprises

   • Apply OECD principles for public enterprise governance, ensuring that boards of directors perform their roles and that financial reports are submitted promptly to regulatory bodies.

Regional Level Recommendations

1. Strengthen Regional Regulatory Bodies

   • Ensure the OHADA Permanent Secretariat and CEMAC Executive Secretariat work together to coordinate the implementation of regional projects.
   • Support the CNC OHADA to function effectively as a regulatory body for accounting standards.

2. Adopt IFRS for Public Interest Entities

   • Work with regional stakeholders to gradually implement IFRS for public interest entities (listed companies, banks, insurance companies, and public enterprises).
   • Continue updating OHADA accounting laws for SMEs to align with international standards.

3. Align with International Standards

   • Adopt French versions of ISA and IFAC IESBA code of ethics in the region.
   • Ensure that national associations effectively transpose these standards into local practice.

4. Develop a Regional Curriculum for Accounting Qualifications

   • Create a curriculum leading to a professional qualification in accounting, similar to the WAEMU DECOFI model, in line with IFAC IAESB international education standards.
   • Implement a post-qualification continuous professional training program for professional accountants in the OHADA region.

5. Support Computerisation of Regional Financial Registers

   • Assist the OHADA CCJA in computerising the regional RCCM and integrating it with national trade registries to improve financial information availability.

Conclusion

The report underscores the urgent need for Chad to strengthen its legal and institutional frameworks for accounting and auditing, align with international standards, and develop a competent and credible professional body. These actions are critical for improving financial reporting quality, enhancing transparency, and supporting the growth of the private sector and public enterprises. The recommendations emphasize the importance of collaboration between national and regional bodies, as well as the role of the World Bank in supporting these reforms.