2004年-世界发展银行全球_Ghana___Accounting_and_Auditing_21页_410kb

Summary of the Report on the Observance of Standards and Codes (ROSC) – Ghana

Core Content

This report evaluates the current state of accounting and auditing practices in Ghana, highlighting institutional, regulatory, and professional challenges that affect the quality of corporate financial reporting. It outlines the weaknesses in the legal framework, the inadequacies of professional education, and the lack of effective enforcement mechanisms. The report also provides policy recommendations aimed at improving financial reporting and auditing standards in the country.

Main Findings

Institutional Framework

• Companies Code (Act 179, 1963): Provides basic accounting and reporting requirements but is outdated and has not been significantly amended. It lacks specific guidance on compliance with IAS or Ghana National Accounting Standards (GAS), and some provisions are incompatible with international standards.
• Securities and Exchange Commission (SECG) and Ghana Stock Exchange (GSE): Regulate financial reporting for listed companies. However, the GSE's Listing Regulations do not specify which standards should be followed, and SECG requires compliance with GAS, not IAS, despite the latter being more widely accepted.
• Bank of Ghana: Regulates financial reporting for banks and non-banking financial institutions. While the Banking Law (1989) and Financial Institutions (Non-Banking) Law (1993) exist, they lack clear references to international standards and are outdated.
• National Insurance Commission: Regulates insurance companies but has outdated financial reporting requirements and no effective sanctions for noncompliance.
• State-Owned Enterprises (SOEs): Lack a unified statutory accountability framework. Audits are conducted by the Auditor General, often in collaboration with private auditors.

Professional Accountancy

• Institute of Chartered Accountants of Ghana (ICAG): The sole regulator of the accountancy profession. It is a self-regulatory body with limited resources and capacity to enforce standards, update curricula, and ensure compliance.
• Membership and Public Practice: ICAG has 1,089 members as of April 2004, with only 109 in public practice. There is a shortage of qualified professionals, and the profession is not attractive to many students due to low remuneration and poor image.
• Code of Professional Conduct: The current code is outdated and not in line with the revised IFAC Code of Ethics. There is a lack of awareness and enforcement regarding ethical standards.

Professional Education and Training

• Curriculum: The ICAG curriculum for training professional accountants is over a decade old and does not fully meet IFAC International Education Standards.
• Pre-Qualification Courses: Lack practical application of IAS and ISA. Educators often lack the necessary experience and knowledge to teach these standards.
• Continuing Professional Education (CPE): ICAG requires 35 hours of CPE annually but does not enforce it effectively. There are no clear guidelines on the scope of learning activities, and small firms face financial constraints in participating.

Accounting and Auditing Standards

• Ghana National Accounting Standards (GAS): Based on outdated IAS and have not been updated since the 1990s. They lack alignment with current international standards and do not include interpretations from the IASB.
• Ghana National Standards on Auditing (NSA): Based on ISA, but also outdated. No equivalent to the IASB's Standard Interpretations Committee has been established in Ghana.

Key Differences Between National and International Standards

Policy Recommendations

1. Establish an Independent Oversight Body: Create a Financial Reporting Council to monitor and enforce IAS and ISA-based standards for public interest entities.
2. Update Statutory Frameworks: Amend the Companies Code and other relevant laws to align with international standards and improve compliance mechanisms.
3. Develop a Simplified Financial Reporting Framework: Specifically for small- and medium-sized enterprises (SMEs) to reduce complexity and improve accessibility.
4. Strengthen ICAG: Improve the capacity and resources of the Institute of Chartered Accountants of Ghana to effectively regulate the profession, enforce standards, and provide updated education and training.
5. Enhance CPE and Ethical Training: Introduce structured CPE programs and emphasize the teaching of professional ethics in pre-qualification education.
6. Improve Monitoring and Enforcement: Strengthen the enforcement capacity of regulatory bodies, including the introduction of monetary penalties and effective sanctions for noncompliance.
7. Enhance Legal and Regulatory Alignment: Ensure that all regulatory bodies have clear mandates for overseeing the appointment and termination of auditors, and that financial reporting standards are consistently applied across sectors.

Conclusion

The report identifies significant institutional and professional weaknesses in Ghana’s financial reporting and auditing environment. These weaknesses are attributed to outdated laws, insufficient enforcement mechanisms, limited resources for professional bodies, and inadequate education and training. To improve the quality of corporate financial reporting, the report emphasizes the need for a more robust, independent regulatory framework and alignment with international standards. Collaboration between the Government of Ghana, regulatory bodies, and professional institutions is essential to implement these recommendations effectively.