2017年-世界发展银行全球_Zambia_Report_on_the_Observance_of_Standards_and_Codes___Accounting_and_Auditing_38页_2mb

ZAMBIA ROSC A&A 2017 Summary

Core Content

The Report on the Observance of Standards and Codes – Accounting and Auditing (ROSC A&A) for Zambia, conducted in 2017, evaluates the progress made in implementing the recommendations from the 2007 review and identifies areas for further strengthening of the accountancy profession. The report is aligned with the 7th National Development Plan (NDP), which aims to build a diversified and resilient economy for sustained growth and social development.

The assessment focuses on the institutional framework, reporting practices, and policy recommendations to enhance the accountability and auditing profession. It highlights the importance of the profession in improving the business and investment climate, governance, and financial accountability in both the public and private sectors.

Main Objectives

• Determine reforms to strengthen the accountability profession.
• Assess the implementation of policy recommendations from the 2007 ROSC A&A.
• Identify emerging issues in accounting and auditing practices.
• Propose policy recommendations to enhance the profession's contribution to economic and social development.

Key Findings

• Implementation of 2007 Recommendations: Eight out of nine recommendations were implemented, showing a commitment to strengthening the profession.
• ZICA Membership Growth: The number of ZICA members doubled from 2,922 to 5,898, with a significant increase in female representation (21% to 45%).
• Supply Gap: Despite growth, there is still a supply gap in the number of professional and technician accountants needed to meet the demand (estimated at 7,000 and 21,600 respectively).
• Decline in Student Registrations: The number of students registering for ZICA qualifications has been declining since 2010, from 10,728 to 8,995 in 2016.
• Low Pass Rates: The pass rate for ZICA professional level examinations has remained below 40% in the past three years, attributed to low appreciation of the profession's value.
• SRB Independence Concerns: The Standards and Regulatory Board (SRB), while established, is perceived as lacking independence due to its funding and reporting structure to ZICA.
• Audit Challenges: Many auditors, especially Small and Medium Practitioners (SMPs), face challenges in applying complex accounting and auditing standards.

Key Policy Recommendations

Strengthen the Professional Accountancy Organization

• PAOs should engage in thought leadership initiatives to support the NDP, especially in addressing economic and social issues.
• Launch marketing campaigns to raise public awareness and enhance the brand value of the profession.
• Prescribe specific services for each membership category under the Accountants Act.
• Enhance human, financial, and technological resources for ZICA, including upgrading the iMIS system to collect more detailed member data and automate audit reviews.

Strengthen Accountancy Education and Training

• Fast-track the implementation of the CA Zambia qualification launched in August 2017.
• Expand access to training in rural areas through innovative methods such as branches and technology-based platforms.
• Enhance curriculum and delivery infrastructure in tertiary institutions, with close collaboration with PAOs.
• Focus on public sector subjects and internships, and increase the use of technology in teaching.

Strengthen Audit and Accounting Regulation

• Establish an independent accountability regulator in the medium to long term.
• Strengthen the SRB’s independence by improving its processes, capacity, and funding.
• Amend the Companies Act to align with the Accountants Act, exempting SMEs from audit requirements.
• Ensure that audit is conducted by appropriately qualified individuals to protect public interest.

Improve Compliance with A&A Standards

• Regularly offer awareness and knowledge-sharing sessions on A&A standards and other regulatory requirements.
• Include practical and case study-based approaches and leverage technology for implementation support.
• Develop more guidance on standards and establish help desks at the PAO level.

Strengthen the SMPs

• Initiate a voluntary merger program for sole practitioners to enhance their market share and compliance with reporting standards.
• Enable SMPs to offer alternative services such as internal audit and corporate finance.
• Utilize resources from the IFAC SMP Committee to support these reforms.

Strengthen Monitoring and Enforcement

• Establish institutions to monitor governance and financial reporting of SOEs and mining companies.
• Enhance monitoring capacity, methodologies, and information-sharing among regulators.
• Enter into an operational Memorandum of Understanding (MoU) to coordinate reviews and share findings.
• Consider setting up a Regulatory Forum to facilitate collaboration and implementation of the MoU.

Other Recommendations

• Foster a voluntary partnership between the Auditor General (AG) and ZICA to conduct audit quality reviews.
• Initiate reforms to adopt integrated reporting, which includes reporting on value creation using the six capitals.
• Develop a national code of corporate governance applicable to all companies, replacing separate codes from different institutions.

Conclusion

The 2017 ROSC A&A report underscores the need for continued reform and investment in the accountancy profession in Zambia to support economic growth and development. It highlights the importance of enhancing the professional relevance, regulatory independence, and compliance with international standards to ensure the profession contributes effectively to the country's development goals.