2010年-世界发展银行全球_Sudan_Report_on_the_Observance_of_Standards_and_Codes___Accounting_and_Auditing_34页_288kb

Sudan Accounting and Auditing ROSC Summary

Core Content

This report is part of the Reports on the Observance of Standards and Codes (ROSC) initiative by the World Bank and the IMF, focusing on accounting and auditing (A&A) practices in Sudan. It evaluates the institutional framework, current standards, and practices in Sudan's corporate and financial sectors, comparing them with International Financial Reporting Standards (IFRS) and International Standards on Auditing (ISA).

Main Findings

Institutional Framework

• The Sudan Companies Act (1925) is the primary legal framework for financial reporting, but it lacks modern standards and is not updated.
• There is no legal mandate for most corporate entities to follow IFRS or ISA, except for banks and insurance companies, which must follow Islamic accounting standards (AAOIFI).
• Noncompliance with the Companies Act is widespread, particularly regarding the filing of annual financial statements.
• Market discipline is limited due to the lack of statutory requirements for private companies to make financial statements publicly available.
• Consolidated financial statements are not required for group companies, which is inconsistent with IFRS and leads to an incomplete view of financial performance.

Legal and Regulatory Issues

• The Companies Act does not specify the use of any particular accounting standards, and penalties for noncompliance are insufficient.
• Audit committee requirements are not mandated by law, which is a key element of good corporate governance.
• Auditors' liabilities are not defined in the legal framework, leading to a lack of accountability and potential malpractice.
• Appointment procedures for auditors are inconsistent between the Central Bank of Sudan and the Insurance Supervisory Authority, and the SAAPOC lacks clear boundaries in its role.

Professional Practice

• The Sudan Accounting and Auditing Profession Organization Council (SAAPOC) is the main professional body, but it faces challenges in terms of capacity and clarity of mandate.
• Accounting education and training in Sudan do not meet the IFAC International Education Standards, leading to a lack of professional competence.
• Audit firms in Sudan are required to obtain a license from the Ministry of Finance and National Economy, but there is no independent regulation of the auditing profession.

Key Recommendations

• Improve the capacity of Sudanese regulators and the SAAPOC to function as a modern, professional accountability body.
• Modernize the legal framework to align with international standards and good practices.
• Upgrade accounting education and training in line with IFAC International Education Standards.
• Establish a securities market regulator to oversee the development of the capital market.
• Institute independent audit review mechanisms in the long term.
• Apply IFRS and ISA only to public interest entities and simplify reporting requirements for small and medium-sized enterprises (SMEs).
• Initiate awareness programs to improve understanding of international standards among stakeholders.
• Ensure cooperation among various regulators to enhance the effectiveness of oversight.
• Upgrade licensing procedures for professional accountants and auditors.
• Develop the professional accountability body to meet IFAC membership requirements.
• Make continuing professional development (CPD) mandatory for professional accountants.

Conclusion

The report highlights the need for significant reforms in Sudan's accounting and auditing practices to enhance financial transparency, corporate governance, and market efficiency. These reforms are essential for economic growth, foreign investment, and international integration. The SAAPOC and regulatory bodies must be strengthened and reformed to align with international standards and to support the development of a robust financial sector in Sudan.

Key Information

• ROSC A&A is a tool used by the World Bank and IMF to assess financial reporting and auditing practices.
• IFRS and ISA are used as international benchmarks for evaluating Sudan's standards.
• SAAPOC is the main professional accountancy body in Sudan, but it needs clarification of its mandate and enhanced capacity.
• Islamic accounting standards (AAOIFI) are applied to banks and insurance companies, but their updated versions are not widely available.
• Financial market regulators (Central Bank and Insurance Supervisory Authority) have specific requirements for audit practices and financial disclosures.
• Accounting education and training in Sudan are inadequate, and professional indemnity insurance is not well known or required.

Appendices

• The Appendix provides an overview of accounting and auditing in Southern Sudan, which is a separate entity from the North and has its own financial reporting system.