2015年-世界发展银行全球_Republic_of_Rwanda___Report_on_the_Observance_of_Standards_and_Codes--Accounting_and_Auditing_61页_934kb

Rwanda ROSC A&A 2015 Summary

Core Content

The Report on the Observance of Standards and Codes - Accounting and Auditing (ROSC A&A) for Rwanda, conducted in 2015, is part of a 12-module joint initiative by the World Bank and IMF to strengthen financial systems in member countries. This report serves as a follow-up to the 2008 ROSC A&A and evaluates the progress made in implementing the recommendations, identifies emerging issues, and proposes further improvements to enhance the quality of financial reporting and auditing in Rwanda.

Main Points

1. Institutional Framework

• The Institute of Certified Public Accountants of Rwanda (iCPAR) was established in 2008 and is now an associate member of IFAC.
• iCPAR is responsible for setting and enforcing accounting and auditing standards, and has developed its own qualification system, with the first two members qualifying in December 2014.
• The Ministry of Finance and Economic Planning (MINECOFIN) plays a key role in supporting iCPAR and implementing International Public Sector Accounting Standards (IPSAS).

2. Status of Implementation

• Out of the 21 recommendations from the 2008 report, 7 were fully implemented, 11 were partially implemented, and 3 remain unimplemented.
• The lack of full implementation is mainly due to shortage of qualified accountants and inadequate institutional capacity at iCPAR.

3. Progress Since 2008

• Several statutes and laws have been enacted or amended to improve the statutory financial reporting framework:
  • Law 07/2009: Requires all companies except "Small Private Companies" to appoint auditors and submit financial statements in line with international standards.
  • Law 07/2008: Regulates financial reporting by banks and non-banking financial institutions.
  • Capital Markets Authority (CMA) was established in 2011 to oversee capital markets, including the Rwanda Stock Exchange (RSE).
  • State-Owned Enterprises (SOEs) are required to comply with IFRS.

4. Key Challenges

• iCPAR faces significant challenges in terms of technical capacity, governance, and funding.
• Audit Quality Assurance (AQA) is not yet operational, though plans are in place with support from ACCA and IFUSE.
• There is a lack of practical training in the iCPAR qualification process, which affects the quality of accountants.
• Many entities, including regulators and audit firms, do not have qualified accountants, and financial statements are often prepared by unqualified personnel, compromising reporting quality.
• Professional indemnity insurance is not mandatory and should be introduced.

5. Recommendations

The report proposes several key recommendations to address the identified issues:

• Strengthen iCPAR:

  • Enhance governance and secretariat structures.
  • Establish and strengthen AQA.
  • Align curriculum development with iCPAR qualifications.
  • Introduce mandatory monitored practical training.
  • Support IPSAS implementation through a Public Sector Commission.
  • Advocate for public sector accounting modules in tertiary education.
  • Form an Investigation Commission to work independently of the existing Disciplinary Commission.

• Strengthen the profession, education, and training:

  • Promote the attractiveness and profile of the accounting profession.
  • Increase the number of accounting technicians and professionals.
  • Introduce examinations in variant papers (e.g., Rwanda tax and company law) for foreign-qualified practitioners.

• Strengthen the statutory framework:

  • Define PIE, SME, and Financial Summary in the Company Law.
  • Enforce differential reporting frameworks for different entity types to reduce compliance burdens.
  • Amend the iCPAR Law to require AQA to review the work of auditors on large private companies in unregulated sectors.

• Strengthen the capacity of regulators:

  • Enhance regulatory capacity to ensure compliance with reporting requirements.
  • Establish MoUs with iCPAR’s AQA function if internal capacities are insufficient.

Key Information

• Currency: Rwanda Franc (Rwf), with 1 US$ = 677,786.99 Rwf (as of April 22, 2015).
• Fiscal Year: July 1 to June 30.
• Official Languages: English, French, and Kinyarwanda.
• ROSC A&A Objective: To assess the implementation of 2008 recommendations, identify emerging issues, and provide recommendations to improve financial reporting and auditing in Rwanda.
• ROSC A&A Impact: Enhancing financial reporting quality, improving business environment, and boosting investor confidence and economic growth.

Conclusion

The report emphasizes the need for a well-resourced and prioritized Country Action Plan (CAP) driven by the Government and stakeholders, supported by professional and financial capacity building. The World Bank is ready to provide support in implementing the recommendations and developing the CAP.

Annex

• Annex 1: Spread of iCPAR's Secretarial Staff.

References

• ROSC A&A: Report on the Observance of Standards and Codes - Accounting and Auditing.
• IFAC: International Federation of Accountants.
• IESBA: International Ethics Standards Board for Accountants.
• ACCA: Association of Chartered Certified Accountants.
• IFUSE: Investment Facility for Utilising Specialist Expertise.
• IPSAS: International Public Sector Accounting Standards.
• AQA: Audit Quality Assurance.
• EDPRS: Economic Development and Poverty Reduction Strategy.
• MINECOFIN: Ministry of Finance and Economic Planning.
• iCPAR: Institute of Certified Public Accountants of Rwanda.