2012年-世界发展银行全球_Swaziland_Report_on_the_Observance_of_Standards_and_Codes___Accounting_and_Auditing_31页_1mb

Summary of the Report on the Observance of Standards and Codes – Accounting and Auditing (ROSC A&A) for Swaziland

Core Content

The Report on the Observance of Standards and Codes – Accounting and Auditing (ROSC A&A) for Swaziland was conducted at the request of the Government of the Kingdom of Swaziland. The main objective of the review is to identify institutional weaknesses and propose policy recommendations aimed at improving the quality of financial reporting in the country. This, in turn, is expected to enhance the business environment, public sector governance, and financial accountability in both the public and private sectors.

The report highlights that while Swaziland has made progress in establishing a financial reporting infrastructure, there are significant gaps in the supply of qualified accountants and auditors, weak compliance mechanisms, and limited institutional capacity to support the profession. These issues threaten the independence of auditors and the reliability of financial statements.

Main Findings

1. Accountancy Education and Training

• The current system of education and training for accountants and auditors in Swaziland is inadequate.
• Only a limited number of training institutions offer credible accounting qualifications.
• The Bachelor of Commerce (BCom) degree from the University of Swaziland is considered substandard compared to similar degrees from South African universities.
• Graduates from the University of Swaziland require 4 additional years to qualify as South African chartered accountants.
• There is no accreditation requirement for training institutions, and the SIA has no influence over the curriculum or training content.

2. Professional Accountancy Organizations

• The Swaziland Institute of Accountants (SIA) is the only professional accountancy organization in the country.
• SIA has limited financial and human resources, which restricts its ability to provide quality services and support to members and the public.
• The SIA does not regulate or influence the curriculum and professional examination structure of the qualifications it administers.
• The conversion exam for chartered accountants is seen as opaque and lacks transparency, which deters potential candidates.

3. Compliance with Standards

• There is a low level of compliance with accounting and auditing standards due to the limited number of qualified professionals and minimal support for standard implementation.
• The lack of IFRS experts among regulators hampers the ability to monitor and enforce compliance.
• No sanctions have ever been imposed for noncompliance with standards, indicating a weak enforcement regime.

4. Audit Market Dynamics

• A dual audit market exists, with KPMG and PwC dominating the market due to better hiring packages, higher fees, and perceived better service quality.
• The remaining nine audit firms are in a low equilibrium with low trust in financial statements, lower fees, and lower staff compensation.
• These firms require support to improve their quality, trust, and competitiveness.

Key Policy Recommendations

1. Establish a College of Accountants

   • A college should be created to train more professional and technical accountants.
   • The SIA, in partnership with the government, private sector, and professional bodies, should lead this initiative.
   • The college should be modeled after successful institutions in Botswana, Lesotho, and Zambia.

2. Strengthen the BCom Degree at the University of Swaziland

   • The University should enter into a twinning arrangement with a regional university to revise and accredit the curriculum.
   • Capacity-building for lecturers, including secondment and training opportunities, should be introduced.

3. Expand Practical Training Opportunities

   • Practical training should be extended beyond audit firms to include other institutions and companies.
   • The SIA should develop policies to govern the accreditation of training offices and their officers.
   • A monitoring and compliance framework for training contracts should be established.

4. Strengthen the SIA

   • The SIA Council should develop and implement a 5-year strategy aligned with its legal mandate and IFAC Statement of Membership Obligations (SMOs).
   • Governance structures, including the council and committees, should be reviewed and strengthened.
   • A dedicated secretariat with technical and monitoring units should be established.
   • The SIA should offer services and products to support members and the public in compliance with standards, especially small and medium-sized firms.

5. Revise the Companies Act

   • The Act should establish a standards-setter to determine the applicable accounting and auditing standards for different company types.
   • It should specify the institution responsible for monitoring compliance with these standards.
   • All public interest entities should be required to be audited, with the term "public interest entity" clearly defined.

6. Enhance Monitoring and Enforcement

   • The SIA should establish a monitoring and enforcement unit.
   • The unit should partner with recognized professional bodies to develop expertise and tools for auditing quality and financial statement review.
   • A Memorandum of Understanding (MoU) with regulators should be developed to support enforcement efforts.

Conclusion

The ROSC A&A review concludes that Swaziland has a foundational framework for accounting and auditing but requires significant institutional strengthening to meet the current and future demand for qualified professionals. The Government is advised to develop a country action plan to implement the policy recommendations, with support from the Steering Committee and the World Bank. The review emphasizes the need for a more robust and transparent education system, stronger regulatory oversight, and a fairer audit market to enhance financial reporting quality and public sector governance.