2017年-世界发展银行全球_Report_on_the_Observance_of_Standards_and_Codes_Accounting_and_Auditing___Module_C_-_Observed_Reporting_Practices_and_Perceptions_16页_846kb

Summary of the Report on the Observance of Standards & Codes (ROSC) Accounting & Auditing (A&A) Module C

Core Content

Module C of the ROSC A&A report is designed to assess the actual reporting practices and user perceptions of financial information in a jurisdiction. It includes three main components:

• C.1 Financial Statements Review: An independent assessment of a sample of financial statements to evaluate their alignment with applicable financial reporting standards.
• C.2 Review of Regulatory Findings: An analysis of findings from financial sector regulators and audit quality assurance bodies to understand compliance and enforcement issues.
• C.3 Perceptions Survey: Gathering insights from financial statement users to evaluate the perceived quality and usefulness of financial information.

The module aims to corroborate findings from Modules A and B and to provide a comprehensive understanding of how financial reporting and auditing practices are perceived and implemented.

Main Objectives

• To evaluate the alignment of financial statements with the expected presentation and disclosure requirements.
• To identify discrepancies and trends in financial reporting practices.
• To assess the quality of audit practices through auditor reports.
• To understand the demand and perceived quality of financial information from users.

Key Information

C.1 Financial Statements Review

• Purpose: To determine whether financial statements are aligned with the financial reporting framework and prepared without significant errors or omissions.
• Sample Selection:
  • Should include regulated entities (banks, insurance, listed companies), large non-listed commercial enterprises, state-owned enterprises (where appropriate), and SMEs.
  • Sample size is typically between 25 and 50, proportional to the jurisdiction's size or significance of the securities market.
  • The team should propose the sample size and composition in the concept document.
• Review Components:
  • Presentation of financial statements: Check completeness, classification, and consistency.
  • Disclosure of accounting policies: Ensure clarity, relevance, and alignment with standards.
  • Other disclosures: Evaluate compliance with expected disclosures (e.g., receivables, related parties, contingent liabilities).
  • Auditor's opinion: Identify any qualifications or emphasis of a matter that may indicate non-compliance with standards.
• Limitations:
  • Cannot assess the appropriateness of recognition and measurement practices directly.
  • Only audit or supervisory inspections can provide such assessments.
• Tools:
  • Use disclosure checklists from international or local audit firms for consistency.
  • Checklists should be aligned with the applicable financial reporting standards (e.g., IFRS or national GAAP).

C.2 Review of Regulatory Findings

• Purpose: To assess financial reporting and audit quality issues from the perspective of regulatory bodies.
• Key Activities:
  • Review findings from monitoring and enforcement (M&E) activities of financial sector regulators.
  • Analyze reports from audit quality assurance (QA) bodies.
• Sources of Information:
  • Interviews with regulators during the due diligence mission.
  • Responses to Module B questionnaires.
• Expected Outcomes:
  • Identify trends and issues in financial reporting.
  • Evaluate actions taken by regulators to address identified problems.
  • Comment on the robustness and methodology of the regulatory processes.
• Considerations:
  • The quality of regulatory findings depends on the completeness and reliability of the reports.
  • In jurisdictions with limited regulatory capacity, this exercise may be less effective.

C.3 Perceptions Survey

• Purpose: To gather insights from users of financial statements regarding the quality, reliability, and usefulness of financial information.
• Target Users:
  • Credit risk analysts, investment managers, financial analysts, credit rating agency personnel, lenders, and chambers of commerce.
• Survey Method:
  • Circulated via an online tool to ensure broad participation.
  • Focus group discussions can also be conducted with relevant institutions.
• Key Survey Topics:
  • Primary use of financial statements (e.g., lending, investment).
  • Ease of access to financial statements.
  • Satisfaction with the quality of information in the director's report.
  • Perceived adequacy and usefulness of financial statements for different company types and sectors.
  • Trends in user satisfaction over the past three years.
  • Perceived characteristics of financial statements (e.g., understandability, consistency, comparability, reliability).

Implementation Guidance

• Order of Exercises:
  • In jurisdictions with strong regulatory capacity (e.g., country A), focus on C.2 and C.3 first, then C.1.
  • In jurisdictions with limited regulatory capacity (e.g., country B), focus on C.1 first, then C.3, and finally C.2.
• Responsibility:
  • C.1 and C.2 should be completed by the ROSC A&A team with validation from counterparts.
  • C.3 should be circulated to users and reviewed by the ROSC A&A team.
• Analysis:
  • Teams should analyze discrepancies, trends, and user satisfaction levels.
  • Findings should be discussed with relevant counterparts for additional context.
  • A summary of key findings and trends should be included in the final report.

Conclusion

Module C provides a structured approach to understanding actual financial reporting and auditing practices through direct review, regulatory analysis, and stakeholder perceptions. It emphasizes the importance of using a combination of methods and professional judgment to ensure a comprehensive and reliable assessment of the financial reporting environment.