2005年-世界发展银行全球_Tanzania___Accounting_and_Auditing_27页_560kb

Summary of the Report on the Observance of Standards and Codes (ROSC) in Tanzania

Core Content

This report, prepared by the World Bank, evaluates the current state of accounting and auditing practices in Tanzania, focusing on the institutional framework, regulatory mechanisms, and professional standards. It is part of a joint initiative by the World Bank and the IMF to ensure compliance with international financial reporting and auditing standards.

Main Points

I. Introduction and Background

• The report is based on a diagnostic review of corporate accounting and auditing practices in Tanzania conducted in November–December 2004.
• It is part of the Reports on the Observance of Standards and Codes (ROSC) initiative, which aims to improve financial systems through international standards.
• Tanzania's economy is primarily based on primary production and exports, with a relatively low GDP per capita and a growing but still underdeveloped financial sector.

II. Institutional Framework

A. Statutory Framework

• The Auditors and Accountants Act (1972, as amended in 1995) mandates the appointment of Certified Public Accountants (CPA) for entities meeting certain thresholds.
• The Companies Act (2002) introduces modern financial reporting requirements but is not yet fully effective due to the continued use of the Companies Ordinance (1932).
• IFRS/IAS and ISA are now the benchmarks for financial reporting, but alignment with these standards is incomplete in some sectors.
• Parastatals lack a unified statutory framework for financial reporting, and pension funds are not monitored by any law or regulatory body.
• The Capital Markets and Securities Authority (CMSA) and the Dar es Salaam Stock Exchange (DSE) regulate financial reporting for listed companies, but their standards are not fully aligned with IFRS/IAS.
• Bank of Tanzania (BOT) and Insurance Supervisory Department regulate financial reporting in their respective sectors, but legal inconsistencies with IFRS/IAS persist.

B. The Profession

• The National Board of Accountants and Auditors (NBAA) is the primary body regulating the accounting profession in Tanzania.
• It functions as both a regulator and a professional body, with a governing board of 12 members, none of whom are non-accountants.
• There is a shortage of qualified accounting professionals, with only 2.6% of NBAA members being female and 25% holding foreign qualifications.
• The NBAA Code of Ethics is outdated and needs to be aligned with IFAC standards, particularly in areas such as auditor independence and rotation.

C. Professional Education and Training

• Becoming a CPA requires passing the NBAA examinations and completing 3 years of practical training.
• The curriculum is being revised and will be effective from November 2006, but it does not fully meet IFAC International Educational Standards (IES).
• Many accounting educators lack the expertise to teach IFRS/IAS and ISA, especially in universities outside Dar es Salaam.
• Continuing Professional Development (CPD) is mandatory but not yet effectively monitored. CPAs and CPA-PPs are required to complete 30 and 40 hours of training annually, respectively.
• The NBAA monitors CPD compliance, but no instances of noncompliance have been reported.

D. Setting Accounting and Auditing Standards

• The NBAA has legal authority to set accounting and auditing standards, and it has adopted IFRS/IAS and ISA since July 1, 2004.
• However, implementation guidelines are still lacking, and learning materials on these standards are expensive, not widely available, and not up-to-date.
• CPA-PP must complete practical training under the supervision of another CPA-PP, but the process lacks clear oversight and monitoring.

Key Information

• Accounting and auditing standards are not fully aligned with international benchmarks in all sectors, particularly in parastatals and pension funds.
• The NBAA has made progress in promoting professional standards but faces capacity and resource constraints that hinder its effectiveness.
• Professional education and training are not yet fully aligned with international standards, and CPD is not systematically monitored.
• Legal frameworks for financial reporting are fragmented and inconsistent with IFRS/IAS and ISA, creating compliance challenges.
• Independent oversight of financial reporting is lacking, and the establishment of an independent regulatory body is recommended to improve accountability and compliance.

Policy Recommendations

• Strengthen the statutory framework to ensure alignment with international standards.
• Enhance enforcement mechanisms to ensure compliance with financial reporting and auditing requirements.
• Upgrade professional education and training to meet international standards and improve practical skills.
• Enhance capacity and resources of the NBAA and other regulatory bodies to effectively monitor and enforce standards.
• Establish an independent oversight body to regulate and monitor financial reporting practices of public interest entities.
• Clarify eligibility criteria for small- and medium-sized enterprises (SMEs) to use IFRS/IAS, if available.

Conclusion

The report highlights both progress and challenges in Tanzania's corporate financial reporting regime. While the adoption of IFRS/IAS and ISA represents a positive step, the lack of effective enforcement, outdated legal frameworks, and insufficient professional education remain critical issues. Strengthening institutional capacity and aligning with international standards are essential for improving the quality and reliability of financial reporting in Tanzania.