2005年-世界发展银行全球_Republic_of_Uganda___Accounting_and_Auditing_26页_468kb

Summary of the Report on the Observance of Standards and Codes (ROSC) in Uganda: Accounting and Auditing

Core Content

This report evaluates the accounting and auditing practices in Uganda within the context of its institutional framework, focusing on the quality of corporate financial reporting. It is part of the World Bank and IMF joint initiative on the Reports on the Observance of Standards and Codes (ROSC), which aims to strengthen financial systems through international standards.

Main Points

1. Institutional Framework

• Companies Act (1961): Outdated and not significantly amended, it provides basic accounting and reporting requirements but lacks alignment with IFRS/IAS. The Act requires public companies to file annual returns with the Registrar of Companies.
• Uganda Securities Exchange (USE): Regulates financial reporting of listed companies. The USE Listings Rules require compliance with IFRS/IAS unless otherwise allowed, and annual financial statements must be submitted within 4 months of year-end.
• Bank of Uganda (BOU): Regulates financial reporting by banks and nonbanking financial institutions. The Financial Institutions Act (2004) and Micro-Finance Deposit Taking Institutions Act (2003) require compliance with IFRS/IAS for financial ledgers and records.
• Insurance Act (1996) and Regulations (2002): Do not mandate compliance with IFRS/IAS. Insurance companies prepare two sets of financial statements: one for regulatory purposes and another for external use.
• Collective Investment Schemes: Regulated by the Collective Investment Schemes Act (2003), requiring compliance with IFRS/IAS. The Parastatal Monitoring Unit (PMU) oversees public enterprises, with financial reporting requirements under the Public Finance and Accountability Act (2003).
• Private Pension Funds: Not regulated, with no legal requirement for financial reporting.

2. Accounting and Auditing Profession

• ICPAU (Institute of Certified Public Accountants of Uganda): A self-regulatory body established under the Accountants Act (1992). It regulates the profession and issues qualifications.
• Membership Composition: Most ICPAU members hold foreign qualifications, particularly from ACCA. The ICPAU recognizes 15 foreign qualifications without requiring additional exams or experience.
• Code of Conduct: The ICPAU Code of Conduct is outdated and does not incorporate recent changes from the IFAC Code of Ethics. It needs updating to align with international standards, particularly in areas like confidentiality, independence, and assurance engagements.
• Licensing and Practice: The ICPAU is responsible for licensing auditors and regulating all accountants. However, the Accountants Act (1992) and proposed Accountants Bill (2004) create conflicting mandates, and there is no clear legal basis for enforcing IFRS/IAS compliance across all entities.

3. Education and Training

• Curriculum: The ICPAU curriculum, developed in 1997, does not fully meet IFAC International Education Standards. A revised curriculum will be effective in 2006.
• Training Quality: Accounting educators, especially at private institutions, lack knowledge and experience in teaching IFRS/IAS and ISA. Learning materials are expensive and not widely available, leading to low exam pass rates.
• Practical Experience: There is no formal mechanism to monitor or control the practical experience required for licensing as an auditor. Practical training quality is not ensured.
• Continuing Professional Development (CPD): CPD is not compulsory or monitored. Since 2005, ICPAU has required 40 hours of CPD annually, but there is no clear guidance on the scope or verification methods.

4. Standards and Compliance

• Accounting Standards: IFRS/IAS are prescribed by the ICPAU, but only banks, listed companies, and collective investment schemes have clear legal backing for compliance. Other entities may not follow these standards.
• Auditing Standards: ISA are prescribed by the ICPAU, but only auditors of banks under the Financial Institutions Act (2004) have clear legal mandates. No implementation guidelines are available for these standards.
• Enforcement Mechanisms: Weak and outdated legal sanctions exist for enforcing compliance. The Registrar of Companies lacks the capacity to review financial statements for violations. No reliable database system exists to track timely filings.

5. Policy Recommendations

• Improve Statutory Framework: Update the Companies Act and other relevant legislation to align with IFRS/IAS and ISA.
• Strengthen Enforcement: Enhance the capacity of regulatory bodies to monitor and enforce compliance with financial reporting standards.
• Upgrade Professional Education: Implement a revised curriculum in line with IFAC International Education Standards and provide affordable access to learning materials.
• Enhance Training and CPD: Establish mechanisms to monitor practical training and ensure CPD is compulsory and structured.
• Create an Independent Oversight Body: Recommend the establishment of an independent body to oversee the adoption, monitoring, and enforcement of IFRS/IAS and ISA in public interest entities.
• Clarify Eligibility for Standards: Define clear criteria for which entities can use IFRS/IAS, particularly for SMEs.

Key Information

• Economic Context: Uganda has a GDP per capita of US$240, a population of 26 million, and a growing but still underdeveloped accounting profession.
• Regulatory Landscape: The regulatory environment is fragmented, with different laws governing different sectors, and no unified framework for compliance with international standards.
• Professional Challenges: The ICPAU faces legal and operational challenges, including disputes over membership, lack of transparency, and limited capacity to enforce standards.
• Need for Collaboration: The report emphasizes the need for collaboration between the government, stakeholders, and international bodies to strengthen the financial reporting regime.

Conclusion

The report highlights significant institutional and professional weaknesses in Uganda's accounting and auditing systems, particularly in the areas of regulation, compliance, education, and enforcement. It calls for comprehensive reforms to align with international standards and improve the quality of corporate financial reporting.