2004年-世界发展银行全球_Moldova___Accounting_and_Auditing_26页_453kb

Summary of the ROSC Report on Accounting and Auditing in Moldova

Core Content

This report, titled "REPORT ON THE OBSERVANCE OF STANDARDS AND CODES (ROSC) Moldova", evaluates the current state of accounting and auditing practices in Moldova. It outlines the challenges and opportunities for improving the quality of financial reporting, aligning with international standards, and enhancing transparency and accountability in the corporate sector.

Main Findings

• Transition Period: Moldova's corporate financial reporting is transitioning from tax and statistical purposes to convergence with International Financial Reporting Standards (IFRS) and International Standards on Auditing (ISA).
• Accounting Standards: The National Accounting Standards (NAS), developed based on International Accounting Standards (IAS) between 1996 and 1998, are incomplete and outdated compared to IFRS. The Accounting Law is largely outdated and overly prescriptive, focusing on tax collection rather than financial reporting quality.
• Auditing Standards: The National Standards of Auditing (NSA) mirror ISA, but the current Auditing Law is not fully aligned with ISA and lacks specific enforcement mechanisms. The Licensing Chamber issues auditor licenses, but the process is not fully standardized.
• Transparency Issues: There is a lack of public access to financial statements, as no central registry exists for this purpose. This hampers investor confidence and comparative financial analysis.
• Regulatory Gaps: The Joint Stock Companies (JSC) Law, State Enterprise Law, and Law on Enterprises do not require audits for most entities, and the Censors' Committee is not an independent audit body.
• Sectoral Differences: Financial institutions and listed companies have more reporting and audit requirements, while state-owned enterprises (SOEs) and SMEs are subject to fewer or no such requirements.
• Professional Development: The accounting and auditing profession in Moldova is underdeveloped, with limited education and training. Professional bodies like ACAP and AFAM are not fully integrated into the standard-setting process.

Key Policy Recommendations

Institutional Framework

A. Statutory Framework

• The Accounting Law (1995) and JSC Law (1996) are the main legal frameworks for accounting and auditing.
• JSCs are required to submit financial statements to shareholders, but statutory audits are not mandatory.
• NAS are issued by the MoF and apply to all corporate entities.
• Financial institutions (banks, insurance companies) are subject to specific reporting and audit requirements.
• SOEs are not subject to any particular accounting or audit requirements.
• The Law on Insurance (1993) requires insurance companies to submit financial statements, but external audits are not mandatory.
• The Auditing Law (1996) is being rewritten and is the basis for new auditing standards.

B. The Accounting Profession

• The Association of Professional Accountants and Auditors (ACAP) and Association of Audit Firms of Moldova (AFAM) are the two main professional bodies.
• ACAP has made efforts to promote international standards and professional certification, but cooperation with AFAM is limited.
• AFAM is not actively involved in standard-setting or professional supervision.
• The audit market is divided between local firms and international affiliates of the Big-4.
• Professional ethics are guided by the Code of Ethics for Professional Accountants issued by the MoF based on IFAC's standards.

Conclusion

The report highlights the need for modernization of Moldova's accounting and auditing frameworks to align with international standards and improve transparency, accountability, and financial reporting quality. It emphasizes the importance of legal reform, professional development, and regulatory enforcement to support economic growth and investment confidence.