2004年-世界发展银行全球_Moldova_Report_on_the_Observance_of_Standards_and_Codes___Accounting_and_Auditing_26页_586kb

Summary of the ROSC Report on Accounting and Auditing in Moldova

Core Content

This report evaluates the current state of accounting and auditing practices in Moldova, focusing on the transition from a tax and statistical reporting framework to one aligned with International Financial Reporting Standards (IFRS) and International Standards on Auditing (ISA). It highlights the legal, institutional, and professional challenges that Moldova faces in improving the quality of financial reporting and auditing in its corporate sector.

Main Findings

• Transition Period: Moldova's corporate financial reporting and auditing practices are in transition, moving towards convergence with IFRS and ISA.
• Outdated Legislation: The legal framework for accounting and auditing is largely outdated and does not adequately support the quality of financial reporting.
• Institutional Gaps: There is a lack of transparency in financial reporting, with no public registry for companies to file their financial statements.
• Weak Enforcement: Regulatory agencies, particularly in the non-banking sector, lack the capacity to enforce accounting and auditing standards effectively.
• Low Compliance and Quality: The current level of compliance with financial reporting obligations is inadequate, and the quality of financial reporting is low, especially outside the banking sector.
• Lack of Audit Requirements: Most corporate entities are not required to have their financial statements audited, which hampers investor confidence and transparency.
• Professional Development: The accounting and auditing profession in Moldova is underdeveloped, with limited collaboration between professional bodies and weak standard-setting processes.

Key Issues

• Accounting Law: The current Accounting Law is overly prescriptive and focused on tax collection, limiting flexibility for businesses and not allowing the use of IFRS.
• Auditing Law: The existing Auditing Law is not in line with ISA and lacks specific provisions on auditor independence, professional conduct, and due process of qualification.
• Regulatory Bodies: The National Securities Commission (CNVM) and the State Inspectorate on Insurance Supervision (SIIS) need stronger powers to enforce financial reporting standards.
• Transparency Deficit: There is no public registry for financial statements, leading to a lack of transparency and making it difficult for investors and creditors to obtain necessary information.
• Audit Demand: Audit demand is low due to limited statutory requirements and modest foreign investment. However, there is potential for increased demand if audit requirements are expanded.

Policy Recommendations

Conclusion

The report emphasizes the need for a comprehensive reform of Moldova's accounting and auditing laws to align with international standards and improve the quality of financial reporting. It recommends the development of a more flexible and transparent legal framework, enhanced regulatory enforcement, and improved professional education and training. These measures are expected to support the growth of the financial sector, increase investor confidence, and ultimately contribute to Moldova's economic development.