29 Sep 2014

Botswana is one of the four countries in Africa which has an arrangement to regulate the accountancy profession to protect the interest of the public.

The other countries are Egypt, South Africa and Mauritius.

Chief executive officer of Botswana Accountancy Oversight Authority (BAOA), Mr Duncan Majinda said during a meeting recently that BAOA was established by the financial reporting as an independent and impartial regulatory body that is to oversee and improve the reporting of financial matters of public interest entities and the corporate sector, and to strengthen the oversight of the accounting and auditing profession.

Therefore, he emphasised the importance of regulating the profession, noting that some people were being ripped off their hard earned cash, hence the need to protect them. In the past, he said there was a significant weakness where no one was held accountable for money used in certain projects, noting that accountability in finances is critical. 

In addition, he mentioned that some institutions were struggling with compliance with international educational standards. He said the overall responsibility for the profession in Botswana therefore lies with the oversight authority.

As a result, he urged all in accountancy businesses to work hand in hand with Botswana Institute of Chartered Accountant (BICA) to facilitate monitoring and regulation. Mr Majinda said BICA is number one component of the profession, which acts as a strong local professional accounting body. 

“BAOA delegates most of regular work relating to the profession to the Botswana Institute of Accountants, but retains direct responsibility of the financial reporting and auditing of Public Interest Entities as this affects the general public,” he said.

Of particular importance, he noted, is that the oversight authority will be the standard setter for both financial reporting and auditing in Botswana, ensuring that these standards address the specific needs of the requirements of the economy of Botswana and that they meet international benchmarks and hence facilitate Botswana’s participation in global trade.

He also indicated that auditors were critical in accounting field. Mr Majinda said monitoring auditors is very complex, noting that if auditors failed to perform, the authority discontinues them from auditing services. At the moment, he said none had been discontinued, but seven had left the profession.  ENDS