South Africa : Accounting and Auditing
This report provides an assessment of accounting and auditing practices in South Africa, within the broader context of institutional capacity available for ensuring high-quality financial reporting. National accounting and auditing standards in Sou...
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| Language: | English en_US |
| Published: |
Washington, DC
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2003/04/6595876/south-africa-report-observance-standards-codes-rosc-accounting-auditing http://hdl.handle.net/10986/14475 |
| Summary: | This report provides an assessment of
accounting and auditing practices in South Africa, within
the broader context of institutional capacity available for
ensuring high-quality financial reporting. National
accounting and auditing standards in South Africa are
developed on the basis of international standards; but lack
of legal backing for accounting standards give rise to
problems. South African accountancy professionals play an
important role in international standard-setting bodies.
However, the existing mechanisms for enforcing compliance
with accounting and auditing standards seem to be weak.
Opportunities exist for undetected accounting manipulation,
financial statements misrepresentation and departures from
established accounting and auditing requirements. Ten years
of discussions on the revision of the legislative framework
for accounting and auditing, have contributed to
uncertainties in the profession. Immediate steps are needed
for enactment of the Financial Reporting Bill, amendments to
the Companies Act, and the Accountancy Professions'
Bill; and, to ensure proper enforcement of established
statutory requirements. Recognizing the need for reform, the
Government is currently in the process of implementing
significant changes. The report provides policy
recommendations specifically focusing on strengthening the
enforcement mechanisms for ensuring compliance with
established accounting and auditing requirements. Moreover,
suggestions have been made about some important elements of
a regulatory framework for the auditing profession, namely
establishing an independent oversight body, consisting of
eminent persons, and, restructuring the statutory regulator
of the auditing profession under an effective governance
structure, with a broader mandate for efficiently regulating
the profession. |
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