Mozambique Report on the Observance of Standards and Codes : Accounting and Auditing
This report provides an assessment of the strengths and weaknesses of the existing financial reporting infrastructure that underpins financial accounting and auditing practices in Mozambique. The assessment focuses on six pillars of financial repor...
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| Format: | Report |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2016
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| Online Access: | http://documents.worldbank.org/curated/en/231131480543149188/Mozambique-Report-on-the-Observance-of-Standards-and-Codes-ROSC-accounting-and-auditing http://hdl.handle.net/10986/25732 |
| Summary: | This report provides an assessment of
the strengths and weaknesses of the existing financial
reporting infrastructure that underpins financial accounting
and auditing practices in Mozambique. The assessment focuses
on six pillars of financial reporting infrastructure:
statutory framework, professional education and training,
accountancy profession, accounting standards, auditing
standards, and monitoring and enforcement of the applicable
standards. The main purpose of this assessment is to assist
the development and implementation of a country action plan
for strengthening institutional capacity with attendant
effect on enhancing corporate financial reporting in
Mozambique. All the corporate entities in Mozambique,
including investments with foreign participation, are
affected by a serious shortage of qualified accountants and
trained accounting technicians. Best estimates are that
there are less than 50 fully qualified accountants working
in Mozambique (mostly in the Maputo area), and that of these
only 2 are citizens of Mozambique. Most of the corporate
financial statements in the country are therefore prepared
by accounting technicians whose level of skill and training
is variable. At one extreme, a limited number of accounting
technicians have completed training, which has not prepared
them nearly at the level of a qualified accountant; and at
another extreme, many technicians have no formal training.
Most of the financial statement audits in the country are
primarily carried out by representatives of the 6
international networks. The lack of senior-level local staff
within those networks is of concern particularly as
regulators lack any capacity to monitor the quality of
financial reporting. |
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