adminNonsikelelo Moyo in Victoria Falls
AFRICA should establish more independent regulatory bodies manned by qualified personnel to enhance quality governance and boost investor confidence.
This emerged during a two-day workshop here where independent audit regulators and professional accounting bodies responsible for oversight and audit standards from 12 African countries met to discuss the challenges facing their field and how to assist governments.
The gathering tackled a number of issues and closed with the formation of a regional audit regulators’ board that seeks to strengthen independent auditing across the African continent.
The new African Forum of Independent Accounting and Auditing Regulators (AFIAAR) Board would work closely with sister organisations within member states to enhance operational efficiency.
Speaking during the workshop, Public Accountants and Auditors Board (PAAB) of Zimbabwe secretary and AIFAAR new chairman, Mr Admire Ndurunduru, urged board members to work together and use their capability to foster economic growth.
“The vision we have as AFIAAR can be driven through greater collaboration and supporting each other. Through working together we can impact our countries, our economies through enhancing accountability, transparency and foster investments,” said Mr Ndurunduru.
“Throughout the world, independent audit regulation plays a critical role in building confidence in capital markets and providing confidence to investors in the quality of financial reporting. In the context of the development of our continent, this is a momentous initiative for Africa as it will be one of the keys to increasing investment in our economies, public protection and contributing to the development of the continent.”
During discussions most members were of the view that audit regulators should have operational independence adding that ministers should not appoint their own people, who at times lack requisite qualifications.
“Regulatory bodies do need Government support especially when it comes to funding. But the ministers should not be the ones appointing board members, a proper system should be used and deserving applicants appointed. Ministers should only exert influence and ensure the laws are enforced accordingly,” said one board member.
The meeting ended with the signing of a charter by representatives from Botswana, Ethiopia, Lesotho, Malawi, Mauritius, Mozambique, Namibia, Tanzania, South Africa, Zambia and Zimbabwe. At the moment only four African countries have attained levels of independent audit regulation. — @nonsy_m
Online Reporter