Sundaymail Editor
Formed in 1918, the Institute of Chartered Accountants of Zimbabwe (ICAZ), has evolved to become the biggest professional accountancy organisation. Earlier this year, the Institute appointed Owen Mavengere as its acting chief executive officer (CEO). Our business reporter Enacy Mapakame (EM) met with Mr Mavengere (OM) and talked about various issues including the Institute’s 104-year-old journey, prospects and the future of the accounting profession in the evolving world as well as its role to business growth. Below are excerpts of the interview.
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EM: How do you feel about your recent appointment as the acting ICAZ CEO?
OM: I feel really excited, but also challenged. There is a lot of weight on being asked to be a caretaker of a 104-year-old institute. This is magnified by the calibre of the members of the Institute, from Board Chairs, CEOs, FDs and so on. The President and Council have put a lot of faith in me, albeit just as an acting appointment pending finalisation of the recruitment processes.
EM: How has your journey been to this level?
OM: My journey started 16 years ago when I walked in the offices of KPMG as a trainee, with no knowledge or experience in the profession. I was mentored and thoroughly trained by so many huge individuals within the profession. I completed my training in and subsequently moved from the firm. I spent the next couple of years doing treasury, management accounting, revenue assurance, a little of marketing and retail. This stage of my career really helped to sharpen the skills I obtained from the firm.
EM: What have been your highs and lows in your career path?
OM: My highs include completing the Chartered Accountancy training at 24, being appointed into the ZETDC senior management team at a very young age and speaking at various events such as the SAAA Winter School and ICAZ Winter School. With regards to my lows, I would say one comes to mind and that is struggling with one of the exams during my Chartered Accountancy training.
EM: What do you bring to ICAZ and hope to achieve? What can members expect from your leadership?
OM: I bring with me managerial and operational experience in areas of business development, strategy, financial analysis, risk management, driving profitability and communication with various stakeholders. Regarding what members can expect, that is a difficult question for an interim leader, however I hope to maintain the positive momentum and trajectory for the institute and its members. This will involve continuing with the overall strategy of increasing the membership and supporting those members through jurisdiction specific content which is also future focused. Furthermore, I will maintain focus on making a positive impact in the promotion and development of accountancy, assurance, advisory services, governance and business practices. Another area of focus is Vimbiso scholarship, which assists the under privileged to access the profession and make it more accessible.
EM: ICAZ is now over a century old, what has been its journey like?
OM: The journey has been full of significant achievement and experiences. Since the days of formation by the original 14 founder members in 1918, ICAZ has established itself as the largest professional accountancy organisation in Zimbabwe. ICAZ’s input is often sought by major stakeholders when making decisions. The Institute has diversified to advising the private sector, the Government and other key stakeholders on policy issues, becoming a trusted partner and voice. Our members have turned to be business leaders and strategic partners, as opposed to just accountants. Our brand is globally recognised, half of our membership is based outside the country holding influential positions. The ICAZ centenary book, which will be available shortly, will be a good read for anyone as it will chronicle the journey in great detail.
EM: After 104 years, what can be expected from the organisation going forward?
OM: As we position for the next 100 years, leading into the 22nd century, ICAZ will focus on the public sector, the Future Fit Accountant Project and continuing to be a trusted voice for all sectors. Under the public sector we are launching a qualification for that sector, modelled on the current CA qualification. The Future Fit project will focus on ensuring the relevance of our members well into the future providing input to private and public sectors.
EM: What is the role of ICAZ in the adoption of IPSAS reporting?
OM: The Institute is complementing the Government’s efforts of adopting the International Public Sector Accounting Standards (IPSAS) by equipping the preparers with the competencies to interpret and implement the standards. This is being done through the IPSAS Certification Course which gives preparers, reviewers and auditors an appreciation of the requirements of key IPSAS standards.
The Institute will also be available to review IPSAS compliant financial statements and engage Government to continuously improve on implementing these standards. Over and above that, the Institute has introduced the “Public Sector Professional Accountant (Zimbabwe) PSPA(Z), which is a membership category leveraged against the CA qualification but with Public Sector specific competencies. This programme will be more rigorous to further strengthen public sector accountants in implementing IPSAS.
EM: Audit firms have reported massive brain drain hitting the sector recently. What is the cause for this and how can this be addressed?
OM: The CA Zimbabwe brand is a world class brand and this coupled with technology enabling remote working, has led to many CA’s and trainees being identified by foreign entities which offer hefty packages. However as highlighted above ICAZ and CA’s in general we have the ability to adapt to changes and as such we are currently working on a model to take advantage of the international market’s desire for our CAs and at the same time meeting the local requirements for the profession.
EM: Some professions are becoming redundant on increasing new technologies. How relevant do you think the CA qualification will remain – for instance in the next decade?
OM: ICAZ is taking deliberate steps in ensuring that the CA is not made redundant by evolving technology as well as social trends. ICAZ is now training and developing a CA of the future, through the Future Fit Accountant Project. The CA of tomorrow reflects critical acumens needed to adapt and be relevant in an ever changing world. These include business, digital, decision making and relational acumens, which are already reflecting in our competency framework, and in both our practical and academic training. For already qualified CA’s ICAZ has stood on one of its ethos of lifelong learning and as such the Institute ensures all its members acquire the acumens through various Continuous Professional Development (CPD) events, for example the CA Leadership Masterclass Series and the recently launched Chief Value Officer (CVO) course in conjunction with the University of Witwatersrand.
EM: Multiple exchange rates and currency volatility have caused headaches for local industry. What has been the impact of these for auditors in performing their duties?
OM: For auditors the biggest challenge has been on the appropriateness of the exchange rates utilised by reporting entities to translate transactions. As Zimbabwe we adopted the International Financial Reporting Standards (IFRS) which set out clearly the minimum requirements which should be met by an “spot rate” in IAS 21 (The effects of changes in exchange rates). Unfortunately, as Zimbabwe we are going through significant change in an endeavour to recover from the currency challenges we have been involved in resulting in rates that do not meet the definition. As a result, where the effects of these rates applied is material and or pervasive it results in financial statements that are not true and fair. Unfortunately, this is the case for the majority. This has resulted in the high number of qualified/modified opinions being issued by Auditors in recent periods.
The challenges require consented efforts by preparers, auditors and regulators. Currently the local regulator is seized with this matter, following up on discussions involving most of the profession that took place last month.
EM: What are the loopholes in the accounting profession today you feel are a huge set back in carrying out your duties and how may they be addressed?
OM: My biggest concern is unregistered accountants that are providing service. The challenge here is the public is at their mercy as there is limited accountability. Remember that registering with the Public Accountants and Auditors Board (PAAB) is a legal requirement per the Public Accountants and Auditors Act (as amended). One of PAAB’s requirements is that one must be a member of a Professional Accountancy Organisation (PAO) such as ICAZ. The benefits of being under a PAO are that the member will be under continuous professional development thus ensuring they remain relevant. Secondly, PAOs have strict ethics and discipline standards and lastly PAO provide support to members. So an unregistered accountant may lack certain requirements and given their decisions impact organisations, it is paramount that the public and corporates engage registered accountants. PAAB has a register which can be reviewed by the public for the avoidance of doubt.
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