Transcript INTRODUCTION

“Financial reporting plays a critical role in
establishing and maintaining the confidence of
the investing public. The objective of financial
reporting is to provide information useful to
providers of capital in their decision making
process. Information provided to participants in
capital markets must be neutral, reliable, and
portray economic results in an accurate and
faithful manner.
Just as important, participants must have
confidence that this is in fact the case”.
Testimony concerning the Role of the
Accounting profession in preventing
another Financial crisis.
- Jun Krocker, Chief Accountant of the
US Securities and Exchange Commission.
The Reforms were designed to:• Strengthen stand-setting process;
• Achieve convergence to high
international standards, professional ethics,
and accountancy education.
• Enhance performance by the accountancy
profession.
•
Build investor confidence in
financial reporting, in the work of
auditors and in financial securities
markets world-wide and;
•
Ensure that the international
accountancy profession is responsive
to the public interest.
The aim of this presentation
is to discuss Developing
Accountancy Organizations:
The African Experience.
The following issues will be discussed during the
course of this presentation:
A. Definitions
B. The African Experience, Why?
C. PAFA’s mandate and commencement of business.
D. PAFA’s strategy document.
E. Professional Accountancy Organization
Development Committee Perspectives – African
Region.
F. Conclusion.
To unfold gradually, as a flower
from a bud, hence to bring through
a succession of states or stages,
each of which is preparatory to the
next; to form or expand by a
process of growth; to cause to
change gradually from an embryo,
or a lower state, to a higher state or
form of being.
Is someone who has completed formal education and
training in one or more profession. The term also
describes the standards of education and training that
prepare members of the profession with the
particular knowledge and skills necessary to perform
the role of that profession. In addition, most
professionals are subject to strict codes of conduct
ensuring rigorous ethical and moral obligations.
Accountancy is the process by which financial
information about a business is recorded, classified,
summarized, interpreted and communicated.
Accounting is the language of business.
Accountancy generally produces financial statements
that show in money terms the economic resources
under the control of management, selecting
information that is relevant and representing it
faithfully.
An organization (or organisation) is a social entity
that has a collective goal and is linked to an external
environment. The word is derived from the Greek
word organon, itself derived from the better-known
word ergon which means “organ” – a compartment
for a particular task.
The highlighted sentences in the four definitions
above when read together brings into proper
context the importance of the topic of this
presentation.
“As the economies of African countries continue
to grow, the contribution of the accountancy
profession to sound corporate and public sector
financial reporting and good governance is
now more important than ever. PAFA will
accelerate the development of the profession
and strengthen the voice of the profession
within Africa and worldwide.”
Major General Sebastian Owuama- PAFA
President at the launch of PAFA in May 2011 in
Dakar, Senegal.
“The formation of PAFA demonstrates
the commitment of the African
accountancy profession, acting in the
public interest, to strengthen its means
of collaboration and further develop
the profession to support the emerging
economies of the continent.“
Mr. Goran Tidson – IFAC President at
the launch of PAFA in May 2011.
The World Bank champions strong
national accountancy bodies as these
are best placed to guide the
profession and strengthen
transparency and accountability with
attendant benefits for governance
and the climate for investment.
The contribution of accountancy
profession in fulfilling its public
interest agenda is key with a
focus on –
Advocating good governance.
Driving accountability from government and
supporting public financial management reform.
Ensuring compliance with international
standards.
Contributing to strong legal, regulatory,
ethical and technological frameworks for
businesses.
“Walking the talk” – showing leadership and
being a positive role model.
Globally recognized as the
influential voice of the African
accountancy profession.
 Supporting the formation and
development of national
professional accountancy
organisations to contribute to
national, economic and social
developments as well as
compliance with IFAC’s statements
of membership obligations (SMO).
 Advancing the implementation
of international standards in
financial reporting, auditing, ethics
and education through a strong
regulatory framework within the
African context.
Promoting a common legal and
regulatory framework and an
education and training approach
that articulates regionally and
internationally.

 Demonstrating the value of the
accountancy profession to the
governments, to the wider continent
and within frameworks such as
capital markets with the purpose of
advancing strong corporate
governance and economic
development.
Engaging national regional and
international organisations on common
development agendas.
 Facilitating co-operation amongst
professional accountancy
organisations to encourage
collaboration and a spirit of mental
advancement.
1. Legislation to Support PAOs
2. PAO Institutional Governance
and Capacity Building
3. Achieving Regional Cohesion
WHICH ELEMENTS OF BEST
PRACTICE IN PAO DEVELOPMENT
MIGHT BE FURTHERED USING A
REGIONAL APPROACH?