Transcript Sri Lanka ROSC A&A Update 2014 September 15, 2014 Reminder of approach.diagnostic to capacity building Emerging issues 2004 Policy recommendations Statutory Framework Education & Training WHY Accountancy Profession & Ethics Reforms to.

Sri Lanka ROSC A&A Update 2014
September 15, 2014
Reminder of approach.diagnostic to capacity building
Emerging issues
2004 Policy recommendations
Statutory
Framework
Education &
Training
WHY
Accountancy
Profession &
Ethics
Reforms to strengthen
– systemic issues
Accounting
Standards
Auditing
Standards
Monitoring,
Enforcement
& Oversight
Diagnostic questionnaire
and due diligence
Stakeholder Consultations
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CASL – main partner
PFM Steering Committee
Preparers of financial statements
SME and Financial Institutions
All PAOs
Auditor roundtables (large and SMPs separately)
All regulators (separate meetings), Registrar of Companies, Dept of
Inland Revenue
Auditor General
DG MOF (SOE)
Chamber of Commerce
Statutory Auditing Standards Committee & Accounting Standards
Committee
Learning providers
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Objective
• Supporting Sri Lanka’s growth by
– improving the investment climate (ROSC & )
• Strengthening private sector transparency and
accountability
• Strengthening regulators
– Supporting structural shifts in the economy
and social inclusion
– Strengthening the public sector
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Global
IASB
(Financial
Reporting
Standard
Setter)
Sri Lanka
SLAASMB
CBSL
(Bank and NBFI)
IFAC
(Auditing,
Ethics,
Education,
Public Sector
Standard Setter
and apex body
for PAOs)
120,000 students
13,000 members
Profession
SEC & CSE
CASL
Registrar of
Companies
Standard
Setter for
A&A
Other Local
Bodies
AATSL / CMA
Global
Accounting
Bodies
CIMA/ ACCA/
CFA
State &
Foreign
Universities
IBSL
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Improve investment Climate
Achievement
Challenges
• Adoption of IFRS & ISA
• Issuance of updated Corporate
Governance Code
• Increased capacity and
efficacy of regulators
• Development of BPO sector
• Medium sized auditor alliances
with mid tier global practices
• PAO support for preparers and
auditors
• Improve audit quality
• Regulators to share
information and enhance
capacity and review
methodology
• New skills required for
accounting professional
regarding valuation for
meaningful implementation of
IFRS
• Application of auditing
standards differ significantly
among audit firms of different
sizes.
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Inclusive Growth and Structural
Shifts
Achievements
Challenges
• Growth of local accounting
bodies provides affordable
qualifications/ employment
• CASL curriculum is fully
compliant with International
Education Standards
• CASL members hold influential
positions in regional bodies
• Profession is Colombo centric
• PAOs do not have
accreditation schemes for
learning providers and
approved employers
• SME f/s lack credibility
• Developing SMEs and SMPs
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Public Financial Management
Achievements
• Commenced issuance and
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awareness of IPSAS
CASL established Public Sector
Accountants Committee
SOEs are mandated to follow
IFRSs by law and F/s are
reviewed by SLAASMB
AG staff trained on IFRSs and
uses modern risk based methods
of audit for SOE audits.
SOEs under companies act are
audited by private auditors and
audit engagements are regulated
Challenges
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Management accounting systems
at SOEs
Significant number of SOEs delay
submitting F/Ss to SLAASMB for
review.
Some of the serious deviations
noted by SLAASMB is on SOEs
Weak capacity in financial
reporting, financial management
and financial analysis at all level
from directors who are not
conversant in analysing and
understanding financial
information to preparers who are
not knowledgeable in IFRSs.
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Other Opportunities For
Dialogue
• Management Accounting Standards
• Support for SOE oversight
– Update SOE Governance Code
– Support of Sector Specialists for MoFP to set and monitor KPIs
for SOEs
– Weak capacity at MoFP for oversight of SOEs. Lacks analytical
capacity.
– Weak IT infrastructure at MoFP to capture and analyse financial
data of SOEs.
• Financial literacy at school level
• SME development
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Q&A
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Thank You
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