AWARENESS OF THE CODE IN THE SUB-SAHARAN AFRICAN REGION

1. AWARENESS OF THE CODE IN THE SUB-SAHARAN AFRICAN REGION Presented to the IESBA Meeting of 4-6 December 2013, New York, by Chishala Kateka

3. The questionnaire by Chishala Kateka was kindly circulated by the Pan African Federation of Accountants (PAFA) to its Member bodies. PAFA sent the survey to its 34 member nations of which 9 responses were received

4. The objective of the survey: • Seeking to raise awareness of the Code of Ethics for Professional Accountants (the Code) amongst its members within the African Region, and • Seeking to understand the environment within which IFAC Member Institutes operate in relation to the Code.

5. From the Survey Results it was observed that: i) 8/9 PAFA Members have adopted the Code as their ethics standards ii) 5/8 Respondents using the Code use an earlier version than the 2012 one.

6. Awareness of Professional Accountants of the contents of the Code • In 6/8 Countries using the Code, members are reasonably aware of the Code – members being given copies of the Code upon being admitted to membership • In the other two countries, awareness is low.

7. Ethical issues topical in Members jurisdiction include inter alia • Self-interest threats (failure to maintain objectivity and independence • Issues of Corporate Governance and Conflict of Interest - Independence • Close and or Immediate family relationships

8. Ethical issues that are topical in your jurisdiction (cont’d) • Public practice members provision of services even in areas where members are not very competent • Members in Practice signing accounts that they have not prepared nor reviewed • Members in Public Sector in Private Accounting Business. (Public Service Accountants setting up firms on the side in addition to their day jobs)

9. How Institutes implement the use of the Code This is done through: • Training • Provision of materials (copy of the Code) • Competence Exams • Accountancy Magazines • At graduation ceremony, CPAs graduates take an oath to honour the provisions of the Code.

10. Challenges faced in implementing the use of the Code • The lack of availability of quality trainers • Inability to punish culprits/non-adherents • Lack of resources (material and information) and staff not equipped to implement the Code

11. How IESBA can help raise awareness amongst professional accountants in the jurisdictions • Develop easy to read guidance material on the Code. The material code could, for instance, be based on different topics with the Code with adequate examples. • Have highlights - Perhaps a pocket guide. • IESBA can organize awareness workshops jointly with local associations in order to ensure a wider spread of contents of the Code.

12. How IESBA can raise awareness amongst professional accountants in the jurisdictions (cont’d). • IESBA could provide their branded educational materials on the Code to member bodies from time to time to IFAC member bodies for distribution to Professional Accountants in the jurisdictions. • The regional trainings of trainers for PAO’s relevant staff

13. Impact that the Code becoming more pronounced can have outside of the Accountancy Profession • It is likely to impact other professionals in the Banking and Financial Services Sector. • The Society and Business Community will have trust in the Accountancy profession and place more reliance on Accountants and Auditors • The ethical behavior of Accountants will influence that of their clients towards building an ethical nation.

14. Suggested outreach awareness raising programs that IESBA could undertake • Awareness workshop to be jointly organized by IESBA with local Institutes • Perhaps exposure to the Code as early as the tertiary level would ensure that the Code is entrenched even before the student reaches the workplace. • IESBA should ask for slots whenever PAFA or Institute has CPD meetings • Publishing articles through the Institutes • Publication of standalone chapters of the Code

15. Other comments from PAFA members that in their opinion would be useful in assisting the IESBA to improve communication and mutual awareness with IFAC member Institutes in the Region

16. Any Other Comments • A provision of information on how other institutes across the world are implementing awareness of the Code, would be useful. • IESBA frequent communication with the Institutes will help to ensure compliance with the Ethics Code in the form of questions, Surveys and Annual Reports. This suggested interaction with the Institute will contribute to raising the Ethical stance of the Institute’s members. • IESBA to actively collaborate with PAFA and other sub-regional bodies to improve communication and raise awareness.

17. Any Other Comments • IESBA is not as visible as the other Boards and has taken a back seat – and yet it provides a framework in which we operate in and is thus important • It is not communicative

18. My own Conclusions from this • The responses constitute of 26% of the PAFA Members and would thus be representative • Members have an awareness but not necessarily a detailed knowledge of the Code, particularly those in industry • There is room for improvement with regards to communication between IESBA and member bodies of IFAC and their members

19. My own Conclusions from this • Sub-Saharan Africa comprises economies that are ‘emerging’ with growth rates above the global economic growth rates and is currently attracting a lot of FDIs. This is projected to grow further in the next few years. • As we pursue to attain convergence, I think that it is a soft target for the IESBA to help entrench the Code.. • A cost effective plan for reaching out needs to therefore be made and systematically followed.

20. My own Conclusions from this • Sub-Saharan Africa comprises economies that are ‘emerging’ with growth rates above the global economic growth rates and is currently attracting a lot of FDIs. This is projected to grow further in the next few years. • As we pursue to attain convergence, I think that it is a soft target for the IESBA to help entrench the Code.. • A cost effective plan for reaching out needs to therefore be made and systematically followed.

21. The End