Report on Disciplinary Findings

The final reviews in the 2nd review cycle were finalised in August 2007, thus completing the 2nd cycle of Practice Review for practitioners registered with Botswana Institute of Accountants. These last reviewees will now join the rest of the auditors in the 3rd review cycle which is being performed on behalf of Botswana Institute of Accountants by ACCA.  The emphasis in the new review cycle has shifted from purely engagement reviews to firm based reviews.

The Council is happy to report that over the past few years, with the exception of only one member, no reported serious transgressions were committed by practising members of the Botswana Institute of Accountants to warrant any specific reference by name.  Practice Reviews are meant to ensure that the standard of auditing in Botswana meets International Standards.

Our reviewers for cycle 1 and 2 were the Independent Regulatory Board of Auditors (IRBA) from South Africa and the assistance they have given the Institute over the past 10 years in this important area has given Council the confidence that the quality of auditing has continuously improved over the period.

Some of the areas of weaknesses identified by the reviewers were as follows:

• Insufficient documentation of audit evidence to support the opinion expressed.
• Insufficient documentation of audit work on going concern considerations.
• Insufficient documentation of audit work on risk assessment.
• Omission from audit files of:
  • bank confirmation certificates
  • engagement letters
  • management representation letters.
• Lack of documentation of quality control procedures.

The common issue that resulted in almost all the re-reviews was that the Auditors did not always document in the file the audit work performed.

One member’s practising certificate was withdrawn for persistent failures to meet the review requirements and is ineligible for a practising certificate in Botswana for five years starting from February 2007.  In addition, as a result of the review process and disciplinary actions taken, seven members have not renewed their practising certificates with the Institute and will no longer be offering attest services.

Thirty nine practising members have been cleared to commence the 3rd cycle with ACCA in 2007.

Conclusion

Botswana is one of the few countries out of 17 member countries in the ECSAFA region to have in place a developed system of compliance and audit quality review.  The other countries are amongst others, Namibia and South Africa; all three countries are reviewed by IRBA.  Some countries like Uganda and Kenya have their own local practice reviews and other countries are in the process of signing the tripartite agreement with the Eastern, Central and Southern Africa Federation of Accountants and ACCA following in the footsteps of Botswana.

Both the general public and members of the Institute are urged to report any suspected fraudulent or unethical behaviour by any of our members so that disciplinary proceedings could be commenced to investigate the allegation. The Botswana Institute of Accountants has Public Interest obligations which constitute a major requirement of its mandate as encapsulated in the proposed Financial Reporting Act and also through the member body obligations of the International Federation of Accountants.

By Order of Council

Botswana Institute of Accountants
Plot 50676, Block B, Second Floor
Fairgrounds Office Park
Private Bag 0021,
Gaborone, Botswana
Phone: +267 397 2992
Fax: +267 397 2982
Email: bia@bia.org.bw

BIA Francistown Satellite Office
Plot 21572, 1st Floor Tswelelopele House, NDB Building
Tel: +267 2418280
Fax: +267 2418263

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