The Botswana Accountancy Oversight Authority (BAOA) told stakeholders today that they exist to provide oversight on accounting and auditing services in Botswana and to promote the standard, quality and credibility of providing financial and non-financial information by public Interest Entities (PIE) and other entities.
It also monitors and provides oversight over the education and training of professional accountants in Botswana of organizations like BICA, ACCA and CIMA.
“Our role is to review work of auditors, provide financial reporting monitoring, standards setting, professional accountancy organizations, review of public interest entities, corporate governance and review performance of parastatals,” observed Duncan Majinda, Chief Executive Officer of the Botswana Accountancy Oversight Authority (BAOA).
He said, “There is only one standard setter in Botswana for financial reporting and that is us. We cannot stop corporate failure. We however can tell shareholder that there is a problem. Corporate failure attacks you one by one. It does not knock you out with one punch like Muhammad Ali.”
This role was emphasized by Finance Minister Kenneth Matambo who noted in his Budget Speech that ‘the continued loss making by some state owned enterprises is a major concern to Government. In an effort to address this, Government established institutions such as Public Enterprises Evaluation and Privatisation Agency (PEEPA) and Botswana Accountancy Oversight Authority (BAOA). These institutions are expected to monitor to monitor the financial performance and governance of SOE’s in meeting their objectives and targets, using information obtained from the audited financial statements and annual reports of such enterprises.’
Public interest entities under the auspices include listed entities on a recognized stock exchange, non-bank financial institutions eg. Insurance and pension funds, banks and other deposit taking entities and section 56 entities required to file their financial statements and reports with a Government Department or authority.
A significant entity in Botswana context covered by BAOA includes an organization which satisfies any two of the following – generating revenue in excess of P300 million, employs 200 people, has total assets of P2000 and total liabilities of P100million.
The review by BAOA of a public interest entity is to ensure compliance with international standards, applicable legislation and adherence to good corporate governance. This minimizes irregularities, breach of fiduciary duties, unlawful acts, fraud, theft and professional misconduct.
“Asking accountants about an independent oversight is like asking prisoner whether you should increase security in jails. The answer is obvious – leave us alone,” said Majinda.
The powers and functions of the Botswana Accountancy Oversight Authority are vested in the Board of Directors, which comprises of six ex-officio members, plus two experts and one academic who are all independent of the accounting profession.
Michael Lesolle, Chairperson of BAOA, said “We are a regulator. Our role is encapsulated in the statutes.”
He said, “We are concerned with oversight and is highly specialized to protect public interest.”
The following certified audit firms are registered with the Authority to offer audit services to Public Interest Entities as at August 2017. These include PriceWaterhouseCoppers, Deloitte, KPMG, Ernest and Young, Grant Thornton, Mazars, RSM Botswana, IAMS, Goel and Associates and BDO.
