Key Benefits:
ARRANGEMENT OF SECTIONS
SECTIONS
PART I
Preliminary
1. Short title
2. Interpretation
PART II
Establishment and functions of the Botswana Accountancy Oversight Authority and its Board
3. Establishment of Authority
4. Seal of Authority
5. Objectives of Authority
6. General functions and powers of Authority
7. Board of Directors
8. Powers of the Board
9. Tenure of office
10. Disqualification, removal and resignation
11. Vacancy of office of member of Board
12. Filling of vacancy
13. Remuneration and allowance
PART III
Meetings and proceedings of the Board
14. Election of Vice Chairperson
15. Meetings of Board
16. Committees of Board
17. Disclosure of interest
18. Confidentiality
19. Reports to Minister
PART IV
Chief Executive and other Staff of the Authority
20. Chief Executive
21. Appointment of staff of Authority
PART V
Registration of certified auditors of Public Interest Entities and firms
22. Public Interest Entity
23. Register
24. Registration of a certified auditor of public interest entity
25. Registration of audit firm for public interest entity
26. Certificate of registration
27. Renewal of registration
28. Refusal to register a person or firm
29. Appeal against refusal to register
30. Change of name
31. Cancellation or suspension of registration
32. Restoration of name to register
33. Register to be prima facie evidence
34. Offences in connection with registration
PART VI
Disciplinary and other Inquiries
35. Inquiry by Board
36. Disregard of summons, etc.
37. Powers of Board at inquiry
38. Disciplinary powers of Board
39. Unfit to practise
40. Appeals Committee
41. Appeals
42. Publication of outcome of proceedings
PART VII
Standards of Practice of Certified Auditors of Public Interest Entities
43. Unauthorised audit practice
44. Auditor's report and opinion
45. Material irregularity
46. Independence of auditor
47. Conflict of interest
48. Sanctions of certified auditor of public interest entity
PART VIII
Accreditation and Oversight of the Botswana Institute of Chartered Accountants
49. Public interest oversight of Institute
50. Accreditation of Institute and branches of the accountancy profession
51. Cancellation of accreditation
PART IX
Setting of Standards and Monitoring
52. Financial reporting standards
53. Auditing standards
54. Publication standards
55. Compliance by public interest entities and others
56. Monitoring of financial statements and reports
57. Practice review of auditors
58. Power of investigation
59. Sanctions of public interest and other entities, and their officers
PART X
Financial and accountability provisions
60. Revenues of Authority
61. Annual estimates
62. Financial year
63. Imposition of fines
64. Charges
65. Accounts and audit
66. Financial and annual report
67. Submission of reports to Minister
68. Performance audit
PART XI
Miscellaneous provisions
69. Indemnity
70. Offences and penalties
71. Regulations
72. Rules of the Authority
73. Transitional provisions
11 of 2010,
S.I. 22, 2011.
An Act to establish the Botswana Accountancy Oversight Authority as the independent oversight body of the accounting and auditing profession; to regulate the reporting of financial matters of public interest entities and the corporate sector; and for matters incidental thereto.
[Date of Commencement: 1st April 2011]
This Act may be cited as the Financial Reporting Act.
In this Act, unless the context otherwise requires-
"annual report" means the document that an entity issues on an annual basis of its affairs, including its financial statements together with the audit report, and the report from its Board of Directors;
"annual revenue" means revenue accruing over the preceding 12 months;
"audit" means an examination of the financial statements of an organisation to form an opinion on whether the-
(a) information presented in the financial statements, taken as a whole, reflect the true and fair financial position of the organisation including its assets and liabilities at a given date and its profits and losses for the given period; and
(b) the financial statements are prepared in accordance with the applicable financial reporting standards;
"auditor" means a person, whether independently or as a partner of an audit firm, or as an employee of the Government that provides audit services to a private or public entity;
"audit firm" means a firm that provides audit services to a private or public entity;
"auditing standards" means the auditing standards issued by the Authority under section 53;
"Authority" means the Botswana Accountancy Oversight Authority established under section 3;
"Board" means the Board of Directors established under section 7;
"certified auditor" means an auditor registered under the Accountants Act;
"certified auditor of public interest entity" means an auditor registered to provide audit services to a public interest entity in accordance with section 24;
"certified auditor of P.I.E" means the certified auditor of public interest entity;
"entity" means any person or body of persons, whether incorporated or unincorporated;
"financial reporting standards" means the financial reporting standards issued by the Authority under section 52;
"financial statements" means a complete set of financial statements whether interim or final, prepared and presented in accordance with the financial reporting standards issued by the Authority under section 52;
"firm" means an audit firm for certified auditors of public interest entities registered under section 25, which firm provides audit services to public interest entities;
"independence" means independence of mind, independence in appearance, or both;
"independence of appearance" means the avoidance of facts and circumstances that are so significant that a reasonable and informed third party having knowledge of all relevant information, including any safeguards applied, will reasonably conclude that the integrity, objectivity or professional scepticism of a firm or a member of the audit team had been compromised;
"independence of mind" means the state of mind that permits the provision of an opinion without being affected by influences that compromise professional judgment, allowing an individual to act with integrity, and exercise objectivity and professional scepticism;
"Institute" means the professional accountancy body known as the Botswana Institute of Chartered Accountants established under section 3 of the Accountants Act;
"material irregularity" means an irregularity that, by itself, or in combination with other irregularities, results in a misstatement of the financial statements of an entity, or in its financial statements not fairly presenting the operations and financial condition of the entity and that, if properly presented, would affect a financial or investment decision of the user;
"officer"in relation to a public interest entity, means a person who is responsible for the preparation of financial statements, and includes a member of the audit practice review committee, the chief executive, the chief financial officer and directors;
"professional misconduct", with the necessary modifications, has the same meaning assigned to the acts or omissions constituting misconduct specified under the Schedule to the Accountants Act;
"public interest entity"has the meaning assigned to it under section 22; and
"rules" means the rules of the Authority made under section 72.
