API Takes Part in the Inaugural Meeting of PAFA Audit Quality Review
The Pan African Federation of Accountants (PAFA) has successfully held its inaugural meeting of the Forum of Heads of Audit Quality Assurance Departments in Africa. The event took place on the 30 – 31 of August 2023 in Nairobi, Kenya. The Institute of Certified Public Accountants of Kenya (ICPAK) played host to this important gathering of senior executives from Professional Accountancy Organisations (PAOs) drawn from the African Continent.
The API attended this high-profile inaugural event. PAFA is one of the four partner organisations (PAFA; AAAG; AFROSAI-E & CREFIAF) that comprise core founders of the African Professionalisation Initiative (API).
Quality Advisory Group Chairman, Mr George Mokua (The Chairman of ICPAK). Mr Mokua underscored the need for the Accountancy profession to continue playing an enabling role by facilitating realisation of new value creation thereby contributing to increased productivity across business value chains in both the private and public sector.
The keynote address was given by FCPA Wycliffe Shamiah, the Chief Executive Officer of the Capital Markets Authority of Kenya. He noted that investor confidence would be boosted when PAOs play the crucial role of delivering high quality audit professionals and services that give clear, consistent, relevant, and reliable information to inform investment choices, socio economic growth can be accelerated. Rigorous audits ensure companies operate ethically and thus serve public interest thereby delivering sustainable growth. He encouraged organisations to embrace best practices and strengthen internal controls. He further encouraged PAOs to support adoption and implementation of the recently issued sustainability standards (IFRS S1 and IFRS S2).
Areas of Coverage during the Meeting
The meeting discussions covered high quality knowledge intense themes including the following: Developing Audit Quality Review -AQR processes (SMO1 – Being IFAC Statement of Member Obligations covering Audit Quality Assurance, and SMO6 addressing Investigations and Disciplinary processes); Audit Quality Oversight Bodies – Approaches, Methodologies, and Innovation; AQR of Small & Medium Size Practices – SMPs – Update from IFAC on ISQM support material; AQR findings – Assessment, Reporting, Sanctions; The PAFA Common AQR methodology; Review Firm compliance with Anti-Money Laundering Requirements; and Review of Ethical Rules, among other topics.
Role of AFIAAR in Value Creation
The Chairman of the African Forum of Independent Accounting and Auditing Regulators (AFIAAR) spoke about the formation’s objective of sharing practical experiences and knowledge with regard to regulatory activities. AFIAAR will establish dialogue with governments across Africa to address issues affecting the profession on the continent. It will grow its influence through its members to create value across the continent. It will also harmonise inspection methodologies across jurisdictions and report on remedial measures arising from the interventions reflecting the findings of inspections to inform where improvements can be made. AFIAAR also comments on exposure drafts for the development of new standards. He urged the regulatory bodies that have not become members of AFIAAR to do so. The PAFA-AFIAAR partnership is strong and will make a difference for the African governments.
PAFA Strategy and Value Creation
In her remarks, Alta Prinsloo, the CEO of PAFA, addressed delegates on the topic of advancing quality of accountancy services in Africa. She outlined PAFA’s strategy that focuses on advancing value creation for Arica – Learn More
The PAFA strategy addresses the following three core value pillars: Effective PAOs; Technical Excellence; and Quality & Mobility. Alta articulated the Why, The How and The What of PAFA’s strategic focus.
PAFA aims to achieve PAO driven International Standards on Quality Management (ISQM) arrangements to support the realisation of effective compliance with IFAC Statements of Member Obligations (SMOs) covering Quality Assurance (SMO 1) as well as Investigations and Discipline (SMO 6).
Speakers noted that success across the African continent will be achieved through collaboration, effective advocacy, partnerships and championing of compliance with standards, national laws and best practices. PAFA is working with its partners across the African continent to actualise its objectives. A key emphasis has consistently been on pursing actions that serve the public interest, a philosophy that is at the core of the accountancy profession.
Various institutions and countries present shared their experiences and good practices during the meeting. These included: IFAC, ICPAK, Algeria (CNCC), Botswana (BICA & BAOA), Burkina Faso ( ONECCA BF), Cote D’Ivoire (ONECCA CI), DRC (ONECCA DRC), Ethiopia (AABE), Ghana (ICAG), Malawi (ICAM & MAB), Mauritius (MIPA & FRC Mauritius), Morocco (ONECCA Morocco), Mozambique (OCAM), Nigeria (ICAN & FRC Nigeria), Rwanda (ICPAR), South Africa (SAICA, SAIPA & IRBA), Tanzania (NBAA), Tunisia (ONECCA Tunisia), Uganda (ICPAU), Zambia (ZICA) and Zimbabwe (ICAZ, ICPAZ & PAAB). A small group of participants were able to join virtually while the majority attended in person.
Engagement With Regional Stakeholders
The API had an opportunity to meet with the Chief Executive of the Kenya Accountants and Secretaries National Examinations Board (KASNEB) Prof. Nicholas Letting and the Director General of the Accounting and Auditing Board of Ethiopia (AABE), Hikmet Abdella to discuss progress with the preparations for implementation of the API in each country.
Both Kenya and Ethiopia have formally submitted expressions of interest to implement the API. The API and PAFA teams had an opportunity to visit the KASNEB offices where extensive discussions were held about the modalities for leveraging KASNEB’s strong infrastructure and leadership to drive the successful implementation of the API.
API – Kenya Stakeholders Deliberations
The API held a meeting with the broad base of API stakeholders in Kenya. The following institutions were present at the meeting: The Ministry of Finance; The Public Sector Accounting Standards Board of Kenya (PSASB); KASNEB; ICPAK; and PAFA. It was agreed that a meeting will be convened soon to finalise arrangements for signing the MOU to implement the API in Kenya and enable API to benefit from Kenya’s experiences in advancing support for professionalisation of Public sector accountants and auditors across the African continent.
About The African Professionalisation Initiative(API)
Our Vision: An African public sector capacitated with competent, ethical and influential professionals who support accountability, transparency and good financial governance. Our Mission: To grow the capacity of accountancy professionals in the African public sector for enhanced service delivery.
The API Organisation and Learning Programmes
The API is an independent non-profit organisation whose primary objective is to strengthen the capacity and knowledge base of accounting and auditing professionals in the African public sector to enhance accounting and auditing service delivery to the citizens of Africa.
The API Learning Programmes aim to achieve the above institutional goal as a partnership between the accountancy profession (represented by the Pan African Federation of Accountants (“PAFA”)), accountants general or their equivalent (African Association of Accountants General – “AAAG”)), and supreme audit institutions or courts of auditors (represented by the English (“AFROSAI-E”) and French (“CREFIAF”) language sub-groups of the African Organisation of Supreme Audit Institutions (“AFROSAI”)).
The API Houses / Learning Programmes
Please choose below the house that works for you and drop us a mail – info@professionalisation.africa
| Houses (Learning Programmes) |
| House 1 – Incumbents (Experienced un-professionalised accountants and auditors) – Implemented |
| House 2 – Specialisation – Ready for occupation from 2024 |
| House 3 – Students – Ready for occupation in 2025 |
| House 4 – Micro credentials (Performance Audits for the Health Sector) – Ready from 2024 (More Micro credentials to be developed) |
| House 5 – Continuing Professional Development (CPD) |
Contact the API Team for more details: info@professionalisation.africa | www.professionalisation.africa