business

July 6, 2022

NEO SENOKO

2 min read

Unregistered accountants to be blacklisted

Unregistered accountants to be blacklisted

Minister of Finance, Thabo Sophonea

Story highlights

  • Bill confers the Institute with power to enforce CPD
  • The bill will help to reduce fraud and misappropriation of funds

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UNREGISTERED accountants will no longer be able to offer their services should the Institute of Chartered Accountant Bill 2021 be passed into law.

The Minister of Finance, Thabo Sophonea told Parliament this week that the Bill would provide for the regulation of the accounting profession in the country.

“It further addresses the regulation of auditing and accounting practices in Lesotho and sets up an Independent Regulatory Board which is responsible for licensing and quality assurance reviews of the accounting and auditing practice,” he said.

“The Bill confers the Institute with the power to enforce continuous professional development (CPD) to its members to enable members of the professional body to keep themselves up to date with the developments within their profession. This Bill further ensures that the Institute is empowered to enforce CPD to members.”

Furthermore, Mr Sophonea said the Bill stated that every accountant in the country was mandated to be a member of the Institute and register with the regulatory board.

“This will help ensure that every person who is entrusted with the finances of any organisation, either being in the private or public sector, adheres to the code of conduct and is competent to carry out the job,” said the Minister, adding: “This will help to reduce fraud and misappropriation of funds.”

The Bill will also provide for the repeal of the Accountants Act 1977 and shall come into operation on the date of publication in a Gazette.

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It shall prescribe education, qualification and training requirements for the accountancy profession, prescribe standards, ethics and values of the Institute as well as render technical guidance, assistance and support to members with a view to maintain and monitor members’ competency among others.

It shall also promote the accountancy profession and exercise such powers and perform such duties as the Institute may deem necessary for carrying into effect the provisions of the Act.

The Institute may apply for a court order to interdict a member who is not registered and certified as a practitioner but who is practicing as such, to discontinue the person from practicing the accounting, auditing or tax services.

Lesotho Institute of Accountants was established by the Accountant’s Act of 1977, which gives the Institute the overall mandate to regulate the accounting profession in the country.

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