CHAPTER 61:05
ACCOUNTANTS

 

ARRANGEMENT OF SECTIONS

 

   SECTIONS

 

 

PART I
Preliminary

   1.   Short title

   2.   Interpretation

 

 

PART II
Establishment and functions of the Botswana Institute of Chartered Accountants

   3.   Continuation of establishment of Institute

   4.   Seal of Institute

 

   5.   Objectives of Institute

 

   6.   General functions and powers of Institute

 

 

PART III
Administration of the Institute

 

   7.   Council of Institute

 

   8.   Institute to elect members of Council

 

   9.   Powers of Council

 

   10.   Tenure of office

 

   11.   Minister's power to appoint members required to be elected

 

   12.   Disqualification, removal and resignation

 

   13.   Filling of vacancies

 

   14.   Co-opted member

 

   15.   President and Vice President of Institute, and Treasurer

 

   16.   Reports to Minister

 

   17.   Remuneration and allowance

 

 

PART IV
Meetings and Proceedings of the Council

 

   18.   Meetings of Council

 

   19.   Committees of Council

 

   20.   Meetings of committees of Council

 

   21.   Disclosure of interest

 

   22.   Confidentiality

 

 

PART V
General Meetings of the Institute

 

   23.   General meeting

 

   24.   Special general meeting

 

   25.   Convening and procedure of meetings

 

 

PART VI
Chief Executive and other staff of the Council

 

   26.   Chief Executive

 

   27.   Appointment of staff of Institute

 

 

PART VII
Membership and Registration by the Institute

 

   28.   Classes of membership

 

   29.   Register

 

   30.   Registration of professional accountant

 

   31.   Registration of certified auditor

 

   32.   Refusal to register a professional accountant or certified auditor

 

   33.   Registration of member firm

 

   34.   Change of particulars

 

   35.   Certificate of registration and practising certificate

 

   36.   Renewal of registration

 

   37.   Cancellation or suspension of registration

 

   38.   Restoration of name to register

 

   39.   Registered students

 

   40.   Register to be prima facie evidence

 

   41.   Offences in connection with registration

 

 

PART VIII
Disciplinary and other Inquiries

 

   42.   Appointment of Disciplinary Committee

 

   43.   Disciplinary powers of Committee

 

   44.   Disregard of summons, etc.

 

   45.   Powers of Committee at Inquiry

 

   46.   Unfit to practise

 

   47.   Appointment of Appeals Committee

 

   48.   Appeal against decision of Disciplinary Committee

 

   49.   Appeal against decision of Appeals Committee

 

   50.   Publication of outcome of proceedings

 

 

PART IX
Financial Provisions

 

   51.   Revenues of Institute

 

   52.   Financial year

 

   53.   Accounts and audit

 

   54.   Annual report

 

 

PART X
Miscellaneous Provisions

 

   55.   Indemnity

 

   56.   Offences and penalties

 

   57.   Regulations

 

   58.   Repeal of Cap. 61:05

 

   59.   Savings

 

   60.   Transitional provisions

 

 

 

      Schedule

 

 

Act 16, 1988,
G.N. 103, 1990,
Act 12, 2010,
S.I. 21, 2011.

An Act to regulate and provide for the development of the accounting profession; to continue the establishment of the Botswana Institute of Accountants under the new name of the Botswana Institute of Chartered Accountants; to provide for the registration of the accounting and auditing profession; and for matters incidental thereto.

[Date of Commencement: 1st April, 2011.]

 

1.   Short title

   This Act may be cited as the Accountants Act.

 

2.   Interpretation

   In this Act, unless the context otherwise requires-

   "accountant" means a person that performs or holds himself out to perform professional accounting services for a salary or fee;

   "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 thereon, and the report from its Board of Directors;

   "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 certified auditor, whether independently or as a partner of an audit firm or 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 under the Financial Reporting Act;

   "Authority" means the Botswana Accounting Oversight Authority established under the Financial Reporting Act;

   "Botswana Professional Accountancy Qualification" means the professional accountancy qualification established by the Institute under section 6, a holder of which shall have successfully completed the professional accountancy qualification examination conducted or arranged for conduct by the Institute;

   "branch of accountancy profession"-

 

   (a)   means an assemblage of the accountancy profession distinguishable by the nature of its professional activities and specialisation and accredited by the Authority as a branch of the accountancy profession under the Financial Reporting Act; and

 

   (b)   includes any of the following assemblages of the accountancy profession as may be accredited by the Authority to be a branch of the accountancy profession-

 

      (i)   audit and assurance services,

 

      (ii)   management accounting,

 

      (iii)   public sector accounting,

 

      (iv)   internal audit, and

 

      (v)   any other assemblage of the accountancy profession as the Council may by resolution determine;

   "certified auditor" means the professional accountant registered as an auditor in accordance with section 31;

   "Code of Conduct and Ethics" means the Code of Professional Conduct and Ethics for professional Accountants referred to in section 6(1)(d);

   "entity" means any person or body of persons, whether incorporated or unincorporated;

   "IFAC" means the International Federation of Accountants or its successor body;

   "immediate family", for the purposes of this Act, means a spouse, minor children, father and mother;

   "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;

   "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;

   "member" means a person registered as a Member of the Institute in accordance with section 28, and includes a professional accountant or certified auditor registered under section 30 and 31;

   "member firm" means a firm providing professional accounting services and is registered in accordance with section 33;

   "President" means the person elected to be the President of the Institute under section 15;

   "professional accountant" means a person who is registered as an accountant in accordance with section 30;

   "professional accounting services" means services provided by a professional accountant-

 

   (a)   requiring accountancy or related skills; and

 

   (b)   relating to auditing, taxation, management consulting and financial management; and

   "repealed Act" means the Accountants Act repealed under section 58.

PART II
Establishment and functions of the Botswana Institute of Chartered Accountants
(ss 3-6)

 

3.   Continuation of establishment of Institute

   (1) The Institute known as the Botswana Institute of Accountants, established under the repealed Act is hereby continued under the new name of the Botswana Institute of Chartered Accountants.

   (2) The Institute shall be a body corporate with perpetual succession and a common seal, capable of suing and being sued in its own name and, subject to the provisions of this Act, of performing such acts as bodies corporate may by law perform.

   (3) All rights, obligations, assets and liabilities which have accrued to the Institute in terms of the repealed Act shall, upon this Act coming into force, simultaneously pass and accrue to the Institute and be dealt with in terms of this Act.

 

4.   Seal of Institute

   (1) The seal of the Institute shall be such device as may be determined by the Institute and shall be kept by the Chief Executive.

   (2) The affixing of the seal shall be authenticated by the President or Vice President and the Chief Executive or any other person authorised in that behalf by a resolution of the Council.

   (3) Any contract or instrument which, if entered into or executed by a person not being a body corporate would not be required to be under seal, may be entered into or executed without seal on behalf of the Council by the President or any other person generally or specifically authorised by the Council in that behalf.

 

5.   Objectives of Institute

   The principal objectives of the Institute shall be to-

 

   (a)   establish the Botswana Professional Accountancy Qualification;

 

   (b)   provide registration of accountants in all branches of the accountancy profession accredited by the Authority under the Financial Reporting Act;

 

   (c)   promote high quality accounting, auditing and financial reporting standards and practices, in line with internationally accepted standards;

 

   (d)   promote the development of the accounting profession;

 

   (e)   supervise the accountancy profession in the public interest;

 

   (f)   promote the highest standards of professional ethics and business conduct of, and enhance the quality of services offered by professional accountants;

 

   (g)   protect the public by ensuring the highest standards of professional accounting services;

 

   (h)   ensure the professional independence of accountants;

 

   (i)   determine the eligibility criteria to become a member of the Institute;

 

   (j)   arrange for the assessment of candidates seeking certification as members;

 

   (k)   promote, maintain and increase the knowledge, skills and competence of members of the Institute and students;

 

   (l)   ensure that members obtain the necessary technical and ethical guidance that enables them to meet the needs of the community in areas in which they have special knowledge and expertise;

 

   (m)   maintain and monitor high quality practical training at all levels of the profession;

 

   (n)   seek public recognition of a broad range of skilled services that professional accountants and accounting technicians can provide;

 

   (o)   promote and protect the objectives and sustainability of the Institute and of the accounting profession;

 

   (p)   maintain the legitimate professional rights of its members;

 

   (q)   advance the theory and practise of accountancy in all aspects;

 

   (r)   develop and maintain effective working relationships with Government and with other national, regional and international accountancy bodies;

 

   (s)   contribute to the international developments of accounting and auditing standards;

 

   (t)   keep abreast of and disseminate to its members international developments affecting the accounting profession; and

 

   (u)   protect the interests of its members.

 

6.   General functions and powers of Institute

   (1) Subject to the provisions of this Act, the Institute shall carry out the following functions-

 

   (a)   establish, develop and implement the Botswana Professional Accountancy Qualification in accordance with such requirements and conditions as the Institute shall determine under its rules, with the approval of the Minister;

 

   (b)   establish branches of the accountancy profession accredited by the Authority under the Financial Reporting Act;

 

   (c)   provide registration of accountants in all branches of the accountancy profession established, including-

 

      (i)   audit and assurance services,

 

      (ii)   management accounting,

 

      (iii)   public sector accounting,

 

      (iv)   internal audit, and

 

      (v)   any other branch as the Council may determine;

 

   (d)   establish, publish and review a Code of Professional Conduct and Ethics for Professional Accountants, which shall be consistent with and contain all the principles on the subject issued by the International Federation of Accountants, or its successors;

 

   (e)   keep and maintain-

 

      (i)   a Register of Professional Accountants,

 

      (ii)   a Register of Certified Auditors,

 

      (iii)   a Register of Member Firms, and

 

      (iv)   such other registers as the Institute may deem necessary for the purposes of this Act;

 

   (f)   lay down the requirements for different classes of its membership;

 

   (g)   consider any application for registration made under this Act for different classes of its membership;

 

   (h)   register as members of the Institute persons who qualify to be professional accountants, certified auditors, member firms or such other class of membership as the Institute may establish in its rules;

 

   (i)   conduct or arrange for the conduct of such examinations as it deems necessary, including a Botswana Professional Qualification Examination, with focus on an adequate level of practical training, for the purposes of registering professional accountants;

 

   (j)   determine practical training requirements for the purpose of granting full membership;

 

   (k)   conduct, or arrange for the conduct of training programmes for members of the profession;

 

   (l)   oversee, monitor and supervise the qualifications, and selection of mentors of practical training programmes;

 

   (m)   inquire into any professional misconduct of any member, either on its own initiative or at the request of any person for violations or breaches of its codes, rules and standards in accordance with the rules and regulations of the Institute;

 

   (n)   issue all notices required to be issued under this Act;

 

   (o)   implement a sound system of quality assurance mechanisms to ensure high quality audit practice;

 

   (p)   establish procedures for coordination of disciplinary responsibilities;

 

   (q)   issue certificates of registration and practising certificates to members;

 

   (r)   recognise any accountancy qualifications that are, in the opinion of the Council, equivalent to those of the Institute;

 

   (s)   establish requirements for, and monitoring, of Continuous Professional Education programmes;

 

   (t)   represent members' interests in local, regional and international forums;

 

   (u)   develop a strategic plan that will lead to the long term financial sustainability of the organisation as an independent professional body for accountants and auditors;

 

   (v)   conduct or arrange for the conduct of practice review of the auditors of entities, other than that of public interest entities;

 

   (w)   provide comments on draft standards and other pronouncements of the International Federation of Accountants and International Accounting Standards Board; and make other feasible contributions to the standard setting activities of these international organisations; and

 

   (x)   perform such other duties or functions as it deems necessary to promote the objectives of the Institute.

   (2) In the performance of its functions and powers, the Institute shall take into account the interests of its members as well as that of the public.

PART III
Administration of the Institute (ss 7-17)

 

7.   Council of Institute

   (1) The functions

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