Eswatini Institute of Accountants

To fulfill its regulatory responsibility of establishing a mandatory quality assurance (QA) review system, the eSwatini Institute of Accountants (EIA) has worked in collaboration with external QA review providers due to limited internal capacity.

From 2008-2015, EIA contracted the ACCA to carry out the QA reviews on behalf of EIA utilizing ACCA’s procedures that meet the SMO 1 requirements. Subsequently, the EIA worked with the Pan African Federation of Accountants to identify QA service providers in the region. Subsequently, the EIA contracted the Zambia Institute of Chartered Accountants (ZiCA) to carry out QA reviews from 2021 – 2026. ZiCA’s QA review procedures meet the SMO 1 requirements. Relevant standards are also adopted by the EIA as issued by the IAASB and to that effect, it has organized training on ISQM 1.

To support members’ implementation of the standards and understanding of the inspections, EIA provides training on the relevant standards and technical resources, such as a pre-review questionnaire and checklist. After the review is performed EIA also follow-ups with members on the results of the review and in cases where there are deficiencies, the institute requires members to submit an action plan to address the identified deficiencies.

Current Status: Execute

eSwatini Institute of Accountants (EIA) is responsible for establishing initial professional development (IPD) and continuing professional development (CPD) requirements for professional accountants. EIA does not offer a local professional accountancy qualification.

Registered Accountants must either (i) pass the Association of Accounting Technicians (AAT-UK) Technician training scheme, (ii) hold a bachelor’s degree in commerce from the University of eSwatini (UNISWA), (iii) hold a bachelor’s degree in commerce or accounting which included three years of accounting courses from a EIA-approved university, or (iv) be a member in good standing of the Institute Chartered Secretaries & Administrators or the Certified Institute for Public Finance & Accounting. All Registered Accountants must have three years of proven accounting work experience.

Candidates for the Chartered Accountant title must be either (i) a member in good standing of another IFAC member organization or (ii) hold a bachelor’s degree in accounting from an EIA-approved university, pass the ACCA or SAICA final assessment, and have at least three years’ experience under an approved training contract. Individuals without a university degree may follow the same path Chartered Accountants if they complete five years of work experience. In order to obtain an Audit Practicing Certificate in eSwatini, individuals must hold the Chartered Accountant title from EIA and must pass the EIA’s “Conversion Examination” on eSwatini taxation and business legislation. The examination is held once a year.

Within eSwatini, EIA states that it promotes the IES requirements to local accountancy education providers—universities approved by EIA based on academic requirements. However, progress in engaging with the universities has been limited due to institutional bureaucracy and university curricula may not align with the 2019 IES. There exist opportunities for EIA to further execute actions in this regard as part of advancing IES implementation.

EIA members must complete and report on 120 hours of CPD over a three-year period, which is in line with an input-based approach under the 2015 IES requirements. The institute offers CPD courses in collaboration with SAICA and ACCA, on topics such as IFRS, anti-money laundering, ethics, ISQM 1, and ISA.

Current Status: Execute

The Companies Act of 2009 establishes the ISA and auditing guidelines adopted by the eSwatini Institute of Accountants (EIA) as the applicable auditing standards in eSwatini. EIA states that it established an Technical Committee which has adopted the ISA as issued by IAASB for application in all audits and reports that its Council meets monthly to review new and amended standards. It primarily focuses on advancing the implementation of the standards.

To this end, EIA reports that it provides trainings and training materials on the most recent ISA developments for its members and disseminates the ISA and IAASB pronouncements on its websites and in the local press. EIA also monitors compliance with the standards through its quality assurance system.

Current Status: Sustain

EIA is responsible for setting ethical requirements for professional accountants in eSwatini. Having first established its own Code of Ethics that incorporated the 2004 IESBA Code of Ethics, the EIA has since updated its Code of Ethics by adopting other versions of the IESBA Code. EIA states it has adopted all revisions in the 2018 International Code of Ethics.

To support its members with the implementation of the Code, EIA indicates that offers training on ethics annually. It has organized workshops with an expert from KPMG South Africa on professional ethics and integrity. In 2023, EIA established an Ethics Committee to provide leadership and guidance on ethics related matters for its members; maintain and update the Code of Ethics; monitor and consider ethical issues arising from any disciplinary proceedings; and addressing ethical issues.

Additionally, EIA also reports that it is involved in an ongoing consultation with eSwatini universities to update ethics-related curriculum in its accounting syllabi. Engagement with universities continues to be a work in progress.

Current Status: Execute

The Public Finance Management Act 2017 states that the Accountant General is responsible for adopting accounting standards in accordance with IPSAS as issued by the IPSASB. However, currently the standards applied are national standards on a partial-accrual basis.

EIA states that with the passage of the Public Finance Management Act, it is keen to be involved in supporting the government to move toward the adoption and implementation of IPSAS. The Accountant and Auditor General both participate on EIA’s Council. Further, the institute states it has offered its technical assistance to the government and has a specialist within EIA on IPSAS. EIA is considering if offering CPD on the standards is feasible as part of further fulfilling SMO 5.

The eSwatini government has taken a positive step by referring to IPSAS in legislation. The EIA can play a key role in advocating and advising the government on next steps and the value of accrual-basis IPSAS—through technical assistance, training and education, sharing IPSAS resources and best practices from neighboring jurisdictions, and prompting dialogues on the subject. If appropriate, the EIA should indicate in its Action Plan its plans and related actions and resources needed to undertake these types of adoption and implementation support activities.

Current Status: Review & Improve

EIA is responsible for establishing an investigative and disciplinary (I&D) system for professional accountants for misconduct and breach of professional standards. It has established a Disciplinary Committee, with individuals appointed by the Ministry of Finance, to conduct inquiries into any charges, complaints, or allegations of unprofessional conduct. The Disciplinary Committee reports its findings and any recommendations of sanctions to the EIA Council. EIA’s Council is then responsible for issuing the formal decision. Individuals may appeal the Council’s decision with the High Court and must submit an appeal notice to the EIA’s Registrar.

EIA reports that its I&D system meets the SMO 6 best practices; however, there are opportunities for further improvements. In September 2015 there were three cases brought to the Disciplinary Committee based on information from QA reviews. There have since been no other cases brought to the Disciplinary Committee. EIA indicates that it keeps its members informed of the I&D procedures by providing copies of the I&D rules.

I&D procedures that meet the SMO 6 benchmark are foundational to maintaining public trust and confidence in the profession. While the institute seems to have procedures that meet the benchmark, zero cases over the last few years might indicate that the public does not know how to file a complaint with the institute or that the system is not operating as needed. The institute is encouraged to consider efforts to raise public awareness and education of EIA’s complaint process.

Current Status: Review & Improve

The Companies Act of 2009 stipulates that all companies must prepare annual financial statements in accordance with the IFRS. The eSwatini Institute of Accountants (EIA), as established by the Accountants Act of 1985, approved the IFRS for SMEs in 2010 as a permissible framework for companies that meet the SME definition under the Companies Act and choose to publish financial statements.

EIA indicates its Technical Committee meets monthly to review new and amended standards and shares updates to standards on its website and in local gazettes. EIA notes that it offers an annual IFRS update training for members. However, the IFRS Foundation profile indicates that IFRS Standards are often not followed, and there are no sanctions for companies not applying IFRS Standards – therefore, there is opportunity for improvement and for the EIA to establish mechanisms to better support and/or enforce compliance with IFRS.

Current Status: Review & Improve