Eswatini

In eSwatini, the Companies Act of 2009 governs the corporate financial reporting, accounting, and auditing requirements.

The Act requires the following companies to use full IFRS: listed companies, public companies and enterprises, banking institutions, non-banking financial institutions, insurance companies, and retirement funds. Under the Act, small- and medium-sized entities (SMEs), defined as companies which do not exceed five shareholders and share capital of E50,000, and do not trade in a public market, are not required to publish financial statements. If they elect to, the Act permits the use of full IFRS. Alternatively, the eSwatini Institute of Accountants (EIA), as established by the Accountants Act of 1985, has approved the IFRS for SMEs as a permissible framework in 2010.

In accordance with the Companies Act of 2009, all companies must be audited annually. The Act establishes the ISA as adopted by the EIA as the applicable auditing standards in eSwatini and specifies that audits must be carried out by an auditor that is registered with the EIA and qualified under the Accountants Act 1985.

The Accountants Act of 1985 establishes the eSwatini Institute of Accountants (EIA) as the national professional accountancy organization and the regulator of the accountancy profession. Membership of the institute is mandatory for professional accountants, and all members must be eSwatini citizens or valid residence holders.

EIA does not offer a local professional accountancy qualification. Accordingly, the accountancy profession in eSwatini has grown through the inclusion of professional accountants qualified abroad based on the fulfillment of academic programming, practical experience, and passing final examinations. 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 Association of Chartered Certified Accountants (ACCA) final examination, 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.

Under the Accountants Act of 1985, EIA’s responsibilities include: (i) setting auditing standards; (ii) promulgating applicable accounting standards; (iii) establishing ethical requirements; (iv) setting initial and continuing professional development requirements; (v) maintaining and publishing a registry of its registered and practicing members; (vi) establishing quality assurance and investigative and disciplinary systems for its members; and (vii) assisting the government with legislation deemed relevant to the profession.

There is no independent audit oversight authority in eSwatini.

Auditors are regulated by the eSwatini Institute of Accountants (EIA), established under the Accountants Act of 1985. To offer audit services in eSwaitini, individuals must be a Chartered Accountant registered with EIA and must pass the EIA’s “Conversion Examination” on eSwatini taxation and business legislation.

Under the Act, EIA’s responsibilities include: (i) setting auditing standards; (ii) establishing ethical requirements; (iii) setting initial and continuing professional development requirements; (iv) maintaining and publishing a registry of its practicing members; (v) establishing quality assurance and investigative and disciplinary systems for its members; and (vi) assisting the government with legislation deemed relevant to the profession.

The Accountants Act of 1985 establishes the eSwatini Institute of Accountants (EIA) as the only national professional accountancy organization. EIA confers the titles of Registered Accountants and Chartered Accountants to individuals that are qualified abroad by fulfilling academic programming, practical experience, and passing final examinations. Membership in the institute is mandatory for in order to offer accountancy services.

Under the Accountants Act of 1985, EIA’s responsibilities include: (i) setting auditing standards; (ii) promulgating applicable accounting standards; (iii) establishing ethical requirements; (iv) setting initial and continuing professional development requirements; (v) maintaining and publishing a registry of its registered and practicing members; (vi) establishing quality assurance and investigative and disciplinary systems for its members; and (vii) assisting the government with legislation deemed relevant to the profession.

Amendments to the Accountants Act of 1985 establish mandatory quality assurance (QA) reviews for all audits. In accordance with the Act, the eSwatini Institute of Accountants (EIA) is responsible for establishing a QA review system and adopting quality control and audit standards. EIA has accordingly adopted ISQC 1 and ISA 220.

From 2008-2015, EIA contracted the ACCA to carry out the QA reviews on behalf of EIA utilizing ACCA’s QA review 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. As of March 2020, EIA is in discussion with the Zambia Institute of Chartered Accountants (ZiCA) to carry out the next QA review cycle, which would be in June 2020. ZiCA’s QA review procedures meet the SMO 1 requirements.

Current Status: Partially Adopted

In accordance with the Accountants Act of 1985, the 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 Association of Chartered Certified Accountants (ACCA) final examination, 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.

Lastly, EIA members must complete 120 hours of CPD over a three-year period.

The full alignment of the initial accountancy education requirements in eSwatini with the 2019 IES requirements remains to be clarified.

Current Status: Partially Adopted

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 adopts ISA as issued by the IAASB without modifications and including effective dates.

Current Status: Adopted

Ethical requirements are established in the Accountants Act of 1985 and by the eSwatini Institute of Accountants (EIA) for professional accountants.

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 the 2009 IESBA Code without modifications for its members in December 2011. EIA states it has subsequently adopted all revisions in the 2018 International Code of Ethics.

Current Status: Partially Adopted

The Public Finance Management Act 2017 states that the Accountant General is responsible for adopting accounting standards. Currently the standards applied are national standards on a cash-basis.

There is a stated intention to transition to accrual-basis standards. (IFAC, CIPFA 2020).

Current Status: Not Adopted

In accordance with the Accountants Act of 1985 the eSwatini Institute of Accountants (EIA) is responsible for establishing an investigative and disciplinary (I&D) system for professional accountants for misconduct and breach of professional standards.

EIA 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 then 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.

Current Status: Adopted

The Companies Act 2009 requires the following companies to use full IFRS: listed companies, public companies and enterprises, banking institutions, non-banking financial institutions, insurance companies, and retirement funds. Under the Act, small- and medium-sized entities (SMEs), defined as companies which do not exceed five shareholders and share capital of E50,000, and do not trade in a public market, are not required to publish financial statements. If they elect to, the Act permits the use of full IFRS. Alternatively, 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.

Current Status: Adopted

Relevant Organizations

• Central Bank of eSwatini
• eSwatini Institute of Accountants (EIA)

Relevant Legislation

• Companies Act, 2009
• Financial Institutions Act, 2005
• Financial Services Regulatory Act, 2010
• Insurance Act, 2005
• Public Enterprises Act, 1989
• Public Finance Management Act 2017
• Retirement Funds Act, 2005
• Securities Act, 2010

Relevant Publications

• Commonwealth Network, “Accountancy, Audit and Tax: eSwatini,” n.d.
• IFRS Foundation, “IFRS Application Around the World?Jurisdictional Profile: eSwatini”, April 2018.
• Gama, Bahle, in eSwatini Observer, “Accountants, Auditors Industry Lacking by 80% in eSwatini,” Feb 13, 2020.
• Shaw, Cassandra in Times of eSwatini, “The ESwatini Institute of Accounts (EIA) has completed the first round of monitoring visits to the country’s audit firms,” November 2, 2011.
• EIA, SMO Action Plan, July 2020.
• Sibandze, Sifiso in Times of eSwatini, “The eSwatini Institute of Accountants has issued a stern warning against people who pose as their members,” August 5, 2013.
• South African Institute of Chartered Accountants, “Strengthening cross-border ties between SA and eSwatini”, July 2019.
• eSwatini News, “Chartered Accountants invited to join EIA,” July 22, 2009.
• World Bank, Report on the Observance of Standards and Code: Accounting and Auditing, Swaziland, November 2012.