Zimbabwe

The Companies Act and Other Business Entities Act (Chapter 24:0331) defines basic requirements for accounting, auditing, and financial reporting for companies registered under the Act. The Act requires that all companies apply the international accounting standards as adopted by the Public Accountants and Auditors Board (PAAB).

The PAAB has adopted all IFRS, and other pronouncements as issued by the IASB as the financial reporting framework applicable in the country through Statutory Instrument 62 of 1996. Under the Public Accountants and Auditors Act 1996 (as amended in 2015), the standards adopted by the PAAB received legal backing. The PAAB also adopted IFRS for SMEs in January 2010, effective for periods commencing on or after January 1, 2011.

The Companies Act requires all public companies to be audited. Private companies are not required to be audited if they are not subsidiaries of public companies. The Companies Act does not specify which auditing standards are to be applied in audits.

Under the Public Accountants and Auditors Act 1996 (as amended in 2015), the auditing standards adopted by the PAAB have immediate legal backing. The PAAB has adopted all ISA and other pronouncements issued by the IAASB as issued, without any amendments or modifications.

Public interest entities (PIEs) such as listed companies, banks, and insurance companies are regulated by the Securities Commission, the Central Bank, and the Insurance Commission in accordance with their respective Acts. In accordance with the Public Accountants and Auditors Act 1996 (as amended in 2015), PIEs must apply IFRS, and their statements must be audited by an auditor registered by the PAAB. All registered auditors apply ISA as mandated by law.

Under the Public Accountants and Auditors Act (Chapter 27:12), which became effective in 1996 and subsequently amended in 2015, the accountancy profession in Zimbabwe is regulated by the Public Accountants and Auditors Board (PAAB) and professional accountancy organizations (PAOs) with the status of principal or associate operating in the jurisdiction. The principal and associate PAOs are defined in the Second Schedule of the act.

The Public Accountants and Auditors Act provides for the registration of all professional accountants and establishes the PAAB as the registering, regulatory, and standard-setting body for all professional accountants and PAOs. Under the amended Public Accountants and Auditors Act Section 2(b), the accountancy profession is defined as individuals registered with the PAAB as general accountants, tax accountants, public accountants, and/or public auditors.

The PAAB’s functions under the Act include: (i) prescribing auditing and accounting standards; (ii) considering and determining applications for registration of all professional accountants; (iii) maintaining the registers of Public Accountants (RPAcc); Public Auditors (RPA); General Accountants (RGAcc); and Tax Accountants (RTAcc); (iv) prescribing the minimum qualifications, competency standards and requirements for registration of all accountancy professionals; (v) recommending to the Minister of Finance the recognition of any organization as a principal or associate PAO; (vi) defining and enforcing ethical practice and discipline among registered persons; (vii) evaluating and monitoring the standards of qualifying examinations, courses, and training set or offered by the PAOs; (viii) evaluating and monitoring training courses of foreign institutions with a view to making recommendations to principal and associate PAOs; and (ix) promoting the standardization of qualifying examinations on common subjects.

RGAccs may provide services consisting of recording, reporting, and analysis of financial statements, financial transactions, books, accounts or records; while tax accountants may prepare, submit and certify a tax return or other return in terms of any one or more of the revenue laws. Both general and tax accountants must be members in good standing of a principal or associate PAO and passed examinations to achieve the relevant qualification that has been approved by the Board in consultation with the corresponding PAO. For the tax qualification that is the Institute of Certified Tax Accountants of Zimbabwe and for the general accountant qualification the bodies are the Institute of Administration and Commerce of Zimbabwe or the South African Association of Accountants. All three are locally incorporated companies.

RPAccs may provide accounting services to all companies (including public companies) or persons after fulfilling initial professional development (IPD) requirements such as education, practical experience, and exams and being members in good standing of any PAO with the status of principal in accordance with the Act. These include: the Zimbabwe branch of the Association of Chartered Certified Accountants, incorporated by Royal Charter in the United Kingdom; the Zimbabwe branch of the Chartered Institute of Management Accountants, incorporated by Royal Charter in the United Kingdom; the Institute of Chartered Accountants of Zimbabwe (ICAZ), established by the Chartered Accountants Act [Chapter 27:02]; the Chartered Governance and Accountancy Institute in Zimbabwe (CGAIZ), established by the Chartered Secretaries (Private) Act [Chapter 27:03]; and the Institute of Certified Public Accountants of Zimbabwe (ICPAZ), a locally incorporated company.

Finally, RPAs are eligible to offer auditing services and public accountancy services to any persons or company. In order to register with the PAAB as a public auditor, individuals must meet similar IPD requirements for RPAccs but must be members in good standing of one of the following PAOs: (i) ICAZ; (ii) the Zimbabwe branch of the Association of Chartered Certified Accountants (ACCA) while holding an auditing practicing certificate issued in the United Kingdom and recognized by the PAAB and having passed examinations approved by the Board in consultation with the Zimbabwe branch of the ACCA; or (iii) the ICPAZ.

ICAZ (an IFAC Full Member) is responsible for: (i) establishing and maintaining a register of its members; (ii) establishing and implementing initial and continuing professional development (IPD and CPD) requirements for individuals seeking to obtain and maintain its Chartered Accountant designation; (iii) setting ethical requirements for its members; and (iv) establishing and implementing an investigation and discipline system for its members.

The CGAIZ (an IFAC Associate) and ICPAZ have similar authority for their members, who join to pursue the Chartered Governance Professional Accountant (CGPA) qualification or the ICPA (Z) designation, respectively.

There is limited information regarding the responsibilities and regulatory authority of the associate PAOs in the jurisdiction.

There are no independent audit public oversight arrangements in Zimbabwe. The Public Accountants and Auditors Act 1996 (as amended in 2015) authorizes the Public Accountants and Auditors Board (PAAB) to be the regulatory and standard-setting body for all auditors and professional accountancy organizations (PAOs) that regulate auditors. The PAAB is not a member of the International Forum of Independent Audit Regulators.

As described in the Regulation section, public auditors must be a member of good standing of one of the PAOs listed in the PAAB Act and therefore subject to their rules and regulations.

Zimbabwe has several recognized professional accountancy organizations—referred to as principal and associate bodies in legislation:

Principal PAOs

Institute of Certified Public Accountants in Zimbabwe (ICPAZ)

ICPAZ is a locally incorporated company, limited by guarantee, and successor to a body that used to specialize in public sector finance and accounting. ICPAZ coordinates the examination of its members, the majority of whom work in the public sector, with CPA Ireland. ICPAZ is authorized to serve as a representative body to (i) promote the interest of its members, particularly as it relates to the public sector; (ii) administer the examinations for candidates for admission; (iii) ensure its members’ adherence to professional and ethical standards in the provision of services; (iv) investigate complaints and impose disciplinary sanctions; and (v) offer training and professional education. It is a member of the Pan African Federation of Accountants but not IFAC.

Institute of Chartered Accountants of Zimbabwe (ICAZ)

ICAZ is a statutory body incorporated under the Chartered Accountants Act (Chapter 27:02). Its members are the main providers of audit services. ICAZ membership is mandatory for offering public accountancy and auditing services in Zimbabwe. ICAZ’s membership consists of Chartered Accountants (Zimbabwe) (CA(Z)) and Articled Accountants (AAZ) (pre-professionals). In accordance with Section 4 of the Chartered Accountants Act, ICAZ’s responsibilities include: (i) establishing and maintaining a register of its members; (ii) establishing and implementing initial and continuing professional development (IPD and CPD) requirements seeking to obtain and maintain its CA designation; (iii) setting ethical requirements for its members; and (iv) establishing and implementing an investigation and discipline system for its members. In addition to being a Member of IFAC, ICAZ is a member of the Pan African Federation of Accountants.

Chartered Governance and Accountancy Institute in Zimbabwe (CGAIZ)

CGAIZ is a division of the Institute of Chartered Secretaries and Administrators in the United Kingdom established by the Chartered Secretaries (Private) Act (Chapter 27:03). CGAIZ is authorized to administer examinations, register members and firms, administer continuing professional development, enforce compliance with the code of professional conduct, conduct investigations of members, and take appropriate disciplinary actions as required. The institute completed a transition from an administration and secretarial institute and most of its members are employed in accounting or management positions. In addition to being an Associate of IFAC, CGAIZ is a member of the Pan African Federation of Accountants.

The Zimbabwe branch of the Association of Chartered Certified Accountants, incorporated by Royal Charter in the United Kingdom along with the Zimbabwe branch of the Chartered Institute of Management Accountants, incorporated by Royal Charter in the United Kingdom are also considered principal PAOs.

Associate PAOs

There is limited information on the three associate PAOs in Zimbabwe, which are locally incorporated companies limited by guarantee.

• The Institute of Certified Tax Accountants of Zimbabwe,
• The Institute of Administration and Commerce of Zimbabwe, and
• The South African Association of Accountants.

The Public Accountants and Auditors Board (PAAB), Chartered Governance and Accountancy Institute in Zimbabwe (CGAIZ), and the Institute of Chartered Accountants of Zimbabwe (ICAZ) were beneficiaries of a capacity building project managed by IFAC’s PAO Capacity Building Program and funded by the U.K. Department for International Development. In 2016, the institutes partnered with the Chartered Institute of Public Finance and Accountancy (CIPFA). The partnership had two main components: establishing a project stakeholder advisory group for the adoption of IPSAS and developing a comprehensive roadmap to strengthen accountancy capacity in the public sector through a public sector qualification.

Under the Public Accountants and Auditors Act 1996 (Chapter 27:12), as amended in 2015, the Public Accountants and Auditors Board (PAAB) is authorized to carry out practice reviews and inspections. The PAAB has adopted relevant quality standards and all audits are subject to mandatory quality assurance (QA) reviews, which the Institute of Chartered Accountants of Zimbabwe (ICAZ) states meet the best practices of SMO 1.

Current Status: Adopted

In Zimbabwe, the Public Accountants and Auditors Board (PAAB) is responsible for prescribing the minimum qualifications, competency standards and requirements for registration of all accountancy professionals; evaluating and monitoring the standards of qualifying examinations, courses, and training set or offered by principal and associate professional accountancy organizations (PAOs); evaluating and monitoring training courses of foreign institutions with a view to making recommendations to its principal and associate PAOs; and promoting the standardization of qualifying examinations on common subjects. Its authority to carry out these activities comes from the Public Accountants and Auditors Act 1996 (Chapter 27:12), as amended in 2015.

Universities in Zimbabwe provide professional education for professional accountants, while the PAOs establish initial and continuing professional development (IPD and CPD) requirements for obtaining and maintaining the respective qualifications that they offer. Details of the IPD and CPD requirements of PAOs are presented below; however, overall, it seems that not all national educational requirements fully incorporate the IES requirements that are effective as of the date of this assessment.

There are five principal PAOs in Zimbabwe offering educational programming.

Under the Chartered Accountants Act (Chapter 27:02), the Institute of Chartered Accountants of Zimbabwe (ICAZ) has the authority to administer examinations for its Chartered Accountant designation, register members and firms, and set CPD. Candidates seeking the CA(Z) qualification must have a university degree in accounting, pass initial and final examinations, and have three years’ practical experience. The ICAZ reports that its education program is fully aligned with that of the South African Institute of Chartered Accountants (SAICA), which, in turn, has reported that it incorporated the revised (2019) IES into its IPD requirements. ICAZ’s qualifying examinations are fully outsourced from SAICA and are the same as SAICA’s qualifying examinations—except for a modification of certain tax aspects to suit the local environment. In line with IES 5, ICAZ has accredited training offices’ (ATOs) where candidates may fulfill their practical experience component.

According to Karreman et al, ICAZ’s CPD requirements (IES 7 and 8) demonstrate a high level of alignment with IES. ICAZ requires its members to complete a cumulative 120 hours of CPD over a three-year period.

The Chartered Governance and Accountancy Institute in Zimbabwe (CGAIZ) is authorized to determine IPD requirements for obtaining the Governance Professional Accountant qualification, administer examinations and require CPD for its members. CGAIZ members must have a General Certificate of Education in five subjects, including mathematics or accounting, and an additional educational certificate (i.e., a recognized university degree). They must also complete the CGPA educational programming and examination, and complete six to eight years of qualifying practical experience—depending on the tier of membership. CGAIZ states that its education programming and requirements are derived from the IES requirements. As of 2019, the institute requires members to complete 120 hours of CPD.

The Institute of Certified Public Accountants in Zimbabwe (ICPAZ) requires its members to obtain a university degree, complete CPA Ireland’s accountancy syllabus and final examinations, obtain three years’ of supervised practical experience, and subsequently fulfill CPD requirements to obtain and maintain its ICPA(Z) designation. Given that ICPAZ’s IPD requirements are the same as those of CPA Ireland, these are aligned with revised IES. ICPAZ’s CPD requirements are cumulative 90 hours over a three-year period.

The Zimbabwe branch of the Association of Chartered Certified Accountants (ACCA) along with the Zimbabwe branch of the Association of International Certified Professional Accountants—CIMA are also considered principal PAOs. Both branches require members to meet the membership requirements as adopted at the global level by the UK-based headquarters. The ACCA and Association of International Certified Professional Accountants—CIMA’s IPD and CPD requirements are in line with the 2019 revised IES.

There is limited information on the educational requirements set by the three associate PAOs for their respective members.

Current Status: Partially Adopted

The Companies and Other Business Entities Act (Chapter 24:31) requires all Public Interest Entities (PIEs) to be audited. Private companies are not required to be audited if they not stipulated under the Act.

Under the Public Accountants and Auditors Act of 1996, as amended in 2015, the auditing standards adopted by the Public Accountants and Auditors Board (PAAB) receive legal backing. The PAAB has adopted all ISA and other pronouncements issued by the IAASB as issued, without any amendments or modifications.

Current Status: Adopted

Under the Public Accountants and Auditors Act, the Public Accountants and Auditors Board (PAAB) is responsible for defining and enforcing ethical practice and discipline among all professional accountants. The Institute of Chartered Accountants of Zimbabwe (ICAZ) reports that the PAAB, and therefore all principal and associate professional accountancy organizations (PAOs) recognized under the PAAB, adopt the International Code of Ethics. The PAAB has adopted the International Code of Ethics as issued by the IESBA—including effective date. This was circulated in a government gazette. PAAB explains that if more stringent requirements arise, the PAAB will issue a regulation.

The PAAB Act also states that each principal and associate PAO may make rules governing the professional conduct of its members who are registered persons, provided the standards are consistent with those established by the PAAB.

Under the Chartered Accountants Act (Chapter 27:02), the Institute of Chartered Accountants of Zimbabwe (ICAZ) has the authority to set ethical requirements and enforce compliance with the code of professional conduct of members. ICAZ reports that, in 2010, it adopted the IESBA Code of Ethics with no amendments. Subsequently, all revisions to the IESBA Code have been adopted as and when published by the IESBA.

The CGAIZ, in accordance with the Chartered Secretaries (Private) Act [Chapter 27:03], may also set ethical requirements for members. It has a Member Code of Conduct which CGAIZ states mirrors the IESBA Code of Ethics.

Individual information on the ethical requirements of the other principal and associate PAOs in the jurisdiction is not available; however, the PAAB states that all PAOs must apply the most current International Code of Ethics issued by the IESBA as the minimum benchmark.

Current Status: Adopted

Public sector accounting in Zimbabwe is regulated by the Public Finance Management Act (Chapter 22:19). In 2012, the Government of Zimbabwe, through the Ministry of Finance (Office of the Accountant General), has decided to adopt accrual-basis IPSAS modified for local context by 2026 (CIPFA & IFAC International Public Sector Financial Accountability Index), starting with the adoption and implementation of cash-basis IPSAS.

According to the Institute of Chartered Accountants of Zimbabwe, some public sector entities, such as local government authorities, have started using IPSAS through a phased implementation process. However, full implementation of accrual-basis IPSAS is not expected until 2025. The International Monetary Fund (IMF) has been working with the Public Accountants and Auditors Board (PAAB) and the government in a bid to expedite IPSAS implementation in the country and the PAAB has been proactive in campaigning for accrual-basis IPSAS to be incorporated into a new legal framework for public sector entities.

Current Status: Partially Adopted

The Public Accountants and Auditors Act (Chapter 27:12), states that each principal and associate professional accountancy organization (PAO) is responsible, in the first instance, for the professional conduct of its members who are registered persons, and, for that purpose, each PAO may undertake disciplinary proceedings against such members and issue sanctions for breaches of the rules. In accordance with the Act, the Public Accountants and Auditors Board (PAAB) is responsible for reviewing decisions made by the PAOs and hearing any appeals.

There are five principal PAOs in Zimbabwe that are authorized to investigate and discipline their members.

Under the Chartered Accountants Act (Chapter 27:02), the Institute of Chartered Accountants of Zimbabwe (ICAZ) has the authority to investigate members and to take appropriate disciplinary actions as required. ICAZ has established an Investigations Committee tasked with investigating allegations and referring cases to its Disciplinary Committee. ICAZ members who wish to appeal a Disciplinary Committee decision can do so through the PAAB. The PAAB’s QA review system is also linked to ICAZ’s I&D system when review findings relate to ICAZ members.

In 2016, ICAZ conducted a self-assessment of its I&D system against the SMO 6 requirements, which was then updated in February 2018 and August 2022. To better align its I&D procedures with SMO 6 requirements, ICAZ noted the following updates since 2016 (i) including two non-accountants to the Investigations Committee and two non-accountants to the Disciplinary Committee; (ii) adding three legal advisors and a non-accountant to the Disciplinary Committee which is chaired by a retired judge and assisted by a legal practitioner; (iii) posting on its website the steps that members of the public should take if a complaint is being raised against an ICAZ member of student; and (iv) publishing a summary of investigations in its Annual Report and procedures on filing a complaint on the ICAZ website to address gaps in raising public awareness about the system, and publishing results of the proceedings.

The institute still noted some gaps that remained with the I&D mechanism as it relates to public interest considerations, review of implementation and effectiveness, and in administrative processes due to late turnaround times in collecting additional evidence/statements from plaintiffs.

The Institute of Certified Public Accountants in Zimbabwe (ICPAZ) reports that it has established a process for handling complaints made by the public. It has an independent team responsible for investigating complaints received and a disciplinary committee which includes as a lawyer as the chairperson. The Chairperson of the Disciplinary Committee must report to the ICPAZ Council, which in turn reports to the PAAB. While ICPAZ’s I&D system seems to meet some of the SMO 6 requirements, more information is needed to assess the full extent of the system’s alignment.

The Chartered Governance and Accountancy Institute in Zimbabwe (CGAIZ) has also established I&D procedures which outline the process for filing a complaint, and the investigation and disciplinary process—which are carried out by two separate committees—as well as the means for appealing a disciplinary decision. In 2019, the CGAIZ conducted a review of its I&D system to determine the degree of compliance with SMO 6 requirements. CGAIZ has indicated that there are gaps in meeting the full SMO 6 benchmark in the following areas: not all results of I&D proceedings may be available to the public and a process for independent review of complaints with no follow-up could be established.

The Zimbabwe branch of the Association of Chartered Certified Accountants (ACCA) along with the Zimbabwe branch of the Association of International Certified Professional Accountants—CIMA’s are also considered principal PAOs. Members may be subject to the same I&D procedures as adopted at the global level by the UK-based headquarters. The ACCA and Association of International Certified Professional Accountants—CIMA’s I&D mechanisms are reported to be in line with SMO 6 requirements.

There is limited information on which I&D procedures, if any, are established and implemented by the three associate PAOs for their respective members.

Current Status: Partially Adopted

The Companies Act (Chapter 24:31) defines basic requirements for accounting, auditing, and financial reporting for companies registered under the Act. The Act requires that all companies apply the international accounting standards as adopted by the Public Accountants and Auditors Board (PAAB).

The PAAB has adopted all IFRS, and other pronouncements as issued by the IASB as the financial reporting framework applicable in the country through Statutory Instrument 62 of 1996. Under the Public Accountants and Auditors Act 1996 (as amended in 2015), the standards adopted by the PAAB received legal backing. The PAAB also adopted IFRS for SMEs in January 2010, effective for periods commencing on or after January 1, 2011.

Public interest entities (PIEs) such as listed companies, banks, and insurance companies are regulated by the Securities Commission, the Central Bank, and the Insurance Commission in accordance with their respective Acts. In accordance with the Public Accountants and Auditors Act 1996 (as amended in 2015), PIEs must apply IFRS.

Current Status: Adopted

Relevant Organizations

• Institute of Certified Public Accountants of Zimbabwe (ICPAZ)
• Institute of Chartered Accountants of Zimbabwe (ICAZ)
• Chartered Governance and Accountancy Institute in Zimbabwe (CGAIZ)(CGAIZ)
• Public Accountants and Auditors Board (PAAB)

Relevant Legislation

• Amendments to the Public Accountants and Auditors Act, 2015
• Chartered Accountants Act (Chapter 27:02)
• Chartered Secretaries (Private) By-laws, 2015
• Public Accountants and Auditors Act No. 13/1995, 22/2001 (Chapter 27:12)

Relevant Publications

• “Act to Enforce Auditors Accountability,” in NewsDay, July 2015.

ICAZ, SMO Action Plan, 2022.

• ICAZ, 2017 Annual Report, 2017.
• ICAZ, Training Regulations, 1 Jan. 2013.
• CGAIZ, SMO Action Plan, 2020.
• “IFAC Announces New Partnership in Zimbabwe to Strengthen Accountancy Capacity in the Public Sector,” IFAC, May 2016.
• IFRS Foundation, IFRS Application Around the World, Jurisdictional Profile: Zimbabwe, 16 June 2016.
• Karreman, Gert H. et al. GAE 2012, Dynamics of Global Accountancy Education, 2013.
• “New framework for public sector management,” in NewsDay, August 2017.
• World Bank, Report on the Observance of Standards and Codes, Accounting and Auditing: Zimbabwe, 2011.
• “Zimbabwe: ICAZ Rolls out IFRS 15,” in AllAfrica, Feb 2016.