Accounting and Auditing Board of Ethiopia (AABE) has been carrying out myriads of undertakings keeping the national, regional, continental and even international standards with a view to backing country’s economy via upholding national interests and ensuring public benefit.
So long as the Board is a government institution established by Proclamation No. 847/2015 to implement and enforce the Financial Reporting Standards and Presentation Act, Addis Ababa City Administration Revenue Bureau should have properly communicated the Board to come up with sound decision that could never violate the international auditing standard and the freedom of auditors.
As learned from Office Head, Abebe Shiferaw, the cardinal objectives of the establishment of the Board are to maintain the quality of financial reports, professional standards of auditors and accounting professionals and to foster the quality of accounting and audit services thereby ensuring the accounting profession serves the public interest as well as upholding the professional independence of accounting and auditing professionals.
It is obvious that any certified auditor shall comply with the minimum requirements set out in the specific auditing standards issued by the Board for certified auditors in the performance of their professional duties.
True, he said the Board is entitled to license, renew their licenses, and conduct capacity building activities for these professionals so as to help them become aware of international standards and compete equally with professionals from other countries. In so doing, it would be possible to meet domestic needs and become competent in the current situation where Ethiopia is opening its economy to the world market in various ways, and to ensure that the profession upholds the national honor and public interest by following the legal procedures where they are held accountable when found to have violated the law.
Addis Ababa City Administration Revenue Bureau is one of the major stakeholders of the Board, and efforts have been exerted in collaboration and the latter is working to ensure that the financial statements are submitted to the Bureau in accordance with international standards and can be audited as per Proclamation No. 847/2006. When it began working with the Bureau in 2016, the Bureau investigated and investigated 36,729 accounting records in eleven sub cities of the Addis Ababa City Administration, and found that 10.65 billion birr evaded that should have been pumped to government deposition. Besides, some 9,587 professionals were labeled responsible for such a daunting tax evasion.
However, the number of professionals licensed by the Board in the accounting and auditing professions during the fiscal year did not exceed 1,500, and the remaining 8,000 may be working illegally or licensed by another body, which body?? and the number mentioned was incorrect, so the Bureau was asked to provide a list of professionals licensed by the Board. It is recalled that the Bureau, during its preliminary investigation, singled out 823 professionals from the list sent to it and requested the Board to take action against them for being accomplices in the crime.
The Board has thus tried to explain that it has the responsibility to enforce the law and protect the public interest based on complete information when a professional, who has collaborated in tax evasion is submitted to it, based on a suggestion or complaint from any party. Although the Bureau has been asked to send a complete list of professionals who should be suspended, their licenses should be revoked, and if there are any entities that should be rewarded, it kept quite.
Keeping the request as it is, the Revenue Bureau requested that among the professionals who prepared and submitted the taxpayers’ accounts for the 2017 fiscal year, ten professionals who committed serious violations in the pre-audit work have deprived the country of the benefits it deserves and that action should be taken and inform us within the shortest time possible.
It is necessary to handle the issue scrupulously and not to reveal it through the media until well substantiated information is secured. As a close partner and stakeholder, the Bureau should have closely investigated the case devoid of any pitfall belittling Board’s diligence and careful tasks.
Since tax evasion is a criminal offense, it is not the mandate of anybody though dealing with tax crimes and the legal authority is granted to the Board. What matters here is the Board should have been given opportunity to go through the case within its own reach as incomplete content leads to illegitimate verdict. Thence, it is hard to take sound measure based on pre-reiew.
The Board, taking this opportunity, wishes all followers of the Christian faith a happy Meskel celebration!