Financial Reporting and Audit Standards Committee (FRASC)

Financial Reporting and Audit Standards Committee (FRASC)

According to this proclamation no. 847/2014, in order to support various building blocks of the economy and to reduce the risk of financial crisis, corporate failure and associated negative economic impacts, it is necessary to ensure the provision of quality financial information meets internationally recognized reporting standards.

The standard enhances having a uniform financial reporting law that enhances transparency and accountability by centralizing the hitherto decentralized financial reporting structures of Ethiopia.

It is also required to carry out several key regulatory activities including: setting or amending or adapting or adopting and enforcing standards of accounting and auditing to enable high-quality financial reporting, promoting the quality and independence of the accounting profession, enforcing adherence to codes of ethical behavior and ensuring that the accounting profession is used in the public interest.


Similarly, AABE has the following statutory objectives as stated in Section 5 of Regulation No. 332/2014 to:

  1. Promote high quality reporting of financial and related information by reporting entities;
  2. Promote the highest professional standards among auditors and accountants;
  3. Promote the quality of accounting and auditing services;
  4. Ensure the accountancy profession is used in the public interest; and,
  5. Protect the professional independence of accountants and auditors.


The Board, AABE is charged with monitoring the quality of financial statements produced in Ethiopia.

Financial statements prepared with clear, high-quality standards will be transparent and will improve accountability and collectables from the tax system. Once it can be shown that high-quality financial information is being prepared, investor confidence will improve and will form a basis for attracting Foreign Direct Investment.

The committee (BOD) gives guidance in the standard development process of the international ethics financial and auditing standards setting by appointing technical and professional advisory team to prepare agenda consultation, research programme, standard development and implementation of adopted or amended or adapted are best fit with our local jurisdiction. 

To ensure the effective implementation of this mission, the members of Board of Directors and their leadership at all levels and across all institutions directly or indirectly aligned with this mission need to be arranged in different Committees, like the Financial Reporting and Auditing Standards Committee which is one of the three basic technical and functional committees set by the AABE Board of Directors with in it. This committee is composed of three members of the BoD who are familiar with the subject matter and supported by four volunteer technical advisory individual professional practitioners.