STRENGTHENING FINANCIAL REPORTING, STRENGTHENING CV MENA Connecting Voices of MENA (CV MENA) is a...

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Transcript of STRENGTHENING FINANCIAL REPORTING, STRENGTHENING CV MENA Connecting Voices of MENA (CV MENA) is a...

  • STRENGTHENING

    FINANCIAL

    REPORTING,

    STRENGTHENING

    MSMES Completion Report: Connecting Voices of MENA initiative, co-

    financed by the Micro-, Small-, and Medium Enterprise (MSME) Technical Assistance Facility

    Governance Global Practice: Public Resource Mobilization and Management (GGP/PRMM) Middle East and North Africa (MENA) Team

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  • 1 | P a g e

    Table of Contents Acronyms ...................................................................................................................................................... 2

    Executive Summary ....................................................................................................................................... 4

    Introduction / Background ............................................................................................................................ 6

    CV MENA ....................................................................................................................................................... 7

    Program Activities ......................................................................................................................................... 9

    1. Bootcamps .................................................................................................................................... 9

    2. Solutions Labs ............................................................................................................................. 14

    3. Exchange Forum .......................................................................................................................... 16

    4. Ma’arefah .................................................................................................................................... 20

    5. Research and Training ................................................................................................................. 21

    Leveraging Outcomes ................................................................................................................................. 24

    Lessons Learned / Considerations for the Future ....................................................................................... 27

    Conclusion ................................................................................................................................................... 27

  • 2 | P a g e

    Acronyms

    AA Accounting and Auditing

    AAA Association of Accountants and Auditors

    ACCA Association of Chartered Certified Accountants

    AFAA Arab Federation of Accountants and Auditors

    AICPA American Institute of Certified Public Accountants

    ASA Accountability State Authority

    CFR Corporate Financial Reporting

    CGFR Corporate Governance and Financial Reporting

    CNCC – CSOEC Conseil Supérieur de l’Ordre des Experts-Comptables - Compagnie Nationale des

    Commissaires aux Comptes (France)

    CPA Certified Public Accountant

    CPD Continuing Professional Development (See CPE)

    CPE Continuing Professional Education (See CPD)

    CSO Civil Society Organization

    CV MENA Connecting Voices of Middle East and North Africa

    EFSA Egyptian Financial Supervisory Authority

    ESAA Egyptian Society of Accountants & Auditors

    EU European Union

    FCCA Fellow Chartered Certified Accountant

    FSAP Financial Sector Assessment Programs

    IFRS International Financial Reporting Standards

    ISA International Standards on Auditing

    IAASB International Accounting and Auditing Standards Board

    IAESB International Accounting Education Standards Board

    IASB International Accounting Standards Board

    IESs International Education Standards

    IFAC International Federation of Accountants

    IFIAR International Forum of Independent Audit Regulators

    IFRS International Financial Reporting Standards

    LACPA Lebanese Association of Certified Public Accountants

    MENA Middle East and North Africa

    MoF Ministry of Finance

    MSMEs Micro, Small, and Medium Enterprises

    NGO Non-Governmental Organizations

    OECM Ordre des Experts Comptables Maroc

    OECT Ordre des Experts Comptables Tunis

    PACPA Palestinian Association of Certified Public Accountants

    PAFA Pan African Federation of Accountants

    PAO Professional Accountancy Organization

  • 3 | P a g e

    PWAT Palestinian Women’s Accounting Technician (Project)

    ROSC AA Reports on the Observance of Standards and Codes (ROSC) Accounting and Auditing

    SAAP EU-Egypt Association Agreement Programme

    SAI Supreme Audit Institution

    SAICA South African Institute of Chartered Accountants

    SME Small and Medium Enterprise

    SMP Small and Medium [accounting] Practices

    SOE State Owned Enterprises

    TF Trust Fund

    UNCTAD United Nations Conference on Trade and Development

    XBRL eXtensible Business Reporting Language

  • 4 | P a g e

    Executive Summary With support from the World Bank Micro-, Small-, and Medium Enterprises Technical Assistance Facility for MENA Trust Fund (MSME TF), the Connecting Voices of Middle East and North Africa (CV MENA) Initiative advanced interventions to increase awareness and provide technical assistance to strengthen the accounting and auditing legal/regulatory, institutional, and professional capacity to enable the development of Small and Medium [accounting] Practices (SMPs) and the MSME sector. CV MENA Initiatives included:

     Bootcamp workshops which gathered policymakers and stakeholders to discuss and advance key issues related to MSME financial reporting,

     Solutions Lab virtual conference events which brought together experts and regional counterparts to learn and engage on key themes and emerging issues related to accountancy and MSMEs,

     Exchange Conferences which brought regional leaders and experts together in face-to-face annual forums to share knowledge and experience on issues related to MSME reporting and governance,

     Maarefah Community of Practice online moderation and events which allowed participants from around the MENA region and world to connect remotely and partake in ongoing dialogue on issues inherent to MSME reporting, and

     Pilot Training and Research support which was linked to overall CV MENA objectives of enhancing the provision of accountancy services provided to and reporting provided by MSMEs.

    Over 1,000 participants were reached through four Bootcamp workshops, four Solutions Lab virtual conferences, two Maarefah events, and three Exchange Conferences. Two research studies were supported in furtherance of the goal of enhancing MSME financial reporting and accountancy. These explored the regional challenges and issues facing SMPs – which predominantly serve the accountancy needs of the MSME community in MENA, as well as analyzing the national challenges found in the provision of services to MSME clients in Palestine specifically. Additionally, through effective use of funds and by leveraging international partners and organizations active in the area of accountancy, the World Bank was also able to contribute to two training programs to the region on the subjects of international standards of accounting and auditing thereby enhancing the skill and ability of professionals serving MSME clients in MENA. In addition to these results, this initiative has had collateral impact in facilitating agreement for the free use of audit software to enhance the quality of audit services provided to MSMEs, acting as catalyst for development of projects in the area of female accounting technician training, providing convening forces to encourage development of audit regulators to strengthen MSME audit practices, and laying the foundation for audit quality assurance systems which will benefit SMP firms and their MSME clients. Although the initiative has accomplished much, the issue of strengthening accountancy for MSMEs is a long term challenge and as such must be met with continued funding, support and activities in order to make measured progress. In order to maintain achieved gains as well as to continue the battle to promote high quality in accountancy throughout the MENA region so as to benefit and support MSME

  • 5 | P a g e

    growth, development and contribution to economy and society, it is recommended that engagement, financing and assistance remain strong. This report was prepared by Gabriella Kusz, Sr. Financial Management Specialist, and reviewed by Manuel Vargas, Lead Financial Management Specialist, under the guidance of Hisham Waly, Practice Manager, of the Governance Global Practice MENA Team.

  • 6 | P a g e

    Introduction / Background MSMEs consistently cite access to finance as a primary obstacle to growth, and empirical evidence shows that small firms face more financial constraints and are more affected b