RESTRICTED
WORLD TRADE S/WPPS/W/7/Add.28
8April 1997
ORGANIZATION
(97-1460)
Working Party onProfessional Services Original: English
COMMUNICATION FROM SWAZILAND
Response tothequestionnaire ontheaccountancy sector
Thefollowing communication iscirculated attherequest ofSwaziland.
________
I. GENERAL
1. What aretheprofessional titles ofaccountants inyour country? Arethese professional
titles protected? Please specify how.
Chartered Accountants (Swaziland)
Protected byActofParliament (Accountants Act1985)
There isalsoabody ofAccounting Technicians -known asRegistered Accountants -under
thesame act.
2. How istheaccountancy sector regulated inyour country: bylaw,professional self-
regulation, acombination ofboth?
Chartered Accountants (both inPublic Practice asAuditors andPublic Accountants andnon
Practising Chartered Accountants inCommerce, Industry, Public Service andEducation) areregulated
bythe"Swaziland Institute ofAccountants" -inaugurated bytheabove ActofParliament.
3. Arethere anyprovisions toprotect company names, whether national orforeign, inyour
country?
Company names, bothnational andforeign, areprotected interms ofthe"Companies Act".
4. What aretheprofessional bodies inyour country? Aretheyrecognised bylawasa
regulatory ordisciplinary body fortheaccountancy profession inyour country, orare
these functions fulfilled byother institutions (please specify)?
There isonlyoneprofessional accounting body. (Swaziland Institute ofAccountants -SIA).
Itisrecognised bylawasaregulatory anddisciplinary body. Noother institution hasthose powers.S/WPPS/W/7/Add.28
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5. Howmany members dothese professional bodies have? What istheestimated proportion
ofthose:
- inpublic practice
- inindustry orcommerce
- inthepublic sector
- ineducation
- unoccupied (retired, etc.)
- other
SIAhas67"Chartered Accountants" ofwhom 20areinPublic Practice.
SIAhas79"Registered Accountants".
6. What isthescope ofactivities regularly practised byaccountants inyour country?
Accounting Services (Public Practice)
Audit Services (Public Practice)
Financial Management (Public Practice)
TaxConsultants (Public Practice)
Liquidators (Public Practice)
NonPractising Chartered Accountants areinpaidemployment inPrivate orPublic Sectors.
7. Which ofthese activities areregulated inyour country?
AllPublic Practice activities areregulated.
8. Which ofthese activities arereserved bylawtoaccountants, shared byaccountants with
other professions (please specify), orevenforbidden toaccountants inyourcountry, e.g.
byfullprohibition orbynotallowing cumulation ofcertain activities which areconsidered
incompatible ormutually exclusive?
Onlyauditpractice isreserved bylawtoChartered Accountants holding Practising Certificates.
Nolegalrestriction onaccounting, financial management ortaxconsultancy.
"Liquidators" havetobeeither Chartered Accountants orAttorneys, butmostareChartered
Accountants.
II. QUALIFICATION REQUIREMENTS
9. What arethequalification requirements forthese activities inyour country interms of
university/higher education degree, practice andprofessional exam? Specify thenumber
ofyears required foreachelement, andthedifferences according totheactivities (audit,
insolvency, tax,etc.)covered bythequalification.
(a) Chartered Accountants
Successinprescribedqualifyingexaminations+5yearsprescribedpracticalexperience.
(This isreduced to3years ifholder ofarecognised university degree inaccounting).S/WPPS/W/7/Add.28
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(b) Registered Accountants
(i) Success inprescribed technician examinations.
(ii) Holdersofcertainotherprofessionalaccountingoradministrativequalifications.
(iii) Holders ofcertain recognised university degrees.
Allhavetosubmit evidence oftwoormore years prescribed practical experience.
10. Arethere anypre-conditions tomeet tostarttheprofessional education: minimum age,
particular diploma ortitle,prior education, registration withaprofessional body, payment
ofafee,other (please specify)?
Education: See9above.
Registration withSIA
Payment ofentrance feeandannual subscription
11. What arethesubjects tobecovered bytheeducation: accounting, audit, tax,general
law,economics, ethics, information technology, other (please specify)?
(i) Financial Accounting
(ii) Costing
(iii) Management Accounting
(iv) Numeracy andInformation Technology
(v) Commercial Law
(vi) Company Law
(vii) Economics orBusiness Economics
(viii) Principles ofManagement
(ix) Taxation Law
Inaddition, forCAqualification "Auditing", Financial Management andTaxPlanning.
III. TECHNICAL STANDARDS AND ETHICS
12. Inrelation towhich activities donational standards exist(audit, accounting, insolvency,
other)? Please specify their main policy objectives.
Accounting Standards -localandIASC.
Auditing Standards -International
13. Which body orinstitution develops these standards andmonitors their implementation?
What aretheconsequences ofabreach ofthestandards (fortheprofessional, forclients,
etc.)?
Local Accounting Standards developed byaCommittee ofSIACouncil -butensures compliance
withInternational Accounting Standards.
AllIFAC Auditing Standards areadopted.
Insolvency standards arelaiddown byCompanies ActandInsolvency Act.S/WPPS/W/7/Add.28
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Members -whether inpublic sector orprivate aresubject to"Rules ofProfessional Conduct"
andaresubject toAccountants Actrules delegated toCouncil ofSIA.
Infringement could leadto:
(i) reprimand
(ii) suspension
(iii) removal from Register
(iv) fines
14. Aretheinternational standards developed byIFAC (International Education Standards
andGuidelines, International Standards onAuditing) andIASC (International Accounting
Standards) recognised orusedinyourcountry? Ifyes,please explain how. Ifno,please
explain why.
IFAC Education Standards &Guidelines areusedas"guidelines" -usually fullcompliance
because ofadoption ofqualifying examinations orthose ofother recognised degrees, etc.
15. Inrelation towhich activities does aparticular ethical code exist (audit, accounting,
insolvency, other)? Please specify itsmain policy objectives.
Every member (Chartered Accountant orRegistered Accountant) isbound bySIARules of
Professional Conduct.
16. Which body orinstitution develops thiscode andmonitors itsimplementation? What
aretheconsequences incaseofbreach oftheethical codebyaprofessional orafirm?
Developed andissued bySIA.
17. Arethere restrictions onmarketing, solicitation, advertising?
Some limitations onmarketing, solicitation andadvertising inRules ofProfessional Conduct.
"Cold canvassing" notpermitted.
18. Arethere restrictions onfee-setting (minimum/maximum levels imposed, indicative scale,
etc.)?
Norestrictions onfee-setting.
IV. LICENSING REQUIREMENTS AND PROCEDURES
19. Apart from thequalification requirements, what arethelicensing requirements for
individuals inyour country?
Licensing iscovered byadmission tomembership andissueofPractising Certificates bySIA.
20. Arethere anyconditions imposed tobeeligible formembership oftherelevant professional
body(ies)? Please specify.
Seeunder Section II.S/WPPS/W/7/Add.28
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21. Arethere specific licensing requirements forprofessional firms?
Licensing (Certification) applies topersonal membership nottofirms.
22. Cananapplication forlicensing befiledatanytimeoftheyearorarethere specific dates
torespect? Howlongdoesittaketocomplete thewhole licensing procedure? Please specify
incaseofdifferences between individuals andfirms.
Nospecific times.
23. Arethere differences interms oflicensing requirements and/or procedures, according
totheactivities covered bythelicence (audit, insolvency, etc.)? Please specify. What
kindofdocumentation isnecessary/accepted? Aredocuments issued inother countries
acceptable? Please specify.
Nodifferences.
24. What happens when thelicensing conditions arenolonger respected bytheindividual
orthefirm?
Violation ofprovisions ofAccountants Act,ByeLaws andRules ofProfessional Conduct may
leadtodisciplinary measures (see13).
V. RECOGNITION OFQUALIFICATIONS
25. Arethere anypossibilities fortaking account ofqualifications acquired byforeign
professionals inanother country? Arethere bilateral agreements withother countries
inthisrespect?
TheAccountants Actgives SIACouncil therighttoadmit holders ofprofessional qualifications
ormembership. Noreciprocity agreements butresidence inSwaziland foratleast8months inany
yearisarequirement ifamember isnotaSwazi citizen.
26. Arethere anyautomatic recognition ormutual recognition agreements between your
professional bodies andtheir counterparts inother countries? Ifso,please specify the
main characteristics ofsuchagreements; ifnot,please explain why.
See25above.
27. Where possibilities oftaking account offoreign qualifications exist, isafulllocal
examination oralocaltraining exceeding 12months required? Please specify. Isalocal
licence always necessary topractice aregulated accountancy activity? Please specify when
thisisnotthecase.
ToobtainPractisingCertificate,memberadmittedonthestrengthofmembershipofanapproved
other national institute would havetopassa"Conversion examination" inSwaziland Company Law,
Taxation andInsolvencies.S/WPPS/W/7/Add.28
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28. What aretheaccreditation/licensing requirements imposed onforeign professionals
authorised topractice intheirhome country? Maycertain (regulated) activities becarried
outonthebasis ofaforeign licence?
See27.
VI. REGULATIONS GOVERNING THE ESTABLISHMENT OFACOMMERCIAL
PRESENCE
29. Arethere anyrestrictions ontheform under which onecanestablish (partnership,
incorporation, other)? Please specify.
AuditPracticeisonlypermittedinformof"solepractitioner"or"partnership",notincorporation.
Restrictions onwhomaybeadmitted topartnerships.
30. Arethere restrictions onforeign direct investment andownership, including restrictions
applying tonotlocally qualified individuals orfirms? Please specify.
See21and29above.
31. Isthere arequirement ofaminimum number orpercentage oflocal directors, managers
orstaff(please specify)?
There isnolegalrestriction ondirectorships ormanagerships ofCompanies registered interms
ofCompanies Act.
32. Arethere restrictions ontheability oflocally established firms todevelop international
relations (membership ofaninternational network, association withforeign firms, etc.)?
Please specify.
Norestrictions.
33. Istheuseofinternational orforeign names restricted forfirms?
None -unless name isprohibited byexclusion ofcertain undesirable names interms of
Companies Act.
VII. REGULATIONSGOVERNINGTHEENTRYANDTEMPORARYSTAYOFNATURAL
PERSONS FOR THE PURPOSE OFSUPPLYING ACCOUNTANCY SERVICES
34. Istheentry andstayofprofessionals subject tolabour market tests oranyother
restrictions? Please specify.
Allpersons seeking residence andpermission towork inSwaziland have tohold
Residence/Work Permits under immigration laws. Usually issued for2,3or5years butsubject to
renewability.
Often conditional ontraining ofSwazi Citizen ascounterpart orsuccessor.S/WPPS/W/7/Add.28
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35. Isthere anyprocedure facilitating thetemporary entry andstayofprofessionals tosupply
accountancy services? Please explain.
See34.
36. Arethere anyrestrictions onhiring oflocal professionals byforeign firms and
professionals? Please explain.
Norestrictions. Employment oflocalcitizens atalllevels isencouraged.
VIII. NATIONALITY/RESIDENCY REQUIREMENTS
37. Isacondition ofnationality/citizenship imposed topractice certain activities, tostartan
education, toobtain alicence, tobecome member ofaprofessional body, etc.? Please
specify.
Admission tomembership ofInstitute isregulated byAccountants ActtoSwazi Nationals or
bona fideresidents inpossession ofresidents permits.
Partnerships mayhave"Non Resident Partners" provided eachisregistered withtheInstitute
and"country ofnormal residence" isdisclosed aftername onletterheads.
38. Isacondition ofestablishment, prior residency orresidency imposed topractice certain
activities, toobtain alicence, tobecome member ofaprofessional body, etc.? Please specify
theconditions andthedefinition ofestablishment, residency, etc.when relevant. Isit
possible tohave aprofessional establishment inmore thanonecountry?
Theabove applies onlytoPublic Practice asAuditors andAccountants.
Educational establishments mayhavetheirownadmission requirements asto"Residence" but
these areliberally applied.