Malawi Strengthening the Accountancy Profession The SOciety of Accountants in Malawi (SOCAM) is the only professional accountancy body of the country. It is a member body of the International Federation of Accountants (IFAC). However, it lacks capacity to function as a modern professional accountancy body. The ROSC Accounting and Auditing (ROSC A&A) diagnostic work in Malawi has identified various shortcomings of the SOCAM. The ROSC A&A follow-up Country Action Plan has included SOCAM's capacity building as one of the most important actions in order to support the bolstering of the overall accountancy profession of Malawi. A strong professional accountancy body in Malawi will contribute to upgrading the quality of professional accountants and auditors in the country. This will lead to enhancing the quality of corporate financial information with attendant effect on private sector-led economic growth. High quality financial reporting is the cornerstone of a well functioning market economy and the bedrock of a robust financial system. Improving the quality of corporate financial reporting will help improve economic growth in Malawi by: - reducing the risk of financial crises and their associated negative economic impacts by strengthening the domestic financial architecture; - contributing to foreign direct and portfolio investment and helping to mobilize domestic savings; - facilitating smaller-scale corporate borrowers to have access to credit from the formal finacial sector by lowering high costs of information and borrowing; - allowing investors to properly evaluate corporate prospects and make informed investment and voting decisions, which results in a lower cost of capital and a better allocation of resources; allowing shareholders and the public at large to assess a company's management performance, thereby promoting the active development of capital markets; and supporting economic integration, both regionally and globally. As a member body of IFAC, SOCAM is required to comply with IFAC Statements of Membership Obligation (SMOs). The SMOs are established requirements for members and associates to promote, incorporate, and assist in implementing international standards issued by IFAC and the International Accounting Standards Board (IASB). The SMOs also establish requirements for quality assurance and invstigation and discipline activities. At present, SOCAM lacks the institutional capacity to comply fully with the IFAC's SMOs. Through a twinning arrangement, SOCAM can learn much from those more established IFAC member bodies which operate in compliance with SMOs. The goal of the proposed grant is to support the establishment of SOCAM's twinning arrangement with a strong professional accountancy body, which will enable SOCAM to move towards higher degree of compliance with SMOs. Moreover, the twinning arrangement will enable SOCAM to receive technical assistance fromt he strong twinning partner with regard to the operation of a modern and strong professional accountancy body in Malawi. The main objective of this project is to strengthen the capacity of Malawi#s national professional accountancy body # the Society of Accountants in Malawi (SOCAM) to function as a modern professional body, in line with international good practices. Strengthened capacity of SOCAM will enable it to more effectively carry out its functions i.e., provide professional accounting education and training, carry out licensing/accreditation of members, and ensure that its members maintain high standards of professional competence and integrity.  The main objective of this project is to strengthen the capacity of Malawi#s national professional accountancy body # the Society