NIPA welcomes PAAB Act proposal
The Namibia Institute of Professional Accountants (NIPA) has welcomed proposed amendments to the Public Accountants’ and Auditors’ Board (PAAB) Act, saying these will improve accountability and trust in the industry.
Under the amendments, all persons in the accounting industry who render services for a fee to the public must be registered at a Professional Accredited Organisation (PAO), which will then allow accreditation at the regulatory body.
This will extend existing rules, which previously only applied to auditors, accountants and bookkeepers across the industry.
NIPA’s CEO Essie Herbst said the Institute recognises the role of professional accountants and auditors is often misunderstood by the public.
“Our main role is to protect public interest and to restore the trust stakeholders require in the financial information they are given.”
The value of accountants and auditors is also undermined by the number of unregistered persons working in the industry, possibly providing low-quality services, combined with pricing below market rates,” Herbst added.
NIPA also warned that persons working in the accounting, taxation and bookkeeping industries should register promptly with a PAO and prepare themselves to ensure their smooth transition to become a recognised member of the AARA.
“The business community should be aware that any private person working for their own account as part of their financial obligations must be registered with a PAO and AARA,” Herbst continued.
Professionals within the industry play a vital role in defending the quality of financial reporting, contributing to the overall stability of society and aiding progress towards a brighter future.
By producing accurate data and analysis, bookkeepers, accountants and auditors help to maintain data and information that is crucial to maintain public trust in Namibian’s businesses and other financial institutions.
They perform varied roles as independent accountants, tax practitioners, internal auditors and a vast array of other roles, rigorously examining the reliability of financial reporting.
“Noting the invaluable role accounting institutions play in providing consultancy services to the public, Herbst stated that professional accountants and auditors understand the challenges of balancing the demands of the real world with upholding the values of their sector. These are especially important in difficult times where poor behaviour could otherwise become the norm,” Herbst stated.
Globally, professional accounting bodies represent, promote and enhance the global accountancy profession.
On a national level, member organisations for professional accountants serve as the voice for professional accountants – both in practice and in business.
“It is imperative that member organisations representing accounting and auditing firms continue to amplify the importance of accountancy in Namibia along with helping professionals to uphold the required standards and values,” Herbst stated.
Herbst further advised individuals working at any level within the accounting profession to affiliate themselves to member organisations, stating this will ensure all professionals working in the sector have access to the same highquality education and career enhancement opportunities.
NIPA welcomed the challenges of the amendments to the PAAB Act, cautioning professionals in the industry to familiarise themselves with its obligations and join a professional body as soon as possible.