Audit firms’ licenses revoked
Dar es Salaam. The National Board of Accountant and Auditing (NBAA) has revoked two auditing firms’ licences, banned one –and directed legal action against accountants for professional irregularities.
The decisions come after investigations conducted in collaboration with the Tanzania Revenue Authority (TRA) revealed involvement of five accounting and auditing companies in cheating to evade tax.
Recently, President John Magufuli hinted at a meeting with leading businessmen that unscrupulous companies kept two sets of their accounts.
While one set had a true account showing a successful business – and which was used to obtain loans from creditors – the other set showed little or no profit, and was presented to TRA in seeking to evade taxes.
The NBAA board of directors chairman, Prof Isaya Jairo, told the board on Tuesday that two companies have been de-registered, while another has been suspended for two years.
Teg Consultancy and Matsab& Co should be invalidated from the registry – and Y. H.Malundo& Company be suspended for two years for violating national and international audit laws and guidelines, the chairman said.
Prof Jairo also directed that an accountant-cum-chairman, Mr Mazengo Kasilati – a CPA certification holder– should be demoted for failure to abide by accounting regulations.
He also directed that Mr Mathew Maparachichi be sued – and the Malundo Company chairman, Mr Malundo (CPA) be suspended for two years.
Since the irregularities involved workers of audited companies, the Matsab& Co employee, Mr Mathew Kumalija, be sued for claiming to hold qualifications he actually doesn’t have.
“He claims to hold a National Accountancy Diploma which is no longer recognised by the board. Therefore, he isn’t authorisedto sign financial audit reports,” he said.
“The board also suggested that legal action should be extended to two companies; Mek One General Limited and Mek One Industries Limited for their role in breaching Cap 286 of the Accountancy and Auditors Act,” he said. All in all, the board directed that all people implicated in such irregularities should have their names published in the media, the NBAA website and the Government Gazette. Also,the companies and employees involved in cheating should be have disciplinary action taken against them.
According to NBAA, various reports have indicated that Tanzania has shortage of qualified accountants compare to other African countries.
Qualified accountants are the ones who have passed the Board’s examination and awarded the Certified Public Accountants, CPA (T) certificate. Becoming a CPA (T) requires the candidates passing the Board’s examination and obtaining practical experience. Candidates pursuing the Board’s examination must have the same entry qualifications as for university.
The NBAA was established under the Auditors and Accountants(Registration) Act No 33 of 1972, as amended by Act No 2 of 1995.
It is an accountancy regulatory professional body, operating under the Ministry of Finance and Economic Affairs of Tanzania
