The World Bank
The World Bank Group is a vital source of financial and technical assistance to developing countries and the world, with the goal of ending extreme poverty and boosting shared prosperity. The World Bank provides low-interest loans, interest-free credits, and grants to developing countries that support a wide array of investments in areas that include education, health, public administration, infrastructure, financial and private sector development, agriculture, and environmental and natural resource management. The World Bank also offers support through policy advice, research and analysis, knowledge sharing, and capacity development. The WBG’s annual commitment, which today is between US $45-$50 billion, is expected to grow to more than US $70 billion in the coming years.
The World Bank has set two goals for the world to achieve by 2030:
- End extreme poverty by decreasing the percentage of people living on less than US$1.25 a day to no more than 3%; and
- Promote shared prosperity by fostering income growth for the bottom 40% of the population for every country.
As an institution committed to the fight against poverty, the World Bank undertakes a number of activities to support the development and implementation of international accounting and auditing standards and high-quality financial reporting, both in the private as well as public sector. High-quality financial reporting contributes to promoting private sector growth by allowing investors to evaluate corporate prospects and make informed investment decisions that result in a lower cost of capital and better allocation of resources.
Reports on the Observance of Standards and Codes
The Reports on the Observance of Standards and Codes—Accounting and Auditing (ROSC AA) are part of the joint World Bank and International Monetary Fund Initiative on Standards and Codes that helps member countries strengthen their financial systems by improving compliance with internationally recognized standards and codes, and provides policy recommendations for building countries’ accounting and auditing capacity. The ROSC AAs focus on the adoption and implementation of International Financial Reporting Standards (IFRSs) and International Standards on Auditing™ (ISA™), as well as the legal, regulatory, and capacity factors that have an impact on effective implementation and associated practices. The review provides input to the country’s plans for capacity building and assists policymakers in supporting the development of the corporate sector and investors in assessing the reliability and transparency of corporate financial reporting.
The ROSC AA also aim to help policymakers and other country stakeholders develop a country action plan by identifying areas for work to enhance the accounting and auditing standards and practices in the country. The ROSC AA assessment is often followed by support to country stakeholders to develop and implement a Country Action Plan for accounting and auditing reforms and capacity development of professional accountancy organizations and regulatory authorities.
The World Bank conducts ROSC reviews at the invitation of a country utilizing a diagnostic tool developed to gather pertinent information for preparing the reports. The ROSC reports are published with permission of national authorities and accessible on the ROSC AA website.
- Reports on the Observance of Standards and Codes—Accounting and Auditing
- Overview of the ROSC Accounting and Auditing Program
- Lessons Learned from the World Bank’s Accounting and Auditing ROSC Program
Additional information is available on the World Bank website.