Botswana

The corporate financial reporting framework in Botswana is set out in the Companies Act, Cap. 42:01, which came into force on July 3, 2007, and the Financial Reporting Act, 2010, as amended by the Financial Reporting (Amendment) Act, 2020. The Companies Act requires the preparation of financial statements by companies and establishes mandatory audit requirements, while exempt private companies may resolve not to appoint an auditor. The Act further requires public companies and non-exempt private companies to prepare financial statements in accordance with International Financial Reporting Standards (IFRS). Exempt private companies prepare financial statements using generally accepted accounting principles applicable to exempt private companies.

The Financial Reporting Act, 2010 established the Botswana Accountancy Oversight Authority (BAOA) as the independent oversight body for the accounting and auditing profession. BAOA’s mandate includes regulating the reporting of financial matters of public interest entities and the corporate sector, and issuing, adopting, establishing, monitoring, and enforcing financial reporting, accounting, and auditing standards. Current BAOA materials confirm that the Act is read together with the Financial Reporting (Amendment) Act, 2020 and that the Financial Reporting Regulations, 2021 are in force.

Under the Financial Reporting Act and the Financial Reporting Regulations, 2021, public interest entities include entities listed on the Botswana Stock Exchange; banks and deposit-taking institutions supervised by the Bank of Botswana; insurance companies, pension and provident funds, collective investment undertakings, and other entities supervised by the Non-Bank Financial Institutions Regulatory Authority; entities that exceed at least two specified size thresholds; and partly or wholly funded public bodies. Public interest entities are required to comply with IFRS.

The Companies Act and the current IFRS Foundation jurisdiction profile indicate a differential reporting framework. Public companies, non-exempt private companies, and entities with public accountability apply full IFRS. Companies without public accountability that qualify as exempt private companies are permitted to apply the IFRS for SMEs Accounting Standard and may also elect to apply full IFRS. The IFRS for SMEs Accounting Standard is therefore permitted in Botswana rather than mandatory.

For statutory audits, the Companies Act requires the auditor’s report to be made in accordance with International Standards on Auditing (ISA). In addition, BAOA’s current mandate and committee materials indicate that auditing pronouncements and the International Code of Ethics for Professional Accountants (including International Independence Standards), issued by the International Auditing and Assurance Standards Board (IAASB) and the International Ethics Standards Board for Accountants (IESBA), respectively, are used as the international benchmarks in the jurisdiction.

Professional accountants in Botswana are subject to regulation by the Botswana Institute of Chartered Accountants (BICA) in accordance with the Accountants Act, 2010, as amended by the Accountants (Amendment) Act, 2020. Certified auditors and audit firms are licensed and regulated by the Botswana Accountancy Oversight Authority (BAOA) under the Financial Reporting Act, 2010, as amended.

As noted, BAOA is empowered with regulatory and oversight functions in respect of auditors and audit firms. In addition to overseeing BICA’s activities within the scope of the legal framework, BAOA’s responsibilities include: licensing certified auditors and audit firms; maintaining registers of certified auditors and audit firms; overseeing and monitoring the performance and conduct of certified auditors through audit practice reviews; establishing and maintaining an investigative and disciplinary system for certified auditors and firms; and issuing, monitoring, and enforcing financial reporting, ethical, and auditing standards and codes. Since the commencement of the 2020 amendments, responsibility for the registration and regulation of certified auditors was transferred from BICA to BAOA.

In accordance with the Accountants Act, 2010, as amended, BICA’s responsibilities include: establishing, developing, and implementing the Botswana Chartered Accountancy Qualification (BCAQ); establishing and monitoring compliance with initial professional development and continuing professional development requirements; overseeing professional examinations; implementing quality assurance reviews for non-audit member firms; establishing and publishing a Code of Ethics aligned with the International Code of Ethics for Professional Accountants (including International Independence Standards); investigating and disciplining members for professional misconduct; and maintaining registers of members, students, and member firms.

To enter the BCAQ program, candidates are required to meet the academic and professional entry requirements established by BICA. These include holding a recognized university degree or an equivalent qualification accepted by BICA, or holding recognized professional accountancy qualifications. Candidates must then complete the prescribed professional examinations, practical experience requirements with an Authorized Training Employer (ATE), and structured ethics training in order to qualify as Chartered Accountants and apply for BICA membership. Current BICA requirements continue to include supervised practical experience and ongoing professional development obligations for members.

In accordance with the Financial Reporting Act, 2010, as amended, the Botswana Accountancy Oversight Authority (BAOA) is the independent audit oversight entity in Botswana. BAOA is responsible for the oversight and regulation of certified auditors and audit firms, including registration, audit practice reviews, enforcement of applicable auditing and ethical standards, and investigative and disciplinary processes.

BAOA is an affiliate of the International Forum of Independent Audit Regulators (IFIAR). Its oversight and regulatory responsibilities are outlined in the Regulation of the Accountancy Profession section.

Botswana Institute of Chartered Accountants (BICA)

The Botswana Institute of Chartered Accountants (BICA) was established in 1990 following the adoption of the Accountants Act, 1988, and continues to operate under the Accountants Act, 2010, as amended. BICA is the professional accountancy organization responsible for developing and regulating the accountancy profession in Botswana, under the oversight of the Botswana Accountancy Oversight Authority (BAOA). BICA is a mandatory membership organization comprising professional accountants, students, and member firms.

BICA’s responsibilities include: establishing, developing, and implementing the Botswana Chartered Accountancy Qualification (BCAQ); establishing and monitoring compliance with initial professional development and continuing professional development requirements; overseeing professional examinations; implementing a quality assurance review system for non-audit member firms; establishing and publishing a Code of Ethics aligned with the International Code of Ethics for Professional Accountants (including International Independence Standards); investigating and disciplining members for professional misconduct; and maintaining registers of members, students, and member firms.

Following the legislative amendments that transferred responsibility for the licensing and regulation of certified auditors to BAOA, BICA’s role continues to focus on qualification, membership regulation, professional development, ethical standards, and oversight of non-audit member firms within the scope of its statutory mandate.

In addition to being a member of the International Federation of Accountants (IFAC), BICA is a member of the Pan African Federation of Accountants (PAFA).

The Accountants Act, 2010, as amended, and the Financial Reporting Act, 2010, as amended, provide the legal basis for quality assurance review systems in Botswana. The Botswana Accountancy Oversight Authority (BAOA) is responsible for conducting audit practice reviews of certified auditors and audit firms, while the Botswana Institute of Chartered Accountants (BICA) carries out quality assurance reviews for non-audit member firms. Following the coming into force of the Accountants (Amendment) Act, 2020 and the Financial Reporting (Amendment) Act, 2020, responsibility for the regulation and review of non-public interest entity auditors was transferred to BAOA.

BAOA’s audit practice review system is operational for both public interest entity and non-public interest entity audit firms and auditors. BAOA reports that all certified audit firms and certified auditors are required to be reviewed at least once within a three-year cycle. Audit practice reviews consist of a firm-level review of the system of quality management and a review of selected assurance engagements. BAOA’s 2024 Integrated Report states that firm reviews assess compliance with International Standards on Quality Management (ISQM) 1 and 2, which became effective on 15 December 2022.

The Financial Reporting Regulations, 2021 further support the operation of the system by providing for re-reviews of public interest entities, audit firms, certified auditors, and professional accountancy bodies, as well as enforcement measures where contraventions are identified. BICA indicates that BAOA’s procedures meet the Statement of Membership Obligations 1 (SMO 1) benchmark and that the relevant standards, including ISQM 1, ISQM 2, and International Standard on Auditing (ISA) 220 (Revised), are applicable. BICA continues to conduct inspections of non-audit firms using SMO 1 as best practice.

Current Status: Adopted

The Accountants Act, 2010, as amended, establishes the legal basis for professional accountancy education requirements in Botswana and authorizes the Botswana Institute of Chartered Accountants (BICA) to establish more specific initial professional development and continuing professional development requirements for professional accountants. In accordance with the Financial Reporting Act, 2010, as amended, the Botswana Accountancy Oversight Authority (BAOA) oversees the training, professional development programmes, and examinations carried out by BICA.

BICA has established and implemented the Botswana Chartered Accountancy Qualification (BCAQ) as the national professional qualification framework. The BCAQ is based on the Institute of Chartered Accountants in England and Wales (ICAEW) qualification materials, with additional modules tailored to Botswana’s tax and business law environment. The ICAEW qualification framework is aligned with the International Education Standards (IES) and provides a learning outcomes-based approach to technical competence, professional skills, ethics, and professional values.

Following completion of the professional examinations, candidates are required to complete a minimum of three years of practical experience with an Authorized Training Employer (ATE) and demonstrate achievement of the prescribed competencies prior to admission as professional accountants.

BICA has also established mandatory continuing professional development (CPD) requirements of 40 hours per year for members, with monitoring and compliance mechanisms in place. These requirements are intended to align with the latest IES requirements for continuing professional development and competence of engagement partners.

In addition, BICA is accredited as an education and training provider by the Botswana Qualifications Authority (BQA) under the National Credit and Qualifications Framework (NCQF) and offers approved short-term learning programmes through the Human Resource Development Council (HRDC) framework.

BICA reports that it works closely with tertiary institutions, tuition providers, and training employers to ensure ongoing alignment of the BCAQ and CPD framework with the latest IES requirements.

Current Status: Adopted

The Financial Reporting Act, 2010, as amended, empowers the Botswana Accountancy Oversight Authority (BAOA) to issue, adopt, establish, monitor, and enforce auditing standards in Botswana. BAOA’s statutory mandate includes the responsibility to adopt and keep auditing standards up to date in line with international best practice.

BAOA has adopted International Standards on Auditing (ISA) as issued by the International Auditing and Assurance Standards Board (IAASB), including their effective dates. Based on the current framework and the 2025 edition of the IAASB Handbook being in use in the jurisdiction, ISA in effect as of the time of the assessment are adopted and apply to all mandatory audits in Botswana. This supports an Adopted assessment under the current adoption definitions.

At the time of this assessment, no separate public notice confirming specific jurisdictional adoption or implementation guidance for ISA for Less Complex Entities by BAOA has been identified.

Current Status: Adopted

The Accountants Act, 2010, as amended, requires the Botswana Institute of Chartered Accountants (BICA) to establish a Code of Ethics for professional accountants that is aligned with the International Code of Ethics for Professional Accountants (including International Independence Standards) issued by the International Ethics Standards Board for Accountants (IESBA).

BICA reports that the 2025 edition of the IESBA Handbook, including the latest ethical and independence requirements in effect as of the time of the assessment, has been adopted for application by professional accountants regulated by BICA. This supports an Adopted assessment under the current methodology.

BICA’s activities are subject to the oversight of the Botswana Accountancy Oversight Authority (BAOA) in accordance with the Financial Reporting Act, 2010, as amended. The Act authorizes BAOA to adopt and issue ethics standards for the profession, including auditors and audit firms under its regulatory remit. BAOA applies the Code as issued by IESBA.

The Code in use in Botswana is aligned with the 2025 IESBA Handbook and therefore includes the most recent revisions and pronouncements in effect at the time of the assessment.

Current Status: Adopted

The accounting basis for the public sector in Botswana is determined through the Public Finance Management framework, including the Public Finance Management Act, and related government financial reporting regulations. The Financial Reporting Act, 2010, as amended, provides for the adoption of International Public Sector Accounting Standards (IPSAS) and empowers the Botswana Accountancy Oversight Authority (BAOA) to enforce compliance with applicable standards where relevant.

Public sector financial reporting in Botswana is currently in transition from a cash-based framework toward accrual-based IPSAS. Publicly available sources, including the International Monetary Fund and national professional training institutions, indicate that the Government has initiated a phased migration to accrual accounting and is implementing capacity-building programmes to support reporting in accordance with accrual-based IPSAS.

The transition process remains ongoing and full application of accrual-basis IPSAS for all public sector entities has not yet been demonstrated as effective in the jurisdiction.

Current Status: Partially Adopted

The Accountants Act, 2010, as amended, establishes the legal foundation for the investigative and disciplinary system applicable to members of the Botswana Institute of Chartered Accountants (BICA). Under the Act, BICA is responsible for investigating and disciplining its members for professional misconduct and for violations of its rules, standards, and ethical requirements. The Act also provides for an appeals mechanism.

BICA has previously reported that, since the passage of the Accountants Act, 2010, as amended, it has repeatedly taken steps to strengthen its investigative and disciplinary mechanisms to align with the Statement of Membership Obligations 6 (SMO 6) requirements. These include changes to the composition of the Disciplinary Committee, including the introduction of an independent chairperson with a legal background, and the establishment of an Independent Accounting Appeals Committee appointed by the Minister of Finance with an independent secretary.

Investigative and disciplinary matters relating to certified auditors and audit firms are performed by the Botswana Accountancy Oversight Authority (BAOA) under the Financial Reporting Act, 2010, as amended, and the Financial Reporting Regulations, 2021. BAOA’s mandate includes enforcement, disciplinary action, and public-interest disclosures where appropriate.

Accordingly, an investigative and disciplinary system is established and operational at the jurisdiction level for all professional accountants and certified auditors regulated within Botswana. Based on the jurisdiction’s previously reported alignment with SMO 6 and the statutory framework currently in place, the jurisdiction continues to be assessed as Adopted.

Current Status: Adopted

The corporate financial reporting framework in Botswana is established under the Companies Act, Cap. 42:01 and the Financial Reporting Act, 2010, as amended. Public companies and non-exempt private companies are required to prepare financial statements in accordance with International Financial Reporting Standards (IFRS).

The Botswana Accountancy Oversight Authority (BAOA) is responsible for issuing, adopting, establishing, monitoring, and enforcing financial reporting standards for public interest entities (PIEs) and the corporate sector. Under the Financial Reporting Act and the Financial Reporting Regulations, 2021, PIEs include listed entities, banks and other deposit-taking institutions, insurance companies, pension and provident funds, collective investment undertakings, other regulated financial institutions, large entities meeting prescribed thresholds, and partly or wholly funded public bodies.

According to the IFRS Foundation Jurisdictional Profile for Botswana, domestic companies whose debt or equity securities trade in a public market are required to apply IFRS in their consolidated financial statements. IFRS are adopted as issued by the International Accounting Standards Board (IASB), with standards and amendments adopted as and when issued and without modification.

The jurisdiction has also adopted the IFRS for Small and Medium-sized Entities (IFRS for SMEs) Accounting Standard without modification. Companies that do not have public accountability and meet the threshold to qualify as exempt companies under the Companies Act are permitted to apply the IFRS for SMEs Accounting Standard, and may also elect to apply full IFRS. This does not affect the jurisdiction’s overall IFRS adoption rating.

Accordingly, IFRS in effect as of the time of the assessment are adopted and required for all domestic publicly accountable entities (PAEs) in consolidated general purpose financial statements, and the jurisdiction continues to be assessed as Adopted.

Current Status: Adopted

Relevant Organizations

Botswana Accountancy Oversight Authority (BAOA)

Botswana Institute of Chartered Accountants (BICA)

Botswana Qualifications Authority (BQA)

International Forum of Independent Audit Regulators (IFIAR)

Relevant Legislation

HYPERLINK "https://botswanalaws.com/consolidated-statutes/principle-legislation/accountants"Accountants Act, 2010 (as amended by Accountants (Amendment) Act, 2020)

Accountants (Amendment) Act, 2020

Companies Act, Cap. 42:01 (Act 32 of 2003; commenced 2007)

Financial Reporting Act, 2010

Financial Reporting (Amendment) Act, 2020

Financial Reporting Regulations, 2021

Relevant Publications

Botswana Accountancy Oversight Authority (BAOA), Integrated Report 2024

Botswana Institute of Chartered Accountants (BICA), Events and Technical Guidance Resources

Botswana Institute of Chartered Accountants (BICA), 2025 IESBA Handbook Volume 2

IFRS Foundation, IFRS Application Around the World—Jurisdictional Profile: Botswana

International Monetary Fund, Botswana Public Financial Management and Accrual Transition References

World Bank, Report on the Observance of Standards and Codes (ROSC)—Accounting and Auditing: Botswana