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Tanzania, United Republic of

Member Organizations

  Member Organization   Associate

  National Board of Accountants and Auditors (Tanzania)

 

Legal and Regulatory Environment

  • Overview of Statutory Framework for Accounting and Auditing

    In Tanzania, all companies are required by the Companies Act of 2002 to prepare financial statements, either in English or Swahili, in compliance with the regulations prescribed by the Ministry of Finance and Planning of Tanzania (MoFP) or the National Board of Accountants and Auditors (NBAA).

    The NBAA, is entrusted under the Auditors and Accountants (Registration) Act No. 33 of 1972 and operates under the supervision of the MoFP, to set the applicable accounting and auditing standards in Tanzania.

    Accounting Framework

    The NBAA adopted IFRS and IFRS for Small- and Medium-sized Entities (SMEs) for application in Tanzania without modifications and including effective dates in 2004 and 2010, respectively. Following the issuance of IFRS for SMEs in 2009, the NBAA issued Technical Pronouncement No. 3 of October 2009 which adopts all future standards, amendments, and interpretations issued by the IASB and identifies the companies that must apply full IFRS and which companies may use IFRS for SMEs in the preparation of their financial statements.

    Full IFRS must be applied in the financial statements of all Public Interest Entities (PIEs), which include: (i) listed companies, (ii) banks and financial institutions, (iii) insurance companies, (iv) pension funds, (v) utility companies, (vi) commercial government agencies, (viii) mutual funds, (ix) SACCOs, (x) cooperative societies, (xi) securities brokers, and (xii) all entities which receive payments from the government, except those required to use IPSAS.

    Additionally, all entities with 100 or more employees or with capital investment of more than Tanzania Shillings (TZS) 800,000,000 must also apply full IFRS.

    Full IFRS or IFRS for SMEs are permitted for companies: (i) that are not PIEs; (ii) with less than 100 employees; or (iii) with capital investment of less than TShs 800,000,000. Furthermore, the use of IFRS is incorporated into the regulations of the Bank of Tanzania, the Tanzania Insurance Regulatory Authority (TIRA), the Dar es Salaam Stock Exchange (DSE), and the Capital Market and Securities Authority (CMSA).

    Auditing Framework

    The Companies Act 2002 obliges all companies to undergo an annual audit unless they meet specific size criteria. However, those conditions have yet to be specified in regulation by the MoFP. In 2004, the NBAA adopted ISA without modifications for application in all statutory audits. After the initial adoption, the NBAA has continued to adopt all revisions of ISA without modifications and including effective date.

  • Regulation of Accountancy Profession

    The accountancy profession in Tanzania is regulated by the National Board of Accountants and Auditors (NBAA) under the Auditors and Accountants (Registration) Act No. 33 of 1972.

    The NBAA, operating under the supervision of the Ministry of Finance and Planning (MoFP), is mandated by the Act to regulate the activities and conduct of accountants and auditors, including (i) establishing initial and continuing professional development (IPD and CPD) and ethical requirements; (ii) conducting examinations and granting qualifications of the Board for accounting and auditing; (iii) maintaining registers of accountants and auditors; (iv) operating a quality assurance review system and an investigative and disciplinary system; and (v) setting accounting and auditing standards.

    Under the Act, Authorized Auditor, Authorized Accountant, and Approved Accountant are legally protected categories and registrations. Individuals must have educational and practical experience and pass examinations determined by the NBAA.

    To sit for NBAA’s examinations for the Certified Public Accountant (CPA(T)) designation and registration as an Authorized Accountant, candidates must possess a university degree in accounting or an equivalent qualification (e.g. NBAA’s Accounting Technician Certificate (ATEC) or a two-year diploma in Accounting/Accounting and Finance). Individuals must then complete a minimum of three years’ practical experience.

    To offer auditing services and register as an Authorized Auditor, individuals must obtain the CPA–PP designation. The CPA–PP qualification is the same as the CPA(T) qualification, but individuals must have completed their practical training under the supervision of another CPA–PP member. Practicing certificates are issued and renewed annually. All CPA (T)s and CPA-PPs must be a registered member of NBAA.

    As noted above, NBAA also offers an Accounting Technician (ATEC) Certificate. To earn the AT Certificate, individuals must meet initial education requirements such as having a Certificate of Secondary Education Examination (CSEE) with at least three credit passes and a pass grade in Mathematics and English Language. After passing NBAA’s AT examinations, candidates must attain some practical experience in accounting and submit employer details in order to register with NBAA. Accounting Technicians who choose to register with NBAA then become subject to NBAA’s regulations.

    Individuals with foreign qualifications must pass a minimum of three papers under the NBAA syllabus in order to work as a professional accountant in Tanzania and be registered with the NBAA.

  • Audit Oversight Arrangements

    There is no independent audit oversight arrangement in Tanzania.

    Auditors are regulated by the National Board of Accountants and Auditors (NBAA) which was established under the Auditors and Accountants (Registration) Act No. 33 of 1972 and operates under the supervision of the Ministry of Finance and Planning (MoFP).

    The NBAA is mandated by the Act to regulate the activities and conduct of auditors, including (i) establishing initial and continuing professional development (IPD and CPD) and ethical requirements; (ii) conducting examinations and granting qualifications of the Board for accounting and auditing; (iii) maintaining registers of accountants and auditors; (iv) operating a quality assurance review system and an investigative and disciplinary system; and (v) setting auditing standards. Membership of NBAA is mandatory to offer auditing services in the jurisdiction. Individuals must obtain the CPA–PP designation by fulfilling education, practical, and examination requirements and subsequently, become a registered member of the NBAA. The practical experience component must have been completed under the supervision of another CPA–PP and CPA–PPs are subject to annual renewal and registration on NBAA’s registry.

  • Professional Accountancy Organizations

    The National Board of Accountants and Auditors (NBAA)

    The NBAA was established under the Auditors and Accountants (Registration) Act No. 33 of 1972 and operates under the supervision of the Ministry of Finance and Planning (MoFP). The NBAA is mandated by the Act to regulate the activities and conduct of accountants and auditors, including (i) establishing initial and continuing professional development (IPD and CPD) and ethical requirements; (ii) conducting examinations and granting qualifications of the Board for accounting and auditing; (iii) maintaining registers of accountants and auditors; (iv) operating a quality assurance review system and an investigative and disciplinary system; and (v) setting accounting and auditing standards. Membership of NBAA is mandatory to offer public accountancy services in the jurisdiction while Accounting Technicians may voluntarily join.

    In addition to being a Member of IFAC, the NBAA is a founding member of the Pan African Federation of Accountants.

  • Projects or Other Information

    As of the date of the assessment, the Auditors and Accountants (Registration) Act No. 33 of 1972 is under review. The NBAA has submitted new legislation, which is expected to be reviewed by Parliament in 2021. The new Act would expand NBAA’s regulation of accounting technicians and tax accountants and create new membership categories and rules. The Act would also create an independent entity for quality assurance reviews and will allow the institute to enhance its enforcement procedures.

 

Adoption of International Standards

  • Quality Assurance

    The Auditors and Accountants (Registration) Act No. 33 of 1972 and its amendments authorize the National Board of Accountants and Auditors (NBAA) to establish a quality assurance (QA) review system for all audits.

    In 2005, the NBAA operationalized its QA review system. The NBAA reports that its review cycle is three years and audits of listed companies are subject to reviews at least once each cycle while other audit engagements are subject to engagement reviews whereby a sample of attest engagement files are reviewed at least once in a review cycle.

    The NBAA states that it developed its QA review system in line with the SMO 1 requirements.

    Current Status: Adopted

  • International Education Standards

    The Auditors and Accountants (Registration) Act No. 33 of 1972 and its amendments empower the National Board of Accountants and Auditors (NBAA) to regulate the activities and conduct of professional accountants. Under the Act, Authorized Auditor, Authorized Accountant, and Approved Accountant are legally protected categories and registrations. Individuals must have educational and practical experience and pass examinations determined by the NBAA. NBAA therefore establishes initial and continuing professional development (IPD and CPD) and conducts examinations while NBAA-approved training institutions are responsible for delivering the accountancy education.

    To sit for NBAA’s examinations for the Certified Public Accountant (CPA(T)) designation, candidates must possess a university degree in accounting or an equivalent qualification (e.g. NBAA’s Accounting Technician Certificate (ATEC) or a two-year diploma in Accounting/Accounting and Finance). Individuals must then complete a minimum of three years’ practical experience. After completing these requirements, individuals can be registered as an Authorized Accountant.

    To offer auditing services and register as an Authorized Auditor, individuals must obtain the CPA–PP designation. The CPA–PP qualification is parallel to the CPA(T) qualification, but individuals must have completed their practical training under the supervision of another CPA–PP member.

    Additionally, individuals with foreign qualifications must pass examinations on local taxation and business law prior to registering with the NBAA, a requirement to provide accounting and auditing services in Tanzania.

    NBAA also offers an Accounting Technician (AT) Certificate. To earn the AT Certificate, individuals must meet initial education requirements such having a Certificate of Secondary Education Examination (CSEE) with at least three credit passes and a pass grade in Mathematics and English Language. After passing NBAA’s AT examinations, candidates must attain some practical experience in accounting and submit employer details in order to register with NBAA. Registration as an AT is voluntarily as of 2020.

    NBAA reports that its IPD requirements align with the latest IES requirements and a revised syllabus was effective November 2019 for CPAs and ATs.

    CPA (T) and CPA-PP members must fulfill 40 hours of CPD per year whereas AT members must complete 20 hours. NBAA states its CPD requirements align with IES 7 and 8.

    Current Status: Adopted

  • International Standards on Auditing

    The Auditors and Accountants (Registration) Act No. 33 of 1972 establish the National Board of Accountants and Auditors (NBAA) as the auditing standard-setter in Tanzania.

    In 2004, the NBAA adopted ISA without modifications for application in all audits in Tanzania. After the initial adoption, NBAA reports it has continued to adopt all revisions of ISA without modifications and including effective date.

    Current Status: Adopted

  • Code of Ethics for Professional Accountants

    The Auditors and Accountants (Registration) Act No. 33 of 1972 permits the National Board of Accountants and Auditors (NBAA) to set ethical requirements for all professional accountants.

    The NBAA reports that it has adopted the IESBA Code of Ethics without modifications and any revisions to the Code are automatically adopted. Accordingly, the NBAA indicates that the 2020 International Code of Ethics is applicable.

    Current Status: Adopted

  • International Public Sector Accounting Standards

    The Tanzanian government is responsible for adopting public sector accounting standards. The government issued a pronouncement in 2004 adopting accrual-basis IPSAS for both central and local governments and began applying accrual-basis IPSAS in 2012-13. (IFAC, CIPFA 2018).

    Current Status: Adopted

  • Investigation and Discipline

    Under the Auditors and Accountants (Registration) Act No. 33 of 1972 and its amendments, the National Board of Accountants and Auditors (NBAA) is responsible for establishing an investigative and disciplinary (I&D) system for all professional accountants.

    The institute has established a Membership, Ethics, and Compliance Ethics Committee to carry out the I&D processes and indicates that it is working to strengthen the system to meet the SMO 6 requirements. The NBAA expects to have a new Act enacted in 2021 that will allow the institute to enhance its I&D procedures, including separating the investigative and disciplinary processes and strengthening independence by permitting non-accountants on the committee.

    Current Status: Partially Adopted

  • International Financial Reporting Standards

    The Companies Act of 2002 requires all companies to prepare financial statements in compliance with the regulations prescribed by the Ministry of Finance and Planning of Tanzania (MoFP) or the National Board of Accountants and Auditors (NBAA).

    The NBAA, established under the Auditors and Accountants (Registration) Act No. 33 of 1972, issued Technical Pronouncement No. 3 of October 2009 which adopts all future standards, amendments, and interpretations issued by the IASB and identifies the companies that must apply full IFRS and which companies may use IFRS for SMEs in the preparation of their financial statements.

    Full IFRS must be applied in the financial statements of all Public Interest Entities (PIEs), which include: (i) listed companies, (ii) banks and financial institutions, (iii) insurance companies, (iv) pension funds, (v) utility companies, (vi) commercial government agencies, (viii) mutual funds, (ix) SACCOs, (x) cooperative societies, (xi) securities brokers, and (xii) all entities which receive payments from the government, except those required to use IPSAS.

    Additionally, all entities with 100 or more employees or with capital investment of more than Tanzania Shillings (TZS) 800,000,000 must also apply full IFRS.

    Full IFRS or IFRS for SMEs are permitted for companies: (i) that are not PIEs; (ii) with less than 100 employees; or (iii) with capital investment of less than TZS 800,000,000.

    Current Status: Adopted

 

Disclaimer

IFAC bears no responsibility for the information provided in the SMO Action Plans prepared by IFAC member organizations. Please see our full Disclaimer for additional information.

Methodology

Methodology
Last updated: 11/2022
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