Zimbabwe

The accountancy profession in Zimbabwe is primarily governed by the Public Accountants and Auditors Act [Chapter 27:12], as amended. This Act establishes the regulatory framework for public accountants and auditors and provides for the establishment and functions of recognized professional accountancy organizations operating within the jurisdiction.

The preparation of financial statements is governed by the Companies and Other Business Entities Act [Chapter 24:31], which sets out requirements relating to the preparation and presentation of financial statements by companies incorporated in Zimbabwe. The Public Accountants and Auditors Act further provides for the prescription and application of accounting standards in the jurisdiction. In practice, publicly accountable entities are required to apply IFRS Accounting Standards. Small and medium-sized entities may apply IFRS for SMEs, subject to eligibility criteria and regulatory requirements. The authority responsible for oversight of accounting and auditing standards under the Act is the Public Accountants and Auditors Board (PAAB).

Mandatory audit requirements are established under the Companies and Other Business Entities Act, which specifies the categories of entities subject to statutory audit. The Public Accountants and Auditors Act regulates the conduct of statutory audits and requires that such audits be performed in accordance with prescribed auditing standards. International Standards on Auditing (ISA), as adopted in Zimbabwe, are applied in the performance of mandatory audits.

Zimbabwe operates a differential reporting framework. Publicly accountable entities are required to apply full IFRS Accounting Standards in the preparation of their general purpose financial statements. Small and medium-sized entities may apply IFRS for SMEs, where permitted. Certain regulated entities, including banks and insurance companies, may also be subject to additional reporting and disclosure requirements imposed by their respective sector regulators, such as the Reserve Bank of Zimbabwe or the Insurance and Pensions Commission.

The regulation of the accountancy profession in Zimbabwe follows a shared regulatory model. The Public Accountants and Auditors Act [Chapter 27:12] establishes the Public Accountants and Auditors Board (PAAB) as the statutory regulator of the profession. The PAAB is responsible for oversight of public accountants and auditors and for ensuring compliance with applicable legal, professional, and ethical requirements. Professional accountancy organizations, including the Chartered Governance and Accountancy Institute in Zimbabwe (CGI), operate within this statutory framework and are recognized under the Act.

Regulation of Auditors

Auditors in Zimbabwe are regulated under the Public Accountants and Auditors Act. The PAAB has statutory authority to register public accountants and auditors, maintain registers of licensed practitioners and audit firms, and oversee compliance with applicable standards. The Board is also responsible for establishing requirements relating to professional conduct, continuing professional development, and practice monitoring. Only individuals and firms registered with the PAAB may perform statutory audits.

Entry into the audit profession requires meeting prescribed education, practical experience, and examination requirements, as established by the relevant professional body and recognized by the PAAB. Candidates must complete an approved professional qualification, obtain the required period of practical experience, and satisfy any additional registration requirements set by the regulator. Continuing professional development is mandatory for registered practitioners.

Technical standards applicable to auditors, including auditing and ethical standards, are prescribed within the regulatory framework and are aligned with internationally recognized standards as adopted in the jurisdiction. The PAAB is also responsible for ensuring the quality of audit services through oversight mechanisms established under the Act. Disciplinary measures in cases of non-compliance may be imposed in accordance with the statutory provisions governing investigation and discipline.

Regulation of Accountants

Professional accountants who do not engage in statutory audit are subject to regulation through their respective professional accountancy organizations. Membership in a recognized professional body such as CGI may be mandatory for the use of protected professional designations. These professional bodies establish and enforce education requirements, ethical standards, and continuing professional development obligations for their members, within the parameters of the national legal framework.

Professional accountancy organizations are responsible for setting entry requirements for their respective qualifications, including initial professional development, practical experience, and final assessments. They also monitor compliance with continuing professional development requirements and maintain internal investigative and disciplinary mechanisms applicable to their members.

Where applicable, oversight coordination exists between the PAAB and recognized professional accountancy organizations to ensure that regulatory responsibilities are clearly defined and that the public interest is protected. There are no parallel statutory regulators for auditors outside the framework established by the Public Accountants and Auditors Act.

Zimbabwe has an independent statutory regulator for the audit profession established under the Public Accountants and Auditors Act [Chapter 27:12]. The Public Accountants and Auditors Board (PAAB) serves as the audit oversight authority in the jurisdiction.

The PAAB derives its legal authority from the Public Accountants and Auditors Act, which empowers it to register public accountants and auditors, regulate audit firms, prescribe professional and ethical standards, and oversee compliance with applicable requirements. The Board is responsible for practice review and monitoring, enforcement of professional standards, and investigation and discipline of registered practitioners where necessary. Through these functions, the PAAB performs independent oversight of the audit profession in the public interest.

There is no separate audit oversight body outside of the PAAB framework. Oversight responsibilities are centralized within the statutory authority established by the Act.

As of the date of this report, the PAAB is not a member of the International Forum of Independent Audit Regulators (IFIAR).

Zimbabwe has eight recognized professional accountancy organizations—referred to as principal and associate bodies in legislation:

Principal PAOs

Institute of Certified Public Accountants in Zimbabwe (ICPAZ)

ICPAZ is a locally incorporated company, limited by guarantee, and successor to a body that used to specialize in public sector finance and accounting. ICPAZ coordinates the examination of its members, the majority of whom work in the public sector, with CPA Ireland. ICPAZ is authorized to serve as a representative body to (i) promote the interest of its members, particularly as it relates to the public sector; (ii) administer the examinations for candidates for admission; (iii) ensure its members’ adherence to professional and ethical standards in the provision of services; (iv) investigate complaints and impose disciplinary sanctions; and (v) offer training and professional education. It is a member of Pan African Federation of Accountants but not IFAC.

Institute of Chartered Accountants of Zimbabwe (ICAZ)

ICAZ is a statutory body incorporated under the Chartered Accountants Act (Chapter 27:02). It is the largest body and its members are the main providers of audit services. ICAZ membership is mandatory for offering public accountancy and auditing services in Zimbabwe. ICAZ’s membership consists of Chartered Accountants (Zimbabwe) (CA(Z)) and Articled Accountants (AAZ) (pre-professionals). In accordance with Section 4 of the Chartered Accountants Act, ICAZ’s responsibilities include: (i) establishing and maintaining a register of its members; (ii) establishing and implementing initial and continuing professional development (IPD and CPD) requirements seeking to obtain and maintain its CA designation; (iii) setting ethical requirements for its members; and (iv) establishing and implementing an investigation and discipline system for its members. In addition to being a Member of IFAC, ICAZ is a member of the Pan African Federation of Accountants.

Chartered Governance and Accountancy Institute in Zimbabwe (CGI)

CGI is a division of the Institute of Chartered Secretaries and Administrators in the United Kingdom established by the Chartered Secretaries (Private) Act (Chapter 27:03). CGI is authorized to administer examinations, register members and firms, administer continuing professional development, enforce compliance with the code of professional conduct, conduct investigations of members, and take appropriate disciplinary actions as required. Overall, according to the World Bank’s Report on the Observance of Standards and Codes (ROSC)—Accounting and Auditing: Zimbabwe (2011) the institute is in the process of transition from an administration and secretarial institute and most of its members are employed in accounting or management positions.

The Zimbabwe branch of the Association of Chartered Certified Accountants, incorporated by Royal Charter in the United Kingdom along with the Zimbabwe branch of the Chartered Institute of Management Accountants, incorporated by Royal Charter in the United Kingdom are also considered principal PAOs.

Associate PAOs

There is limited information on the three associate PAOs in Zimbabwe, which are locally incorporated companies limited by guarantee.

• The Institute of Certified Tax Accountants of Zimbabwe;
• The Institute of Administration and Commerce of Zimbabwe; and
• The South African Association of Accountants.

In 2010, following a request by the Government of Zimbabwe, the World Bank conducted a review of the accounting and auditing environment in the country and reported on the conclusions of the review in a Report on the Observance of Standards and Codes (ROSC)—Accounting and Auditing: Zimbabwe, published in 2011. It was noted in the ROSC that there was a need to update the legal framework and the tertiary education programs in Zimbabwe to support the implementation of accounting and auditing standards, strengthening the capacity of the Public Accountants and Auditors Board (PAAB) and some professional accountancy bodies, and for enforcing the application of accounting and auditing standards.

Accordingly, the Public Accountants and Auditors Act has been revised and was passed into law in 2015. The law now provides immediate legal backing to the standards adopted by the PAAB, empowers the PAAB to accredit any institution that is providing accountancy qualifications and education, and authorizes the PAAB to regulate three additional boards.

In addition, the PAAB and the Institute of Chartered Accountants of Zimbabwe (ICAZ) are beneficiaries of a capacity building project managed by IFAC’s PAO Capacity Building Program and funded by the U.K. Department for International Development. In 2016, the institutes partnered with the Chartered Institute of Public Finance and Accountancy (CIPFA). The partnership has two main components: establishing a project stakeholder advisory group for the adoption of IPSAS and developing a comprehensive roadmap to strengthen accountancy capacity in the public sector through a public sector qualification.

The Public Accountants and Auditors Act [Chapter 27:12] provides the legal foundation for the quality assurance (QA) review system in Zimbabwe and delegates authority to the Public Accountants and Auditors Board (PAAB) to regulate the audit profession. Under the Act, the PAAB is authorized to conduct practice reviews and inspections of registered public accountants and audit firms to monitor compliance with auditing, ethical, and quality management standards.

The QA review system applies to audit firms that conduct statutory audits in Zimbabwe. Reviews are performed under the authority of the PAAB and are designed to assess whether firms have established and implemented appropriate systems of quality management and whether audit engagements are performed in accordance with International Standards on Auditing (ISA) and other applicable professional requirements as adopted in the jurisdiction.

Zimbabwe has adopted International Standards on Quality Management (ISQM 1 and ISQM 2) as part of its adoption of IAASB pronouncements. Accordingly, firms are required to implement systems of quality management in line with the most recent international standards. The PAAB’s practice review process evaluates compliance with these requirements. The QA review system is linked to the investigation and disciplinary framework established under the Act, and significant findings from reviews may be referred for disciplinary action.

The QA system is operational and applies to all registered auditors performing mandatory audits. Based on the available information, the jurisdiction has established a QA review system that incorporates the key structural elements required under SMO 1, including mandatory reviews, linkage with investigation and discipline, and adoption of the relevant quality management standards.

The QA review system in Zimbabwe is assessed as Adopted, as a QA review system incorporating the requirements of SMO 1 is established and operational for all mandatory audits.

Current Status: Adopted

The Public Accountants and Auditors Act [Chapter 27:12] provides the legal framework for establishing professional education and competency requirements for registered public accountants and auditors in Zimbabwe. The Act delegates authority to the Public Accountants and Auditors Board (PAAB) to prescribe minimum qualifications, competency standards, and requirements for registration of professional accountants. The PAAB also evaluates and monitors qualifying examinations and training programs offered by recognized professional accountancy organizations.

Entry into the audit profession requires completion of an approved professional qualification, fulfillment of prescribed practical experience requirements, successful completion of professional examinations, and registration with the PAAB. Continuing professional development (CPD) is mandatory for registered practitioners and is monitored by the relevant professional body in coordination with the PAAB.

Initial professional development (IPD) requirements for professional accountants are established and delivered primarily by recognized professional accountancy organizations, including the Institute of Chartered Accountants of Zimbabwe (ICAZ), the Chartered Governance and Accountancy Institute in Zimbabwe (CGI), and other principal bodies recognized under the Act. These organizations prescribe entry requirements, structured education programs, practical experience, final assessments, and CPD requirements for their members.

While professional accountancy organizations indicate that their educational programs are derived from or aligned with International Education Standards (IES), there is no explicit legislative provision mandating adoption of the IES in their entirety at the jurisdiction level. The PAAB exercises oversight of qualification standards, but formal confirmation that all elements of the currently effective IES — including entry requirements (IES 1), learning outcomes approaches (IES 2–4), practical experience (IES 5), final assessment (IES 6), and CPD (IES 7–8) — are fully incorporated for all aspiring and professional accountants in the jurisdiction is not available.

Accordingly, while core components of IPD and CPD requirements are established and operational for regulated segments of the profession, full demonstrable alignment with the International Education Standards in effect at the time of assessment cannot be conclusively confirmed at the jurisdiction level.

The status of adoption of IES in Zimbabwe is therefore assessed as Partially Adopted, as national educational requirements incorporate many elements consistent with IES but full adoption in their entirety for all aspiring and professional accountants remains unclear.

Current Status: Partially Adopted

The Companies Act (Chapter 24:03) requires all Public Interest Entities (PIEs) to be audited. Private companies are not required to be audited if they are not required under the Act to appoint an auditor.

Under the Public Accountants and Auditors Act of 1996, as amended in 2015, the auditing standards adopted by the PAAB receive legal backing. The PAAB has adopted all ISA and other pronouncements issued by the IAASB as issued, without any amendments or modifications.

Current Status: Adopted

The Public Accountants and Auditors Act [Chapter 27:12] provides the legal framework for establishing ethical requirements for public accountants and auditors in Zimbabwe. The Act delegates authority to the Public Accountants and Auditors Board (PAAB) to prescribe the code of professional conduct and ethical standards applicable to registered auditors and public accountants.

Zimbabwe has adopted the International Code of Ethics for Professional Accountants (including International Independence Standards) as issued by the International Ethics Standards Board for Accountants (IESBA). The Code is applied to registered auditors and public accountants through the regulatory framework overseen by the PAAB. Professional accountancy organizations recognized under the Act also require their members to comply with the Code as part of their membership obligations.

The Code has been adopted through direct reference to the international pronouncement rather than through development of a separate national code. Amendments to the Code are incorporated into national requirements following issuance by the IESBA and subsequent adoption by the PAAB.

The Code applies to all registered public accountants and auditors in the jurisdiction. There is no separate national code that replaces the IESBA Code for regulated professionals.

Accordingly, the International Code of Ethics for Professional Accountants (including International Independence Standards) in effect as of the time of the assessment is adopted and applicable to all professional accountants subject to statutory regulation.

Current Status: Adopted

The Public Finance Management Act and related Treasury regulations establish the legal framework for public sector financial reporting in Zimbabwe. Responsibility for setting public sector accounting standards rests with the Ministry of Finance and Economic Development, which determines the basis of accounting to be applied by public sector entities.

Zimbabwe has adopted IPSAS on a cash basis for central government reporting, while certain public sector entities may apply accrual-based standards or other frameworks as prescribed by the Treasury. The adoption of IPSAS has been implemented through government directives rather than through the development of separate national public sector accounting standards.

The scope of application primarily covers central government entities, with implementation across subnational entities and public sector institutions progressing in accordance with government reform initiatives. The Ministry of Finance is responsible for incorporating amendments to IPSAS into national requirements and issuing guidance on implementation.

Given that cash-basis IPSAS is applied at the central government level and full accrual-basis IPSAS have not been adopted for all public sector entities, IPSAS adoption in Zimbabwe is assessed as Partially Adopted.

Current Status: Partially Adopted

he Public Accountants and Auditors Act (Chapter 27:12), states that each principal and associate professional accountancy organization (PAO) is responsible, in the first instance, for the professional conduct of its members who are registered persons and, for that purpose, each PAO may undertake disciplinary proceedings against such members and punish them for breaches of the rules. In accordance with the Act, the PAAB is responsible for reviewing decisions made by the PAOs and hearing any appeals.

There are five principal PAOs in Zimbabwe that are authorized to investigate and discipline their members.

Under the Chartered Accountants Act (Chapter 27:02), the Institute of Chartered Accountants of Zimbabwe (ICAZ) has the authority to investigate members and to take appropriate disciplinary actions as required. ICAZ has established an Investigations Committee tasked with investigating allegations and referring cases to its Disciplinary Committee. In February 2018, ICAZ conducted a self-assessment of its I&D system against the SMO 6 requirements. It noted that since its last assessment in 2016, it had included two non-accountants to the Investigations Committee and two non-accountants to the Disciplinary Committee, to better align its I&D procedures with SMO 6 requirements. ICAZ has also began publishing a summary of investigations in its Annual Report and procedures on filing a complaint are now posted on the ICAZ website to address gaps in raising public awareness about the system, and publishing results of the proceedings. The institute still noted that gaps remained in administrative processes–such as a timeframe for disposal of cases. As noted above, ICAZ members who wish to appeal a Disciplinary Committee decision can do so through the PAAB. The PAAB’s QA review system is also linked to ICAZ’s I&D system when review findings relate to ICAZ members.

The Institute of Certified Public Accountants in Zimbabwe (ICPAZ) reports that it has established a process for handling complaints made by the public. It has an independent team responsible for investigating complaints received and a disciplinary committee which includes as a lawyer as the chairperson. The Chairperson of the Disciplinary Committee must report to the ICPAZ Council, which in turn reports to the PAAB. While ICPAZ’s I&D system apparently meets some of the SMO 6 requirements, more information is needed to assess the full extent of the system’s alignment.

The Chartered Governance and Accountancy Institute in Zimbabwe (CGI) has also established I&D procedures which outline the process for filing a complaint, and the investigation and disciplinary process—which are carried out by two separate committees—as well as the means for appealing a disciplinary decision. In 2019, the CGI conducted a review of its I&D system to determine the degree of compliance with SMO 6 requirements. CGI has indicated that there are gaps in meeting the full SMO 6 benchmark in the following areas: not all results of I&D proceedings may be available to the public and a process for independent review of complaints with no follow-up could be established.

The Zimbabwe branch of the Association of Chartered Certified Accountants (ACCA) along with the Zimbabwe branch of the Association of International Certified Professional Accountants—CIMA’s are also considered principal PAOs. Members may be subject to the same I&D procedures as adopted at the global level by the UK-based headquarters. The ACCA and Association of International Certified Professional Accountants—CIMA’s I&D mechanisms are reported to be in line with SMO 6 requirements.

There is limited information on which I&D procedures, if any, are established and implemented by the three associate PAOs for their respective members.

Current Status: Partially Adopted

The Companies Act (Chapter 24:03) defines basic requirements for accounting, auditing, and financial reporting for companies registered under the Act. The Act requires that all companies apply the international accounting standards as adopted by the PAAB.

The PAAB has adopted all IFRS and other pronouncements as issued by the IASB as the financial reporting framework applicable in the country through Statutory Instrument 62 of 1996. Under the Public Accountants and Auditors Act 1996 (as amended in 2015), the standards adopted by the PAAB received legal backing. The PAAB also adopted IFRS for SMEs in January 2010, effective for periods commencing on or after January 1, 2011.

Current Status: Adopted

Relevant Organizations

• Institute of Certified Public Accountants of Zimbabwe (ICPAZ)
• Institute of Chartered Accountants of Zimbabwe (ICAZ)
• Institute of Chartered Secretaries and Administrators in Zimbabwe (CGI)
• Public Accountants and Auditors Board (PAAB)

Relevant Legislation

• Amendments to the Public Accountants and Auditors Act, 2015
• Chartered Accountants Act (Chapter 27:02)
• Chartered Secretaries (Private) By-laws, 2015
• Public Accountants and Auditors Act No. 13/1995, 22/2001 (Chapter 27:12)

Relevant Publications

• “Act to Enforce Auditors Accountability,” in NewsDay, July 2015.
• “Government faces public sector accounting hurdle,” in Financial Gazette, October 2017.
• ICAZ, SMO Action Plan, December 2019.
• ICAZ, 2017 Annual Report, 2017.
• ICAZ, Training Regulations, 1 Jan. 2013
• CGI, Complaints and Disciplinary Process, n.d.
• CGI, Complaint Form, n.d.
• CGI, SMO Action Plan, November 2020.
• “IFAC Announces New Partnership in Zimbabwe to Strengthen Accountancy Capacity in the Public Sector”, IFAC, May 2016.
• IFRS Foundation, IFRS Application Around the World—Jurisdictional Profile: Zimbabwe, 16 June 2016.
• Karreman, Gert H. et al. HYPERLINK "https://www.tilburguniversity.edu/upload/5e2b4205-0141-4aa1-8815-9448b520d3b5_GAE%202012%20Zimbabwe%20GADI.pdf"GAE 2012—Dynamics of Global Accountancy Education, 2013.
• “New framework for public sector management”, in NewsDay, August 2017.
• World Bank, Report on the Observance of Standards and Codes—Accounting and Auditing: Zimbabwe, 2011.
• “Zimbabwe: ICAZ Rolls out IFRS 15”, in AllAfrica, Feb 2016.