What is the objective of quality reviews?
The main objective of quality reviews is to confirm that
all registered accountants and auditors in public
practice are maintaining an appropriate level of
professional standards in the performance of the attest
Why do we need audit practice quality reviews?
The attest function is reserved to the accountancy
profession by the Accountants Act no. 9 of 1977 (as
amended). The intention was not to give advantage to the
members of the profession, but to protect the public.
For this reason, this function should only be carried
out by persons with the requisite education, training,
professional standards and discipline.
There are a number of instances where complaints have
been received from the business community, the chamber
of commerce, the banks and the Lesotho Revenue Authority
regarding poor and sub-standard attest work performed by
practitioners. In other countries, business failures
have occurred and the blame has been directed at the
The professionís image and that of the practitioners is
tarnished by these complaints from the public and the
business failures. Whilst a profession has certain
rights and privileges, it also has obligations to the
society which gives it those rights and hence the need
to protect the society.
What advantages to the profession will this programme have?
This programme will have many advantages, amongst which
are the following:
It will maintain and enhance the reputation of the
profession with the public and the business
community locally, regionally and internationally.
It will put the profession in a stronger position to
influence the future direction of regulatory
involvement in the activities of practitioners,
particularly as regards the attest function, since
this will be the professional body which subjects
its members to mandatory reviews.
It will demonstrate to the critics that the
profession is committed to self regulation and to
ensuring the highest standards of professional work.
Public perception of the profession will be improved
as the public realizes that the profession does not
only demand high standards from its practitioners,
but it also monitors and enforces those standards.
It will raise the standard of the accounting
profession and the attest function in the country as
a whole as practitioners realize that, whatever work
they do, this may be subjected to quality review.
Practitionerís own internal review programmes, where
these exist, may need to be reassessed as a result
of the independent external reviews.
The Lesotho Institute of Accountants practitioners
will be seen to be subject to reviews comparable to
other international institutes with similar
programmes, and this will enhance the acceptance of
the work of the local practitioners internationally.