After a series of extensive consultations with the stakeholders on the issue of Mandatory Audit Firm Rotation (MAFR), the Board of Botswana Accountancy Oversight Authority (the Authority), at its meeting of 30th October 2018, approved guidelines on “Audit Firm Rotation Recommended Best Practice” to be used in Botswana. This measure is intended to enhance the independence of auditors from their clients and it is also aligned to the Authority’s overriding objective of audit quality enhancement and public interest protection.

Evidence abounds in this area, both locally and internationally, that bringing in a fresh pair of eyes and new ideas into the audit landscape through MAFR could go a long way towards meeting these objectives. It should be noted that these guidelines are a result of the consultations carried out on both the Auditors and Public Interest Entities (PIEs) in Botswana and are, therefore, a reflection of the wishes of the majority of the stakeholders. It should also be noted that from an international perspective, MAFR has attracted significant attention in the European Union and the United Kingdom, amongst others and in these countries, structures are already in place to address the issue of the independence of auditors through, amongst other interventions, MAFR. In our own region, South Africa and Mauritius have already adopted MAFR. We believe that this decision of the Board is a significant step in the right direction that will enhance confidence and the credibility of financial statements and the financial markets in this country.

The attached guidelines themselves are self-explanatory and contain detailed information on transitional arrangements.

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Duncan Dankie Majinda

Chief Executive Officer/ for the Board