Under the new monitoring process, the financial statements of every listed company will be reviewed at least once every three years, in addition to any other investigations arising from public complaints.
"his additional monitoring will give shareholders, investors, regulators and other users the benefits of a better regulated market," said Public Accountants and Auditors Board chairman Wesley Sibanda.
There are currently 79 companies listed on the ZSE and this will mean that approximately 26 companies will be reviewed each year. In addition to any other investigations arising from public complaints.
The additional monitoring will give shareholders, investors, regulators and other users the benefit of a better regulated market.
The FRMP, previously known as the Zimbabwe Stock Exchange Monitoring Panel (ZSEMP), is an advisory body of accounting experts, comprising preparers, auditors and users of financial statements. It was formed in 2004 by the PAAB and ZSE to assist the ZSE Board on alleged cases of non-compliance with financial reporting standards in annual and interim reports and any other company publications.
The new process involves the panel and the ZSE randomly identifying the companies to be reviewed during a particular calender year. The panel selects reports and accounts for review in a number of ways.
Historically regulation of compliance with IFRS was done on a reactive basis only through receipt of a complaint or by the Zimbabwe Stock Monitoring Panel (ZSEMP) identifying a concern on an ad hoc basis.
Post published in: Business