Action Plan Developed by

The Institute of Chartered Accountants of Zimbabwe (ICAZ)

BACKGROUND NOTE ON ACTION PLANS

Action Plans are developed by IFAC members and associates and address policy matters as identified through responses to
Compliance Self-Assessment Questionnaires. They form part of a continuous process under the IFAC Member Body Compliance
Program to support ongoing development and improvement of the accountancy profession.

Action Plans are drafted by IFAC members and associates for their own use. They reflect national frameworks, priorities, processes
and challenges specific to each jurisdiction and will be subject to periodic updates. Action Plans will vary in objectives, content and
level of detail due to different national environments and stages of development.

Refer to responses to the Part 1 Assessment of the Regulatory and Standard-Setting Framework Questionnaire and Part 2 SMO Self-
Assessment Questionnaire for background information on each member and associate their environment and existing processes. The
responses may be viewed at: http://www.ifac.org/ComplianceAssessment/published_surveys.php

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ACTION PLAN

IFAC Member: Institute of Chartered Accountants of Zimbabwe (ICAZ)

Approved by Governing Body: ICAZ Council
Original Publish Date: 18 February 2009
Update Publish Date: July 2010
Next Update July 2011

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 Action Plan Developed by
The Institute of Chartered Accountants of Zimbabwe (ICAZ)

GLOSSARY:

APC Accounting Procedures Committee

APSC Auditing and Professional Standards Committee
CEO Chief Executive Officer of ICAZ
CPD Continuous Professional Development
DNC Developing Nations Committee
EC Education Committee
IAASB International Auditing and Assurance Standards Board
IAESB International Accounting Education Standards Board
IASB International Accounting Standards Board
IES International Education Standard
IESBA International Ethics Standards Board for Accountants
IFRS International Financial Reporting Standard
IPSAS International Public Sector Accounting Standards
ISA International Standard on Auditing
I&D Investigation and Discipline
PAAB Public Accountants & Auditors Board
PR Public Relations
PSC Public Sector Committee
SME Small and Medium Enterprises
SMO Statement of Membership Obligations

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 Action Plan Developed by
The Institute of Chartered Accountants of Zimbabwe (ICAZ)
Action Plan Subject: SMO 1 and Quality Assurance
Action Plan Objective: Improve ICAZ’s Quality Assurance Review System in Accordance with SMO 1

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Date
Background

In Zimbabwe the PAAB, as the statutory umbrella body for public Accountants and Auditors, from 2010 onwards is now responsible for
conducting Practice Reviews on members and firms of all accountancy bodies accredited to provide attest services. ICAZ as a PAAB
member body also gets reviewed in line with PAAB’s oversight role and as a quality assurance mechanism. Given such a scenario, the
existence of an in house practice review technical resource duplicates PAAB efforts, hence ICAZ ceased conducting Practice Reviews in
2010. ICAZ’s involvement in the PAAB practice reviews is to the extent of having some of its members being part of the review teams
and through its representation in the PAAB.

1. Ongoing Produce an updated member’s handbook that October 2010 CEO, Technical Technical Staff
incorporates all new and revised quality Staff
assurance standards & pronouncements by
IAASB, IESBA
2. Ongoing Work closely with the PAAB to encourage Ongoing CEO, Technical Technical Staff
compliance with SMO 1 and where Staff
appropriate providing on-going assistance with
implementation – planned initiatives include:

Dec 2010 Monitoring the implementation of the Ongoing

practice review programs on our members in
practice.
Jan 2011 Cooperate with PAAB and assist them in Ongoing
dealing with issues of serious non-
compliance by members, including
disciplinary action against such members.

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 Action Plan Developed by
The Institute of Chartered Accountants of Zimbabwe (ICAZ)
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Date
Review of ICAZ’s Compliance Information
3. Ongoing Perform periodic review of ICAZ’s response Aug 2010 CEO of ICAZ & ICAZ Staff
to the IFAC Compliance Self-Assessment Practice Review
questionnaires and update sections relevant team
to SMO 1 as necessary. Once updated
inform IFAC Compliance staff about the
updates in order for the Compliance staff to
republish updated information.

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 Action Plan Developed by
The Institute of Chartered Accountants of Zimbabwe (ICAZ)

Action Plan Subject: SMO 2 and International Education Standards

Action Plan Objective: Ensure that all IES requirements are incorporated into ICAZ’s education requirements

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Date Date
Background

ICAZ adopts all IESs of the IESBA without modifications. ICAZ opted for early adoption of IES 7 at the end of 2009 which marked
the end of the second three year cycle for CPD compliance purposes. Within each three year cycle every member is expected to have a
total of 120 hours as per the requirements of IES 7. However ICAZ has a further requirement that 30% of the 120hrs should be on
technical issues. Technical for this purpose is defined as any learning concerned with standards and pronouncements by IFAC and its
various boards e.g. IASB, IAASB, IESB etc. ICAZ is also revising its curriculum and the new curriculum will be effective in 2011.

Strengthening CPD Requirements and Establish a Comprehensive Monitoring Mechanism

4. Ongoing Continuous improvements to CPD database to August 2010 I.T Manager ICAZ Staff
enhance user friendliness and integrity of data
5. November Introduce stern measures to deter non February 2011 ICAZ Council, ICAZ Staff
2010 compliance of CPD as prescribed by IES 7. e.g. Registrar
Enact a bye-law for the withdrawal of a
practicing certificate for those who are unable CPD
to complete the CPD hours on the 3 year cycle Committee
or membership deregistration, fining etc.
6. Q3, 2010 Enhance monitoring and verification to ensure Q4, 2010 CPD Registrar
full compliance by members. Committee

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7. July 2010 Embark on a drive to persuade all the local June 2011 and EC Registrar & Technical Staff
universities to modify curriculum to incorporate ongoing
exposure to IFRS, ISAs & Code of ethics. annually
8. Q1, 2011 Engage an external Consultant to review and Q1, 2011 Council, EC & International Consultants &
evaluate the ICAZ qualification programme so as Other technical External Funding
to benchmark against all IES and International committees
best practice. Implement findings which
highlight that implementation gaps exist.

Maintaining Ongoing Processes

9. Ongoing Ensure ICAZ education requirements continue to Q1 2011 Education ICAZ Staff and Education
incorporate all International Education Standards Committee & Committee
(IES) requirements. This includes review of the Technical Staff
existing requirements and preparation of the
Action Plan for the future activities where
necessary.

Review of ICAZ’s Compliance Information

10. Ongoing Perform periodic review of ICAZ’s response to Aug 2010 CEO of ICAZ Technical Department Staff
the IFAC Compliance Self-Assessment and ICAZ CPD & CPD Committee
questionnaires and update sections relevant to Committee
SMO 2 as necessary. Once updated inform IFAC Chair
Compliance staff about the updates in order for
the Compliance staff to republish updated
information.

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Action Plan Subject:
Action Plan Objective:
Action Plan Developed by
The Institute of Chartered Accountants of Zimbabwe (ICAZ)
SMO 3 and International Auditing and Assurance Standards
Continue to Use Best Endeavors to Maintain an Ongoing Process to Adopt and Implement IAASB
Pronouncements

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date
Background

There are no local auditing standards in Zimbabwe and as such, in accordance with PAAB regulations, all ISAs and pronouncements by
the IAASB are adopted at their respective dates without any amendments or revisions. Clarified ISAs that are effective 15 December
2009 also became effective on the same date in Zimbabwe. However there is need to enhance communication and alert the public and
ICAZ members on ISAs and other pronouncements by the IAASB including the clarified ISAs.

Continuous Improvements to Program for Adoption and Implementation of IAASB Pronouncements

11. Ongoing Review pronouncements issued by the IAASB, Dec 2010 Auditing and ICAZ Technical staff
on an ongoing basis, with a view to implement Professional
and communicate to members on any new Standards
developments. Clarified ISAs effective 15 Committee
December 2009 are communicated to members (APSC) &
through the CPD program. Technical Staff
12. Ongoing Review all IAASB agenda materials and exposure Ongoing ICAZ Technical APSC
drafts. team.

13. Ongoing Incorporate all newly issued Dec 2010 APSC & CPD Technical staff & ICAZ
ISAs and practice statements by the IAASB Department Website
into the ICAZ CPD program.

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 Action Plan Developed by
The Institute of Chartered Accountants of Zimbabwe (ICAZ)
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date
14. Q3, 2010 Intensify communication initiatives to members Q1 2010 APSC Technical staff, Public
and the public about the current ISAs that are in Relations (PR) and
effect and to be used. This includes clarified ISAs Marketing officer & ICAZ
that are effective 15 December 2009. This is to be Website
done through seminars and workshops after the
second half of 2010.
Maintaining Ongoing Processes
15. Ongoing Support ongoing adoption and implementation of Aug 2010 Technical staff, Technical staff & CEO
IAASB pronouncements. This includes review of CEO & Council
the implementation of the Action Plan to date and
updating the Action Plan for future activities as
necessary.
Review of ICAZ’s Compliance Information
16. Ongoing Perform periodic review of ICAZ’s response to Aug 2010 Technical staff Technical staff & CEO
the IFAC Compliance Self-Assessment & CEO
questionnaires and update sections relevant to
SMO 3 as necessary. Once updated inform IFAC
Compliance staff about the updates in order for
the Compliance staff to republish updated
information.

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 Action Plan Developed by
The Institute of Chartered Accountants of Zimbabwe (ICAZ)

Action Plan Subject: SMO 4 and IESBA Code of Ethics

Action Plan Objective: Maintain an Ongoing Process to Adopt and Implement the Requirements of the IESBA Code of Ethics

# Start date Actions Completion Responsibility Resource

Date
Background

ICAZ maintains the same policy similar to IFRS and ISAs, with regards to Ethics. The IESBA Code of Ethics has been adopted without
any amendments. Members of ICAZ are required to comply with the code. Members are updated and advised of any changes to the
IESBA Code of ethics (like the 1 January 2011 Code) through a member’s handbook and through seminars.

Ensure Effective Implementation of the Code of Ethics

17. Ongoing Continuously review and amend ICAZ code Ongoing APSC, CEO of ICAZ & Technical
of conduct in line with any changes that may Technical Staff Staff
be made to the IESBA code of Ethics. & Registrar

18. July 2010 Initiate efforts to advise members and the Dec 2010 Registrar & ICAZ Registrar & Technical
public on the revised Code of Ethics effective, Technical Staff
1 January 2011 Staff

Maintaining Ongoing Processes

19. Ongoing Support ongoing adoption and implementation Ongoing ICAZ Council APSC & Technical Staff
of the IESBA Code of Ethics. This includes
review of the implementation of the Action
Plan to date and updating the Action Plan for
future activities as necessary.

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 Action Plan Developed by
The Institute of Chartered Accountants of Zimbabwe (ICAZ)
# Start date Actions Completion Responsibility Resource
Date
Review of ICAZ’s Compliance Information
20. Ongoing Perform periodic review of ICAZ’s response to Aug 2010 ICAZ CEO & ICAZ CEO & Technical
the IFAC Compliance Self-Assessment Technical Staff
questionnaires and update sections relevant to Staff
SMO 4 as necessary. Once updated inform
IFAC Compliance staff about the updates in
order for the Compliance staff to republish
updated information.

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 Action Plan Developed by
The Institute of Chartered Accountants of Zimbabwe (ICAZ)

Action Plan Subject: SMO 5 and International Public Sector Accounting Standards
Action Plan Objective: Use Best Endeavors to Assist in the Adoption and Implementation of IPSASs in Zimbabwe

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date date

Background

IPSASs issued by the IPSASB will soon be introduced within Zimbabwe. Legislation (the Public Finance Management Act) was enacted
in Q1 of 2010 that enhances disclosure and reporting requirements for central & local government departments and ministries. It is
anticipated that a statutory instrument will be issued some time in 2010 that either recommends or prescribes IPSASs as the preferred
reporting framework for the public sector. ICAZ through its public sector committee has been engaging various public sector offices like
ministry of finance. There is also need to capacitate ICAZ members who may be involved in these initiatives given that the current ICAZ
qualifying exam does not examine IPSASs and there is generally a skills gap in Zimbabwe. The required funding would also cover
among other things costs for external consultants who may be needed to train our members and ICAZ technical staff.

Promote the Adoption and Implementation of IPSASs in Zimbabwe.

21. February Establish a taskforce whose objectives are to February 2011 ICAZ CEO & PSC & the ICAZ technical
2011 communicate IPSASs to the relevant Technical Staff Team
stakeholders and spell out the benefits of
implementing IPSASs.

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22. Q4, 2010 Develop a work plan for capacitating Q4, 2010 CEO, PSC & External Funding &
government departments. Legislation has been Technical Staff Technical staff.
enacted that prescribes IPSASs as an accounting
framework. ICAZ is pivotal to this and would act
in a consultative capacity. To achieve this ICAZ
members & technical staff would have to be
seconded to government to assist with capacity
building.

This is subject to the availability of funding in

order to first capacitate ICAZ members and
technical staff.
23. September Enhance the program for responding to IPSASs Ongoing Technical staff Technical Staff
2010 exposure draft. & PSC Chair
24. Q3, 2010 Identify opportunities to assist government in the Ongoing PSC Technical Staff & ICAZ
implementation of IPSASs. This encompasses Members
updates and revisions to the ICAZ Action Plan.
Such opportunities could be in the form of
training & secondment of ICAZ members to the
public sector.

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 Action Plan Developed by
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25. June 2010 Seek the assistance of the DNC on initiatives to Ongoing CEO, Technical Technical Staff
access external funding for the ICAZ outreach Staff
programme in the Public Sector programme
(IPSASs)
Maintaining Ongoing Processes
26. Q2, 2010 Continue to identify opportunities to further Ongoing Technical staff Technical Staff
assist in implementation of IPSASs. This & the CEO
includes review of the existing activities and
preparation of the Action Plan for future
activities where necessary.
Review of ICAZ’s Compliance Information
27. Ongoing Perform periodic review of ICAZ’s response Aug 2010 ICAZ CEO & Technical Staff
to the IFAC Compliance Self-Assessment Technical Staff
questionnaires and update sections relevant to
SMO 5 as necessary. Once updated inform IFAC
Compliance staff about the updates in order for
the Compliance staff to republish
updated information.

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 Action Plan Developed by
The Institute of Chartered Accountants of Zimbabwe (ICAZ)

Action Plan Subject: SMO 6 and Investigation and Discipline

Action Plan Objective: Further Develop ICAZ’s Investigation and Disciplinary (I & D) System

# Start Actions Completion Responsibility Resource

date Date
Background

ICAZ has within its structures a disciplinary committee and a stand alone Investigations committee. The displinary and Investigations
committee is an adhoc committee that convenes as and when a complaint or issue is brought before ICAZ and the committee also
incorporates non-accountants when it meets. The investigations committee investigates and tables its findings for consideration by the
Disciplinary Committee.

Review of the Investigation and Disciplinary (I&D) system

28. Q 2, 2011 Ongoing evaluation & review of the I&D To be done at ICAZ CEO & ICAZ Registrar &
system to ensure it is operating effectively and least annually Registrar Disciplinary Committee
conforms to SMO 6 requirements. The specific thereafter
action for this will be through a bench marking
exercise which will enable assessment of
ICAZ’s I & D system with those of other
accounting institutes in Developed Countries.
Timely implementation of findings which
highlight that implementation gaps exist.

29. Ongoing Advise members on any changes to the ICAZ Ongoing Registrar ICAZ membership
I&D procedures and systems. secretary

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Maintaining Ongoing Processes
30. Ongoing Ensure ICAZ’s investigation and disciplinary Ongoing CEO of ICAZ ICAZ Registrar & CEO
mechanism continues to addresses all SMO 6 & Disciplinary
requirements. This includes review of the Committee
existing mechanism and updating the Action
Plan for future activities where necessary.

Review of ICAZ’s Compliance Information

31. Ongoing Perform periodic review of ICAZ’s response Aug 2010 CEO of ICAZ ICAZ Registrar & CEO
to the IFAC Compliance Self-Assessment & Disciplinary
questionnaires and update sections relevant to Committee
SMO 6 as necessary. Once updated inform
IFAC Compliance staff about the updates in
order for the Compliance staff to republish
updated information.

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 Action Plan Developed by
The Institute of Chartered Accountants of Zimbabwe (ICAZ)

Action Plan Subject: SMO 7 and International Financial Reporting Standards

Action Plan Objective: Continue to Use Best Endeavors to Maintain and Improve an Ongoing program for Adoption and
Implementation of IFRS

# Start Actions Completion Responsibility Resource

date date
Background

In Zimbabwe there are no local standards. Under the PAAB regulations, IFRS is the framework to be used by all entities when
reporting. ICAZ has adopted all IFRS and other pronouncements issued by the IASB. ICAZ also prescribes that its members adhere to
all IFRS requirements. However due to chronic hyperinflation environment that was experienced in Zimbabwe from 2006 to 2008 and
the subsequent dollarization and suspension of the Zimbabwe currency, it became impracticable to fully comply with IFRS, particularly
IAS 29, IAS 21 & IAS 1. However ICAZ and SAICA have formally lodged proposals to amend IAS 29 and IFRS 1.

Ongoing Program for Adoption and Implementation of IFRS

32. Ongoing Continue to support the implementation of Ongoing ICAZ CEO and Technical Staff &
IFRS in Zimbabwe on an ongoing basis. Technical Staff Technical Committees

33. Q 3, 2010 Provide training and education on IFRS and Q3, 2011 CPD Committee Technical Staff
active participation in the IASB work
programme.
34. Ongoing Use best endeavors to identify opportunities Dec 2010 Accounting Technical Staff
to further assist in implementation of IFRS. Procedures
This entails updating and reviewing the Committee(APC)
Action Plan for further activities where & APSC
necessary.

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 Action Plan Developed by
The Institute of Chartered Accountants of Zimbabwe (ICAZ)

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IFRS For SMEs
35. June 2010 Embark on a programme of seminars and August, 2011 CEO Technical Staff
workshops for the entire country on the IFRS
For SME
36. Q 4, 2010 Engage Government, PAAB & other relevant Q2, 2011 Council & ICAZ CEO & Technical Staff
stakeholders so that IFRS for SMEs becomes President
the recommended reporting framework
amongst Non-Publicly Accountable Entities in
Zimbabwe
37. December Assess and Evaluate the adoption of IFRS for Q1 2011 CEO CEO Technical Staff of
2010 SMEs. ICAZ

Maintaining Ongoing Processes

38. Ongoing Continue to use best endeavors by Ongoing APC & APSC Technical Staff
identifying opportunities to further assist in
implementation of IFRS. This includes
review of the existing activities and updating
the Action Plan for the future activities where
necessary.
39. Ongoing Submit comments to IASB on any areas or Ongoing APC & APSC Technical Staff
improvements that ICAZ may want
considered in IFRS for Small and Medium
Enterprises (SME) as and when the IASB
invites for comments to update, amend or
revise IFRS for SME

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 Action Plan Developed by
The Institute of Chartered Accountants of Zimbabwe (ICAZ)
# Start Actions Completion Responsibility Resource
date date
Review of ICAZ’s Compliance Information
40. Ongoing Perform periodic review of ICAZ’s response Aug 2010 Technical Staff Technical Staff
to the IFAC Compliance Self-Assessment & CEO
questionnaires and update sections relevant to
SMO 7 as necessary. Once updated inform
IFAC Compliance staff about the updates in
order for the Compliance staff to republish
updated information.

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