Back

Accounting and Auditing Practices in the Republic of Yemen

- A Comprehensive Study

The Government of the Republic of Yemen has recently decided to undertake a comprehensive, and country-wide review of Accounting and Auditing Practices in the coming months. This thoughtful decision has been taken as a result of the government's increasing awareness of the importance of sound accounting systems and auditing services to the strategy aimed at attracting investment in an increasingly competitive world. Also the government has over time developed increasing interest in improving the accounting and auditing services with a view to strengthen accountability for economic, efficient and effective use of resources.

Therefore, the government has decided to conduct the study, the aim of which is to accomplish the following objectives:

• Identification of the major legal institutional and other constraints to the emergence and maintenance of economic, efficient and effective accounting and auditing services and systems;
• Identification of alternative methods to overcome the constraints noticed; and
• Development of a detailed cost-based action plan to improve the accounting and auditing services both in government and private sectors.

The Central Organization for Control and Auditing (COCA) led by H.E. Mr.Ahmad Mohamed Al-lryani, would conduct the study with the help of independent consultants. Consultancy services would be financed by the World Bank. The recommendations of the study would be reviewed by the Government, COCA, private sector accounting and auditing profession, Yemen's Academic Community and the World Bank. Eventually, the approved recommendations would be implemented by the relevant authorities including COCA.

COCA has made much headway in preparing for execution of this study. During the last World Bank Mission, the Government, COCA and the Bank's Mission have formally and collectively agreed to conduct the study signified by countersigning of the aide-memoire and drafting of terms of reference, short list of consultants and letter of invitation. Six international firms were selected and invited to submit their proposals. Theyare-

1. Arther Anderson & Co., Washington D.C., USA
2. Coopers Lybrand & Deloitee, London, UK
3. Raten S. Mama & Co., Bombay, India
4. Ernst & Young, Toronto, Canada
5. Moret Ernst & Young, Netherlands
6. Share & Co., Amman, Jordon

Representatives of these firms hav/e visited COCA in Sana'a, Republic of Yemen to familiarise themselves with local conditions and relevant aspects of this study prior to preparation of their proposals. Subsequently, proposals are reaching COCA one after the other. COCA is considering this study and the recommendations that would emerge therefrom as the corner stone for development and improvement of the status of accounting and auditing practices in the Republic of Yemen. So, it is trying to make this study successful. COCA would highly appreciate any support or suggestions from its members and sister SAIs of the INTOSAI, which would enhance the quality of the study to attain best possible results. For more information or any contribution of ideas/suggestions, the Office of Mr.Ahmad Mohamed Al-lryani, President of COCA or Mr.Ahmad K. Ashaybani, General Director of Training and International Relations, may be contacted at the following address:

Central Organization for Control and Auditing,
P.O.Box 151,
Sana'a
Republic of Yemen
Telex: 948-3141
Fax : 967-1-263178
Tel. : 967-1-260243 (Mr.Ahmad M. Al-lryani)
        967-1-260605 (Mr.Ahmad K. Ashaybani)