Session 3: Society of Accountants in Malawi Learning Objectives - Enlighten the learners on the role of SOCAM
Important Terms - Regulatory framework
- Accounting Standard
Regulatory
Accounting just like any other profession is supposed to be regulated to ensure discipline and consistency in recognition, measurement and presentation of accounting transaction. In Malawi accountants are supposed to follow the recommendation and rules from; - Society of Accountants in Malawi. (SOCAM)
- International accountancy standards board. (IASB)
Society of Accountants in Malawi Background Information
SOCAM was established in 1969 as a guiding force behind the introduction of in country training of accountants before the formation of Malawi College of Accountancy in 1980. By then Malawi was relying on training from Southern Rhodesia, now Zimbabwe and few concerned accountants decided to form SOCAM which among other objectives was to ensure availability of local training institutions in the country. The SOCAM’s mission statement is to secure for the country a group of highly qualified professional persons capable of discharging the onerous and difficult duties which increasingly devolve upon the public accountants for the benefits of business financiers, government and the society at large. The Organization Structure of SOCAM 1. Council This is the governing body of SOCAM which is directly elected by its members. The council is headed by a chairman and is assisted in its activities by various committees comprising members who voluntarily devote their time and effort to the activities of the society on regular basis. 2. Secretariat Headed by the full time executive director and other members of staffs. They are supposed to provide technical and administrative support to the Council and various committees of the society. 3. Society’s committees | i. | Chairman’s Advisory Council | | ii. | Members Admissions Committee | | iii. | Continuing Professional Development Committee | | iv. | Education and Training Committee | | v. | Taxation committee | | vi. | Public Sector Committee | | vii. | Ethical Committee | | viii. | Disciplinary Committee | | ix. | International and Public Relations Committee | | x. | Publications Editorial Committee | | xi. | Accounting and Auditing Standards Committee | | xii. | Diplomate Accountants Committee | | xiii. | The Students Society | | xiv. | Lilongwe Branch |
Functions of SOCAM The Public Accountants and Auditors Act (laws of Malawi Chapter 53:06) provide the following functions for SOCAM. - Keep its members up dated on technical developments in the profession both internationally and locally.
- Set accounting and auditing standards appropriate to conditions prevailing in Malawi while ensuring that financial statements are produced in Malawi are acceptable internationally.
- Research into matters affecting the profession.
- Provide continuing profession education for its members.
- Formulate and monitor professional ethics applicable to its members.
- Prescribe regulations for the protection of clients funds held by its members.
- Discipline its members as well as registered students and trainees.
- Issue, renew, or withdraw practicing certificates to or from its members carrying on public practice.
- Advise the Malawi Accountants Board ( MAB), the Public Accountants Examination Examinations Council (PAEC) and the Malawi College of Accountancy ( MCA) on any matters refereed to it; and
- Appoint members to represent it on the boards of MAB, PAEC and MCA as required by act.
Standard Setting Process
The accounting standards, audit standards and ethical guidelines in use in Malawi are based on those prescribed by the International Federation of Accountants (IFAC) and International Accounting standards board (IASB) of which SOCAM is member for both organizations. The standards are reviewed by SOCAM so as to make them compatible with the local financial reporting environment. The standards are reviewed by the SOCAM’s Accounting and Auditing Standards Committee with the input from comments solicited from all SOCAM members’ country wide. Apart from these adapted standards SOCAM has also developed its own standards and guidelines. At present there are two Malawi Accounting Standards, dealing with devaluation of currencies and post maturity interest and an Auditing Standard dealing with material irregularities. | 
