An Accounting and Auditing Report on Observance of Standards and Codes (ROSC) study on Afghanistan was carried out in 2009. The study documented the underdeveloped state of regulation of accountants, auditors, public auditing firms and financial reporting of public interest entities, lack of application of standards and education in accounting and auditing. There is no approved body representing the accounting and auditing profession and no training leading to a recognized professional designation.
Based on ROSC recommendations a government led National Steering Committee (NSC) established in August 2013 to coordinate, supervise and direct the private financial reporting and auditing reforms required in Afghanistan and to serve as the ultimate trustees to ensure that Afghanistan has a high quality financial reporting and auditing system. The Minister of Finance chairs the NSC with members from Ministry of Commerce and Industries, Ministry of Justice, Ministry of Higher Education, Central Bank of Afghanistan, Afghanistan Chamber of Commerce and Industries, Representative of Private Sector, World Bank and USAID.
Ministry of Finance established a ROSC implementation unit so called PAOD (Professional Accountant Organization Development) to act as a Secretariat to the NSC and maintain action plans developed/approved by the NSC, track achievement of measures identified in the action plans and amend the action plans as agreed by the NSC. The Secretariat includes a Program Office to organize the support for the international advisors, the Secretariat itself and of the NSC. The Secretariat will liaise between the advisors working on the below three core areas and the NSC to ensure timely implementation of actions required.
- Development of Accountancy Law
- Establishing Institute of Chartered Accountants of Afghanistan (ICAAF)
- Capacity Building of Accountants and Accountancy Institutions