Overview Accounting and Auditing in Yemen
Yemen, a country in the Arabian Peninsula, adheres to a standardized framework for auditing and accounting to guarantee the dependability, correctness, and transparency of financial reporting. To sustain accounting and auditing standards, Yemen's regulatory environment is overseen by several bodies and regulations.
Accounting standards are a collection of rules that control how financial information is measured, recognized, presented, and disclosed in a company's financial statements. The primary goal of accounting standards is to establish consistency in financial information reporting, enabling comparisons across various companies and time periods. Companies can prepare financial statements that correctly represent their financial performance and position by following accounting standards.
A crucial and basic part of any company is accounting and bookkeeping. These vital services guarantee that the company has trustworthy and accurate financial records, enabling informed and prompt choices that reduce risks and maximize revenues. Effective bookkeeping and accounting are crucial for forward-thinking and successful companies since they can significantly impact a company's productivity and profitability.
Yemen does not have its own domestic accounting standards or rules or a stock exchange. But the official representative organization for the accounting profession is the Yemeni Association of Certified Public Accountants (YACPA). Banks and significant taxable companies must follow the IFRS Standards, and the IFRS for SMEs Standard has been legally accepted. The committee that oversees and monitors this application of the international standards is the Committee for Adoption and Implementation of International Standards.
Yemeni Association of Certified Public Accountants (YACPA)
The organization that represents accountants in Yemen is the Yemeni Association of Certified Public Accountants (YACPA). Their main goal is to encourage companies throughout Yemen to embrace international accounting standards or IFRS. To do this, they work closely with the government. YACPA is essential in the development and administration of the CPA test, which promotes the use of IFRS by newly licensed accountants. By providing thorough IFRS CPD courses (IFRS and IFRS for SMEs) to all of its members, they are dedicated to teaching both practising accountants and those just starting out about these standards.
International Financial Reporting Standards (IFRS) in Yemen
International Financial Reporting Standards are referred to as IFRS. It is a collection of widely recognized accounting principles and standards that serve as a foundation for creating and presenting financial statements to companies and other organisations. IFRS's main objectives are consistency, comparability, transparency, and relevance in financial reporting across many nations and sectors. The International Accounting Standards Board (IASB), an independent organization that seeks to develop and promote these standards on a global level, is responsible for issuing IFRS. Companies may improve the quality of their financial reporting, make cross-border transactions less complicated, and give regulators, stakeholders, and investors accurate and dependable financial information by adopting IFRS.
Yemen is also a member of the International Federation of Accountants, which encourages the implementation of IFRS. Companies classified as big and medium-sized companies with an income above YR 200,000,000 are all required to prepare financial statements per the IFRS, as stated in the Article 107 of the Tax By-Laws.
In order to regulate the behaviour of auditors during the audit process, professional accounting groups have set auditing standards. These guidelines are designed to guarantee that audits are carried out ethically, objectively, and competently. The processes and duties of auditors are outlined by auditing standards, which also offer a framework for the methodical evaluation of financial accounts.
The Audit and Review of Accounts Law No. 26 of 1999 governs the regulation of Yemen's audit and accounting profession. Through the Public Accountants Permit Committee, the Ministry of Industry and Trade has assumed a regulatory function in this capacity. It is significant to note that, as required by law, YACPA now possesses two of the six necessary seats on this committee. Before ISA (International Standards on Auditing) adoption was a legal requirement in Yemen, YACPA aggressively committed its efforts to promote the use of these standards. Meetings with important government representatives were held in order to promote the adoption of ISA throughout the nation.
Types of audits
- Compliance Audit
A company's procedures, practices, and operations are systematically examined as part of a compliance audit to see if they comply with relevant laws, regulations, policies, and standards. A compliance audit's main objective is to confirm that the company is doing its business in accordance with the established legal and regulatory structure, industry best practices, and internal rules.
In order to find areas of non-compliance or possible risks, auditors conduct a compliance audit study documents, speak with stakeholders and evaluate the organization's operations. By ensuring that they comply with the law, companies are less likely to face fines, legal action, or reputational harm due to non-compliance.
- Performance Audit
A performance audit assesses a company's effectiveness, efficiency, and economy in attaining its goals. A performance audit's main objective is to evaluate the outputs and results of a company's initiatives, procedures, or efforts and to spot areas that may be improved. A Performance Audit probes the efficacy of a company's operations, resource use, and the extent to which it accomplishes its objectives, in contrast to a Compliance Audit, which looks at conformity to laws and regulations.
Services offered by Enterslice
A variety of accounting and financial management services are available to customers of Enterslice.
- Bookkeeping Services: Enterslice offers accurate bookkeeping services, including the management of cash books, general ledgers, fixed asset registers, and sub-ledgers for both accounts receivable and payable. Management Services: To fulfil the informative needs of management, the organization helps to prepare management reports, which include regular accounts, cash flow statements, budgets, and forecasts.
- Financial Report Services: To ensure compliance with rules and ease up the filing procedure, Enterslice assists in the creation of yearly statutory financial reports. They also serve as a crucial point of contact between the company and external auditors while the latter are reviewing the financial records.
- Treasury Services: Enterslice provides its clients with treasury services, which streamline payment processing and guarantee efficient financial administration.
- Controlling Services: To assure compliance and improve financial operations, Enterslice performs extensive reviews of cost claims and payment applications while taking into consideration accounting, tax, and control rules.
- Setting up Control Procedures and Accounting Policies: Enterslice aids clients in putting control procedures and accounting policies for their accounting departments into place.
- Supplying competent Managers and Accountants: To satisfy the unique financial requirements of the clients, they provide competent managers and accountants on a contract or freelance basis.
- Recommendations & Account Inspection: Enterslice evaluates accounts for appropriateness and suggests enhancement.
Enterslice is committed to providing trustworthy accounting services that are tailored to the specific needs of each customer. Their services are centred on providing accurate financial reporting, adherence to regulatory requirements, and well-informed decision-making, all of which contribute to their companies' operational success.