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FEDERAL NEGARIT GAZETTE
OF THE FEDERAL DEMOCRATIC REPUBLIC OF ETIDOPIA

'I IFf 'l_'}' ~C 'itli nh.-l·rA·' LI.&-"I'f -1.lJ"h&-n.n tTillLh 20'" Year No. 81
fmlHl +(DIIf"';f· S""hC 1\')' miltH-· flJ)lTl th
h-'I.h Mq "'Ie ~I +1 11t~ .... ADDIS ABABA 5 December, 201 4

"(J):"l CONTENTS

htp1: 4!'T'C ~f:nJ~7tX ~.9" PrOclamation No. 847120 14

f~J',<;')1I 6TC,j- hH7)f)!'j-" h.,.&-l-o h'l'~ .... 7" ~lUfI!! Financial Reporting Proclamation ............ Page 7714

liT!! "''I'C $f!/YlliS PROCLAMATION No, 84712014

niI"-&"')1I 6TC+ 1IH7)1J!+" 11+&-':-0 fdlllJ 1I'1'~ A PROCLAMATION TO PROVIDE FOR

FINANCIAL REPORTJNG
O'U\. I." Ooo,}"In-l' "CIi' qll- J:'CN'r ~J', WHEREAS, it has become necessary to establish a
1'i,~"'l. f"'Un H"l.~~ O"'~II- "1111""
lI,l-'\.~· sound, transparent, and understandable financial
f"'l.H·~· N·J',"111 6TC+ M7l!)!+" II.,.&-l-o ","C'l')' reporting system applicable to entities in both private and
DO"C.:>·)· IIII.lA'l. If'l' Oou7'H 1 public sectors;

d1'1' flf~ f4-J',"')1I 6TC,j- hH7J1;i!+<; h.,.&-l-o WHEREAS, having a unifonn financial reporting
iIl"l DO'l'<- YIII'~"M f~Ol(J):') f~J',<;')1I 6TC')' law enhances transparency and accountability by
1In7)!)!')'<; h.,.&-l-o O.,.,hlll "IIII"H')<; '~mY"M'1 centralizing the hitherto decentralized financial reporting
f~'U111-o.). Ooolf~ t structures of Ethiopia;

. fU16'~'} fll.I>'l'''. '1"(0(01"'1' lloo~11i" f4-J',<;,}1I
+(J):iI<; fJ:'c~·H1 (J):J:''''')' 11.:>+ 1.1'1. 1)0'1" .~ .I'J''if~,).
!'~'f(J):'} II/\-".'!! fll.I>'l''''l. (J):t1kf·r IldO"'~1I hJ:'CJ>:-I"r
f"'l.7"i(J):') f4-J',,,')1I dOll! MC(I')' 'lll'l" h.,.1i' f4-J',<;')1I
6TC')' ~':)!P'r'} fmO.,. I.1'1.lf1 "J:'l"J MM'l.
Ooolf~ 1
WHEREAS, to support various building blocks of
the economy and to reduce the risk of financial crisis,
corporate failure and associated negative economic
impacts; it is necessary to ensure that the provision of
financial information meets internationally recognized
reporting standards;

f4-,..,.,1I tTC·j- hH7l!)!')'" M&-l.ofl'} O:YI".~~· WHEREAS, it is necessary to establish a body that
Moat- >''1 f'"l.4llTJtnC nl']l\ 6lJ**r nillA1. r.rc: undertakes regulatory responsibilities in financial
Rou'J1'J: ! reporting;

Oll.fflt.r "-U~'!! 'I.'I"hMI.!''!! 6T-oII.h ,M NOW, THEREFORE, in accordance with Article

"""711+ h,.,."
n (j) dOlPl+ f."h'h\(J): "'(J):~III" 55(1) of the Constitution of the Federal Democratic
Republic of Ett.io.,ia, it is hereby proclaimed as follows:

I'J~~. 41.10 ').u+ .,....T."'.+' "fill

Negartt G. P.O. Box 80001

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FedCTal Ncgar il Qazene No. SI S· December, 201 4 . _. pag.: 77 IS
PARfONE
GENERAL
I. Short Title
This Proclamation may be cited as the "Financial
Reporting Proclamation No. 847/2014",
2. Definitions
In thi s Procl amation unless the context otherwise
requires:
II "accounting pe ri od~' means a year ending on a
balance sheet date of the reporting entity; provided,
however, that as a resu It of the date of the
fonnation or incorporation of the reporting entity
or a change of the balance sheet date of the
reporting entity, the peri od ending on that date is
longer or shorter than a year, that longer or shorter
period is an accounting period;
21 "audit firm" means a finn licensed by the Board to
provide audit service;
31 "balance sheet date" means any month and date
which a reporting entity adopts as its balance sheet
date;
41 "certified auditor" means a certified public
accountant who is registered as a certified auditor
by the Institute and received a practicing
certificate;
51 "certified public accountant" means an accountant
who is registered by the Institute as a certified
public accountant and received certificate of
registration;
61 "company" means a commercial business organiz
ation established in accordance with the
Commercial Code of Ethiopia and having legal
personality;
71 "director· means the ultimate responsible person 01
one of the ultimate responsible persons of an)
reporting entity whatever his designation;
81 " financial statement" shall have the meaning giver
to it by the standards to be issued by the Board an(
shall include the balance sheet, profit and los:
account. statement of change in equity. cash flov
statement and explanatory notes thereon. whethe
interim or final;

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Federal Negaril Gazette No. 8 1 5'" Dcecmbcr, 20 14 .... page 77 16
91 "Institute" means the Institute of Certified Public·
Accountants of Ethiopia to be established by
regulation to be issued by the Council of Ministers;
IOr 'consolidated financial statement" means a
financial sJatement comprising individual financial
statements of companies belonging to a group;
III"public auditor" means a certified auditor who is
licensed by the Board to act as an auditor for
public interest entities;
12/"overseas company" means a company
incorporated outside Ethiopia that carries on
business in Ethiopia within the meaning of the
Commercial Code;
131 "Minister" or "Ministry" means the Mini ster or
Ministry of Finance and Economic Development.
respectively;
14r 'professional accountancy body" means an
associatiOn of accountants hav ing as its ·objectives
the regulation of professional competency of its
members and the development of the accounting
profession, which is accredited or recognized by
the Board pursuant to Article 26 of thi s
Proclamation;
lSI "partnership" shall have the meaning given to it
under the Co~mercial Code;
161 "public body" means any entity falling under the
definition given to public body by a relevant law
or designated as such by the law establishing it;
17/"public interest entity" means a reporting entity
that is of significant publi c relevance as the Board
may decide from time to time because of the
nature of its business, its size or its number of
employees, and includes, in particular, a company
whose securities are admitted to trading on a
regulated capital market, banks, insurance
companies and any other financial institutions and
public enterprises;

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Federal Negarit Gucttc No. 81 S· Oceembcr. 2014 . .. page 77 17
181 " reporting entity" means any entity. other than
public bodies and micro enterprises. required by
law to submit financial reports;
19f' micro enterprise" means an enterprise considered
as such in accordance with the criteria set by
directives issued by the Board;
201 " sm811 or medium enterprise" means an enterprise
which is a reporting entity and does not f811 under
the definition given to a public interest entity
under sub-article ( 17) of this Article and other
than charities and societies;
21 1 "standards" mean the financial reporting. and
auditing standards stipulated in thi s Procla'ihation;
221 "group" shall have the meaning given to it by the
standards to be issued by the Board;
231" person" means any natural or legal person;
241 any expression in the masculine gender includes
the feminine.
3. Scope of Application
This Proclamation shall apply to 811 reporting entities
established in accordance with the Ethiopian law or
operating in Ethiopia.
PART TWO
ESTABLISHING A BOARD
4. The Accounting and Auditing Board of Ethiopia
11 The Accounting and Auditing Board of Ethiopia
(hereinafter the "Board") shall be established by
regulation to be issued by the Council of
Ministers.
21 The Board shall have the powers and duties to:
a) issue standards and directives relating to
financi81 reporting and auditing and ensure
compliance therewith;
b) conduct inquiry or investigation and impose
administrative sanction in accordance with the
provisions of this Proclamation where
appropriate on public interest entities and
public auditors to enforce compliance with
financial reporting and auditing standards;
 Federal Nql:ml Gazelle No gl S"' Dceembcr, 2014 page 7718

"') 'j~"1W-<; '/ ' '7~~.

hPC.v,· 'l~"1" '/''7' 'C .:>C c) cooperate with. or become a member or an
,/·on<'l<'l.M·)· OJ)'.'!" ·/·J'.I''ir''')· "'HI> "1')','0>9" affiliate of, any international body, the
'l~'!" /,,~(,: 'hli'!" .:>C MIC' f?~t·A OJ)'.'!" objectives or funct ions of which are si milar to
r·,.,\,on· MA lO),.9" '/''1 l lt ),.If<;A i or connected w ith those of the Board:

on) tTC')' /,o)'t- n. /",''1')'') fUl/11 'I''P?'' J'M1'lO' d) set criteri a to distinguish reporting entities as
/",~.). OW?" "'IM'>;' <; no"h~>;' Y:C»:·.y·l· 'fI~" either publi c interest enti ties o r small and
ouM')' r~1..I'n··r·A oun&.c·)· J'OJffJA' med ium enterprises and regi ster them
,l'.ooll'7'1A i accordingly:

IP) Tl1 ~.1I ~"'L ' /' C'l") ool/'7P &.:N; .I',l'IffJA i e) register and license publi c auditors;

L) .rlOflFfw- ·) Y.LllSO~·· ~a1.J''''J.~ · rmc w-n'l' t) provide accreditati on to loca l pro fessional
1"'/.<'111 --)' "1Unt··)· /'ht..II. ·~m MffJA' accountancy bodies that meet required
n"V'lOffJa> ool1&.C·)· onu,d· nW-"I." mc standards and recognize professional account
~·/·,I;,I;on· 1"'/.<'111 on·.r "~unt-·)· ~OJ·'P~· ancy bodies constituted ou tside Et hiopia
pursuant to the requirement prescribed by it:
.I',<'I"IAi
~) ftTC')' ""'t-n. /"'~:/") f'/,MI oo'7~"',p':r g) receive and register financial statemenls of
' / '1'11 ~' .f',onH'7'1A i reporting enti ties;
0) 1"1-.1''<;')11 tTC')' /,H·lll»:·)·<; Mt·Ll1 h) review and monitor the acc uracy and fairness
Y. Lllso~···) ~ "111 m fI'I> 1" '/.<'111 on'7M",sol" ) of financial statement to enforce compliance
/,'1' .:>n.~·)·<; -)-hh~"'~ ') ' .f',onL'!" t-A , .f'.4'ffJ with the reponing standards;
mt-A i
.~) rUl111 'I'+,!"') ~"1l1mn'P
r"1.'I'CfI- hll. ·~;t- i) establish an independent investigation and
soT·') fI1~A '~'1~ ') '
ononConC f"'l.J'l1rA disciplinary scheme to investigate complaints
f'!"Cont·<; f.llATh.·) ruc'!')' .I''.I:</:''1A i for publi c interest purposes;

n) h/':)l1 t·)·f.·~ .:>C f"1SLa> f.ll.I1.T~:) ;:.~&, j) estab lish procedures for coordinati on of
~.y.:r. a1 '~<;'f.·) · f"1.JWf·A I1C'!')' .f',onl'l disciplinary responsibilities with the Institute;
,
'1') 1"'/.<'111 OD·J' "1unt· ·)· ·) nn~f?'I') · ,('.4'ffJmt- A i k) oversee pro fessional accountancy bodies;

1') Tl1~.h M.·/·Cr, fM.·) · ~c'f.· ·H· ~<; h~'ICI1 ' I) conduct quality assurance reviews of public
.:>C n'Pcn ')' f"1.M· l'lso~·· P't-~'a>') auditors, audit firms and persons associated
n"1.on~h ·/:'l· N.l\"1,~·)· ~~1'a> YDISOr w ith them to determine whether they have
onIPL')' "1h<;lO"1'a>') ~"1L':>'I'I' f'l't-·)· complied wi th the applicable auditing
"11.':>1"'1 9"CODt· J'h<;a>"A i standards;

. )) 11'"1.1'1"/" ' ",· h1A"/II·.y·...,·· nOP')"I;~'l' n·'7." m) coll ect fees for services provided by it at the
(a',ar -,-uu-} UlJlP/.:t- .,~.t' .N'Ih'i:,\A i rate detemlined by the Government;

~) nH.t! /''I'i':' )', UT) /''I'i': onl1d· n"1Y:L'7 n) impose and collect such penalties as arc
n"1.0l(n· Y.'lM· ~<; n"1.J'lOffJ1'W- ODonM'SO~'· prescribed in thi S Proclamation. the
onlPL .). "'ffJ·)· .I','I'~A f?MMA i regulations issued hereunder and in the
directives of the board;
1) h4·f?<;111 tTC')' /'111)1'f.-1-" /,o/>t-Ll1' h'/.IIl1 0) advise the Government on any matter relating
/,J' J'1I<; fIo.ll.·j· rut- ~<; hY.·Ci':-!'· "· /'ont-C to financial reporting, accounting, auditing and
.:>C .~ J'J''ir~·l- J'~1'w- 1-.111"'1") n"'l.OD~h-)­ corporate governance.
on')'7 ru·)··) ,r"1ht·A"

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 Federal Negarit Gau:ttl: No. 81 j llo December, 2014 .. ,,, page 7719

~) nill~' q~n.'}' ~1I'ill i ro-ll ~'I"!'~lI i p) own property, enter into contracts sue and be
OO~ ~h~lIi ~hO~lI! sued in its own name;
h) 'W"Iro-1 ~"'IO.l.~9" f"'lYO.l.t\1· fI.II."f q) perfonn other related functions necessary for
.~II"'Ij(· .,-"/qt--}-.) Yh'iro-'ill" the achievement of its abjective .

PARTTRREE
h'AA rO-}-
FINANCIAL REPORTING AND AUDITING
f"-~'i10 ,,;ret M fM t 1.I.1Ip''f
STANDARDS
,.M-<t: ~11: CHAPTER ONE
f"-"'i10 ,,;ret I.lllP''f FINANCIAL REPORTING STANDARDS

li . .,..I.II"\)-}- f"'1'" t-'fro- f"-1.<;10 ,,;re-}- I.lllP''f S. Applicable Financial Reporting Standards
/il f ,,;rc-}- ~~Mt ~"lI f'I.~il oo"/~""I. O"'l.YH II The financial reporting standards to be used when
;:oJ!'O-}- til. (lC-'\. Y",1.J>'fro- OJ~9" "'IO'~!lhY preparing financial statements sh all be:
OJ~9" "'I1I1Iy Y1.l1q'fro- M9" M'~ f,/Ail
~YJ'1I 1.lllP''f (lC1: OJ~9" hfl-1 f"'l·~I, ~~lI
YOJ"l'fro- OJ~9" M9" ~4'~ fTilfl.h {\'h'~C
f'L~il ~YJ'"II 1.lllP''f· (lC1: OJ~9" hfl-1 f"'l'~!'
~'Ill YOJ"l'fro-'-

U) M9" M~ f<l-~'i10 ,,;rc'}- 1.lllP'"f i OJ~9" a) international financial reporting standards; or

~) foo~M>;''i ~~M>;'1:CJ!'·H· M9" M~ b) international financial reporting standards for

f"-~'i')O ,,;rc-}- 1.l1IP''f! small and medium enterpiises;
.I,) M1 ~1:t-1-}- 1.·CJ!'f·'f'i "'IUOt-·}· f"'lJ'1 c) lntematinaJ Public Scector Accounting standards
~"/ll M9" M~ rTilfl.h {\'h'~C f'l.~il applicable to charities and societies.
hJ' J'1I 1.lllP''f·j
issued by the International Accounting Standards
.~ .1.11 "'l. ~ II 'ifI-"
• Board or its successor or issued by the International
Public Sector Accounting Standards Board or its
successor as adopted, adapted or amended by the
Board.
II ntlU ~14'l\' 1(}-0 ~J4'l\' (6) ("') f·~1.~11ro- 21 Any public interest entity shall, without prejudice to
1.11.·~m04' 11'1' "'I1>;'ro-9" fUlIil 'N9" YM~' the provision of sub article I (e) of this Anicle. be
~~lI 'OIlU ~14'l\' 1(}-0 ~14'l\' (Ii) (U) required to comply with international financial
r-t-m4'Oro-1 M9" h4'~ N·~'i10 t;rc·}- reporting standards referred to in sub-article ( I ) (a)
1.lllP''f ooh'~lI MO-}-" of this Article.

CI (lC-'\. . O"'lYOJ"lro- f'l.~il ,,;rc-}- 1.lllP''f 31 The Board shall specify, in the financial reponing
"'I1>;'ro-9" fUlIil '1'~9" Y~O-}- h~lI OJ~9" standards, the minimum requirements for ree
MO'~>;' OJ~9" ""',M>;' 1:cJ!"}- ~00"''1? f,/Ail ognition, measurement, presentation, and di sclosure
oo"/~""I. i fh-q1YP''f 0-1:') f'l.~il oo"/~""I. in annual financial statements, group annual
financial statements or other financial reports which
OJ~9" M f'/.~il t;rc-}- fl.YH;:oJ!' OMO'~>;'
every public interest entity or sma ll or medium
onh·,'lI f"'l.1Qro-1 f'/.~il ~ooH;:01il' foo~h.Yi
enterprise shall comply with, in the preparation of
fh4't-lil 1.'i f"'l~OJ~ ooM.Cf·~' oollCIIC
financial statements and reports.
hM')'"

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F~dera.I N~garil Gazett~ No. 81 S· December, 2014 ..... page 7720
6. Financial Statements of Reporting Entities
Incorporated outside Ethiopia
Where the Board is satisfied that:
11 the financial statements of a reporting entity that is
incorporated outside Ethiopia comply with the
reqUirements of the law in force in the country
where the reporting entity is incorporated or
constituted; and
21 the requirements of the country of incorporation are
substantially the same as those provided for in this
Proclamation;
the fmancial statements shall be taken to comply with
the applicable financial reporting standards under this
p:roclamation.
7. Financial Statements of Groups Incorporated
outside Ethiopia
Where the Board is satisfied that:
11 the consolidated financial statement of a reporting
entity representing a group that is incorporated
outside Ethiopia comply with the law in force in
the country where the reporting entity is
incorporated; and
21 the requirements of the country of incorporation are
substantially the same as those of this
Proclamation;
the consoHdated financial statement shall be taken to
comply with the applicable financial reporting
standards under this Proclamation.
8. Obligation. to Submit Financial Reports
11 Any reporting entity shall submit to the Board its
financial report in accordance with the schedule to
be set by the Board.
2J The provisions of sub-article (1) of this Article
may not preclude reporting entities from
submitting their financial reports to the competent
public bodies in accordance With other laws.
31 The financial report to be submitted to the
competent public body in accordance with other
laws shall be the original copy of the financial
report submitted to the Board pursuant to sub-
article (I) oflhis Article.

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Federal Negan! Gazelle No. 81 ~~ December, 201 4 .. p3ge 7721
9. Obligation to Audit Financial Statements a nd
Consolidated Fi nancial Statements
I I The Director of a reporting entity shall ensure that
the finan~ial statements of the reporting entity and
the consolidated financial statements, if the
reporting entity is required to prepare consolidated
financial statements, are audited.
21 The audit on the financial statement shall be
conducted and the auditor's report on the financial
statements or consolidated financial statements
shall be prepared according to the International
Standards for Auditing approved by the Board or
in the case of reporting entities constituted or
incorporated outside Ethiopia, pursuant to auditing
standards applicable in the country where those
reporting entities are incorporated or constituted so
long as it is substantially the same with this
Proclamation.
10. Auditors Qualified to Audit Financial Statements
of Reporting Entities
The financial statements and any consolidated
financial statements shall he audited by:
II if the reporting entity is a local company or a
company constituted or incorporated outside
Ethiopia, an auditor appointed in accordance with
the Commercial Code of Ethiopia or other relevant
21 if the reporting entity is constituted or incorporated
under any other law that provides for the
appointment of an auditor, by an auditor appointed
under that law;
31 if the reporting entity is not constituted or
incorporated under a law that provides for the
appointment of an auditor. an auditor appointed in
accordance with the provisions of the Commercial
Code or other relevant laws applicable to similar
reporting entities.
It. Registration of Financial Statements
11 The Di rector of a reporting entity shall ensure that
copies of fina ncial statements and an)
consolidated financial statements together with I
copy of the auditor's report on those statement:
are delivered to the Board for registration withil
20 working days from the date financia
statements and any consolidated financia
statements of the reporting entity, as the case mao
be, are required to be signed.
 Federal Negarit Gawte No. 81 511 Oe<:ember. 2014 ... page 7722

rt Oa>'l" V1C f1-**- Wj1.'1" f1-OOIPl." t,TC'I- 21 Reporting entities which are constituted or
1I'Io6on. II~~'}- f'U1i1 oo"III"'I.?':f'fa>1 mltJ incorporated outside Ethiopia shall register their
111+1; 1M. 1.1+1; (Ii) OOIPl')' "'11100111-11 financial statements in accordance with sub-
I.M'fa>:: article (I) of this Article.

rl f t,TC'I- 1.'Io6on. I.~~-l' oo"III"'I.'fa>1 11(101· 31 Reportirtg entities sha1l pay to the Board the
0"'l.flloo""I0-0'l- 1.11. f"'l.mf+a>1 fll"1I1q lI<;:f prescribed registration fee when registering their
oollt.A IIM'fa>:: financial statements.

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wS'>1I" '1''1>11'' h'Mlla> II.l:>1'1''> f"'l.mf+a>1
lI<;:f II.h<;:A mtu 1.1+1; 1(1-11 1.')+1; (Ii) wS'>1I"
(I) OOIPl'l- 1III"1I1Q II(IC>\. H~ha>1 ft,TC'I-
H6on. I.~A f'/A-II 00"111"1.'> f~'I.'}- t,TC'}-
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11"660<;: 11-/\'1-
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[1,1-t.'I"'I. fM.'I- I.l1l?''f
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WM" "'IM~hf wS'>1I" "'IlIlIf f1.l1Q'fa>1 Mil"
1.+<;: f'/A-II Qll-f?,'f 4..1'-t.711 wS'>1I" hfl-1
f"'l.1-~ I.~A fW"l'fa>1 Mil" I.+<;: n'l.')·
.l'.l.)f?''f oom+1I" I.M'fa>::
41 Any person who has vested interest may, on proof
of such interest and on payment of the prescribed
fee, inspect or take the copies of a reporting
entity' s financial statements and auditor's report
on those statements delivered to the Board for
registration under sub-article (1) or (2) of this
Article.
CHAPTER TWO
AUDITING STANDARDS
12. Applicable Auditing Standards
1/ The auditing standards to be used by auditors in
Ethiopia shall be the International Standards for
Auditing issued by the International Federation of
Accountants or its successor as adopted, adapted
or amended by the Board .

1/"'I1'1a>1I" T-IIil.1I 21 Every public auditor shall, in the exercise of his

II.fh'>a>1:- profession, comply with:

U) fU1Hl '1''109" ~fIq'f(J)- I."~'I- fM'I-.. a) such minimum requirements as shall be

f"'ll:>1"'1. MA"I .... 'I- P'6o?''f ,~t.lI"'I. specified by the Board as minimum
1.1'1."'1- (lC>\.... fIl+OO"l'fa> OMMo;' requirements for providing auditing and
oo"l~'I- fflq'fa>1 oollt.C-f'f "'I"l~')- i I.'> assurance services for public interest entities;
and
II) mt u M'~ OOIPl'l- fWIll- .l'.111'f1 1 b) respect: any regulations, directives, and code
oooot,f?''f1 I.'> f - f P'~ 9""IQC 1.1(1'1'1 of conduct issued under th,is Proclamation.
"'IIIOC MO'l-::
;:1 "'I1o;'a>9" Hoollhlll'l- lo'l.1-C foo-f P'6oa>1 31 Every certified auditor shall, in the exercise of
II.fh'>a>1 (IC>\. lI1-oollhl~'fa> lo'l.'~C''f his profession, comply with such minImum
QW"l'fa> f1-lI~ f~'I.'I- I.l)f?,'f fll+oo"l'fa>1 requirements as may be specified by the Board in
MII1-'1 oollt.C-f'f "'/hOC MO'l-:: the separate auditing standards for certified
auditors.
II<;:A beet PART FOUR
,WI?'".1 f .... OA I f..,Il..,..,'I- h'i PROCEDURE FOR ADOPTING. ADAPTING
r"7llllA 1I)P'C'tt AND AMENDING STANDARDS
!r~. 13. Consultation
iii (lC>\. f~S'>'>111 t,TC'I- M111:e:'I-,> 1.+6ol-ll I.'> 11 The Board shall engage in consultation with key
flo'l. 'I- 1.l)f?,'f1 hoo+Ofl- ' h"'lll"'l"'l'" WS'>9" stakeholders before adopting. adapting or
h"'lllllfl- 0"''1- M.A<;: QIlJ:'cli 1I1j~'I- :>C II"III1C amending financial reponing and auditing
"'J:'l"l IIM'}-:: standards.

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Federal Negarit Gazelle No. III Sill December. 20 14 ..... page 7123
21 Without prejudice to the provision of sub-article (I)
of this Article, the Board may consult with any
appropriate person or organization in the
development of financial reporting and auditing
standards.
14. Public Comment
II Where the Board intends to issue or amend any
standard, it shall, as part of the consultation
process, invite comments from all interested
persons by causing a notice to be published in its
website, in not less than two leading daily
newspapers of national circulation for three
consecutive days and if it deems neccessory
through other means of communication.
21 Any person who wishes to submit any comment
may, within 60 days from the last date of
publication of the notice specified in sub-article (I)
of this Article, submit his comments in writing to
the Board.
31 The Board may, in deciding whether to approve or
amend the standards, take into account comments
submitted under sub-article (2) of this Article.
15. Publication of Standards
11 The Board shall communicate the standards it
approves for implementation in Ethiopia through
an official publication called "Public Notice for
Financial Reporting and Auditing Standards" to all
stakeholders by posting it on its website.
21 In addition to the means of publication stated under
sub-article (I) of this Article, the Board shall
communicate the standards through notices
published on not less than two daily newspapers 01
national circulation, for three consecutive days
and if it deems necessary through other means 01
communication.
16. Contents of Publication or Standards
The notice published as set forth in Article 15 of thi:
Proclamation shall clearly describe:
II the standards .approved or the amendments mad,
to the existing approved standards;
21 the suspension for a definite or indefinite period 0
time or the revocation of standards;
 FedeTal Negarit Gazette No. 81 5- December. 2014 .. . PlSC m4

[/ M"!.II U;)!l"r M 01.lJll"r ~f, H1.l1- 31 the effective date of new standards or amendments
'"11111fP'r I"Ir ~f, f"'!.aM·Oo)-'} +'} "" and the reporting entities affected by such
f"'!.oollh;/"'f(ll- tTC')' M>1r0. h~~')':: standards.

r~. fIC.,.
f"tfllltIJf(ll- u,1!I"'f MO,. ht~ u,1!I"'f 17.Non-Conformity of the Board's Standards with the
2C 'O...tlJtIJ9'" International" Standards

ncl\. Ohll9" 1I+t;: 1..:JlI"" ~f, H1.l1- II(II-/Or') If there is a discrepancy between financial reporting
and auditing standards adapted or amended by the
Oooh-/·.:I 1.011",·') "f1l7l.:l1 lI'l.tLlD' I" Ir 'If,
11')'1.\'.(11-11' "nc"I CPM" "n" Ooo~N 9"h'}f·)·
Board and the International Financial Reporting and
Auditing Standards due to failure to amend, suspend
ncl\. 'ICPtlJf(ll- CP.\'.9" qi'ii'i'lf(ll- f4.\'."·)(1 tTC·1- or withdraw, the Board shall state the difference and
l1li11,)(·)·" Mlrlil II" f /."!..). 1.l)fSOr II" OM9" explain the reasons for the decision not to modify,
h4'4· fH'... ·)1I t7'C')' hH1)f)(·)·" h+lrll1 I." suspend or withdraw standards that is not in
f/."!.·)· I.l)fSO" oo"h.:l M~')' h-hl.ml /lC1\. conformity with the international standards.
NLml(ll-') M~')'" M9" Mt;: 1.lllSO~,}
'I1I'"1i'ii'i.:l l 111.tL(II- 01"1r 'I.\'. ",}'1f,ID'/I- 1I'"1l:l"l
CP.\'.9" 'III"'!,}"')' fCP/I~O ')") 9"h'}f·)· MII1.·l1l h"'l')'
011Cl1C """III'/; Mo-)'::
h~A h,.lIo)- PART FIVE
#,?': M hh.!.!\.-t '/!') MDUllmo)- LICENSING AND ACCREDITATION
1;. OTlltl.h MotC Ln: MDUllmo)- 18. Licensing of Public Auditors
61 0,}"l1: ih1- CPf,9" OM '"1'}!;'(II-9" ih"l N .v. ~11(11- 1/ Notwithstanding any provision in the Commercial
!l"'C9" 1 '"1'}!;'(II-9" /1(11- OH.U M'J': oolPl·1- Code or any other law, no person may hold any
oncl\. "')1. Tl1l1.h /'''!.·,.C ",}"!.M L:I'1.· appointment, or offer any service, as an auditor for
I,A·,./lmlD' OIl'''+C fU1I11 ",:,.9" 'IM'f(ll- h~'I·1- public interest entities, unless he is licensed by the
Board as a public auditor under this Proclamation.
/'''!.·,.C If... 00j'\'9" CPf,9" M '"1'}!;'(II-'}9" f/."!.')'
h1A"lfl-o)- oollm·1- h.\'.r.:l9"::
I I '"1'}!;'(II-9" f/."!.·)· ""'.1' I"Ir 9"l"hC CPl+')' ff'o(ll- 21 An application to practice as a public auditor may
/1(11- Tl1tl.h /'''!.·,.C , If... llool"lr')' '"1ooAh')' be filed by any person holding a practicing
.\'.'·'IA:: certificate.

l'l OH.U II')+'/; ')"'11 h')+'/; (f) oolPd· f"'!.+Cl1 31 An application filed under sub·anicle (2) of this
Article shall be accompanied by a receipt of the
'"1oo.:lh:J' h,,.'!l(ll- ht;:f 1.lll'1 I." ncl\.
prescribed fee and such information as may be
O'"1.fcp"I(II- ooootf h"'!.ll1,/; oolJl :>C .,. ff,~
determined by the Board in its directive.
oo:"ll1 .\'. ... CO;/".:I::
!il ncl\. f+lOM·'} '"1ooAh:J' hoolool 01.'1 41 Where, after consideration of an application, the
Board is satisfied that the applicant:
hoo.:lll~' -
a) holds a practicing certificate issued by the
II) Oh.·)II·c·)·N H/lm f".,.f I"Ir f9"lIhC
Institute;
CPl+-)' .1'11(11- oolf.,.') I
b) if he is a member or employee of a firm, has
II) f/."!.')' I:CJ':~' MA CPf,9" 1P1r''';;- hlf~ I."
provided evidence that the finn's quality
I:CJ':·~ h"lql1 ff'o(ll- f"'Ir~' '"1l:>1"'1-
assurance procedures are appropriate;
I"C,}·)· ,,')'111(11- '"1l1lJl f+lO ",}1.If~1
c) meets such requirements as may be specified
,h) ncl\. f"'!.fcp"I(II- ooootf f'"1.fll+9""If(ll-'} by the directi ves of the Board; and
ODI"LC-f'r'} .1''''-'1 00 If.,.'} ! ""

00) ncl\. O'"1.cplI~(II- f7'lHl1 oom') foo·f 001:') d) provides professional indemnity insurance in
'I'll')'" f-l'lO ODIn·') i an amount to be prescribed by it;

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[
 FcdenI Negarit Gazette No. 81 S· December, 2014 .... page 1725

"l.:>1m O"l.'l flJlIil '!';P9" ~M')' h'.A >o.ct·/,C shall issue a license to the applicant entitling him
If<;' ooP'Ir')' f"'l.J'lI'!'A ~J'f: .I'-/'Im'l'A" to practice as an auditor of a public interest entity.
f;I mw h'l4'lI" ')0·11 h")"''''' (ii) 001P.:-)· H/'Im 51 A license issued in accordance with sub-article (4)
~J'f: f"'l.<I'.I'-Or 1.IL OflC-'\. .I'-(/)/'I'>A" of this ~rticle shall be val id for a period to be
determined by the Board.
~I (lC-'\. n.ctN.·) 119"'> Mt-~·· 61 The Board shall enter the name of the auditor and
oolJlI"'f OTil<th >o.ct'/,C''f other relevant information in the register of public
.l'-oo",'1~A " auditors .
19. Renewal of License
I'.Lt'1a M'J<\AA
61 "'1')1;'(/)09" Til<th >O.ct·I'C f~J'f: h1A"I','+ 1.11.(/)0
11 Any public auditor shall renew his license by filing
a written application to the Board, not later than
hh")f: (/)C 0,(.')' flC-'\. 0"'1..1'(/)"1(/)0
h"'lilJ''''
one month before the expiry of the license, in such
"C9" h'> h'). n f'" m.'f: "'IooAh;l' O"'lIl1~')'
form and manner as the Board may prescribe.
~J'-'\.") "'I<'IY..II hM~'"
II hooA"'" fLJ'f: M"1'!' ooll~c·H·) mil<l' 21 Where the Board is satisfied that the applicant
001'H') /'ISl:>"I'!' (lC-'\. ~J'-'\.') .I'Y..'M;1-A" continues to meet the requirements for the issuance
ofa license, the Board shall renew the license.
fl flC-'\. fh")f: ~J'f:
II1A"I""r 1.11. h"'lilJ"~ 0'(")' 31 Where the Board has not de,alt with an application
f."t.O") fLJ'f: ~f:"I')' "'IooAh;l' <'1.1'.1'- fLJ'-'\. for the renewal ofa license before the expiry of the
license, the license ana registration shall continue
fll1A "I""')' 1.IL ""~ "'IooAh;l'(/)o') h.l'-'"
to be valid until the application for renewal is dealt
Mh.(/)II'1 f:lll f~J'-'\. h'> 9"1I1~(/)o II1A"I""')'
with and any renewal in such case shall be taken to
f"'l."''!'A If<;' 'f:J'-'\.") IU'f:1I f~J'-'\.'> 9"1I1~(/)O
have commenced from the day when the license
1.11. "MOT 4>'1 "1.9"C' h")Y..;1-Y../'I .I'-<I'mIrA" would have expired but for the renewal. .
iii hooA""':- 41 The Board shall refuse to renew the license and
registration of a public auditor where the applicant:
U) OILU h'l'1': h')"'''' I~ ")0-11 h")"'''' (~) f'/-" a) does not satisfy the requirements set forth in
l"<;")-') oop'~C"''f' f"'l.l''''-'' hlf~ I (/).1'-9" sub-article (4) of Article 18 of th is Proclamation;
or
II) f'b:n'/'Ihlllr M ../,C If<;' h').ct1P1r f'/'lPm(/)o b) has had his license or approval to practice as a
~J'f: Of')-/i'(/)o9" U1C h·/,(/)/'IY.. h;1-1Y.. (/).1'-9"
certified auditor withdrawn. suspended or
h-folPl" I cancelled in any country.
fIC-'\. fTil<th >o.ct -fo<;' 'I ~J'f: h<; 9"1I1~ "'IY..II
fM~'9""
It, ~t'1:1 M-I'Illl 20. Cancellation of License
Til<th >O.ct-foC If<;' h'l.ct1P1r ~J'f: f'/'lPm(/)o /'1(/)0 The Board may. at any time, cancel the license issued
~J'-'\.") h ").ct.l'1'1 .I'1I'!'1t- mw h'l'~ h")"'''' I~ '10-11 to a public auditor where the public auditor no longer
satisfies the requirements for audit license set forth in
h')"'''' (Ii) H"l"<;'~' U-'t;1-I"'f H'lY.1t- h')Y..If~
sub-article (4) of Article 18 ofthis Proclamation.
flC-'\. O"'l")/i'(/)o9" 1.11. ~J'-'\.") <t1'll1l .I'-'f~A"
lti.mJy"4> 'M.T t:C~T Ill'" 1III"'p'IrT 21. Practice in Firm with Anproved Name
61 "'1')1;'(/)09" Til<th >o.ct·/,C OIrM" If~ hM /'1(/)0 II No public auditor may practice as an auditor, on
:>C o'llCh'> fIC-'\. 1100-") ~~6y""'(/)o f>O.ct,), his own account or in partnership with other
t:C~~' 119" h")Y.. >o.ct -foC If<;' ooP'Ir')' persons, in a name of a finn unless the Board has
h.l'-'fA9"" approved the name of the finn.
II Olrll- l1li" (/).1'-9" hll.,.,.'f :>C o'llCh'> O>O.ct,)· 21 Any public auditor who wishes to practice in the
t:C~T 119" 00P'1r')' f"'l.~A"I "'I")/i'(/)o9" Til<th name of a firm, either on his own account or in
to'l.'/'C flC-'\. f"'l..I'(/)"1(/)o') "C9"'> P'~ P'C't,)· partnership with other persons, shall apply in
ODOh-foA 0'"m.~ "'IooAh')' .I'-<;'CO;1-A" writing to the Board in a fonn and manner as may
be prescribed by the Board.

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 Federal Ncgaril Gattttc No. 81 jill Occcmbe r. 20 14 ..... page 7m

rl hll.lI-'1· flP'r :>C 071Ch'i' Ol-I!.~· 1:C1:.). 119" 31 Where a public auditor intends to provide audit
fl.1!.')' h1N,!II-')' oollm')' f"'/.J.N'! 1'illl.h service in partnership with other persons in a
I-I!.·~C fl-I!.~· 1:C1:·~') 119" 1I"'I1I001l1il firm , he shall submit to the Board, as part of his
f"'l.'.,.COa> "'Ioollh"'a> h')1: h~lI h1:C1 application for the registration of the name of the
audit firm, the names of partners who are public
h71t1'~ a>1I'I' 1'illl.h I-I!."'C fIfH·') IllIlfH·
auditors and who are not publi c auditors.
1I.e-l'· /I(lC-'!- oo,,}II'IO MO'}-"
iii ntLU h'H'IO ')0-11 h'H'IO (I) 001Pl.'l· f"'l..,.Cil 41 An application filed under sub·articl e (2) of this
"'Ioollh'" h.,.1flOl- fh":' ~('fI'P (lC-'!- Article shall be accompanied by a receipt of the
O"'l.roll~a> fnl1il oom') h'~1~ f - ' 001:') prescribed fee, evidence of professional
'l'M·'i' "'111(.)1 h,)l!.lJ-9" fl-I!.·)· 1:C1:'~ OP6= indemnity insurance in an amount prescribed by
~.e h"'l.'a>IIOl- f'l'6=')' "'1(,:>1"1. hlP6=C h'i' the Board. a description of the quality assurance
O(lC1\. 0000{'J' OOIP(.·)· h"'l.mfol! 11.11-'1' procedures of the firm and any other rel evant
oo(.)fP''1· :>C oo'l>(.il MO'}-" information as may be requi red by the Board in
its directives.
?;t (lC1\. O/'I!.·)· ~'C1:.~ N('Oa> 119" roWI" fll9" 51 The Board may not approve the proposed name or
1I0l-'I':· any proposed change in the name of an audit firm
where the proposed name or proposed change in
the name:
II) (lC1\. .,.1:'1" ~BUOl- II.~ fl-I!.·)· 1:C1:')' 119" a) is the same as a firm name already approved
:>C h ')~' hlf~ i by the Board ;

II) hM f/.I!. ·)· 1:CH· 119" :>C 0"19" f ·I·.,.6=(.O b) so close ly resembles a firm name that it is
hoolf.,. N~1l 1I.J'9";r;r f"'l.'fll hlf~ 1 likely to cause confusion;

m) O(lC1\. o.e;r OOIP('·)· f"'l.,IlM· ro.e9" c) is, in the opinion of the Board. misleading or
fU1Iil') '1''1>9" f"'l. ,(.C hlf~! ro.e9" contrary to public interest; or

00) f'),,}1: U.,.·) f"'l.:I'(.·) hlf~ ! d) contravenes the Commercial Code.

h')I!.B1:'I> f.,.(.Oa>') fl-I!.·)· 1:C1:·}- 119" ro.e9"

fll9" 1Ia>'I' hJ'B1:'#'9""
~I ntlu h')"''10 001P(.·)· 11_ fB~'" fl.1!.'}- 1:CH· 61 An audit firm whose name has been approved in
f~'1C hIlll ooll.,.'I>'i' hl!.l1 hIlll oo.,.Oll·) Q;l.9"C' accordance with this Article shall inform the
7i{'1>~') O"'l.oollh·)· f"'l.~(."}') "'n'>'a>9" 1Ia>'I' Board forthwith of any change occurring with
II(lC-'!- rol!.J'Ol-'" "'Illro'l> MO'}-" respect to the partners including resignation and
admission.
Itr.'II"'M'~ fMt ",6= /lMoe6=t 11. Unauthorized Audit Practice
iii "'I'I'i'a>9" 1'illl.h I-I!."'C ro.e9" fl-I!.·)· 1:C1:t II No public auditor or audit finn may employ a
9"1I1'10l- O(lC1\. f:r1~
ro.e9" h')~1'illl.h ro.e9" person whose registration has been suspended or
h')~",oolPh('II'}- I-I!.·~C If... h,)"I.eIP6= f:r1~') who has been suspended from practicing as a
public auditor or a certified auditor to carry out
fla> hI-I!. t ",6= :>C O'~ J'J'lt oo'l>mC h.e'fll9""
work in connection with his audit practice.
I I "'I')'>'a>9" 1'illl.h I-I!.'~C: · 21 No public auditor may practice under the name of a
firm, unless prior notification has been made to the
Boud: .
U) 71Ch'i',) O"'l.oo/lh'}- fl-I!.')· 1:c1:'~ ') 7It.I>'1' a) in the case of a partnership, of the names and
119"'i' "'Iol.,,} 1 initials of the partners ofthe finn ;
II) fl-I!.'}- 1:C1:'~ hC"'I J'/la> rol."'~· f"'l.m"'9" b) where a letterhead is used, of a copy of the
hlf~ frol."'·~') 'l>1: ! letterhead;

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 Federa.l Negarit Gautte No. III S'" December, 201 • .. .. page 7727

,h) rl."t~· ~c)';·p p''I'' hl1M'I? (1)Y.'I" M'I" c) where the name of the finn is similar to, or
M~·'I? rl."t·)· )'·)·(1)CI1 M";JC ·~oo"",I'. includes the name of a regional or
hln (1),1'.'1" r).·)·(1)Ch·') Il'l" r"'l.fll')+ hln intematianal network. or where the name of
(1)Y.'I" rl."t·)· ~:c)';·p qll'lC"'I (1)/.4+ (1),1'.'1" the firm mentions that it is part of a network in
its letterhead or any other document, of the
11.'\ "'I'}';'lD''I'' I'M: rhtlll (1),1'.'1" r M 'I"
nature of such association or relationship with
114'''' I."t,). )")'(1)Ch II'IA oolf~") r"'l.Yoo
the regional or international network.
1111')' hlf~' hI1M'I?lD' (1)Y.'I" M'I" M1.'I?lD'
'''')'(1)Ch ;JC YIIlD") ')'MC<; "I')"i·~·)·
'lY'~'h
IInc". M4'~'I" ',""(1)4' nM'4'C nl."t·)· y:C),;·)·
Il'l" rl."t·)· P'1r OOP'Ir')' IIy.'fA'I""
·e ....I.)I roullm~ "71.;J= 23. Obligation to Furnish Information
flI nl1.u II.,.)'; OOIPI.·)· )'·))',T-I1I1.h ~.Il.. ,.c II Any person who is registered as a public auditor
r'~oo"1n "'IWlD''I'' 1IlD':' under this Proclamation shall :
0) ),CII' (J),I'.'I" r),clI' I."t.). ~CJ':-)' ),'))',T-I11l11 a) notify the institute, the Board and any person to
1."t·~C If';' n"'l.lPlrn·)· Il'l'" 111.1.)1;1(·)· whom he or his firm acts as a public auditor of
(J),I'.'I" 1I)','Ir7i r"'l.~·c') 1IlD''l' IInop any change in the name, composition or
1Ih.·)llt ·)·f.·~),<; ),'})',T-I11l11 1."t·~C noolf') address of such firm within 14 days of the
1I"'I.IPIr/l-l· "'I'/r;'lD''I'' 1IlD' 1IlD'1Il' M )',1.1 occurrence of such change;
nx!! t<;·)· lD'1l'l' "'I"(J)~ Mn')' 1
II) T -I11l11 I."t 1-C If';' Iril- (J),I'.'I" 1: C:f:'~ b) furnish the following information within 14
r"'l.IPIrIl·)· (J),I'.'I" ), ')"tIPIrM· lloo/'i'l" r 1..111 days of receipt of a request thereof from any
"'I')r;'lD''I'' 1IlD' fl.m,l'.4'())o 'l' Y-tlD' n1.l.II())o person for whom he or his firm acts as a public
nxIi 4' <; .). lD' h'l' f"'l, h·M· -l-') oo/. )II" 'f auditor or who proposes to appoint him or his
oullm')' Mn·)-:· firm as a public auditor:

iii f"'l.lPlrn·)·,)· "'I'}r;'lD''I'' f ~JI:)'
(J),I'.'I" r Ir II- "'1M "I I
II i'i1.11 If';' r"'l,lPlro,),,)
f71Ch<; "'Iunc f P'1r n;t- I
r.1 ri'il.""'·) 00-11· Il'l" I
~C:f:')- h'l" (I) any finn name or title under which he
practices;
r"'l,}r;'())o')'I" (2) the place of business of any partnership in
which he is in practice as a partner;
(3) the full names of his partners;

iii tI. "lH') i (4) his nationality;

l;! tI..,~.~ h.~·I"*,f'l? hlf~ Iloo-" ),,)"t"''I'' (5) if he is an Ethiopian, his name with his
fM'~')<; rllf'~') Il'l'" flD''I.'' Inc tI.;J father's and grandfather's name or if he is
htf~ foo;l(ool.f Iloo-" (J),I'.'I" fhoo,') a foreign national, his forenames or the
foo;l(ool.f {")',A ),<; II",,) rf"lD'')<; initial thereof, his surname and any
ft~'I" ffl.-M-I1 Iloo-,) I ),<;
surname which he may have borne
previously; and
II ou)',nr;' fp'lr<; foo~·l.f 1I~1r7ilD'')'' (6) his ordinary business and residential
addresses.

II "'II')' (J),I'.'I" h"'lI-l- n",I'. rtf.,. 1I1"'f n7lcl1<; 21 When two or more persons are practicing in
f"'l,lP<;' fl.tf') ntltJ 1I·)tlt ,)O-Il lI'}tlt (Ii) partnership, the particulars referred to in sub-
r·~oollh'~lD' 001.)1 nl."t·)· ~c:f:'~ Il'l" 1l'~"II<j: article (I) of this Article may be furnished in
,I'.'(·"A I ,l'.U'l" n"'l,tf·)n·)· 'ttl. )'f'lJI,}JI. r71CI1<; the name of the finn and any such

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 FedcnI Nepril Gueut No II j. Occcmber, 2014 ..... pqe rnl

"'IUO«' MA flW'} h,}"'''' ,}(}-II h,}"'''' (6) communication shall be regarded as sufficient
~'}.:>'l "'}-'!"l ~ .~ !1.C1 .e4'm6·A" compliance by the individual partners of that
finn with the provisions of sub-article (1) of
this Article.
CI Ml.u h')",,,, ,}(}-II h,}"'''' (6) '~"'I "f"'~'I" 31 For the ~urposes of sub-article (') of 'his Article,
the expression "any surname which he may
flHflll 119"" f'"l.M> ,hl."I f"'l.h·h'l··)·,)
have borne previously" may not include:
hfl"H'9"'-
a) in the case of a person adopted as a child. his
Ii) '/-11.,,-"") O'~"""h-f' 1·.... "-'" h""!1.l.1- O~.·)·
surname before his adoption:
f~OlO> '} flHlIll 119'"
II) "'I')o;'o>')~ 110> O"'''''"h')' 6!1.·'"l.ro- X't b) in the case of any person, any surname
,,,,,.). Io""tf~· 001.')' CD.eY" h~ ,,,,,.). O~.·)· previously borne by him which was changed
or disused before he attained the age of 18
"!9"C: f'~IICDm CD.e9" '1'+9" ~.e YA'I'II
years or has been changed or disused for a
ffl.,' ·(l-fl 119" i CD!.'.9"
period of not less than 20 years; or

",) n~):' ft.;I''!'' m.e9" ~~. f''''''~')''} fl..). c) in the case of a married or divorced woman
0"'",,"10')' hD'''I~ :': O~.·)· n06··)··) ffl.·t-IIll or a widow, the surname borne by her
before her marriage.
1I9""

It§.f'illll """IO"'l'j 6TC:)''} llllouf"1mC
61 nc-'\. flIl.U /,'/,,, h·H',.. X ""1Pl.·)· f.,.lO·II·)·
f~."1ll """III"I.I"'fC; 6TC-f·'f .eu·n /,'/'"
mll.,.o> f ·/'II.:>)l: ""tfc;'fo>-'} 1I"'Il.':>1'1' f~."'ll
"""III .... I"'!'·'} "C; 6TC-f·'ji·) lI.uol9"C .e'!'·~A"
24. Monitoring of Financial Statements and Reports
II The Board may review the financial statements
and reports filed with it pursuant to Article 8 of
this Proclamation to detemline whether the
financial statements and reports are in compliance
with this Proclamation.

~I nCII- flIl.U h')"'''' ')0·11 I,H'" (Ii) ""lPd' f~."1ll 21 In reviewing the financial statement and report
"" "//\"1" 6TC')' lI.oul9"C;- pursuant to sub-article (I) of this Article, the
Board may seek further information or
clarification from:
a) any officer or Director of the reporting entity;
II ) h"'l')o;'OH" f67'c-)' h+6-fl.o>- h',A fll6-
:>~~. m!.'.9" -'!.e&'Il·~C'
b) any employee of the reporting entity
II) ft.7'C·)· h+6-fl.o>·) h',A f~."'ll """III ...."
responsible for preparing the financial
6TC')' ' ' ':>"!
1»6-"'0;' I m!.',9"
statements and reports; or

,h) ft.TC·)· h+6-fl.(l)-·) h'IA f'I."'ll """/" .... <;
6TC'}' ~ .....}. f"'lf:l'7 ~~.~.}. Tllll.ll
~"",~C ' f " 'out/'hl"'}' ~'1:"C CD!.'.9" fMc}'
~CJ"'}' I
·,·(.tl,"'I6 ""l)!<; "'106·6." lI.m.l'.+
c) the public auditor, certified auditor or audit
,,"0')' finn responsible for the audit of the financial
statements of the reporting entity.
.e'!'·~A "

li.flo!I.-~c:T'} 1"6- '1'6-:)- "'Il,?1"1. 9"Cou6- 25. Quality Assurance Rel'icw of Auditors
l1li"'1 h<; aJJ
Ii) nc-'\. m.e9" nCII- O"''''''i' fD'l.CDhllo> ffl.~ U1C II The Board, or other country's accountancy
f~."1ll uo-!.' " '4'''1''16 ~C"'}" hU1-6-'I? CD.e9" regulatory agency, regional or sub-regional
Il'i'll hU1-6-'I? f~."1ll an·y "'IUOC CD.e9" IIA accountancy body or any other international
M9" M'i' f'i."11l -Y "'IUOC f~""'~C:'f'} accountancy body. authorized by the Board in
writing, may review the practice of a public
f 1"6- 'I'6-'}' ananCanC .e'!'·~A' IIILU9" '~"'I'.
auditor and for that purpose, is authorized to:

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 ,. iitlUii I.J.~·A '1;16+ .'ILnJ • .,.C 'rA IJ~C ti"''' l'itl "t.r Federal Neganl Gaztone No. 81 SOlo Decem~, 20 14 .. .. pagt 7729

U) nl>-'I.'/·o;. i n7itlJ. i nN'lIJta> lD$'-9" h~CII' a) inspect any relevant book, audit working
?C f P'1r "/'n·~,.,. qlla> 1Ia> $'-/I;/" lD$'-9" papers and files, documents and records in
4:'l"l'C I"C nl'} "'I'}>;'a> ,}9" h"/qiM· possession, or under the control of the
,rlla>') 0011111 i fl>-'I.'}· P'1r lDl'/"}'<; auditor, his partner, employee or associated
"'IUY.C; 1P~1.'" 0011111 llooooCooC<; .. T persons and make copies of or take any
abstract of or extract from any such book,
t>Ta>'} 0'0(1)01'\.(' 1 lD$'-9" h"li'C "'I1I;/"lD1\
documents and records~ and
ooYli $'-'f~A'

II) hl>-'I. '~o;. lD$'-9" h7ith' lD$'-9" h'~"'lIJta> b) Seek information or clarification from the
lD$'-9" h~C'" ?C f I"Ir "/TH'''' ',IIa> auditor, any partner, employee or person
1Ia> "'I'}>;'a>')9" ool)f lD$'-9" "'I11lrtY associated with the auditor.
II.m$'-~ $'-'f~A"
f l IItlu h'}.,.iIi ')0-11 h'}.,.iIi (6) ,}~"'I "'I')>;'a>9" 21 Any public auditor, his partner, employee or
T11l1.h I>-'I."'C 7ith'; '~"'lIJta> lD$'-9" h~CII' person associated with him shall, at the request of
?C f P'1r "/'}1-~')' Ylla> "'I'}>;'a>9" 1Ia> n(lCI\. the Board or any person authorized by it in
lD$'-9" (lCI\. nili ,/~Ij: nlDhlla> 1Ia> II.mf~ writing, produce any relevant book, audit working
n$'-II;/"a> lD$'-9" n4:'l''l'o;. I"C YII,) "'I'}>;'a>'}9" papers and files, documents or records in his
possession or under his control for the purposes
h"/q11~')' Ylla> 0011111; fl>-'I.~· 1"60 lDl.,.'''';
of sub-article (1 ) of this Article.
"'I U1.C lD $'- 9" II' ~ 1.' "'I~ l 11 Mn-)'"

11'1.11'1."111 ao-Y "'Iunlr-r hhll.!!.1'1I') ~'i 6a>~<; 26.Accreditation and Recognition of Professional
,,,,aanm.}- Accountancy Bodies
61 (lCI\. ~,}1. '//111 uo-Y "'Iunc IIhll.-'I.'~7i') II The Board shall accredit as a professional
~ '}-'l.lPma> "'IooAhif II"'lY.,.C11<; ntl.U h'}.,.iIi accountancy body, an organization which files ar
'}o-II h ').,.iIi (f) HHlHo;.')·'} ool"~CT'f application and meets the criteria established by i
to obtain accreditation as set forth in sub-articll
II"'1.Y"'J.~ "'I'}>;'a>9" 1:CJ':+ oa>~<; MIIIJA::
(2) of this Article.

f l "'I')>;'a>9" 1:CJ':')' ~')1. '1."/11 21 To qualify for accreditation, a professiom

hhll.-'l.1:7i'} IIJ.,"/·H IIncl\. accountancy body shall demonstrate, to th
hl.U. '},- satisfaction of the Board that:

U) (lCI\. f"'l.YlDlIJa>') f~/llI ~<; 1>-'1.'''' uo-Y a) it complies with the requirements fc
professional development and achievement f
01:1')' ~<; fM~'~') foo-Y 11"+ oollh,Y
professional competence prescribed by tI
oop'~c'l' f"'l.Y"'J. ~,
Board;
II) n(lCI\. ,~.,.q$'-H· Ylla> M~'~ '~h;/";/"$'-~')' b) it has appropriate mechanisms for ensuring th
qlla> foo-Y "'I~Anif IIAm<; ooIlH.'fa>') its members participate in cont'"U!!
f"'l.fl?"/'l'n~· '~1n. I"A'''' Ylla> ' professional development as recognized
prescribed by the Board;

J.) fM~'~'} -'1.11. Til. '}
f"'l 'fAn')' HYo Ylla>!
00) ncl\. n"'lYlDlIJa> "C9" oolPd· M~1:,}
0011"/(l f"'l$'-lI ! ~<;
IP) (lCI\. nfttl.a> f"'l.YlDlIJ'fa>') II.II-'f ooll~
C-r·'f· f"'lY"'J.~'
oolf'l-,} "'Il?1'l' Mn+"
ooh;/"'~A<; oofllJmC c) it has mechanisms to monitor and ensure tl
its members are disciplined;
d) it keeps a register of its members in the fc
prescribed by the Board; and
e) it meets any other requirements prescribed
the Board from time to time.

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----
 Federal Negarit Gazelle No. 81 5'" December, 2014 .... page 7730

rl "'I1>;'0J0l'" f¥,"IiI - f "'IUOC fNlm0J01 3/ To retain its accreditation. a professional

1I11t.'t1(1I1 .\'.~ oo"'mA 111't'fA IIC>\. accountancy body, at least once a year, at a time
0"'l(Jl1I~0J0 til. n.nll O'toot II'}J.'. (lC>\.1 prescribed by the Board, shall satisfy the Board
O"'lfl~ II'J.;)'} Ottu 111"')1; 111-11 111"')1; (I) that it continues to comply with the requirements
f'~HlH';")'1 fllllt.'t1(111 ooll~C.y." lI"lA.y.
for ac~reditation as provided in sub-article (2) of
this Article.
001'H1 "'Illrt Mot::

iJl (lC>\. f"'lf(JlIlJ'f0J01 ooll~C'H' fl"'lf"lfr 41 The Board shall recognize professional accoun
00J0'l'" mc fl'~**_ f'/Ail - f "'IU06-')' tancy bodies that are constituted outside Ethiopia
,~.,.q.\'.H .\'.flIlJA:: in accordance with the criteria to be prescribed by
it.
1,rU1HI1 tiP" "'111miii' 27. Public Interest Oversight
~I (lC>\. "'I1>;'0J0l'" f'L"IiI - f "'IUOC:· 11 The Board shall ensure that a professional
accountancy body:
U) fUlIiI '1''1-1'''1 foomO'l- "lJ.'.;J-sP'li1 a) fulfills its public interest obligations;
00(Jl1lJ1>1 i
b) maintains and promotes the highest standards
fl) h~-t>;' f - f I.e; f...-6- 1I~l\II1'" J:lJl0J01
of professional and business conduct; and
oomO.",e; "'16-00>\.11 I.e;
d.) f'L"IiI -n "'I"J:1-1 1.<; Ooooo...-lll' c) develops the accountancy profession and
J:1n-e; Ottu II'I')/; f-tJ:~11-t1 Mr'f fUlIiI accomplishes the other pubtic interest
objectives set forth in its constitution and
'1''1-1'" 't'l"'lsP'f1 "'I"~1>11
under this Proclamation.
"'Il.71'1' M ,ot::
II "'I1>;'0J0l'" f'L"IiI - f "'IUOC f'L"iI 'too'" qM 21 Any professional a~ountancy body shall furnish
OIl1:lIt (JlC til. 0J01I'l':· to the Board within six months of the end of its
financial year:
U) fUlIiI '1''1-1'" f"'lllmO'l- "lJ.'.;J-0J01 a) an annual report of its activities regarding the
l11: fhe;(Jle;'f0J01 -t"lq6-t fulfillment of its public interest obligation~;
'too;J-'I! tTCt I I.e; and

fl) IIC>\. q(JlIlJOJo :"'ootf qMI"'IlJTOJo fll'l''Io b) an assessment or review of its activities
ooflh.fsP'f oowlt fhe;(Jl~0J01 "'-6- 1I~l\ against the performance indicators set forth in
liP" I"'Coo6-e; "1'1"1"'1 tTCt I the directives of the Board.
fl(lC>\, "'I'l-lil Mot::
31 If the Board finds that a professional accountancy
body is not meeting, or has not met its public
interest obligations to:
U) h~-t>;' f - f J:lJl foomO'l- I a) maintain high professional standards;

fl) f 'L"Iii 00- n f"'l"l J:"li (Jl.\'.P" b) develop the accounting profession; or

d.) Mr'f Ottu 1I'1':E (Jl.\'.1'" ooo-t-'IJ:tf un-
f-tooflll1>t1 fUlIiI '1''1-1'''1
"lJ.'.;J-sP'f1 I.f-t(Jl1lJ ~AII'~ (Jl.\'.1'" ~A-t(Jl1lJ I
f'L"IiI - f "'100';' ;>I\"'~1>1 OilJ'~' oo(JlllJt
f"'lfll'ffl0J01 IIw6-C lie; 1I~IIC'tt ooHC.71>1
Mh.fl.7"1'1' 1:ll1 IIC>\. f0 .,.e;t "'IlIm1.,.-tf
OtIDllmt 1I11t.'t -t11~1 flf"l1: .\'.'fIlA::
c) accomplish other public interest objectives set
forth in this Proclamation or its constitution;
foomO'l-
it shall, upon 30 days written notice, suspend the
accreditation of the professional accountancy
body until it is satisfied that the professional
accountancy body has instituted practices and
procedures that will enable it to successfully
discharge its responsibilities.

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 Federal Negarit Gazette No. 81 S·h December. 20 14 . .. .. page 7731

!if IIIlU hH10 'W"I "fUlfl1 '1''1>9''') foomO'l> 41 For the purpose of this Article, " public interest
"!P.,t-" "'III')' "'1')';'0>9" f~,"ll1 oo·f "'IUOC" obligation" means the responsi bility that a
M~'~ (lC-'\. Of1.11.a> O"'l.flDlIJa> UPon"! professional accountancy body and its members
O"'l.IDMa> h'J.;)') II;: ')o'l';f'fa> M I\,I'.If') have to discharge in the interest not only of their
principals but also in the interest of the public, as
IIUlfl1 '1''1>9'' Mll f"'l,mO'l>q'fo> ') ,,·"!qC
may be determined by the Board from time to
OoolDlIJ')' 1.11': fM'fo> ;)~6,~')' ~a>::
time in its directives.
tr;f, hh.!.II.~1i11 Mool\l.lf 28. Cancellation of Accreditation
"I "'11';'0>9" f~.f\l1 oo·f "'IUOC OIlU h'l'~ h')"'10 II The Board may cancel the accreditation of a
S:t ')O,h h1"'10 (i:) O'~f,~l1a> oou't.-)· f01I! professional accountancy body if that
'h)~lf O'~~II6.II')' MJ .,.",). a>h'l' M11!a> professional accountancy body fails to rectify,
9"h')J")' flf.,. '/-;:'IIf·'f··) tt~l.oo (lC-'\. within 30 days of notice of the suspension given
under sub-article (3) of Article 27 of this
hllMt-t 7i~.') 1I.IIClf f,'f'~lI::
Proclamation, the deficiencies that resulted in
the suspension.
fl (lC-'\. f'l."ll1 OO-f "'IUOC') hll.!.l!.·t7i1 21 When deciding to cancel the accreditation of a
llool\l.lf 1\.1D111:- professional accountancy body, the Board may:

U) f"'!'f "'Iuoo:. hll&.l!:t1i') f"'l.lPl.lfO')·1
9"1I1f')' 000"11110 60>'I>"a> I\.lPl.lf
>. 1 ;:If~ f10 rtr'i: "'Illm1.,.-t.f 1I"'I.oollh'~a>
f'l.I\l1 oo·f "'IUoc: ,l'.lIlIJlIl
II) "'IUOo:. hll.!.I!.,t7i1 il.lPl.lfl1"i h,l'.1q9"
f"'l.M'fa>') fooJ-ID"'I.f 9"111""'1' >'11!.f
.,.Cl1 hS6 .,.,,1· f~~I\" h@ .,.",). fllnllm
'1.11. ,l'.l\m'l'lI::
rl (lC-'\. f'l.I\l1 ao-f "'IUO<- hll.!.I!.,t1i') oolPl.lf
f Ulfl1 '1''1>9''1 '''' f '1."111 hf.1'11" /.I!. -}- ao- n
1D,I'.9" f"'lUOo:.') M~')' '1''1>9'' Oh'i:H' U-'l.;t-
,l'.11!lI 1111- ~oo~ '~1rt ~a> -Il1I- f"'l.f9"10-}-1
'1>1':00 U-'l.;t- O"'lMoo'l' hll.!.1!. ~m I\,I'.l\l.lf
>. 11!."',I'. il.ID1I1 ,I'.'f~lI::
a) give written notice of its intention to cancel
the accreditation of the professional
accountancy body concerned, stating the
reasons for such cancellation; and
b) afford the professional accountancy body a
period of not less than 21 days and not more
than 30 days in which to submit its objection
to the cancellation of its accreditation stating
the reasons for its objection.
31 If the Board considers that the cancellation of the
accreditation of the professional accountancy
body would critically affect the interests of the
public, the accounting and auditing profession or
the members of the professional accountancy
body, it may extend the accreditation on such
conditions as it considers appropriate.

41 The accreditation of a professional accountanc)

body shall 'aps. automatically if it:
U) "'IUOo:. UlIa>"a>1 I\.fllJI 1D1-9" a) ceases to exist; or

II) 1-1rta>1 h'i:f O(lC-'\. O'~IDI\~o> f'l.11. 1;:-Il b) fails to pay the prescribed fee or partiol
a>h'l' Oao-II- 1D,I'.9" Ohl-ll I\,I'.h'i:lI I\..,.C 1 thereof within such period as may be
IDl!.fa>'" fOJ-lI:: prescribed by the Board.

www.chilot.me

h'fA Ot'ot
fM ... C'x hQ6.C gPlFt
IrU. fM!.TC''f ~TC+" hO ... n+ 29. Auditors' Report and Opinion
Ii! 1I"'1')'>'OJ-1'" ~TC')' 1.+6-0. h'.A )')Y.Tl1l1.11
Me/"C 1Df!,1'" )')Y.',·oo!lht!l·)· ~>I.·'·C Ooolf')
f"'l.u't· "'I')'>'OJ-I'" !lOJ-"
II) f~>I.')· 1"'6-OJ-') h"'l"'fOJ-1'" ~M')'
)~ If<;' •• ~h"lD) i
II) ftTC'} M>6-Il(l)o') fl"'6- hHII:I't\ I."
f'Ull1 hooH;>111 1.')>1."'1'" Vl1')' I." M .
OHlIiA" O... .,,~ "''I.;t- f"'l.Yt'if!, ... 11l
flf) f'lAl1 00"11111 ht\1I j
m) 1"'6-(1)0') Oh"lqn- h')>l.Yh"(I)o') YM.A;>A
11n- f"'l.YI"',)O'} "'1')'>'(1)0')1'" oot)"
UN!''f h'> 1I.n-";(' OV·";(· ~~1"'i!
00) ~>I. '}') O"'l.oollh+ tTC')' h+6-IlOJ- h'lA
f"'l.·b'lJ:CO·} , "'"I f"'l.YHOJ-') 0-11·
~Am04'!
IP) h')Y. tTC~' h+6-IlOJ- h~A f 1"'6- qut
"'1Il(l)o') HP. Ooom4'1'" OtTC+ h+6-Il(l)o
h~A f'tAl1 00"111.." I." Mt!"";(' ~f!,
f"'l.;t-fOJ- 1-f!,'1 YII(I)o ,)l1l'}" 0'1 OI.C"I
'1'1'" 0II00<;'? ~~1.;>1m J
l) I.')J: tTC'} M>6-Il(l)o It~A f 1"'6- ·qut
f"'l.;fll(l)o') YUA f~>I. 0}: 1"'6- Ith"(I)o<;'
ftTC'r 1t+6-Il(l)o It~A f'lAl1 00"111..""
Mt!"'f 1.(1)0)'/"'>''' 'rl1l111'>' oolf"'f(l)o')
~~1.;>1m i I."
0) ql.;>1mn·)· j tTC'~') q4'l.OO·)·
hIHn '~') O!lmo+ Otl~· Olt.u
h')4')\" @~ f·/"onllh·/"(I)o 'l-AU 'I'~ ..). '/"10.
)(1)0 -On- O"'l.YI"',)O·)· onAIr Ooll"'~h"",)
~~1.;>1m i
Federal Negarit Gazette No. 81 S'" December. 2014 .. .. page 7732
PART SIX
STANDARDS OF PRACTICE FOR AUDITORS
II Any person acting in the capacity of certified or
public auditor to any reporting entity shall not,
certify or report or express an opinion to the
effect that any financial statements, including any
annexure thereto, which relates to such reporting
entity. presents fairly. or gives a true and fair
view of, or reflects correctly the affairs of such
reporting entity and the results of its operations,
or the matters dealt with in such financial
statement or annexure, as the circumstances may
require, unless:
'/")\"1.';' a) he has carried out such audit free of any
restrictions whatsoever;
b) he has proper accounting records in connee
tion with the reporting entity in question. so
as to reflect and explain all its transactions and
record all its assets and liabilities correctly and
adequately;
c) he has obtained all infonnation, vouchers and
other documents which in his opinion were
necessary for the proper perfonnance of his
duties;
d) he has, in the case of a reporting entity
regulated by any law, complied with all the
requirements of that law relating to the audit
of that reporting entity;
e) he has by means of such methods as are
reasonably appropriate having regard to the
nature of the reporting entity in question
satisfied himself of the existence of material
assets and liabilities shown on such financial
statements or annexure;
f) he is satisfied, as far as is reasonably
practicable having regard to the nature of the
reporting entity in question and of the audit
carried out by him, as to the fairness or the
truth or the correctness. as the case may be, of
such financial statements or annexure;
g) any matter referred to in Article 31 of this
Proclamation had at the date on which he so
certified or reported or expressed such
opinion, been adjusted to his satisfaction.
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 federal Ne llan1 GlI7.e lte No 8 1 S'~ Dece mber, 2014 .... page 77])

Oo·,·opC htTC')' ),·"'6-0.a> )",A ? C f"'l:I<;'!

"'I')>;'a>9" 1"1/1i1 oo"lll~l<; Mt 1I· ~.:J · a>
h ·)y."'I. my.'~a> ftTC')' ),'I'6-0.a>·) )",A f/»&·
f /»&·lD··) a>1Tl.')'<; OIl.U f 'I/1i1
h ')'J>O ,J>(\, '
oo"lIl~L <; Mt f"'oollh"")") 1·1:f':r HlhII
,>,~.)., YIIYA ' ),'r ?O. ~a> lDM" OH.hA
yoo~h;t-A 1111- °1l?'I~L ooom')' OJ)'.?"
tTC')' "'I .~·l"l OJM" 11M' .rf·)· ooom·)·
VIIO')'9""

lil f"'l')'>'a>9" t TC ')' ),'1'&·0. )",A /,.o:.·'·C 21 Where th e annual report of a reporting public
VtTC')' 11'1'6-0.a> )",A O"'l'y'~COlD' '}on:J·'P. entity discloses the extent of compliance with any
tTC')' 1.&-11") lDM" ;) ~6.!" '~·)~· .o:)'.&.)l · ~';'·) regulatory requirements to which the entity or its
O"'l.onllh·)· Oih"l onu'l"l' 1..).o:. 1A~· h"'l.m officers and Di rectors are subject, the auditor
0'1'0')' "'I')>;'or9" ooa ?C o·/·.rYIl Ot7'C'~ shall report whether the disclosure is consistent
f111~a> hih1' ?C f '/'''!''!oo oolf)··) 0"'ll?1'1' with such regu latory requirements,
tTC')' "'I.~·l"l MO')' "
. M-t- ff·)· OII"tOTo-l' 1 tL 30. Period of Time for Giving Opinion
~I "'I')'>'or9" f ' /'ooflhlll ')' ~Jt · ,·C roY.?" Tl1h.h II Any cert ificate required to be given or report to be
/'.<t · ~C OM.·'·CH Yh<;llI)or') "'I1'>'or')9" /»6- made or opinion to be expressed by a certified
O"toollh')' f"'l.flma> "'Il?1~1' f"'l.Y4'COa> auditor or public auditor in his capacity as
tTC')' llIM" f"t1AlIor ),M'S'f')' /»6-or ') cert ifi ed auditor or public auditor in pursuance of
'.m<;opopO·)· OP'l "f.9"r: O"'l.4'mC 116-')- llIC 1.IL any assignment carried out by him, shall be given
or made or expressed within a period of four
a>0'1' oo'l'l11 MM·"
months from the date on which the assignment
was completed.
fl /..<t.~.;. .rh<;llI)a>~ /»6- O"'l.oollh·)· 1·1:!I-l· 2/ 1fsuch certified auditor or public auditor is unabl e
fAIIO')' "'Il?1""1. ' tTC')' 1lI)'.9" M'~ fN· to give an unqualified cert ificate or make an
ooom')" "'I'I'l11 lD)'.9" oo"lil,/; ~Ar-II 1·y'·11·)· unqualified report or express an unqualified
filM") "'Il?1..,, ' tTC')' 1lI)'.9" M'I'J'f')' opinion, he shall, within the time period stated in
h)9"h'lJ'f' OH.U 11')op'/; '10'0 l1'1op~' (~) sub·article (I) of this Article, give that certificate
0'~111~or l.tL a>0'1' ooom')" "'I~'l11 OJ)'.9" or make that report or express that opinion subject
_"III'/; fllO')- If<;' M6.~1.)or 1111- "10°', to such qualifications as he may deem necessary,
1'1:111· fAIln-)' "'Il?1""1. ' tTC')- lD)'.9" M'~ and may if he considers it advisable, endorse on
ff ·)· ooom·)·' "'I'I'l11 lD)'.9" oo"lil,/; fAr-IIn-)·') that certificate, report or opinion the reason for
any such qualification,
"'I<;'I'or')9" 9"h·)f·)· OH.IJ- "'Il:>1"" tTC')'
lD)'.9" M'~ff-l' oro'1' ~'I+ )'.:r~A"
I. 'tAl! TH 31. Materiallrregula ri tv
~I 1I"'I'I':'a>-9" tTC')' ),'1'6-0. )'~A Nooflhlll')- II If any person acting in the capacity of a certified
1o.<t·~C OJ)'.9" T11l1.h Io.<t·~c Ooolf') f"'l.fl6- auditor or public auditor to any reporting entity is
lIor O/»6-or '/,Y..)- 1·AU '1'~ ..). 006.~00. 'I satisfied or has reason to believe that in the
II.f l :>"1'1' 1lI)'. 9" 00 6.~ 00- 'I I. 'I.<t J'9"'I f"'fY Y.C"I conduct of the affairs of such reporting entity a
9"hW')' 11.<;' lor OM·"!'!'· material irregularity has taken place, he shall
U) fH,~ooor'l l·AU '1'<\..). 011Cl1C Ooo"lil,/; without delay:
IItTC')- )''I'6-n.a> )'~A ;)~.;.!":r 1.<; a) notify, if! writing, the officers and all the
1IIJ-1I' 9" fllCY.' M~')' O'/;IJ-<i: "'IIIOJ'I' MO·)-j members of the Board of the reporting entity
of the irregularity, by giving particulars of the
irregularity; and

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 Federal Negar;1 Gazette No &1 Sill December. 20 14 . pa}!e 1734

II) OILU ·)o.il h')"')/;, M.A Nr (u) Noullh b) request every person referred to in paragraph
'~'}-') IIfD'f' n.:>t-9" 1I'~ n'~"mA "'III;}'(I) (a) of this sub-article, either individually or
<1:.1''''' I.) Y.Y.I.t)'f"" n)/;' J..<j: h Vt.l'l.:>"lm-" collectively, to acknowledge receipt , in
M.I.~1. ooM" f;}'f"",} hC9":"' h·)'l.(I)il-'\. writing.. of the notice and to take such actions
oomf-r hlln-l·" as he may deem necessary.
(I IItlu h'H)/;' 'l~"'I "1'AU '1'1.')'· "'III')' 21 For the purpose of this Article "material
"'1');;,,,,,')9" "TC')' h-rt-n. hIlA n"'lil·~'ly.c irregularity" means any unlawful act or omiss ion
(1)/'.9" noo·f"lmC '/.Y.')' m"l') noo'~~II<j: by any person in the conduct of the management
n"'lr.-I."I (l)J!-9" ~1I"'1 y"I."I n"'l,};;'",,9" II"" or control of a reporting entity, which is
fraudulent or amounts to theft, or represents a
Nt.~ou f"'l"!."ncnc (1)/'.9" filC4l')' 'I'"I~C'
material breach of any fiduciary duty owed by
(1)/'.9" n"TC·t· h-rt-n."" hIlA' ni'i"h- 1
such person to the reporting entity itself or any
~lIhhilr-'1 (1)/'.9" M'l" (I)~.9" n"TC')' Ht-n.""
partner, shareholder or creditor of the reporting
hIlA ~J!- fnlll1 '!'-r9" ~II"" IVI "'IW",,9" entity or any person hav ing financial interest. in
IIIIl- f'~"1I1') h9"~')' f"'l'"y.A '~"I~C' (1)/'.9" that report ing entity, or under any law applying to
f "TC')' h-rt-fi.(I)·') hIlA 1 f ;'-"t-""'} hll'IS: the reporting entity or the conduct or management
(1)/'.9" noot-C n"'l.oollh·)· n"'l');;'(I)-9" m"l h') Y. thereof, which has caused or is likely to cause
1.9",,.). "'I1·Y./;\ f"'l.4lmC nt.TC·}- h-rt-n."" material financial loss to the reponing entity or to
hIlA (l)J!-9" n~lIhllil.r-<;,"; (l)J!-9" ni'it.~:r· (l)J!-9" 1 any partner, shareholder or creditor of the
M'lt.fD'f . (l)J!-9" nt.TC·)· Ht-fi."" hll/;\ ~J!­ reporting entity or any person ha.vingfinanciai
fnlll1 '!'-r9" ~II"" 1I11 "'11'1",,9" II"" ~J!- 1'AU interest in that reporting entity.
fnlll1 hAt- Yilll'~11 (l)J!-9" 1I•.I'illl·)·A f"'l. 'fA
'~"I~C ~(I)-"

[I r-/·oollhl.lI-l· M .. ~c (l)J!-9" Tl1l1.11 M ..~C 31 The certified auditor or public auditor sh<~JI,
~1-;"" ool.)! OOIPI.·)· 1'AU '1'0\..). Mool.~OD-'} within 30 days of the issuance of notice referred
(l)J!-9" nool.~9" ~J!- Mooll''r,} (l)J!-9" ft.TC·)· to in sub-article l(a) of this Article, notify the
Board of the material irregularity together with
Ht-fi."" n~A fht- ;)~t.fD'f· (l)J!-9" fnC-'\.
such other infonnation as he deems fit, unless he
M"')' 1-A U '!'4·'k,} 11"'11.9" MI.~'!.(I)-')
is satisfied by infonnation received that no such
f"'lil·~~h.l' hC9")! oua>M'f(l)-') 1'~1.':>1m
irregularity has taken place or is taking place or
nM.,.C ntlu .n')",)/;, ,)(}-h h').,.)/;' A(U) onlPl'l' that the officers or the members of the Board of
fllm(l)- "'Ih;},(I)<I:.I' n'~~h nq) .,..,.}- (l)-il'!' the reporting entity referred to in sub-article (1) of
M·~I.~OD(I)- 1-AU '1'4.-}- 1.01."1. ~(I)- 1111> this Article, have taken adequate steps to remedy
h"'l..I'9"')n~· 1't;I;l,"'It. onl.)! .:>c IInc'!- "'I<'1(1)-r the irregularity.
nllO-}-"
gl nc-'\. mLU h').,.)/;' ")0'11 h').,.)/;' (r) (lQ1P1.·}- 41 The Board may disclose to the Ministry of Justice
f.,.1. Oll-}-') "'I'}'i'(I)-,}9" OO,)! IlIi: .). U "'I. ',AtC or any public officer or any partner, shareholder,
(1)/'.9" n"l~l1~'}- ~II(I)- 1I1I "'I'}'i'(I)-9" foo,}"1;'-"-}- creditor or any other person having financial
~1I;'-"A"1,} i IIt.TC·}- h-rt-fi.(I)- n~A l'it.~'f I interest in the reporting entity concerned, any
infonnation supplied to it pursuant to_sub-article
~lIhl1i1.r-<;'f i M&JI>'f (l)J!-9" nt.TC~·
(3) oflhi. Article.
n-rt-fi."" n~A "J!- fnHl1 '!'-r9" "11(1)- 1I11
"'I'}'i'(I)-9" 11(1)- 1I.1/;\)/;' J!-'f"A::
(;1 "'I')'i'(I)-9" to'l,1'C 1-AU ,!,o\.~. (lQ1.1I-') (l)J!-9" 51 For the purpose of detennining whether any
irregularity has taken place or is taking place, any
hf1'I.~1!" """.,., lI"'1l':>1'!' MI."'!. oohll-
auditor may carry out such investigati ons as he
f ;}'f(l)-') 9"C ""t- II..l'Y.C"I J!-'f'''A''
may deem fit.

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 Federal Negarit Gazelt~ No. 8! j'" Dcc~mber. 20! 4 .... page 773S

!lIf hooh"'C Ok): ftl1 1-A II 'I':f,ol-
I>')~: ft.TC')' 1>'I't.n. I>'IA fooli'::>lM' OJ!!-'!"
fooQ;l,l.7i fooh~C OJ!!-'!" f'UI'I1 "'I1fJt.,), ~y.,), m-n'l'
hoo,,/q,~ 0"")' fU,u t.TC')· 1>'I't.0, I>~A 1,'l,'~C
000"') f"'l,u't. f'/'oolPhl.II')' 1o'l,'~C OJ!!-'!" Tl1l1,h
A'l,'~C>
32. Materiallrregulatity Prior to Bankruptcy
If any person who was acting in the capacity of
certified auditor or public auditor regarding any
reporting ehtity immediately prior to its bankruptcy
or liquidation, whether provisional or final, is
satisfied or has reason to believe that:

iii ft.TC')' 1>'I't.0,m- l>'lA Mir.A O'/'qIlO')- OJ!!-'!" 11 at or before the date of the bankruptcy or
O'~U.::>O')· 611')' OJ~,'!" hH,.I' O~.,)· Ot.TC-)- liquidation, as the case may be, a material
1>'I't.n.m- I>'IA f P't. Vol· l·AU '1'1.')' irregularity in the conduct of the affairs of such
oo"'Roo-') OJ!!-'!" ooo,(.)\'!" ~!!- 00"~·'1i OJ!!-'!" reporting entity was taking place or had taken
place, or
1I '~M'''lA OJ!!-'!" nr'~'('l\on ~m- 11". "'100') 21 When such material irregularity had caused or was
f"'l.J'lM·A ?"h1.1")· ~.~.l.m-'i !!-U '/-AU 'I'<!-')' likely to cause Financial loss to the reporting entity
Ot.TC')' htt.O.m- I>~A OJ!!-'!" OM~'I' 1 or its partners, shareholders, creditors or to any
Oqlll>hll.l'<;''Y·' OhO'lt.P''f Ot.TC')'
OJ!!-'!" person who has a pecunioary interest in the
htt.n.m- l>'lA ~!!- fTlH1l 'I''I''!'' qllm- 1M reporting entity; or
"'I')'i'm-'!" ~m- ~!!- h~'~'i' fTlHl1 h. "It. .l'nh'~11
OJ!!-'!" 1I,.I'nh~'A f"'l,'Y-A oo"~')i OJ!!-'!"
[I OH.U M'~ 1>14'''' <iJii 10-n 1>14'''' ~ (II) 0'~Y.~11m­ 31 when he did not comply with the provisions of
oo~l.')- t.TC')' 1>'I't.n.m- I>~A hp'ir.A Nq/iO')' sub-article I (b) of Article 31 of this Proclamation
OJ!!-?" h'~H.::>O'): 611')' 0"")- 011 'I'<!-'~ t.TC')· in respect of such irregularity before the said date;
.I'~4'l.O oo,,~-)!

~l..::>1m M 'l'4,'~ 01lClIC 000"/11'" OJiI..I'm-~ h'lY.
1.1t..!''!! qlll>.I'.t. (JlJ'.'!" h ').1'. qllM&- (JlJ'.'!" h ').1'_ 1,H.J''!!
'I."I1l I> 1fJt. (Jl!!-'!" f 'l."f1l I> 1fJt. 000 "'I II Hi ""'m- ~ m-
t.TC')' "'I'I'l.1l h'i 'l'H.u1 t.TC')· 'I'~ MTC')'
1>'I't.n. I>~A ;:.~'" h'i IInc.<;- oo~h MO~-::
He shall forthwith dispatch a report in writing giving
particulars o( such irregularity, to the person
appointed as trustee or provisional trustee or as
liquidator or provisional liquidator, as the case may
be, of such reporting entity and at the same time
supply copies of such report to the person in charge of
such reporting entity and to the Board.

!lie, MIoUC mol- 33. Independence of Auditor

iii "'I'I'i'm-'!" f'~oo!phl.M' loil.,~C OJ!!-'!" Tl1l1.h II A public auditor or certified auditor shall carry out
loil.,~C P't.m-'I lI..I'h'im-1:' his functions in full independence and shall not:
u) nc.<;- OJJO'!" h.'In1:+f.'~ f"'l..!'OJIfJm-') fn~ a) act in any manner contrary to any code 01
'!",,/qC Y.111 f"'l. ,l.C "'I1'i'm-'1'!" 1',,/qC professional conduct and ethics adopted by th(
on,(. 'Io'!'" (Jl!!-'!" Board or the Institute; or

II) h'IY_ Ioil.,~c OM:r'!" ,,~ OM'!"C' ~'H') b) engage in any activity that is likely to impai
0"'l.1'l "'I'l'i'm-'!" ,~,,/qC ~!!- on'H~' his professional independence as an auditOi
fIlO')-'!":: whether independence in appearance 0
independence of mind.

fI "'I1'i'm-'!" f'~oo!phl.II-l' loil.'~C' Tl1l1,h loil.,~C
OJ!!-'!" lit.h' OJ!!-'!" M, f4'rnl.m- "'I')'i'm-'!" ~m­
OJ!!-'!" OhCir 'l'Cl1 h')'''''A OJ!!-'!" "''I''I'C P'C
f"'l.!P6· "'I'I'i'm-'!" ~m- III>'IY.' t.TC')' 1>'I't.n.
I>~A f'I,"Il1 /,ooH'::>l11'i hJ'nJ ~~'" h"~l
h'~ooHl0m- '1."111 Oon~"I'): f'l."Il1 00111..1' '!"1I1q
21 If any certified auditor or public auditor or hi
partner or any person employed by him or an
person working under his supervision and contn
or under the supervision and control of his partnl
was responsible for keeping the books, records (
accounts of any reporting entity, except to tl
extent of making closing entries or assisting wi

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 Fedttal Negaril Gaze"e No. 81 Sill Decembt!-r. 2014 .... paSe 7736

h"'lh<;oJ"} i n'l."Ml "'IM·I,hf 9"111Q hooC ...·)· any adjusting entries or framing any balance sheet,
OJJ!.9" r¥1H'<; 0'" oo'7f1""'9'l· j rft.ft-~·· ¥:'Inl' accounts. statement or other document from
00'7f1""'9'~'· OJf.9" ft.ft-l· r¥:'1l1 fI~p·l· existing records, such certified auditor or public
h"'lH':>~')' n~N'C MTC')' 1t'l>':'n.OJ- 1t"1I auditor shall in certifying or reporting on anything
in conne~tion with the business or financial affairs
r6-<; rnltl1 /")'I>~:l'(I, .:>C n'~1<;"i "'I/.':>1"'l.
of such reporting entity, indicate that he or his
itfl'1' OJJ!.9" tTC')' fI.f>I'Cl1 rtTC')' 1t'l>,:.n.OJ-
partner or a person working under hi s supervision
1t"1I r'l!ll1 00'll1n<; r¥!ll1 Itn'll n':'fI· OJJ!.9"
and control or under the supervi sion and co ~·ltro l of
ni'ith· 'l>Cl1 1I')--)'1I<; "''1''1'C r c n"'lP'':' flOJ- his partner, as the case may be, was responsible for
¥~~.~.). ooh<;OJ~'') "'Ioollh')' Mn·)·" keeping such books, records or accounts.
r l nll.u It·).,.l\' ')O.~ It').,.l\' (f) r,~y.~nOJ- "'I')~OJ-9" 31 Nothing in sub-article (2) of this Article shall be
flOJ- nlt·).v.- 1.11. (1It')1; tTC')' It'I>,:.n. It"ll /,')y' construed to permit to any person to act as an
¥."/11 Qfloo·f<; /,')y' 1o .... ·~C lf~· oor,:.')· accountant and as an auditor at the same time to
r"'l.il."'y'·fI')· "·f.C'! oo ·~C'!9" rfln')'9":: the same reporting entity.

iii nll.u 1t'Hl\' ')o·~ It·).,.l\' (Ii) r,~y.~nOJ-') 41 A public auditor who contravenes any requirement
r"'l.·~~fI~ "'I')~OJ-9" Tl1n.1I 1o .... ·~C nnc .... set forth in sub-article (1) of this Article shall be
r .... n. Tn.') l·ft-·)· II~ .,.cnn,)· nll.u It'l'l': 1I~1I subject to the disci plinary proceedings of the
M ')' y"')':>19'l' ooU'/")' r .... fI. Tn. ') /'C9"l! Board and be liable to be sanctioned by the Board
J!.OJfI.v.- n;l-lI:: in accordance with the provisions of Part Seven of
this Proclamation.
(;1 nll.u 1t'Hl\' ')o-~ 1t'Hl\' (Ii) r,~y.~nOJ-') 51 A certified auditor who contravenes any
r"'l.·'·~fI~ "'I')~OJ-9" r·~ooflh/.ft-)· 1o .... ·~C j requirement set forth in sub-article (I) of this
nit. ,)~t,l-r.·~ r .... fI. Tn.') 'fft-,). II~ .,.cm,)· mlu Article shall be subject to the disciplinary
10'1'1': 001P/.·)· n"'l.OJ"lOJ- rlt. ')Ilt·rr.·~ "'1**"'1..1' proceedings of the Institute and be liable to be
Y.,)11 It'7Ql1~')' Q~'fOJ- .v.-')':>'l.9''f oofll.~· sanctioned by the Institute in accordance with the
r .... fI. Tn. ') hC9"l! J!.OJfI.v.-n;l-lI" relevant provisions of the regulation establishing
the institute to be issued pursuant to this
Proclamation.
JI fllI.U It').,.l\' ')o-~ It').,.l\' (Ii) '1~"'I : - 61 For the purpose of sub-article (I) of this Article:
,
II) "l'lth9"C' ~l\H'" "'1ft-). It').v.- 1o.... ·~C ;I-"'I~' a) "independence of mind" means the state of
1f1111''''<; '1'').,,:,. If<;' oor6-t r"'l.fll'fflOJ-') mind that pennits the provision of an opinion
00-f'f 1.*9" h"'l.lil.71C '~l\'h<;' ~l\ If<;' without being affected by influences that
compromise professional judgment, allowing an
1t/11'.I'r')' oo~m')' r"'l.fll'fflOJ- floh9"C'
individual to act with integrity. and exercise
U-'l.;I- ~OJ- i
objectivity and professional skepticism;
fI) "l'hJ!.;I- ~l\~')'" "'Iflt Io').v.- hOJ-""~ fflOJ-<; b) " independence in appearance" means the
9"1I,)f;l-'f flf~ ;I-~n. rlt').v.- Io ....·r .f:CI':·)· avoidance of any fact or circumstance creating
(DJ!.9" rio .... ·)· o-.v.-') Mll ;I-"'I~~t I on an informed and reasonable observer the
1f111'~~~')'<; '1',):l'<t 1'lic7I&:lI 11ft- ),,)'l impression that the integrity, objectivity or
.1'9"') 9"11').1")' r"'l.lf,) "'I')"'OJ-')9" '1'C"l&' professional skepticism of a finn or member of
r"'l..:>l1'11 u-'l.;I- (DJ!.9" .v.-C'I.·r "'IIlOJ1.v.- ~OJ-:: an audit team has been compromised.

iii. MtCl ll4"'Lt,2Tp" fT"" 7"l't 34. Conflict of Interest of Auditors

"'I')>;'OJ-9" 1o'l1'C OJJ!.9" rio .... ·)· .f:Cl':t Olo'l·~c~t
h"'l.nfl'7f1OJ- tTCt 1t:"6-n. Itltll .:>C rT:"9"
"I"l't n. <;' l. ~ ,I'.'f~1I OJ,I'.9" roo- .I' ~'H,) r"'l.fiJ"l
U-'l.;I- M 11ft- fl.f9",) r tTct It:"':'n. I.'.".')
'/."111 hooooC ...C 6-""') "'I'7f111 Mn'r::
Where an auditor whether an individual or a finn
considers that it may have a conflict of interest or lack
professional independence in relation to a reporting
entity for which such auditor has been engaged as
such, shall withdraw from auditing that reporting
entity.

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 Federal Negarit Guene No. 81 Sa December, 2014 ,.. .. page 7737

\w:. OMotel 0I\"'l.L1I"

{il Otlu /,'f':f OJwr
f_' Ti-t
Oltu /,'f':f ooIPl,~' O"'l.OJ"kD-
35. Professional Misconduct by Auditors
11 If a person who has been registered as public
nil ool'll.o}- T-ot\.11 M ..~C OJ,.'!" f·~ool'lhl."·). auditor or certified auditor under the provisions of
~'I.·~C Ooolf"} f·~ooH10 "'I"}>;'OJ-'!" I\a>:- this Proclamation or the regulation issued
hereund.er:
U) h·)f. T-ot\.11 ~'I.·~C OJ"'!" h·)f.·~ool'lhl."·). a) fails to perfonn any duties devolving upon him
~'I.·~C I'Ih"}!'.: 6TC')' 1.+<1-0. h"lI '''0')."1
in the capacity of a public auditor or certified
auditor to any reporting entity with such a
"i!..:t" n"'l.mn+n·)· 'l")"'~'i foo-f -0",,).
degree of care and skill as is reasonably
ooOJ"J-)· t-,,.'f·lI n..f>C i OJ,.'!"
expected of him; or
") OIW h'l'J!' oo!pd' "(lC-'\. n.,.l.n 00~1i b) is on the basis of prima facie evidence presented
f"'l.If·) . "'Ilia",. noooolll.·)· np'<l-OJ- to the Board or the Institute, pursuant to the
'fll'~>;' lfS:lI -olr "'100') f"'l.fM·lI o-t provisions of this Proclamation or the
'!"11"1 fo}- I'ISC i regulations issued hereunder, is negligent in the
perfonnance of such duties;
00- fOJ-"} n"'l.1Q 'l'"} "'~'i -0"")' ooOJ"J·)' the Board may. whether or not such public auditor
QM'IIO')' OJ"'!" 'fll'~>;' nlf~o·). 1'' ' '
nOJ"}J!lI or certified auditor is liable to be or has been
'~mf-t OJ"'!" HhM OJ"'!" 'l'4.·~>;' If'f H11 crimina11y charged or has been convicted in respect
0.1f"}'!" Q,.If·)'!" (lC-'\. nlto h'l':f nhfi;lI flq.). of such failure or negligence, commence its own
oolPl.')· 1'. .
r."I t\.ool.'!"C' OJ,.'!" nllu h'l'~ inquiry into the circumstances pursuant to the
procedures of Part Seven of this Proclamation or
oo!pl.·r· n"'l.OJ"JOJ- f.')-o ool'll.o}- 1. "}'l.ool.ooC
"t.. "}lIt·).I'·~ t\.oo<l- ,.'f'lll:: cause the Institute to enquire in the circumstances
pursuant to the regulation issued hereunder.

II nllu h"l"'W "}O-II h"lof>W (C) f-l"f.~11OJ­ 21 Subject to sub-article (3) of this Article, jf the
h"lf.-I"mn.,. If'f nc-'\. nllu h"}.,.W "10-11 evidence presented to the Board pursuant to sub-
h"}.,.W (6) oo!Pl.o}- f.,.l.Mo}- "'I1Il.1I h'l'?o. If'f article (1) of this Article proves such failure or
"11OJ- nllu I'IOJ- 'I,.
nllu h'l'~ l1fi;lI flqo}-
f·~ool'lh-l"OJ-"} II~ P'C'to}- nooh-l"lI nltu h'l'1:
negligence to its satisfaction, the Board may.
pursuant to the procedures set forth in Part Sever
00!Pl.·)· H.ll<>t f"'l.If~OJ-"I -I"10.OJ-"I +"Jo}- of this Proclamation impose upon that person an)
t\.OJII"}n·). ,.'f'lll:: of the penalties prescribed in this Proclamation 8!
applicable.

CI M-I" n.,,"} f11'111OJ- OJ"'!" "'Il.?1"1.lJ)o"l fl'lmOJ- 3/ No action may be instituted against any persOI
OJ"'I" 6TC.,,"} OJ"'I" 00"1'1 "I.lJ)o"l fH?J!OJ- registered as a public auditor or certified audita
OJ"'I" oo"I'IAlOJ-"} , '/."10-.') OJ"'I" I'I~"""} under this Proclamation or the regulation issuo
fl.?1mOJ- h+"} lIn'i -1""'<1-'1. Olf~ yt-,-o' hereunder in respect of any opinion expressed (l
n'fllH~O}- OJ"'I" ""'I'l'ncnc n"'ll'l-o ... If.,. certificate given or report or statement made c
statement, account or document certified by him i
"lI-I"l.?1m OIl-l""'C' nllu /,'f'~ "'!Pl.o}- OJ,."
the ordinary course of his duties, unless it is prove
Ollu h'l'~ "'!Pl.o}- 0"'l.OJ"JOJ- f.')il "'1'Il.+
that such opinion was expressed or such certifiea1
T-ot\.h M-I"c OJ"'I" H ...l'lhl.l'lo}- ~'I.-I"C
was given or such report or statement was made (
O... If"l f-l"ooH1n "'I')>;'OJ-'I" I'IOJ- ... f.0>;' P'<l-OJ-')
such statement, account or document was cenific
t\.fh'iOJ-"I 011'111OJ- M-I"no}- OJ"'I" MmOJ- maliciously, negligently or with fraudulent intent.
"'Il.?1'" OJ"'I" QH?J!OJ- 6TCo}- OJ,."
....,""" OJ,." Ql.?1mOJ- ....,"'" I '/."1-0
OJ"'I" I'I~!'.: 'l"h"}f+ t\.hM h,.'fll'l"::

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Federal Negarit GII7.elte No. 81 ~'" December, 2014 .. . , page 7738
PART SEVEN
ENFORCEMENT
36. Authority to Investigate
I I The Board may authorize persons possessing the
necessary professional competence to cond uct
investigati'on on behalf of the Board in respect of
the following matters:
a) any complaint of dishonest practice,
negligence, professional misconduct, or
malpractice made against a public auditor;
b) any breach of the Code of Professional Conduct
by a public auditor;
c) any material irregularity notified to it pursuant
to Article 31 of this proclamation.
d) any fai lure to provide reports or documents
required by Article 25 of this Proclamation;
e) any failure of a public auditor to m,aintain the
necessary qualifications for a license; or
f) any other violation of this Proclamation, or
regulations directives issued hereunder.
21 If investigation in respect of matters specified in
sub-article (I) of this Article is conducted by the
Board or any person authorized by him shall assign
the investigating officer.
31 The Chief Executive Officer of the Board shall
notify the nature of the complaint to the auditor or
public interest entity under investigation.
4/ For the purpose of investigating any allegation,
complaint or charge of misconduct which violates
this Proclamation or the regulations or directives
issued hereunder, the investigating officer may:
a) inspect or require the production of any book,
document or thing in the possession of or under
the control of a public interest entity, or current
or fonner public auditor against whom the
allegation, complaint or charge has been made,
or in the possession of or under the control of
officers of the public interest entity the partner
or employee of the public auditor or persons
associated with such auditor;

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l
Federal Negarit Gu:ne No. 81 Sill December, 2014 ..... p.ge 7739
b) retain any such book, document or thing or
make copies thereof, and use in evidence in any
investigation or hearing concerning the
allegation, complaint or charge of misconduct;
c) question any person who may have information
relating to the events that form the basis of the
allegation, complaint or charge; and
d) review any financial statement and report filed
with any government department or authority.
5/ A person may refuse to answer a question ·put to
him or refuse to furnish any information,
document, record or book, where the answer to the
question or the production of the document, record
or book might, in his opinion, tend to incriminate
him.
61 Nothing in this Article shall be construed to
compel the production by the auditor, his partner,
employee or associated persons, the public interest
entity or its officers of any book, document, record
or any other material containing:
a) any information which is confidential under
the Commercial code or any other law in
force ~ and
b) privileged communication by or to a legal
practitioner in that capacity~
except in so far as the disclosure of the information is
made in accordance with the law.
37. Report of Possible Violations to the Board
Notwithstanding the provisions of any other law,
whenever it appears to an official of any governmental
agency regulating any public interest entity that there
is prima facie proof of conduct on the part of a current
or former public auditor which violated or violates this
Proclamation or the regulation or the directive issued
hereunder, such official shall report such conduct to
the Board for investigation.
38. Initiation of Proceedings
I I If it appears to the investigating officer that a
violation of this Proclamation or the regulations or
the directives issued hereunder~ has occurred, the
investigating officer may recommend to the Chi ef

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Federal Negarit Gaulle No. 81 ,II ~ember. 201 4 ... page 7740
Executive Officer of the Board that a proceeding
be instituted against the public auditor, public
interest entity. or any person alleged to have
committed the violation.
21 The Chief Executive Officer. on his own initiative
or on the recommendation of the investigating
officer, may institute proceedings.
31 If the Chief Executive Officer of the Board decides
to institute proceeding pursuant to sub-article (2)
of this Article, he may appoint three persons of
whom one is a lawyer, from among the staff
members of the Board who were not involved in
the investigation, to act as Hearing Examiners.
41 The public interest entity or person against whom
the proceeding has been brought shall have the
right to counsel in the proceedings.
39. Procedure at the Disciplinary Hearing
II For the purpose of any hearing that is pan of the
proceedings stated in Article 38 of this
Proclamation, the Hearing Examiners, at the
request of either party may:
a) summon any person who, in their opinion, may
be able to give material information concerning
the subject of the hearing or who is believed to
have in possession or custody or under control
any book, document or thing which has any
bearing on the subject of the hearing, to appear
before them at the time and place specified in
the summons, and to be interrogated or to
produce such book, document or evidence and
may retain for examination any book, document
or evidence;
b) administer an oath to, or accept an affirmation
from the person summoned under sub-article
I(a) of this Article and require him to answer
questions put forward to him and to produce
any boo~ document or any other evidence
in his possession or custody or under hi s
control.
21 The respondent in the disciplinary hearing shall be
informed of the nature of the complaint made
against him and shall be entitled to appear
personally or by counsel to produce evidence. call
and examine witnesses and cross-examine other
witnesses.

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Federal Negarit Gazene No. 81 .5'" December, 20 14 .... page 7741
31 A summon for the attendance before the Hearing
Examiners of any person or for the production of
any book, document or other evidence shall be in
the fonn prescribed by the Board, and shall be
signed ~y one of the Hearing Examiners and shall
be served in the same manner as it would have
been served if it had been a subpoena in a civil
matter ina court.
41 Any witness who, having been duly sworn or
having made an affinnation, gives a false answer
to any question lawfully put to him or makes a
false statement on any matter, knowing such
answer or statement to be false, commits perjury
and shall be held criminally liable in accordance
with the Criminal Code.
51 In any investigation or disciplinary proceeding, it
shall be sufficient, for the purpose of proving the
proper execution or the tenns or the content or the
authenticity of a document, for a copy of the
document purporting to be a copy of the original to
be used in evidence, subject to the right of any
person to adduce evidence that any copy so
presented in evidence is not authentic.
40. Failure to Appear
11 without prejudiey to the previsions of sub articles
(5) and (6) of Article 36 on this Proclamation, if
any person who has been duly summoned fails
9"h'lJ'T
without sufficient cause, to attend at the time and
place specified in the summon, or to remain in
rof,9"
attendance until excused from further attendance
by the Hearing Examiners, or refuses to swear or to
affinn as a witness or fails without sufficient cause
to answer fully and satisfactorily to the best of his
knowledge and belief, all questions lawfully put to
him concerning the subject of the hearing or to
produce any book, document or thing in his
possession or custody or under his control which
he has been required to produce, he shall be
criminally Iiable in accordance with the relevant
provision of the Criminal Code.
21 The law relating to privilege of a witness
subpoenaed to give evidence or to produce any
book., document or other evidence before a court of
law shall apply to a witness summoned to give
evidence or to produce any book, document or
other evidence in accordance with this
Proclamation.
 Federal NegarU Guette No. 81 5'" Deeember, 20 14 ... page 7142

4 1. Imposition of Sanctions
/il hll 1I"'1.f"~: OM· 11"'1. V'.·)· r."lOar·) hCIlC<; II After hearing all of the arguments and evidence at
"'IlIl:<l hooloo';' O·).~ '~h"7f .!'.II·) h'P"J!: OJ.!'.?" the hearing, the Hearing Examiners shall decide if
Ollll h'P"J!: oo/pl')' rOJ")') .1'.')11 OJf.?" ooootf the respondent has violated this Proclamation or
the regulation or directive issued hereunder.
oo"'~IIIj: OJ.!'.?" hlloo"·~M·') .!'.OJII<;II·"

II hll (\"'I.I"'f' '~M1I- .!'.II') h'P"J!: OJ.!'.?" Ollll h'P"J!:
oo/pd· rOJ"1') .1'.')11 OJ.!'.?" oooot.f '~~lI~lI
1111<11- ',00'1- Ollll h'P"J!: h')"'''' ~f 1.<; ~r
oo/pd· r~"1')' ar"" .!'.II"111·"
;:1 '~h"11- 0",11 h'P"J!: h')"'''' ~~ oo/pl')' W'Iq'f
"~"'lO OIl'~"'C Oilll II"'I.I"'f· r'~lIm
rnc-'l- roo<tl.l'li ar"'" .!'.1f<;lI"
21lf the Hearing Examiners decide that the
respondent has violated this Proclamation or the
regulation or directive issued hereunder. they shall
impose a sanction in accordance with Articles 42
and 43 of this Proclamation.
31 If no appeal is filed by the respondent as provided
ar"'" in Article 47 of this Proclamation, the decision of
the Hearing Examiners shall be deemed the final
decision of the Board.

!if. "Tl1l1.h ~!l.1"C 1.<; f~!I.+ 1:C~+ 1If. M"'LOJ(\1: 42. Sanctions on Public Auditors and Audit Firms
hC!"'lI
hll 1I"'I.I"'f· hll r."lOO·)· Tl1l1.h ),'!.,~C OJ.!'.?" Where the Hearing Examiners determine that a
r M.')· I':C"J!:')' f.II')'} h'P/!: OJ.!'.?" Ollll h'P"J!: public auditor or audit firm has committed a
contravention of this Proclamation or any regulation
oo/pl')' rOJ"1"} .I'."}l1 OJ.!'.?" oooot.f '~~lI~lI l111ar
or directive issued hereunder, the Hearing Examiners
hOJII'I- I. "}-'II1M1.~'~ h"'l.h,W!·-l- h"}-'I-"} OJ.!'.?" hh"}1':
may as appropriate take anyone or more of the
O~.!'. I.C?":<II"'f· II.OJII-'I- .!'. 'f'~II-'.
following measures:
61 IITl111.h M.1"';' OJ.!'.?" M.·)· I':C),:'~ "'IlIm"}.,,4:f 11 issue a warning to the public auditor or audit firm;
oollm')' !

fl Tl1l1.h ),!I.'~';' OJ.!'.?" r),'!.,)- I':C"J!:'~ "'I"l~')' 21 order the public auditor or audit firm to meet
r"'l.mO~O·)·"} ooll.l.C')' I. "}'!.f"l~ "'I"1I! prescribed requirements;

31 require the public auditor or partners or

;:1 Tl1l1.h ),'!.,~,;, ,
OJ.!'.?" rio'!.·)· I':C)':'~ 7It.~'f' OJ.!'.?"
employees of the firm to undergo
'~"'''1t.I'''f' 'ft.-,), filar r),'!.,), h1l1"1(r')' oollm·)·
training to improve their capacity to provide high
r"'l.ffW~'far"} h~?" I."}'!. 1~rt- r"'l,fll.l.lI.:>'far"}
quality audit services;
IIl1i1l<; h')'!.OJII-'I- "'1"11 i
41 suspend the license of the public auditor or the
!il rTl1l1.h ),'!..~.;. ') OJ.!'.?" r),'!.·)' I':C/!:'~"} .l.J'1':
audit firm;
"'111': !
(;1 rTl1l1.h ),'!.,~,;,") OJ.!'.?" r),'!.,)· I':C),:'~') .l.J'1': 51 revoke the license of the public auditor or the audit
tTDlPl.11 ! firm ;

'1,1 OTl111,h ),'!.,~,;, OJ.!'.!'" O),'!.')· I':C"J!:'~ ~.!'. hl1C 61 impose administrative penalty against the public
auditor or audit firm not exceeding Birr 25,000.
l\'(;it fllOllm hM'-'I.1'.t.-'f rn"l1 ~"1,). oo"1l1"

!if. nt.;rc+ h~t.-fl hllllt<; "MCI\- '1.!'.t.h1"C''f 1If. 43.Sanctions on Reporting Entities and their Directors
M"'LIDII1: hc!"'lI
!il hll 11"'1.1"'1' "'I')>;'ar?" t.;rc')· h~t.-fl hllll OIl\! II Where the Hearing Examiners reach a final decision
h'P)': OJ.!'.?" Ollll h'P),: oo/pd· rOJiIl't') to the effect that a reporting entity has failed to
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h."t.-ll1 1.<; r ),'!..)• .l'.llll"'f· OJ.!'.?" oooot.fl"'f standard or directives issued under this
Proclamation, the Hearing Examiners may either

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Federal Ncgarit Gazette No. 81 ,. December, 20 14 .... page 7743
issue a warning to the reporting entity or serve a
notice on the entity fOt an ifhmediate restatement
of ititinancial stat~n1ents or report, or both.
21 Where a notice is served on a reporting entity under
sub-article (I) of this Article, it shall, within 30
days of the service of the notice, restate its
financial statements or reports and resubmit them
to the Board and to the relevant government
department or authority,
31 If any reporting entity fails to comply with the
provisions of sub-article (2) of this Articlel the
Hearing Examiners shall impose administrative
penalty not exceeding Birr 10,000, or may refer the
matter to the relevant government department Of
authority for appropriate action,
41 In the event that the Hearing Examiners find that a
Director willfully caused a failure'to comply with
either sub~article (1) or (2) of this Article or was
responsible for a serious distortion of the reporting
entity's financial statements or reports, the Hearing
Examiners may:
a) impose administrative penalty not exceeding
Birr 10,000 on such Director;
b) suspend the Director for a period not less than 8
year or not more than five years or disquaJify
any such Director from serving in that capacity
for that or any other public interest entity;
provided. however. that the administrativf
penalties imposed on the Director ir
accordance with this sub-article may not span
him from criminal or civil liability;
c) refer the matter to any other relevan
government department or agency fo
appropriate action.
51 Where the Hearing Examiners find that th
Director of a reporting entity who willfull
caused a failure to comply with either sub-artic!
(I) or (2) of this Article or was responsible for
serious misstatement in the reporting entity"
financial statements or reports. is a public audito
the Hearing Examiners shall, in addition to It

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FcdenI Negarit Gazette No. 8 1 S" I:>e«mber, 20 14 .... page 7744
sanctions under paragraphs (b) and (c) of sub--
article (4) of this Article, impose sanctions
against the Director as a public auditor in
accordance with Article 42 of this Proclamation
or if the Director is a certified auditor, the
Hearing Examiners shall refer the information
about such contravention to the Institute or
accredited professional accountancy body for
P'IAil appropriate disciplinary action.
44. Criminal Offences
I I Any person who:
a) fraudulently makes, causes or permits any false
Ol-11'1' or incorrect entry in a regi ster under this
Proclamation or any co py thereof; or
b) fraudulently procures or attempts to procure,
whether for himself or for any other person,
registration as a certified public ~ccountant,
certified auditor or public auditor;
c) knowingly and willfully makes any statement
which is faJse in a material particular, or which
is misleading, with a view to gaining any
advantage, concession or privilege under this
Proclamation, whether for himself or for any
other person;
d) willfully hinders any of the Hearing Examiners,
the Chief Executive Officer or any member or
official of the Board in the exercise of any
power conferred upon such person by or under
this Proclamation.;
shall be guilty of an offence and be liable to a fine
not exceeding Birr 20,000 or to simple
imprisonment not exceeding three years or to both.
21 Any person who contravenes sub-article (2) of
Article 51 of this Proclamation shall be guilty o fan
offence and be liable to a fine of not exceeding
Birr 10,000 or to simple imprisonment not
exceeding three years or to both.
31 Any person who contravenes the provisions of sub-
article (I) of Article 18 of this Proclamation shall
be guilty of an offence and be liable to a fine not
exceeding Birr 1,000 for each day the offence
continues to occur; provided however, that the totll
amount of such fine shall not exceed Birr 50,000 06
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Federal Ncprit Queue: N<.. 81 SOlI Occc:mbc:r. 2014 .... _ p!lge 174S
to simple imprisonment not exceeding three years,
or to both.
41 A Director. an officer or an employee of a Public
intereset entity who, without prejudice to the
Provisions of sub articles (5) and (6) of Article 36
of this Proclamation, conceals infonnation or
refuses to Provide infonnation or clarification shall
be guilty of an offence and be liable to a fine not
exceeding Birr 20,000 or to simple imprisonment
not exceeding two years, or to both.
51 A public auditor or a certified auditor, a partner,
employee or person associated with such public
auditor or certified auditor who without prejudice
10 the provisions of sub (5) and (6) of Article 36 of
refuses to produce any relevant boo~ document or
record in his possession or under his control, when
requested by the Board or the Institute for quality
assurance purpose, shall be guilty of an offence
and be liable to a fine not exceeding Birr 10,000 or
to simple imprisonment not exceeding two years,
or 10 both.
61 A person who willfully causes a f.ilure of a
reporting entity to comply with either sub-article
(1) or (2) of Article 43 aflhis Proclamation or was
responsible for a serious distortion of the reporting
entity's financial statements or reports or
knowingly and wilifulJy aids. abets, assists, incites
or induces another person to prepare or issue an
inaccurate or materially misleading financial
statement or financial report shall be guilty of an
offence and be liable to a fine not exceeding Birr
20,000 or simple imprisonment not exceeding
two years, or to both.
71 Any person who practices the accountancy
profession without a valid certificate of registration
or practicing certificate shall be guilty of an
offence and be liable to a fine not exceeding Birr
25,000 or to simple imprisonment not exceeding
three years, or to both.
81 Any other act or omission constituting material
breach of this Proclamation or regulation, directive
or code of conduct issued in accordance with this
Proclamation shall be a criminal offence
punishable a with a fine Dot exceeding Birr 20,000
or with simple imprisonment not exceeding two
years, or with both.

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Feden.l Negaril Gazette No. 81 S" DecembcT. 20 14 .... page 7746
45. Restoratio-:, to Register
11 The Board shall restore to the Register the name of
a person whose registration was cancelled on the
ground that he was no longer a member of the
Institute, if the lnstitute notifies the Board, in
writing, that he has had his membership restored.
21 A person whose license has been cancelled under
Article 42 of this Proclamation may apply for his
registration to be restored and Articles 18 and 21
of this Proclamation shall apply, mutatis
mutandis, as ifhe were applying for registration.
46. Enforcement of any Claim and Sanction of Board
11 Any fee and charge payable to the Board pursuant
to the provisions of this Proclamation shall be a
debt due to the Board and may be claimed by
action in a court of competent jurisdiction.
21 A monetary penalty imposed by the Board as an
administrative sanction under this Proclamation
shall be recoverable as a fine . impos~d by a
competent court and an affidavit sworn by a
member of the Board of Directors or the Chief
Executive Officer of the Board shall be sufficient
proof of the lawful imposition of the monetary
penalty to enable a court to issue a warrant in
accordance with the provision of this Proclamation
under which the penalty was imposed; provided.
however, that no warrant shall be issued until any
review required in relation to the matter has been
review has expired.
47. Appeals
Any party, aggrieved by the decision of the Hearing
Examiners, may submit his objection to the Appeals
Hearing Panel to be designated in accordance with
Article 48 of this Proclamation within 30 days of the
receipt of the decision of the Hearing Examiners
specifying the grounds for the objection including any
facts or analyses of legal, accounting and auditing
standards .
48. Appeals Hearing Panel
II The Minister shall designate an Appeals Hearing
Panel consisting of three members that examine
and pass decision on any appeal lodged by any
person against the decision of the Hearing
Examiners.
21 The Appeals Hearing Panel shall pass a decision
within 60 days of the receipt of the appeal.
 Federal Negaril Gazette No" 8 1 5" December, 20 14 . """ page 7747

rl Y,I'. "Iq1 it"'l.OJo ,/-ql., ,I'. "Iq1 Y"'I.it"'l0-r1 31 The Appeals Hearing Panel shall issue its own rules
h~P'C~')' ,l'.roil'ill" of procedure for the hearing of appeals.

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41 If, following an appeal pursuant to Article 47 of this
Proclamation, the Appeals Hearing Panel , confirms
the decision of the Hearing Examiners it may order
the appellant to pay in whole or in part the
expenses incurred to dispose of the appeal.

(;1 OflU n'l'l': n')"')\, '1ii 10·h n1.,.)\' (r) 51 Without prejudice to sub·article (3) of Article 41 of
Y1'.I:~nOJo h·).l:1'mO'" If<;' OflU n')"')\, oo/PI.-r this Proclamation, any decision given by the
0,l'."Iq1 it"'l. ,/-q'!, O~&. ~1C 1'.0:,1'. ~,I'. , Appeals Hearing Panel under this Article on
Y"'I.itmOJo OJofl'l. Y00g;},1. 7i OJofl." ,I'. If 'ill:: factual matters shall be final .

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49. Appeals against Decisions of the Appeals Rearing
Panel
1/ An appeal may be lodged to the Federal High Court
on questions of law by any party aggrieved""by the
decision of the Appeals Hearing panel .

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O"'l..r.r'fa> "'I'i'f0J0~ '/-.0:1" 'f ~,I'. Y"IlI j oo-.r'l!
21 The decision of the Appeals Hearing Panel shall be
effective during the course of the appeal unless the
court of appeal orders a stay of execution pending
decision on the appeal .
31 If the coun of appeal reverses the decision of the
Appeals Hearing Panel on questions bflaw, it shall
remand the case to the Appeals Hearing panel for
reconsideration of the case in light of its
interpretation. The Appeals Hearing Panel shall
pass a final decision in conformity with the legal
interpretation given by the court of appeal.
PART EIGHT
MISCELLANEOUS PROVISIONS
so. Conflicts of Interest
II A person who could, directly or indirectly, derive
benefits from any matter that the Board has the
right to determine shall, if being considered fOI
membership of the Board of J?irectors of the
Board, disclose with specificity to the nominatin~
body the nature and amount of any such direct 0 1
indirect benefits.
21 A member of the Board of Directors of the BoaT!
prior to voting on any matter that could directly 0
indirectly benefit him, shall disclose to the Boarl
of Directors with specificity the nature an
amount of any such direct or indirect benefits an
shall excuse himself from participating in any suc
vote.
31 An employee of the Board or a consultant (
advisor to the Board who has a privat

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www.chilot.me
Federal Negaril Gazette No. 81 5'" December, 2014 ..... page 1748
professional or official interest in, or whose
immediate family member is directly or indirectly
interested in, any matter being considered by the
Board shall disclose such interest.
41 A disclosure of interest made as per sub-article (3)
of this Article shall be made to the Chairperson of
the Board of Directors of the Board who shall take
such decision as he considers appropriate in each
case and submit a report thereon to the Board of
Directors.
51 On being appointed as a member of the Board of
Directors of the Board, a person shall not engage in
providing audit or assurance services, either in his
own name or in the name of any other person,
unless he complies with sub-article (2) of this
Article.
61 No member of the Board of Directors of the Board
shall engage in, or continue in, any profitable
pursuit outside of the Board, unless the member
discloses with specificity the nature and extent ·~f
such pursuit to the Board.
71 No member of the Board of Directors or employee
of the Board shall engage in or carry on any
activity, which may, create or have an adverse
effect on the discharge of his duties,
81 For the purpose of this Article "immediate family"
means spouse, children, father and mother and
siblings of the person concerned.
51. Confidentiality
II Every member of the Board of Directors of the
Board, member of an advisory committee of the
Board, employee of the Board, or a consultant in
the service of the Board, shall, upon assumption of
his office or duty, take such oath of secrecy as may
be approved by the Board.
21 No person may, without the consent in wntmg
given by or on behalf of the Board, publish or
disclose to any unauthorized person contents of
any document, communication or information
which relates to, and which has come to his
knowledge in the course of his duties.

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F~derBI N~gllnl G:!zea~ No 81 j'" Dec~ml>rr, 20 14 page 7';
52. Publication of Information
II The Board shall periodi cally publish an off
bulletin that s hall contain such information tha
Board may deem necessary.
21 The Board may maintain an electronic homel
and publish an e·bulletin thai shall contain:
information th ai the Board may deem necessar:
31 The Board may cause to be published in its oft
bulletin, on its homepage, e-bulletin or in a (
newspap(:r, the decisions of the Appeals Hear
Panel given in accordance with Article 48 or
Proclamat.ion.
53. Power to Issue Regulation and Directive
II The Council of Ministers may issue regulat
necessary for the proper implementation of
Proclamation.
21 The Board may issue directives necessa ry f01
proper implementation of this Proclamation
regulations issued under sub-article (I) of
Article.
54. Transitory Provisions
II Notwithstanding the provision of Article 56 oj
Proclamation the Board is hereby empowere
prescribe the time frame for compliance
reporting entities with the provisions of
Proclamation taking into considerati on
capacity and preparedness; provided, however!
this time frame may not in any event exceed
21Notwithstanding the provision of Article 18 o'
Proclamation, any person who, immediately b,
the coming into force of this Prociamation:
a) was providing audit and assurance servic
a public interest entity. may continu
provide such services for six years begil
from the closing date for submittin
application for registration, if he applie
registration within six months of the ent~
force of this Proclamation notwithstru
that he does not meet the requirements 1
as a public auditor set forth in
Proclamation;
b) was providing audit and assurance servil
a public interest entity, whether on his
account or in partnership with other pt
under a finn name, may continue to pI
such services for six years beginning fro
closing date for s ubmitting of applicatil
registration, ifhe applies for regi stration

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1:C1:'I- liS'" 1I"7'!>;'w-S'" fUlIil '1':PS'" filM·
II~A ft.'I.')- '/,<; f"7/':>l'1' II1A"!II-')- fl.1I'1'
f4'f IIW- 1I'1'»~ h~"O')' ol\-l· l"S"'C' Qll-')'
111:11'1- (IJ6-')' orll'1' f 1.'C1:'~ liS'"
'/, '1'1.)1,1.''1'11')' "7noAh:r- "4'/'O OIl.u 1.'1'1:
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Federal NCt!8r1l G~z~ue No 81 5" Dc:CC'mbcr. 101 4 pllge 71 49
52. Publication of Information
onl1/ II The Board shall periodi cally publ ish an official
bulletin that shall contain such infonnati on that the
Board may deem necessary.
noa 21 The Boa~d may maintain an electronic homepage
and publi sh an e·bu l1etin that shall contain such
information thaI the Board may deem necessa ry.
Y: /.- 31 The Board may calise to be pub lished in its offic ial
bulletin. on its homepage, e·bulletin or in a daily
newspaper. the decisions of the Appeals Hearings
Panel given in accordance with Article 48 of this
Proclamation.
53. Power to Issue Regulation and Directive
1/ The Council of Ministers may issue regulations
necessary for the proper implementation .o f thi s
Proclamation.
21 The Board may issue directives necessary for the
proper implementation of this Proc lamation and
regulati ons issued under sub·anicle (1) of this
Article.
54. Transitory Provisions
I I Notwithstanding the provision of Article 56 of this
Proclamation the Board is hereby empowered to
prescribe the time frame for compliance by
reponing entities with the provisions of this
Proclamation taking into consideration their
capacity and preparedness; provided, however, that
this time frame may not in any event exceed five
2/ Notwilhstanding the provision of Article 18 of this
Proclamation, any person who, immediately before
the coming into force of lhis Proclamalion:
a) was providing audit and assurance services Ie
a public interest entity, may continue tc
provide such services for six years beginnin!
from the closing date for submitting 0
application for registration, if he applies fo
registration within six months of the entry inl
force of thi s Proclamation notwithstandin
that he does not meet the requirements to a(
as a public auditor set forth in thi
Proclamation;
b) was providing audit and assurance services 1
a public interest entity, whether on his 0\.\
account or in partnership with other persol
under a firm name, may continue to provi,
such services for six years beginning from tl
closing date for submitting of application f
registration. ifhe applies for registrati on oft
 Feden.l Negaril: Gaune No. 'I S.. December. 20 14 ..... p.age 7750

ODIPI.·)· O~-'I.·)· 1:C';'" M" llooP't-·)· firm within six months of the entry into force
f"'l.LlIllIYI ooIlLC')' q.r.,M" "'1ooAh of this Proclamation notwithstanding that he
i/'CIJo1 1I"'1'1>l.il f·~L4'Y.CIJo 1.IL h"'1..rO:l'O·" does not meet the requirements to operate
4"1 )(FC.' 1I"'I.4'mc fil1:II')' ~oo·)· 'UL under a firm name set forth in this
II.I'oooll1il h1A '7f1-'~1 oollm')' tt.4''!'A Proclamation.
.I'o'T·IIA"
[I OII.U h14'1\" ooIPI.T 11.1'000111-11 MA'7f1-'~1 31 The application of a person or a firm allowed under
h1-'1.n'!' HL4'Y.IIT I\CIJo CD.I'oF 1:C';')' this Article to continue prov iding audit and
11"'1 ooA hi/' "'1'1> I.n..r h'~ .I. 4'Y.CIJo f 00Q;l,1. 11 4'"1 assurance services without registering in
)(FC.' O"'1.4'mC OhFII'" ~oo·)· 1.11. CIJoII'!' OII.U accordance with this Proclamation shall be rejected
after six years, if such person or firm fails to meet
h'l''; f'~4'oomClJo'1 fF111q ooP'LC')' """'-"
the requirements for registration set forth in this
hil1:II-)' ~oo·)· 01.11 "'1ooAhi/'CIJo CIJo1:'I>
Proclamation within five years from the closing
.I'olf"':""
date for submitting of application for regi stration.

ni. ftliS. h'i t u " n t Qc\"'1g.5"kT!J): ,),n
~I f"'1.hNI· ·" OII.U h'l''; ·~7iI.'I'A:-
U) r.I"j1.,t-A 'I'''CIJo ~-'I.·~C "'1'11'11"'1..f h'l''; .,,'!'c
H~iitriU h14'1\" 1; '10-11 h'I4''''' (Il) ""
(Il)! ""
II) O"'lA f"'l.IPS. ~-'I.,~C.''f "" f'/Ail h'l'4!P''f
f-.r il:l'-)' "'11..'1"'1. frllllC CDI.4'-j·
hIP,,!,!, Y.1il .,,'!'c i//f7i.f"
55. Repeal and Inapplicable laws
11The following are hereby repealed:
a) Sub·articles (16) and (17) of Article 5 of the
Office of Federal Auditor General Establ
ishrnent Proclamation No. 669/20 10; and
b) The Issuance of Certification of Professional
Competence of Private Auditors and
Accountants Regulation No. 4120 I O.

II f"'1.h'~I1··)· OII.U h'l''; O·~oollh'~')' "1--'11'"'1' 11.1'0 21 The following may not be applicable with respect to
'~L''''1.H· h.l'o<;'t-TCIJoF:- matters provided for in this proclamation:
u) OIiif.' Ir OCD"!CIJo fho1-r·A".r 1"'11: ,),'7 CIJoII'!' a) The provisions of the 1960 commercial Code of
fof..I'o,,'11I /-rCT hH1l!)(')'" Mt-l.il1 Ethiopia pertaining to financial reporting.
f"'1.CDII'" 1:1?1P''f I
II) foo1'7I1T fA"'1T 1:C';.,·'f h'l''; 4!'!'C b) Article 27, sub-article (2) of Article 32 and
IrlilIUfitii h"}4''''' Itll h"}4'1\" @f 1Oo11 Article 34 of the Public Enterprises
h 14''''' (I)"" h 14'1\" @iil Proclamation No. 2511992.

.to) fFC-j· 10.r qllp'A,,!'1 "'1'11'11"'1..r h'l''; c) Sub-article (8) of Article 6 of the Ethiopian
4!'!'C 1;fYtilliiflii h14'1\" X 10-11 h"}4''''' tl Commodity Exchange Autority Establishment
Proclamation No.55112007;
.'"
00)
.
ft..IIII.I'o1f ;1-1111 h'l''; 4!'!'C rn/I!!n1; d) Article 8 (a) of the Excise Tax Proclamation
h14'1\" t (u)! No.30712002 ;

IP) f1n. "'IilC h'l''; .,,'!'c ffit'!;/Hifjii (Oh'l''; e) Article 18, sub-article (2) of Article 22 and
4!'!'C Ulrllltf "1Y.·~lilill) h'I4''''' It I Article 59 of the Income Tax Proclamation
h14''''' Itf 10-11 h14''''' (I) "" h14''''' Yii I No.286/2002 (as amended by Proclamation
No.693120 I 0);
I.) fq111 P't- h'l''; """C 1;l:lJtr1l". h"}4'1\" Itr f) Sub-article ( I) of Article 23, sub-article (3) of
"}o-II h "}4''''' Iii h 14''''' Itii 10-11 h "}4''''' r article 24 and sub-article (I) of Article 26 of the
"" h 14''''' It'!; "}O-II h "}4'1\" (ti) I Banking Business Proclamation No.591J2008;

www.chilot.me
 Federal Ncgarit Gazehe No. 81 Sill December, 20 14 •.•.. page 77S I

") fon.ln P'1r M'J>: </!'I'C n:'illl7f.iI h'l4>lI: g) Sub-article (I) of Article 26 and sub-article (I)
Ir~ 'IMI h')4'lI: (Ii) he; h'l4>lI: :'i '10-11 of Article 30 of, the Insurance Business
h'l4>lI: (Ii) 1 he; Proclamation No, 746/2012; and

11) fll'i!.I' P'C't,}- h'l'J>: </!'I'C l.u~/I1[£ h'l4>lI: h) Sub-article (I) of Article 27 and sub-article (3)
Irl '10-11 h'l4>lI: (Ii) he; h'l4>lI: Iril 10-11 of Article 29 of the National payment System
h'l4>lI: (r.):: Proclamation No. 718/20 II.
;:1 t.U'1 h'l'J>: f"'l.N:1 1M "'I'I';'(J}o1'" iII"I RlLU 31 No other law may, in so far as it is inconsistent with
h 'I' J>: n,~ onll h' ~ ,). 1'0'11"1- 'I'.
,~.t ~ "'I. this Proclamation, be applicable with respect to
matters provided for by this Proclamation.
hJ.'.If'II"'::
n. h'l'~ f"'l.II'int 1,11 56. Effective Date
t.u h'l'J>: nI..Y.IrA ~,,,.,). .:>11"! ;H''I'' hro"!n')' This Proclamation shall enter into force on the date of
4>') '1.'I"r:: file; t.1fe;A :: its Publication in the Federal Negarit Gazette.

Done at Addis Ababa, this Sill day of December, 2014.

M.II hnq U'IC n +, IIU 't,,,

1'-1 C -'11> .,.iI'"" MULATU TESHOME (DR.)

PRESIDENT OF THE FEDERAL
f 11.tf'R'.I' 1..1.1r'l'r -'l'l"hlrll..I"r
DEMOCRATIC
6Tilll.h 1.:.'....l'It REPUBLIC OF ETHIOPIA

www.chilot.me