CHAPTER 2 - Education and Training for the Accountancy and Auditing Professions in Ethiopia

Abstract

This chapter discusses the education and training for the accountancy and auditing professions in Ethiopia. Ethiopia's accounting and auditing performance has been unsatisfactory in recent years due to a critical shortage of accountants at all levels. The weakness of available accounting and auditing services in Ethiopia is mainly attributable to lack of appropriately trained personnel, from bookkeepers to senior accountants to accounting managers. In addition, the accounting and control systems of most of the public enterprises are in need of varying degrees of improvement. The development of the accounting and auditing profession is important because of the critical role the profession must play in the formulation, implementation, and evaluation of policies and development projects. Based on the reports of the World Bank, UNESCO, and other studies, coupled with concern expressed by funding and other institutions, discussions were held between the Government of Ethiopia and the World Bank to agree on the original terms of reference of the CIPFA project. Accountancy and auditing are subjects taught in the tertiary and secondary education sectors. There are three relevant institutions providing formal education and training in the tertiary educational sector: Addis Ababa University, Asmara University, and Junior College of Commerce. Ethiopia does not have an effectively organized professional accountancy association or locally established professional examination and certification boards. Proposals for the establishment of an effective local professional accountancy body and the strengthening and expansion of local education and training institutions are yet to be implemented.