Frequently Asked Questions
CW Ducker continuously refines its work process. This means liasing with local and national bodies concerning the audit profession in Mozambique
The section below on Frequently Asked Questions has been prepared by CW Ducker in collaboration with said associations as a starting point for those organizations interested in utilizing audit services in Mozambique
The information presented is the most current at the time of writing, however, it is provided as a guide only.
What is an audit?
A financial statement audit is the examination of an entity's financial statements and accompanying disclosures by an independent auditor. The result of this examination is a report by the auditor, attesting to the fairness of presentation of the financial statements and related disclosures.
Who issues audit licenses to audit firms in Mozambique?
The Ministry of Finance issues audit licenses to audit firms that it approves to perform audits.
What are some other types of audits that are commonly done?
External Audit Internal Audit Forensic Audit Public Sector Audit Tax Audit Information System Audit Environmental and Social Audit Compliance Audit Value for Money Audit
What are some of the benefits of having an audit done?
Some advantages are: • Audited accounts carry greater authority than the accounts which have not been audited. • They can identify weaknesses in internal controls • Repayment capability is determined by banks and other lending institutions and assessed through audited accounts
What is the sequence of a typical audit?
• Planning • Risk assessment • Audit strategy and plan • Gathering evidence • Finalisation
What is an audit opinion?
Based on results from substantive testing, the auditors then form an opinion of whether the financial statements are free of material misstatement, whether due to fraud or error. At the completion of the audit, the auditor may also offer objective advice for improving financial reporting and internal controls to maximize a company’s performance and efficiency
Are all companies operating in Mozambique required to be audited?
The Mozambican Commercial Code makes reference to the books of account that a company must keep. The notion of preparing and auditing financial statements are absent.
When does performing an audit become applicable in Mozambique?
Since there is no mention of presenting audited financial statement in the Commercial Code, selected companies may be requested to do so. The Ministry of Finance would notifies the companies when it requires an audit
What is the criteria used by the Ministry of Finance to determine which companies are required to present audits in Mozambique?
There is no mention of the criteria that the Ministry of Finance must follow. In accordance with requirements of other laws, generally all companies with foreign participation are required to prepare and present annual audited financial statements.
What auditing standards are applicable in Mozambique?
Auditing requirements are not defined in any Mozambican laws, rules, regulations, or standards. No guidance exists as to which auditing standards are to be followed.
What is the PGC?
The PGC refers to the 'Plano Geral de Contabilidade' or the Standardized Chart of Accounts for Mozambique. The PGC provides guidance on the accounting principles to be used by a business and the treatment of different items.
How does the Ministry of Finance ensure that all company accounts are in accordance with PGC?
Currently a formal structure or body does not exist that enforces the use of the PGC. The licensed accountants hold the responsibility of compliance with the PGC.