REPORTS ON THE OBSERVANCE OF STANDARDS AND CODES

(ROSC)

Accounting and Auditing

DIAGNOSTIC TOOL - PART 5

Availability and Quality of Financial Reporting

May 2006


I.Introduction

One component of the Reports on the Observance of Standards and Codes (ROSC) initiative is the Review of Accounting and Auditing (A&A) Practices in a number of countries.This questionnaire forms part of the diagnostic tool developed by the World Bank; this Part 5 is designed to gather information about the perception of the quality and availability of financial reporting from as wide a range of sources as possible.

The responses to the questionnaires will be supplemented by a due diligence review conducted by members of the World Bank ROSC-A&A team. An overview of the ROSC-A&A program and a detailed presentation of the ROSC A&A methodology are available at

II.General Information

Please fill out the right-hand columns. Responses will appear in blue-colored font.

Country:
Date of preparation:
Individual(s) responsible for preparation:
Organizational affiliation(s):
Address/City:
Telephone number:
Fax number:
E-mail address:
Main function: / Institutional investor / Financial analyst
(select one) / Lender / Advisor
Financial journalist / Regulator
Other (Please specify):

III.Availability of financial statements

  1. For each of the following entities, indicate the degree of availability and timeliness of information of (audited) financial statements.

Entities with audited financial statements / Always available / Rarely available / Never available / Timely information / Obsolete information
Listed companies:
Banks and similar financial institutions:
Nonbanking financial institutions
(e.g., leasing companies):
(Re)insurance companies:
Undertakings for collective investment
(for example, investment funds):
Other public interest companies:*
Large limited companies:
Medium-size companies:
Small-size companies:
* The term “public interest company” refers to any entity that presents public interest because, for example, it employs a large number of people or it is significant for the country’s economy (for example, a large state-owned enterprise).
  1. Elaborate on the reasons why (audited) financial statements are or are not available in a timely manner and why the information is or is not obsolete by the time it is made available? If applicable, describe how you can obtain copies of these statements.

Listed companies:
Banks and similar financial institutions:
Non-banking financial institutions
(e.g., leasing companies):
(Re)insurance companies:
Undertakings for collective investment
(for example, investment funds):
Other public interest companies:
Large limited companies:
Medium-size companies:
Small-size companies:

IV.Quality of financial reporting

  1. To what degree do you use the information in (audited) financial statements for decision making? If applicable, describe how you use (audited) financial statements.
  1. How useful do you find the following elements of (audited) financial statements? Please rate in order 1 to 4 (1 being the most important and 4 being the least).

Balance sheet / Income statement / Cash flow / Notes
Comments:
  1. How satisfied are you with the quality of the (audited) financial statements you obtain?

Very satisfied / Somewhat satisfied / Somewhat dissatisfied / Very unsatisfied
Comments:
  1. Do you believe accounting standards/practices in the country require significant improvements in the following areas?

Areas / Yes / No
Requirement for consolidated financial statements:
Disclosure of (transactions with) related parties:
Accounting for and disclosure of financial instruments:
Accounting for pensions:
Segmental reporting:
Accounting for foreign currency transactions:
Accounting for intangible assets:
Accounting for business combinations:
Other (specify):
Other (specify):
Comments:
  1. (Audited) financial statements are generally prepared in full compliance with existing accounting and reporting requirements in the country. (Indicate your response to this statement.)

Strongly agree / Somewhat agree / Somewhat disagree / Strongly disagree
Comments:
  1. Corporate entities in the country engage in accounting and auditing practices that hide a true picture of financial condition and operating performance. (Indicate your response to this statement.)

Strongly agree / Somewhat agree / Somewhat disagree / Strongly disagree
Comments:
  1. Taking into account the actual auditing practices in this country, audited information is more valuable than unaudited information? (Indicate your response to this statement.)

Agree / Disagree
Comments (including any distinction you may make among audit firms in the country):
  1. Please provide additional comments (if any) regarding the quality of financial reporting in the country.

ROSC – Accounting & Auditing – Financial Reporting Questionnairepage 1