Strengthening the Legal Framework for Accounting and Auditing in Djibouti

Project Development Objective (PDO)

This project aims to help Djibouti in establishing the necessary legal framework to formally empower an Accounting and Auditing association with the proper mandate to regulate the accountancy and auditing profession.




The Djiboutian Association of Accountants and Auditors - Compagnie Nationale des Comissaires aux Comptes de Djibouti (CNCC Djibouti) is the country’s national Professional Accountancy Organization PAO) and was established in 2011 through an initiative undertaken by the practicing auditors at that time, and is presently at a nascent stage of development. 

There is a need to legally establish the recognition of the CNCC to have a stronger accountancy organization with clear mandate in alignment with international practices and standards. The Ministry of Economy and Finance is taking the lead on this, and is the beneficiary of this project.

Activities / Output

This project envisages to update the legal framework for accounting and auditing in Djibouti through the following activities:

1.  Drafting a new or amended Accountancy Law, and preparing recommendations for updating other relevant laws. The legal framework of CNCC will need to be revised to have a proper law that provides precise roles and definitions. Accordingly, this will allow to have a sound professional accountancy organization with proper mandate to regulate the accountancy and auditing profession in line with international good practices.  This will be achieved through:

a) A Legal roadmap with recommendations. The relevant standards to inform this output are the IFAC SMOs. The goal is to inform the proper placement of CNCC with the appropriate audit mandate and sufficient powers to communicate transparently and ensure enforcement of its recommendations to the practicing auditors and other members of the accounting and auditing profession. In addition, the preparation of this legal roadmap will help to ensure stakeholders’ consensus.

b) Drafting necessary revisions to the legal framework, and advice on how to conduct the necessary consultations and outreach to stakeholders to ensure that the new law will be passed in the Council of Ministers and then ratified by Parliament. The scope of this activity is to ensure as well that the new law captures the necessary elements for CNCC to become the country’s professional accountancy organization with a mandate that is aligned with the required IFAC SMOs, and international good practices. 

For both outputs a workshop will be held. 

Expected Outcomes

The expected outcomes of the project are: 

•  Amended Law/regulations enacted

•  CNCC is legally recognized and effectively functioning