The National Assembly on Thursday passed an accounting and auditing law that aims to bring financial reporting procedures for the government, NGOs and the private sector in line with international standards.
Yem Ponhearith, a lawmaker and spokesman for the opposition CNRP, said that the law would help attract more investment from abroad.
“Previously, we just had a standard that was recognized nationally, not regionally or internationally,” Mr. Ponhearith said.
“If we don’t have internationally recognized standards of accounting and auditing, it will be difficult to attract investors,” he said.
“Big foreign companies that do business in our country need transparent and understandable accounting and auditing—that’s why we voted for the law.”
Ngy Tayi, secretary of state at the Ministry of Economy and Finance, added after the plenary session that the law would be enforced by sanctioning those who did not follow the new standards.
“For example, if auditors see something wrong, [such as] adjusting the figures, they would face a heavy punishment, like going to prison or a big cash penalty,” he said.