Compliance Responses and Action Plans

  • Compliance Responses and Action Plans

    IFAC members and associates have provided self-assessment information about the regulatory and standard-setting framework in their countries (Part 1) and their organizations' activities in addressing IFAC's membership requirements (Part 2) as described in the Statements of Membership Obligations. Based on an analysis of this information, they are developing SMO Action Plans for continuous development and improvement.

    Some organizations have qualified to submit SMO Action Plans on a biennial basis by meeting eligibility criteria. These organizations are indicated with an asterisk (*).

    In the interest of transparency and providing information to the profession, regulators, and other stakeholders, all responses and SMO Action Plans are accessible below.

    Compagnie Nationale des Commissaires aux Comptes

     

    Introduction

    The information below has been submitted as part of the IFAC Member Body Compliance program. The Program has two components:

    Part 1: Assessment of the Regulatory and Standard-Setting Framework (provides information about regulatory requirements and standard-setting processes in member body countries); and
    Part 2: Assessment of Compliance (provides information on compliance by member bodies with the Statements of Membership Obligations). Part 2 of the Compliance Program will begin later this year, and the results will also be posted to the website.

    The responses to Part 1 are provided below. IFAC staff has reviewed the responses and, where necessary, validated them with external knowledgeable parties. A list of key terms is available to assist readers in understanding the responses.

    The purpose of this Part 1 Assessment is to collect information on the roles of IFAC member bodies and other organizations (including government, regulatory or other appointed authorities) with respect to:

    1. Setting auditing, accounting, ethics, public sector and education standards; and
    2. Regulating the accountancy profession.

    Sections 1 and 2 of Part 1 contain an introduction and instructions for member body respondents. For this reason, they are not included here, and the responses begin with Section 3.

    Questions or comments may be sent to complianceassessment@ifac.org.


    Section 3 -- Member Body General Information

    1. Country:

      FRANCE


    2. Name of member body:
      Compagnie Nationale des Commissaires aux Comptes

      Or please specify name:



    3. Individual responsible for preparation:
      Jean Luc Doyle


    4. Date member body became a member of IFAC:
      Note: Please enter a numeric date (e.g., 12/2001, Month/Year)

      10 / 1977



    Questions 5 - 22 are for internal use only


    Section 3G -- Affiliations


    23. Please list those regional organizations to which your organization belongs (e.g., FEE, CAPA, ECSAFA, IAA, etc.):
      FEE, CAPA, IAA, FIDEF



    Section 4 -- Statutory Framework


    Responses to this section will provide a description of the legal framework governing the commercial aspects of auditing and financial reporting in your country.

    Section 4A -- The Companies Act or Commercial Code


    The following questions concern the Companies Act (the Act) or Commercial Code (the Code) or similar Legal authority in your country. If no Legal authority exists, or the Legal authority does not address particular questions, please indicate "N/A" for Not Applicable.

    24. What is the full name of:
      a). the Act or the Code: CODE DE COMMERCE (articles L 820-1 to L 822-16)
      b). the Enacting body: Ministry of Justice and Parliament
      c). date the Act or Code came into force: 08 / 2003


    25. How can IFAC obtain a copy of the Act or Code?
      Through the "Journal officiel de la République Française", n° 177 2 August 2003 (it can be consulted on the Legifrance website : www.legifrance.gouv.fr)


    26. Is the Act or Code available in English?
      Yes   No


    27. What are the types of entities covered by the Act or the Code?
      Please check all that apply.
      Listed entities   Other (please specify):
      Private companies   Other (please specify):
      Governmental   Other (please specify):
      Not-for-profit   Other (please specify):


    28. Is there a requirement for the following entities to prepare annual statutory financial statements? If YES, please describe the financial reporting requirements including the accounting standards to be followed.
      Please check all that apply.
        No Yes (If YES, please describe)
      Listed entities Code de Commerce and Plan comptable général;Law and, particularly the Commercial Code for commercial entities (listed or not), require the entities selected above to prepare annual accounts comprising the balance sheet, profit and loss account and notes to the accounts. These entities have also to prepare consolidated financial statements and a group annual report where they exclusively or jointly control one or more subsidiaries or joint ventures and/ or where they have significant influence over these. The accounting standards to be applied by the commercial entities (listed or not) are the National accounting Code (Plan comptable général - PCG - CRC n° 99-03) (English version available on the website www.finances.gouv.fr/reglementation/avis/avisCNCompta/) and the regulation n° 99-02 of the 29 of April 1999 (Accounting Regulatory Committee) relating to consolidated financial statements. For the other entities, special accounting standards are established by the Accounting Regulatory Committee (website: www.finances.gouv.fr/CNCompta/) and the Banking and Financial Regulations Committee (website: www.banque-france.fr/) approved by ministerial orders. Special accounting standards can be also established by governmental acts.
      Private companies See above
      Governmental
      Not-for-profit Regulation n° 99-01 (16/02/1999) - www.finances.gouv.fr/CNCompta/
      Other (please describe)
      Other (please describe)


    29. Is there a statutory requirement for the following entities to be audited? If YES, describe the requirement including the auditing standards to be followed:
      Please check all that apply.
        No Yes (If YES, please describe)
      Listed entities Yes for all entities, except those under the two following thresholds (except for some private companies) : turnover : 3,100,000 euros ; total asset : 1,550,000 euros ; number of employees : 50. The conduct of an audit is required by the French law (article L 225 - 235 and following of the Code de Commerce) ; the auditing standards to be applied are those issued by CNCC and complying with the IAASB standards for the audit ; CNCC issues specific standards when specific requirements are to be applied by the French law. As a result of recently issued legislation, those standards will be endorsed by the Minister of Justice. It should be noted that international auditing standards issued by IAASB should be required at European level according to the 8th company law directive, which is currently being reviewed by the European Commission.
      Private companies See above
      Governmental
      Not-for-profit See above
      Other (please describe)
      Other (please describe)


    30. Are the auditors ("statutory auditors") that are appointed for audits required by the Act or Code ("statutory audits") appointed for a specific period?
      Yes   No
      If YES, please indicate the term of appointment: 6 Year(s)


    31. Who appoints the statutory auditors?
      Please check all that apply.
      Shareholders   Management
      Board of directors   Other (please specify): NFP organisations : body approving the financial statements
      Audit committee   Other (please specify): state owned agencies : government
      Government agency   Other (please specify):


    32. Does the Act or Code require joint auditors for the statutory audit?
      Yes   No
      If yes, please describe the requirement:
      This requirement applies only to the entities for which statutory audit of consolidated accounts of undertakings is compulsory.


    33. Does the Act or Code require the rotation of the auditors or audit firms performing statutory audits?
      Yes   No
      If yes, please describe the requirement:
      Please refer to the article L 822 - 14 of Code de commerce. This is an internal rotation after 6 years applying to the statutory auditor (engagement partner) who carries out a statutory audit on behalf of the audit firm.



    Section 4B -- Securities Market Regulations


    Responses to this section will provide a description of the financial reporting and auditing requirements for listed entities in your country.

    34. What are (a) the major items of Legal authority for such requirements, (b) the Enacting body(ies) and (c) the latest amendment date? Please identify the specific articles or sections that pertain to auditing and financial reporting:
    1. the major items of Legal authority for such requirements

    2. the Enacting body(ies)

      Ministry of Finance and Parliament

    3. the latest amendment date?



    35. How can IFAC obtain a copy of the Legal authority?


    36. Is the Legal authority available in English?
      Yes   No


    37. Are there any additional or alternative financial statement reporting requirements for listed entities that are not described in your answer to Question 28?
      Yes   No
      If YES, please describe the requirement:


    38. Are there any additional auditing requirements that apply to listed entities other than those described in your answer to Question 29 (e.g., additional GAAS requirements, additional independence requirements, requirements to report to those charged with governance, etc.)?
      Yes   No
      If YES, please describe the requirement:


    39. Who appoints the statutory auditors of listed entities?
      Please check all that apply.
      Shareholders   Management
      Board of directors   Other (please specify):
      Audit committee   Other (please specify):
      Government agency   Other (please specify):


    40. Are auditors who perform audits of listed entities appointed for a specified period?
      Yes   No
      If YES, please indicate the term of appointment: 6 Year(s)


    41. Are joint auditors required for audits of listed entities?
      Yes   No
      If YES, please describe the requirement:
      The only criteria for joint audit is related to issuance of consolidated accounts. However, most listed companies issue consolidated accounts and are therefore subject to joint audit.


    42. Is rotation of the auditor or audit firm for audits of listed entities required?
      Yes   No
      If YES, please describe the requirement:
      Refer to question 33.



    Section 5 -- Auditing Standards


    Responses to this section will provide a description of the legal and professional framework governing audit and other assurance standards in your country. The section focuses on the establishment of such standards. Please indicate the role your organization plays within this framework.

    Section 5A -- Statutory Framework


    43. Please provide the name of the Legal authority and/or self-regulatory rules that establish audit and other assurance standards in your country, the date of the last amendment of such authority or rules and the name of body responsible for setting audit and other assurance standards. If the standards are different for different entities (e.g., listed entities, private companies, governmental bodies, not-for-profit organizations, etc.), please specify the details that apply to each:
      Type of entity Name of
      applicable
      legal
      authority
      Date of last
      amendment
      (e.g. MM/YYYY 06/2001)
      Name of body responsible
      for setting audit and
      other assurance standards
      Listed entity Code de commerce 08/2003 Statutory audit : CNCC/ contractual audit : CSOEC
      Other (please describe) Other entities subject to statutory audit CODE OF COMMERCE 08/2003 Statutory audit : CNCC/ contractual audit : CSOEC
      Other (please describe)
      Other (please describe)

      a. How can IFAC obtain copies of these documents?

      From CNCC and CSOEC

      b. Are the documents available in English?
      Yes   No


    Section 5B -- Standard-Setting (Statutory audit : CNCC/ contractual audit : CSOEC)


    44. For Statutory audit : CNCC/ contractual audit : CSOEC, please indicate the nature of the body (i.e., whether it is part of a government ministry or department, an agency appointed by government, a private organization established by the profession, or other [please describe]) and the name of the standards.
      a. Nature of body

      Professional orginization established by law

      b. Name of standards

      "Normes d'exercice professional" "Nornes professionelles"


    45. How many voting members does the standard-setting body have?
      90


    46. Are the members of the standard-setting body involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe:


    47. What are the criteria considered in selecting members of the standard-setting body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?
      Members are elected on a regional level to form the National Council.


    48. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      Refer to question 47. They are not appointed but elected.


    49. What is the term of appointment for members?
      4 Year(s)


    50. For how many years has the standard-setting body been in existence?
      34 Year(s)


    51. Please indicate the budget in US$ of the standard-setting body for the last fiscal year:
      Note: Please enter a whole number using commas (e.g., 4,000,000)

      N/A

      Please enter the exchange rate used to calculate this number.

      Note: Please enter a decimal amount (e.g., 4.0027)



    52. To what entity is the standard-setting body accountable?
      CNCC is responsible for preparing professional standards. To be enforceable, these standards need to be endorsed my the Minister of Justice after comsultation with the Haut Conseil du Commissariat aux Comptes.


    53. Describe the due process followed by the standard-setting body. Please include explanations of the following:
    1. public exposure of standards

      no

    2. accessibility of meetings (i.e., public or private)

      no

    3. approval process for final standards (i.e., majority required to approve final standards)

      simple majority

    4. other relevant due process activities

      none


    54. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      4 Day(s)



    Section 6 -- Ethics


    Responses to questions in this section will provide a description of the legal and professional framework governing ethics standards for accountants in your country. This section focuses on the establishment of such standards. Please indicate the role your organization plays within this framework.

    Section 6A -- Statutory Framework


    55. For each of the following types of professionals, please indicate the name of the Legal authority and/or self-regulatory rules establishing ethics standards for accountants and auditors in your country, the date of the last amendment of such authority or rules and the name of body responsible for setting the ethics standards.
      Type of professional covered Name of
      applicable
      legal
      authority
      Date of last
      amendment
      (e.g. MM/YYYY 06/2001)
      Name of body responsible
      for setting ethics standards
      Professional Accountants in Public Practice Code de commerce (Government) and Code of Ethics (CNCC) (1) covering statutory auditors CNCC
      Professional Accountants in Business
      Professional Accountants in the Public Sector
      Other (please describe)

      a. How can IFAC obtain copies of these documents?



      b. Are the documents available in English?
      Yes   No


    Section 6B -- Standard-Setting (CNCC)


    56. For CNCC, please indicate the nature of the body (i.e., whether it is part of a government ministry or department, an agency appointed by government, a private organization established by the profession, or other [please describe]) and the name of the standards.
      a. Nature of body

      Professional body established by law

      b. Name of standards



    57. How many voting members does the standard-setting body have?
      90


    58. Are the members of the standard-setting body involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe:


    59. What are the criteria considered in selecting members of the standard-setting body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?
      Members are elected on a regional level to form the National Council


    60. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      They are not appointed, they are elected as per Question 59.


    61. What is the term of appointment for members?
      4 Year(s)


    62. For how many years has the standard-setting body been in existence?
      34 Year(s)


    63. Please indicate the budget in US$ of the standard-setting body for the last fiscal year:
      Note: Please enter a whole number using commas (e.g., 4,000,000)

      Please enter the exchange rate used to calculate this number.

      Note: Please enter a decimal amount (e.g., 4.0027)



    64. To what entity is the standard-setting body accountable?


    65. Describe the due process followed by the standard-setting body. Please include explanations of the following:
    1. public exposure of standards

      No

    2. accessibility of meetings (i.e., public or private)

      No

    3. approval process for final standards (i.e., majority required to approve final standards)

      Simple majority

    4. other relevant due process activities

      None


    66. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      4 Day(s)



    Section 7 -- Education


    Responses to questions in this section will provide a description of how education requirements for the profession are established. Please indicate the role your organization plays within this process.

    Section 7A -- Education Requirements


    67. Please describe in general terms the education system in your country including the different stages of education from early childhood education through to tertiary level study. Please indicate which aspects / levels are compulsory as part of the national education system:


    68. Is there a legal authority or regulation that specifies the requirements for an individual to operate as an accountant or auditor in your country?
      Yes   No

      If YES, please provide the name and describe the requirements, including any relating to education, experience or qualifications.



    69. Please select from below all the relevant key levels of requirements to obtain certification from your member body (i.e. to qualify as a certified or chartered accountant) and provide a general description of the requirement.
      Academic requirements
      Yes, a 4 or 5 years degree (universities or business schools or technical colleges).
      Professional examinations
      Practical experience
      Final qualifying examination
      Other (please describe)


    70. Which of the following arrangements best describes who establishes the education requirements for the accounting profession in your country? Please select one option.
      A government ministry, department or agency establishes education requirements for the accounting profession with no additional requirements set by the member body(ies).
      A government ministry, department or agency establishes minimum education requirements for the accounting profession, and member body(ies) supplement these requirements.
      Member body(ies) establishes the education requirements for the accounting profession.
      Other (please describe)


    71. Please provide the name(s) of the relevant body in the government ministry, department, agency and / or member body who establishes the education requirements.

    1. A general description of the role of the relevant body(ies) including how it operates and its due process in establishing the education requirements.

      EXPERTISE COMPTABLE :
      A legaly working group "Commission consultative pour la formation professionnelle des experts comptables" including representatives of the different concerned ministries involved with qualification, academics and representatives of the 2 member bodies (23 members in total) :
      - organises the whole syllabus (contents, examinations, assessment methods, exemptions, jury, etc)
      - meets at Ministry of Education 3 or 4 times per year
      - decides of any reform of the syllabus

      The 2 member bodies are represented by their presidents or representatives)and 4 professionals, 2 representing each institute.

    2. How many voting members does the relevant body(ies) have

      23 members

    3. Are the members of the relevant body(ies) involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe: For Question 71d - Not available

    4. For how many years has the body been in existence?

      Year(s)


    72. How would you describe the authority that the education requirements have?
      Requirements are legally-based
      Requirements are set in the constitution, by-laws or other rules of the relevant body(ies).
      Requirements are set in member body(ies) policy document(s).
      Other (please describe)

    72 a. How can IFAC obtain copies of these documents?

    72 b. Are these documents available in English?
      Yes   No


    73. Are the education requirements for accountants and auditors the same throughout your country, or do they differ among regions, provinces or states?
      Same   Different
      If different, please briefly describe the main differences:


    74. Please indicate the scenario that best describes who delivers the education and examination process for members of the profession. Please only select one option.
      The education program and final examination are delivered by the member body.
      The education program and final examination are delivered by the member body and other education institutions (e.g., universities, colleges, and others).
      The education program and final examination are delivered by education institutions (e.g., universities, colleges, and others).
      Other (please explain)


    75. Once qualified as a member of your professional body, can members offer their services directly to the public?
      Yes   No



    Section 7B -- Licensing


    76. Are there licensing requirements for auditors in your country?
      Yes (continue with Question 77)   No (proceed to Section 8)


    77. Who sets the requirements to obtain a license?


    78. What are the requirements to obtain a license (please select all relevant requirements.)?
      Academic study specific for obtaining a license
      Practical experience
      Licensing examination
      Final qualifying examination
      Other (please describe)


    79. Are there ongoing requirements to retain a license?
      Yes   No

      If YES, please select all relevant requirements.
      Continuing professional development
      Re-examination
      Other (please specify): CPD (in accordance with the new IFAC standard IES 7 and the last Financial Security Law). - Ongoing reform of the initial education requirements in accordance with the Bologna Process (EU).


    80. What entity grants the license?


    81. Describe any additional licensing requirements for auditors of listed entities (e.g., additional education requirements, registration, etc.).
      none



    Section 8 -- Public Sector Accounting Standards


    Responses to this section will provide a description of the legal and professional framework governing public sector accounting standards in your country. The section focuses on the establishment of such standards. Please indicate, where appropriate, the role of your organization within this framework.

    Section 8A -- Statutory Framework


    82. Please provide the name of the Legal authority and/or self-regulatory rules establishing public sector accounting standards in your country, the date of last amendment and the name of the body responsible for setting public sector accounting standards. If the standards are different for different entities (e.g., whole of government, ministry/department, statutory authority/agency, profit entity owned by government, state governments, local governments, other [please specify]), please specify the details that apply to each.
      Type of entity Name of
      legal
      authority
      Date of last
      amendment
      (e.g. MM/YYYY 06/2001)
      Name of body responsible
      for setting public sector
      accounting standards
      Whole of government See CSOEC response.
      Ministry/department
      Statutory authority/agency
      Profit entity owned by government
      State governments
      Local governments
      Other (please describe)
      Other (please describe)

      a. How can IFAC obtain copies of these documents?



      b. Are the documents available in English?
      Yes   No



    Section 9 -- Private Sector Accounting Standards


    Responses to the questions in this section will provide a description of the legal, statutory and professional framework governing private-sector accounting standards in your country. The section focuses on the establishment of such standards. Please indicate what role your organization plays within this framework.

    Section 9A -- Statutory Framework


    94. Please provide the name of the Legal authority and/or self-regulatory rules that establish private-sector accounting standards in your country, the date of last amendment, and the name of the body responsible for setting private sector accounting standards. If the standards are different for different entities (for example, listed entities, private companies, governmental organization, not for profit organizations, etc.), please specify the requirements that apply to each.
      Type of entity Name of legal
      authority or
      applicable
      rules
      Date of last
      amendment
      (e.g. MM/YYYY 06/2001)
      Name of body responsible
      for setting private sector
      accounting standards
      Listed entity
      Other (please describe) For all entities required to have a statutory audit, including gov't business entities 30/04/1983/29/04/1999 and last amendment 12/2003 Parliament
      Other (please describe) Additional requirements for consolidated accounts 29/04/1999and last amendment 12/2002
      Other (please describe)
      Other (please describe)

      a. How can IFAC obtain copies of these documents?



      b. Are the documents available in English?
      Yes   No


    Section 9B -- Standard-Setting (Parliament)


    95. For Parliament, please indicate the nature of the body (i.e., whether it is part of a government ministry or department, an agency appointed by government, a private organization established by the profession, or other [please describe]) and the name of the standards.
      a. Nature of body



      b. Name of standards



    96. How many voting members does the standard-setting body have?


    97. Are the members of the standard-setting body involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe:


    98. What are the criteria considered in selecting members of the standard-setting body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?


    99. Who appoints these members (e.g., member body, government, user, regulator, etc.)?


    100. What is the term of appointment for members?
      Year(s)


    101. For how many years has the standard-setting body been in existence?
      Year(s)


    102. Please indicate the budget in US$ of the standard-setting body for the last fiscal year:
      Note: Please enter a whole number using commas (e.g., 4,000,000)

      Please enter the exchange rate used to calculate this number.

      Note: Please enter a decimal amount (e.g., 4.0027)



    103. To what entity is the standard-setting body accountable?


    104. Describe the due process followed by the standard-setting body. Please include explanations of the following:
    1. public exposure of standards



    2. accessibility of meetings (i.e., public or private)



    3. approval process for final standards (i.e., majority required to approve final standards)



    4. other relevant due process activities



    105. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      Day(s)


    Section 9B -- Standard-Setting (Accounting Regulatory Committee (Comité de la Réglementation Comptable - CRC))


    95. For Accounting Regulatory Committee (Comité de la Réglementation Comptable - CRC), please indicate the nature of the body (i.e., whether it is part of a government ministry or department, an agency appointed by government, a private organization established by the profession, or other [please describe]) and the name of the standards.
      a. Nature of body



      b. Name of standards



    96. How many voting members does the standard-setting body have?
      CNC - 58, CRC 15


    97. Are the members of the standard-setting body involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe:


    98. What are the criteria considered in selecting members of the standard-setting body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?


    99. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      Government

      Question 100: 3 years for CRC and CNC
      Question 101: 6 years for CRC and 8 years for CNC


    100. What is the term of appointment for members?
      Year(s)


    101. For how many years has the standard-setting body been in existence?
      Year(s)


    102. Please indicate the budget in US$ of the standard-setting body for the last fiscal year:
      Note: Please enter a whole number using commas (e.g., 4,000,000)

      N/A

      Please enter the exchange rate used to calculate this number.

      Note: Please enter a decimal amount (e.g., 4.0027)



    103. To what entity is the standard-setting body accountable?
      The CRC is accountable to both the Ministry of Economy, Finance and Industry and the Ministry of Justice.

      The CNC is accountable to both the Ministry of Economy, Finance and Industry.


    104. Describe the due process followed by the standard-setting body. Please include explanations of the following:
    1. public exposure of standards

      There is no real due process. The CNC issues sometimes exposure drafts relating to major accounting matters (for example: regulation on liabilities, regulation on the definition of assets) which are posted on the CNC web site (www.finances.gouv.fr/CNCompta/) during the consultative period.There is no real due process. The CNC issues sometimes exposure drafts relating to major accounting matters (for example: regulation on liabilities, regulation on the definition of assets) which are posted on the CNC web site (www.finances.gouv.fr/CNCompta/) during the consultative period.

    2. accessibility of meetings (i.e., public or private)

      Private

    3. approval process for final standards (i.e., majority required to approve final standards)

      Both CRC and CNC: simple majority of the members present at the meeting. In the event of a tied vote, the Chairman shall have an additional casting vote.

    4. other relevant due process activities

      Question 105: 2 days for CRC and 3 days for CNC


    105. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      Day(s)



    Section 10 -- Monitoring (Quality Assurance) and Enforcement


    Responses to the questions in this section will provide a description of the legal and professional framework governing regulation of the profession in your country. Please indicate what role your organization plays within this framework.

    Section 10A -- Securities Market Regulatory Authority


    106. Name the authority that regulates the securities market:


    107. What responsibilities does this organization have for monitoring and enforcing compliance with accounting, reporting or auditing requirements? Please identify the Legal authority that establishes that responsibility:


    108. Briefly describe the role of the regulatory authority as it relates to the following:
    1. regulation of the audit profession

      There is no specific regulatory role regarding the auditing profession, but AMF is entitled to give a positive or negative advice regarding the appointment of the statutory auditors of listed entities.

    2. accounting and auditing standard-setting

      AMF does not play a specific role regarding accounting and auditing standard setting per se, but AMF is part of CNC (the French accounting standard-setter) ; in addition AMF is entitled to publish guidance on a very broad range of financial reporting requirements.

    3. review of financial statements prepared by listed entities, and monitoring of their compliance with the accounting and disclosure requirements

      AMF is required by ruling to deliver a visa on prospectuses. For this purpose, it is entitled to require additional disclosure or information to be provided by the issuer in the prospectus, including certain accounting treatment if necessary. The statutory auditor of the entity issues a report providing negative assurance on the financial information contained in the prospectus. This report is public and part of the prospectus.



    Section 10B -- Stock Exchange


    109. Name the four largest stock exchangers (by market capitalization) and whether it is organized as a profit or not-for-profit organization:
      Profit Not
      for
      profit
      Stock Exchange
      EURONEXT PARIS



    Section 10B -- Stock Exchange
    EURONEXT PARIS Details


    110. For EURONEXT PARIS, is there a mechanism at the stock exchange(s) for monitoring and enforcing financial reporting, accounting and auditing of listed entities?
      Yes   No

      If YES, please describe the following:

    1. How the monitoring and enforcement of financial reporting, accounting and auditing is conducted.



    2. The consequences of non-compliance with the financial reporting, accounting or auditing requirements.



    3. How enforcement actions are administered.




    Section 10C -- Regulatory Oversight of the Accounting Profession


    111. Has an audit profession oversight body been established (e.g., to oversee the external quality assurance review process, etc.)?
      Yes   No

      If NO, proceed to the next section.

      If YES, please describe :

    1. What are the name and duties of the oversight body?

      The "Haut conseil du commissariat aux comptes" is mainly in charge of monitoring together with CNCC the professional conduct and the independence of the statutory auditor. It has to benchmark and promote professional best practices, to give advice on professional standards, to hear appeals regarding disciplinary sanctions and to supervise the external quality assurance system.

    2. The number of members on the oversight body

      12 members including three statutory auditors in public practice.

    3. Its powers

      The "Haut conseil du commissariat aux comptes" is an advisory body regarding all the topics described in question 111 a) except for discipline where it stands as an appeal body.

    4. How the oversight body conducts or oversees a program of inspections to assess the degree of compliance of each audit firm/auditor with applicable auditing standards and regulations

      In principle, the "Haut conseil du commissariat aux comptes" has oversight of the external quality control program run by the CNCC.

    5. The sanctions the oversight body may impose in the event of non-compliance



    6. How the oversight body is accountable to any public institution or body

      The oversight body can be responsible in front of "Conseil d'Etat" the highest level of administrative court in France.


    Section 10D -- Banks Regulatory Authority


    112. Name the authority that regulates the banks and similar financial institutions. Discuss how this authority differentiates between accounting requirements for regulatory reporting and general purpose external financial reporting:
      THE COMMISSION BANCAIRE regulates the banks and similar financial institutions, requires financial reporting more frequently (on a monthly or quarterly basis) and more detailed financial statements.


    113. Discuss briefly the legal requirements with respect to monitoring and enforcement by the regulatory authority of accounting and auditing standards that apply to the banks and similar financial institutions:
      For banks and similar financial institutions, the regulatory authority of accounting standards is the "Conseil national de la comptabilité" and for auditing standards : The Compagnie nationale des commissaires aux comptes and the " Haut conseil du commissariat aux comptes". They are the same that for other entities. The "Conseil national de la comptabilité" has defined special accounting standards for banks and similar financial institutions. The respect of these standards are checked by the auditors. There are no special auditing standards for auditors of banks and similar financial institutions.


    114. Briefly describe the role of the regulatory authority as it relates to the following:
    1. regulation of the audit profession

      The Commission bancaire gives an opinion about the auditors before their nomination, can appoint an additional auditor if necessary, requires auditors to report to it in precise situations, removed the obligation of confidentiality so it can interview auditors. It can also impose some independence rules.

    2. accounting and auditing standard-setting

      The Commission bancaire participates to the vote of accounting rules.

    3. review of financial statements prepared by listed entities

      See 114d.

    4. enforcement of accounting, reporting and auditing requirements

      The Commission bancaire checks financial information sent by the banks, makes inspections in situ, receives the annual report of auditors.



    Section 10E -- Non-Banking Financial Institutions Regulatory Authority


    115. Name the regulatory authority(ies) responsible for monitoring compliance with and enforcing accounting, reporting and auditing requirements imposed on non-banking institutions.


    116. What is the source of Legal authority of the regulatory authority(ies)?


    117. Briefly describe the role of the regulatory authority(ies) as it relates to the following:
    1. regulation of the audit profession



    2. accounting and auditing standard-setting



    3. review of financial statements prepared by listed entities



    4. enforcement of accounting, reporting and auditing requirements




    Section 10F -- Insurance Companies Regulatory Authority


    118. Name the regulatory authority responsible for monitoring compliance with and enforcing accounting, reporting and auditing requirements imposed on insurance companies.
      The compliance and enforcement of accounting and reportng requirements are monitored by the statutory auditors, the prudential authority CCAMIP (Commission de Contrôle des Assurances, Mutuelles et Institutions de Prévoyance), and the Regulator Autorité des Marchés Financiers AMF for listed companies. For auditing standards, compliance and enforcement are monitored by CNCC and AMF


    119. What is the source of Legal authority of the regulatory authority(ies)?
      The sources of legal authority of the regulatory authorities are European directives and national laws.


    120. Briefly describe the role of the regulatory authority(ies) as it relates to the following
    1. regulation of the audit profession

      The CCAMIP gives an opinion about the auditors before their nomination, can name an auditor if necessary, requires auditors to report in precise situations, removed the obligation of confidentiality so it can interview auditors.

    2. accounting and auditing standard-setting

      The CCAMIP participates to the vote of the accounting rules.

    3. review of financial statements prepared by listed listed entities

      See 120d.

    4. enforcement of accounting, reporting and auditing requirements

      The CCAMIP checks the documents and reports on those which are sent by the insurance companies ; makes its own inspections in situ, and receives the annual report of the statutory auditors.



    Section 10G -- Other Regulatory Authority


    121. Name any other regulatory authority(ies) responsible for monitoring compliance with and enforcing accounting, reporting and auditing requirements.


    122. What is the source of Legal authority of each regulatory authority?


    123. Briefly describe the role of the regulatory authority(ies) as it relates to the following
    1. regulation of the audit profession



    2. accounting and auditing standard-setting



    3. review of financial statements prepared by listed listed entities



    4. enforcement of accounting, reporting and auditing requirements




    Section 10H -- Quality Assurance


    124. Does any organization of professional accountants/auditors organize a program of quality assurance review to monitor compliance with accounting, reporting and auditing requirements?
      Yes   No

      If NO, proceed to next Section.

      If YES, briefly describe the monitoring and enforcement mechanism.

      The quality assurance system is compulsory under the responsibility of CNCC. The system is a two tier system ; the first one is at a regional level, the second in agreement with AMF concerns the listed entities.



    125. Under what authority does the organization conduct the program of quality assurance review?
      The "Haut conseil du commissariat aux comptes" (oversight system of the profession) is ultimately responsible for the conception and implementation of the quality assurance review system, but has delegated these responsibilties to the CNCC.


    126. Who performs the review (e.g., one firm reviewing another firm, staff from the national professional organization, contractors, or a combination of these)?
      The system in place is the monitored peer review system, in other words the controllers are statutory auditors selected by a monitoring structure with CNCC. Regarding listed entities, the statutory auditors who perform the review must have 10 years experience in the statutory audit of listed entities. Permanent staff of CNCC is in charge of planning the reviews and reviewing the conclusions. Reports are then discussed during a meeting at the CNCC between the statutory auditor under review, and the performers of the review. The report is addressed to both the CNCC and to the AMF. The remarks and conclusions are published every year.



    Section 10 I -- Investigation and Discipline


    127. Is there a process for investigating and disciplining the accounting profession in your country?

    128. Which of the following best describes the responsibility for the investigatory and disciplinary function in your country?
      Government or other agencies are solely responsible for this function.
      Government or other agencies have this responsibility, but the member body or bodies participate in the process.
      Government formally delegates this function to the member body or bodies, to exercise on its behalf.
      Member body or bodies have separate and independent processes that operate alongside processes of legal authorities.
      Other (please explain) Regional bodies of the profession


    129. Please indicate the name of the body or bodies responsible for investigation and discipline.



    Responses to the remaining questions in this Section are required if your organization has responsibility for investigation and disciplinary actions.

    130. How many voting members does the body have?
      7(1st body)12(2nd body


    131. Are the members of the body involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe: See Question 132.


    132. What are the criteria considered in selecting members of the body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?
      The first body consists of professional judges, one academic plus one statutory auditor in practice and has been in existence for 33 years (Q135). The second body consists of a majority of qualified persons selected by the Minister of Justice plus three statutory auditors in public practice representing the various fields of the profession and has been in existence for 1 year Q135).


    133. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      See Q131. Q134: 1st body 3 years 2nd body 6 years


    134. What is the term of appointment for members?
      Year(s)


    135. For how many years has the body been in existence?
      Year(s)


    136. Please indicate the budget in US$ of the body for the last fiscal year.
      Note: Please enter a whole number using commas (e.g., 4,000,000)

      The two bodies are funded by the state budget, the amount is not available

      Please enter the exchange rate used to calculate this number.

      Note: Please enter a decimal amount (e.g., 4.0027)

      (specify currency)



    137. To what entity is the body accountable?
      Provided these two bodies are considered as administrative courts, their decision can be appealed before the "Conseil d'Etat", the highest administrative court in France.


    138. Approximately how many days per year does the body meet in full session (including teleconferences)?
      Day(s)



     

     

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