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.

    Conseil Supérieur de l'Ordre des Experts-Comptables

     

    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:
      Conseil Supérieur de l'Ordre des Experts-Comptables

      Or please specify name:



    3. Individual responsible for preparation:
      Henri GIOT


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

      01 / 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 Fédération des Experts comptables Européens
      CILEA Comité de Integracion Latino Europa America
      CAPA Confederation of Asian and Pacific Accountants
      FCM Fédération des Experts comptables Méditerranéens
      FIDEF Fédération Internationale des Experts Comptables Francophones



    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
      b). the Enacting body: Parliament and Ministry of Justice
      c). date the Act or Code came into force: 08 / 2003


    25. How can IFAC obtain a copy of the Act or Code?
      Additional information re Question 24c: The Code of Commerce came into force in 1807 and is continuously updated. Several amendments have been made since this date. Amendments introduced by the LSF (law on financial security)in August 2003 relate only to legal auditors. On the website of the French Government: 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): The Code of commerce applies to any person making customarily commercial operations, either sole entrepreneurs or companies.
      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 See above
      Not-for-profit Regulation n° 99-01 (16/02/1999) - www.finances.gouv.fr/CNCompta/
      Other (please describe) Sole entrepreneurs Code of Commerce
      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 See above
      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:
      Only for entities presentng consolidated accounts


    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:
      See art L822-14 of Code of Commerce. Rotation after 6 years period is compulsory for individual auditors and engagement partner when an audit firm has been appointed



    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

      CODE MONETAIRE ET FINANCIER (Monetary and Financial Code)

    2. the Enacting body(ies)

      Parliament and Ministry of Finance

    3. the latest amendment date?

      August 2003 (Law n° 2003-706 of August 1, 2003) : law on financial security


    35. How can IFAC obtain a copy of the Legal authority?
      Through government webste www.legifrance.gouv.fr


    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:
      See answer 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 OF COMMERCE O8/2003 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?

      Directly 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

      See CNCC response for answers to Questions 44-54

      b. Name of standards

      “normes professionnelles”


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


    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.)?


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


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


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

      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?


    53. 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

      None


    54. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      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 des devoirs professionnels 1946 (presently under review : an new "Code of Deontology" will replace the old one in the next few days CSOEC
      Professional Accountants in Business
      Professional Accountants in the Public Sector
      Other (please describe) Statutory auditors Code of Commerce - Code of Ethics 08/2003 CNCC

      a. How can IFAC obtain copies of these documents?

      Code des devoirs professionnels (Code of Professional Duties) is available from CSOEC.
      Code d'éthique is available from CNCC


      b. Are the documents available in English?
      Yes   No


    Section 6B -- Standard-Setting (CSOEC)


    56. For 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 organisation established by the law with delegation of public service missions

      b. Name of standards

      Code des devoirs professionnels


    57. How many voting members does the standard-setting body have?
      66


    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.)?
      Refer to question 59. They are not appointed but elected.


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


    62. For how many years has the standard-setting body been in existence?
      59 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)

      23,000,000

      Please enter the exchange rate used to calculate this number.

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

      1.20



    64. To what entity is the standard-setting body accountable?
      Ministry of Economy, Finance and Industry


    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)

      Private

    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)?
      5 Day(s)


    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

      See CNCC response.

      b. Name of standards



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


    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.)?


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


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


    62. For how many years has the standard-setting body been in existence?
      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



    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



    66. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      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:
      The national education system is compulsory from 6 to 16 years old.
      - The early childhood education begins from 6 years (mostly after 1 or 2 years nursery school)
      - secondary school : 7 years (first stage of 4 years ending with the "Brevet des collèges" at 16 ; second stage of 3 years ending with the "baccalaureat" at about 18.
      -tertiary period : universities, business schools, technical colleges, private schools, est : 1 to 8 years studies (Bachelor, Master, Doctorat = "Bologna process" 1999 which is being implemented in France, ongoing reform)


    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.

      Ministry of Education for the "Diplôme d'Expertise Comptable", highest State diploma in Accounting (8 years studies including a three years training period). The member body CSOEC and the professionals (experts comptables) are involved in each step of the sullabus. Each year 800 to 900 candidates get this diploma

      Ministry of Justice for the "Certificat d'Aptitude à la profession de Commissaire aux Comptes", professional degree delivered by the Ministry of Justice and the Institution CNCC (Statutory auditors). 15 to 25 candidates get yearly this certificate of high level but quite unknowed from the public.
      Only the Dimpôme d'Expertise Comptable allows access to the two titles and the two activities of expertise comptable (public accounting and statutory audit)


    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
      4 or 5 years degree (universities,business schools ou technical colleges)
      Professional examinations
      3 intermediate diplomas :
      DPECF diplôme preparatoire aux études comptables et financières
      DECF diplôme d'études comptables et financières
      DESCF diplôme d'études supérieures comptables et financières
      Exemptions are possible at each level
      Practical experience
      3 years training period in an accounting/audit firm (2 years at least, 1 year being allowed in a business environment) supervised and controlled by the Member body.
      The 3 years period training is similar for the 2 routes (public accounting and statutory audit)
      Final qualifying examination
      Diplôme d'expertise comptable with 3 tests :
      written test on audit matters (5 hours)
      oral test of practical experience assessment (1 hour)
      discussion (1 hour) on a thesis written by the candidate
      Other (please describe)
      No other key levels are required to be an expert comptable (public accountant) or commissaire aux comptes (statutory auditor) (except in the last case a minimum of practical experience in statutory audit acquired during the 3 years training period).
      The specific certificate to become a statutory auditor doesn't allow to be a public accountant (expert comptable)


    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.
      The two Member Bodies, « Conseil Supérieur de l’Ordre des Experts-Comptables » and « Compagnie Nationale des Commissaires aux Comptes », are equally involved in the accounting syllabus (definitions, examinations and assessment methods) under the authority of the Ministry of Education.

      Expertise comptable :
      MINISTERE DE L'EDUCATION NATIONALE
      Direction de l'Enseignement supérieur
      Bureau des formations universitaires et techologiques
      99 rue de Grenelle
      75357 Paris 07 SP
      Tel 33 1 55 55 69 99
      Fax 33 1 55 55 69 69
      Ms Jacqueline Lemant
      Sous directrice des certifications supérieures et de la professionalisation

      Commissariat aux Comptes
      MINISTERE DE LA JUSTICE
      Direction des Affaires Civiles et du Sceau
      13 place Vendôme
      75042 Paris Cedex 01
      Tel 33 1 44 77 60 60
      Fax 33 1 44 77 62 39
      Mr Marc Guillaume
      Directeur des Affaires Civiles et du Sceau

    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:

    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?
      Experts comptables (Public accountants) : Ministry of Economy, Finance and Industry
      Commissaires aux Comptes (Statutory auditors) : Ministry of Justice


    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): Quality control requisitions


    80. What entity grants the license?
      Regional councils of Ordre des Experts comptables (22 in France on a geographical basis)


    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 Parliament 8/2001 Comité des Normes de la Comptabilité Publique
      Ministry/department
      Statutory authority/agency
      Profit entity owned by government Governement Conseil National de la Comptabilité and related ministry (rules of private sector)
      State governments
      Local governments Government (Ministries f Interior and Finance 1997 Comité des finances locales
      Other (please describe)
      Other (please describe)

      a. How can IFAC obtain copies of these documents?

      Public accounting standards are available on Ministry of Finance's website www.finances.gouv.fr/Moderfie

      b. Are the documents available in English?
      Yes   No


    Section 8B -- Standard-Setting (Comité des Normes de la Comptabilité Publique)


    83. For Comité des Normes de la Comptabilité Publique, 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

      Part of Ministry of Finance

      b. Name of standards

      Normes comptables de l'Etat


    84. How many voting members does the standard-setting body have?
      22


    85. 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:


    86. 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.)?
      Civil servants and accountants with a good knowledge of public acconting and standard setting in general


    87. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      Government (Arrêté of the Ministry of Finance)


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


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


    90. 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)

      0

      Please enter the exchange rate used to calculate this number.

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

      1.20



    91. To what entity is the standard-setting body accountable?
      Ministry of Finance


    92. 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)

      Private

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

      Simple majority

    4. other relevant due process activities

      None


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


    Section 8B -- Standard-Setting (Conseil National de la Comptabilité and related ministry (rules of private sector))


    83. For Conseil National de la Comptabilité and related ministry (rules of private sector), 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

      See section 9

      b. Name of standards



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


    85. 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:


    86. 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.)?


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


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


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


    90. 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)

      0

      Please enter the exchange rate used to calculate this number.

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

      1.20



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


    92. 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



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


    Section 8B -- Standard-Setting (Comité des finances locales)


    83. For Comité des finances locales, 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

      Part of Ministry of Interior

      b. Name of standards

      Instructions comptables


    84. How many voting members does the standard-setting body have?
      32 titulary members


    85. 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:


    86. 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.)?
      Good knowledge or accounting and standard setting


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


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


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


    90. 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)

      0

      Please enter the exchange rate used to calculate this number.

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

      1.20



    91. To what entity is the standard-setting body accountable?
      Ministry of Interior


    92. 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)

      Private

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

      Simple majority

    4. other relevant due process activities

      After adoption by Comité des Finances locales the draft instructions are submitted to the Conseil National de la Comptabilité for advice


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



    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) All commercial and industrial entities (individual accounts) Code of commerce 04/1983 Government act
      Other (please describe) All commercial and industrial entities (individual accounts) Code of Commerce 08/2003 Accounting Regulatory Committee
      Other (please describe) All commercial and industrial entities (individual accounts) Plan Comptable Général (CRC regulation 99-03 12/2003 Government act
      Other (please describe) All commercial and industrial entities (individual accounts) CRC regulation 99-02 12/2002 Accounting Regulatory Committee

      a. How can IFAC obtain copies of these documents?

      Through CNC's website www.finances.gouv.fr/CNCompta (CRC regulations) and through government website for the Code of Commerce www.legifrance.gouv.fr

      b. Are the documents available in English?
      Yes   No


    Section 9B -- Standard-Setting (Government act)


    95. For Government act, 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

      Parliament and ministry of Justice

      b. Name of standards

      Code de Commerce


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


    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)


    95. For Accounting Regulatory Committee, 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

      Decision making body setting the private sector accounting standards created in 1998. Il is helped in his task by a consultative technical body the Conseil National de la Comptabilité (CNC)which is responsible for preparing the new acconting regulations and /or amendments to previous ones and to the PCG. The CNC issues also recommendations and advices, some of them being presented to CRC for homologation.
      The 2 French institutions CSOEC and CNCC are members of these to bodies CRC and CNC


      b. Name of standards

      CRC accounting regulations : règlements du CRC , homologated by ministery order (arrêté interministériel) and published at the Official Journal of the French republic


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


    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.)?
      CRC :
      8 government representatives : 3 representatives of the ministries, the chairman of the national securities reglator and the chairman of the CNC
      7 professionals appointed by government order: presidents of CSOEC and CNCC, 2 representatives of the enterprises, 3 representatives of the trade unions
      CNC
      one chairing president
      6 vice presidents (presidents of CSOEC, CNCC, 2 representatives of enterprises, 1 representative of NFP organisations
      40 qualified individuals representing various economic sectors and financial professions
      11 representatives of the various ministries and state departments


    99. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      Ministry of finances by order (arrêté)


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


    101. For how many years has the standard-setting body been in existence?
      6 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)

      0

      Please enter the exchange rate used to calculate this number.

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

      1.20



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

      No formal due process exists : sometimes the CNC issues exposure drafts on topics estimated as of major interest (for instance liabilities, definition and measurement of assets). Exposed documents are available on CNCs website during the exposition 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)

      Simple majority

    4. other relevant due process activities

      None


    105. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      2 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:
      AUTORITE DES MARCHES FINANCIERS


    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:
      Code monétaire et financiers, TItle II of Book VI (art L 621-1 to L 623-4)


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

      No specific regulatory role regarding the auditing profession, but the 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 doesn't play a specific role regarding accounting and audit standards setting, but is part of the CNC. In addition AMF publishes 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, includng 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?

      For contractual audit - direct oversight by the Ministry of Finance for contractual audits performed by experts comptables
      The Ministry of Finance examines and validates by delivering an agreement on the standards drafted by CSOEC.


    2. The number of members on the oversight body

      N/A

    3. Its powers

      To give official agreement to CSOEC's professional standards

    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

      The program of quality control is formally delegated by the Ministry to CSOEC

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

      Sanctions power is delegated to the CSOEC: large range from censure to exclusion, temporary or definitive.

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

      As a part of the Ministry


    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 The Commission bancaire regulates the banks and and similar financial institutions requires reporting more frequently (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 institutions, the regulatory authority of accounting standards is the Conseil National de la COmptabilité and for statutory audit the CNCC and the Haut Conseil du Commissariat aux Comptes. They are the same as for other entities. The CNC has defined certain specific accounting standards for nbanks and similar financial institutions. The respect of these standards are checked by the statutory auditors. Ther are no secific auditing standards for auditors of banks ans 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

      As a member of the CNC the Commission bancaire participate to the vote of accounting standards

    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 annual reports of the 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

      As a member of CNC CCAMIP participates to the vote of accounting standards

    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.

      1) Structural standarized inspection validating the organisation of the firm and the ongoing training
      2) Control of the appliation of audit standards trough files review



    125. Under what authority does the organization conduct the program of quality assurance review?
      By delegation of Ministry of Finance


    126. Who performs the review (e.g., one firm reviewing another firm, staff from the national professional organization, contractors, or a combination of these)?
      Inspection performed by a staff of trained independant voluntary professionals members of the institute (800 inspectors)



    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)


    129. Please indicate the name of the body or bodies responsible for investigation and discipline.
      At the regional level exists a discipline chamber with 3 members (chaired by a professional magistrate)
      At the national level a national chamber of discipline examines in appeal the cases judged by local chambers. It comprises 5 members : 3 magistrates (including the President) and 2 experts comptables.
      An appeal of the decisions of National Chamber is possible in the upper justice courts



    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?
      3 to 5


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


    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.)?
      Interest for the matters of discipline


    133. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      Government (magistrates) and institution


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


    135. For how many years has the body been in existence?
      40 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)

      0

      Please enter the exchange rate used to calculate this number.

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

      1.20 (specify currency)



    137. To what entity is the body accountable?
      Conseil d'Etat (highest jurisdiction)


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



     

     

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