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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.

Instituto Mexicano de Contadores Públicos, A.C.

 

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:

    México


2. Name of member body:
    Instituto Mexicano de Contadores Públicos, A.C.

    Or please specify name:



3. Individual responsible for preparation:
    Federico Ríos León y Vélez


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.):
    Asociación Interamericana de Contabilidad (AIC)
    Comité de Integración Latino Europa-America (CILEA)


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: The Mexican Corporations Act
    b). the Enacting body: Congress
    c). date the Act or Code came into force: 12 / 1933


25. How can IFAC obtain a copy of the Act or Code?
    In the website www.cddhcu.gob.mx


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 The statutory financial statements has to be prepared in accordance with Mexican GAAP (Principios de Contabilidad Generalmente Aceptados) in order to be approvedl by the annual general Shareholders´ meeting
    Private companies The statutory financial statements has to be prepared in accordance with Mexican GAAP (Principios de Contabilidad Generalmente Aceptados) in order to be approval by the annual general Shareholders´ meeting
    Governmental The statutory financial statemens are prepared in accordance with Mexican GAAP or with standards issued by the government (NIF)
    Not-for-profit The statutory financial statements has to be prepared in accordance with Mexican GAAP (Principios de Contabilidad Generalmente Aceptados) in order to be approved by the annual Directive Board meeting
    Other (please describe) Regulated entities Many regulated entities are required to prepare financial statements. Some regulatory agencies have additional specific reporting requirements.
    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 Listed companies must provide Comision Nacional Bancaria y de Valores (CNBV, National Banking and Securities Commission) with audited annual financial statements prepared in accordance with Mexican GAAP no later than three working days after approval by the annual general shareholders' meeting. The audit must be conducted in accordance with Mexican GAAS (Normas y Procedimientos de Auditoría)
    Private companies Under federal tax law, Enterprises over a certain size on the basis of tax revenues, total assets and /or number of employees must file their annual financial statements with the federal tax authorities together with an independent auditor´s report. The standards to be followed are the Mexican GAAS
    Governmental The financial statements of governmental entities must be audited in accordance with Mexican GAAS and with certian rules issued by the government
    Not-for-profit Under federal tax law some not-for profit entities authorized to obtain donations have to present a tax report with audited financial statements to the tax authorities
    Other (please describe) Regulated entities Many regulated entities are required to be audited.
    Other (please describe) Regulated entities


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: Year(s)


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


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:
    The Mexican Corporations Act does not require rotation of auditors or firms; however, the CNBV (Banking and Securities Commission) regulations requires auditor (partner in charge) rotation at least every five years for publicly listed entities and financial institutions (banks, securities brokers-dealers, etc.)


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

    Ley del Mercado de valores (LMV)(Securities Market Law),
    Ley de Instituciones de Crédito (LIC)(Banking and Financial Corporations Act)
    Ley de Sociedades de Inversión(LSI)(Investment Funds Act)
    National Banking and Securities Commission Circulars

  2. the Enacting body(ies)

    Congress in the case of acts and the National Banking and Securities Commission(CNBV) in the case of circulars

  3. the latest amendment date?

    January 2004


35. How can IFAC obtain a copy of the Legal authority?
    In the CNBV website www.cnbv.gob.mx


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:
    Unaudited quartely financial statements must be filed within 20 subsequent working days (in the case of first, second and third quarters) and 40 subsequent working days (for the last quarter).

    As of June 30 2005, these companies must provide an annual report, in a format prescribed by the CNBC, to the securities regulator and the Mexican Stock Exchange for communication to the public.


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: Year(s)


41. Are joint auditors required for audits of listed entities?
    Yes   No
    If YES, please describe the requirement:


42. Is rotation of the auditor or audit firm for audits of listed entities required?
    Yes   No
    If YES, please describe the requirement:
    No more than five years and at least a two year cooling period


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 Mexican General Accepted Auditing Standards 11/2003 Comisión de Normas y Procedimientos de Auditoría (Auditing Standards and Procedures Committee) of the Instituto Mexicano de Contadores Públicos
    Other (please describe) Private companies Mexican General Accepted Auditing Standards 11/2003 Comisión de Normas y Procedimientos de Auditoría (Auditing Standards and Procedures Committee) of the Instituto Mexicano de Contadores Públicos
    Other (please describe) Government owned entities Mexican General Accepted Auditing Standards 11/2003 Comisión de Normas y Procedimientos de Auditoría (Auditing Standards and Procedures Committee) of the Instituto Mexicano de Contadores Públicos
    Other (please describe)

    a. How can IFAC obtain copies of these documents?

    The IMCP publishes each year a book with the current Mexican GAAS

    b. Are the documents available in English?
    Yes   No

Section 5B -- Standard-Setting (Comisin de Normas y Procedimientos de Auditora (Auditing Standards and Procedures Committee) of the Instituto Mexicano de Contadores Pblicos)


44. For Comisin de Normas y Procedimientos de Auditora (Auditing Standards and Procedures Committee) of the Instituto Mexicano de Contadores Pblicos, 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

    A private organization established by the profession

    b. Name of standards

    General Accepted Auditing Standards


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


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.)?
    Professional prestige, ten years of professional experience, prominent position in the entity at which he works, a partner in an accounting firm, to have participated as instructor in courses or seminars or as a professor at universities covering the public accounting profession and to be certified by the IMCP


48. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
    All members of the Commission are appointed by the Board of the Instituto Mexicano de Contadores Públicos


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


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

    0

    Please enter the exchange rate used to calculate this number.

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

    0.0



52. To what entity is the standard-setting body accountable?
    To the Instituto Mexicano de Contadores Públicos


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

    Each standard (Bulletin) is distributed as an exposure draft among the community in general, to receive comments and recommendations. This process takes a minimum of two months

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

    The meetings of the Commission of Auditing Standards and Procedures are private

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

    After the exposure process is completed, the Commission approves the Standard, after which, it is approved by the Board of the Instituto Mexicano de Contadores Públicos

  4. other relevant due process activities



54. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
    24 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 IMCP 11/2003 Comisión de Etica Profesional del IMCP (Ethics Committee)
    Professional Accountants in Business IMCP 11/2003 Comisión de Etica Profesional del IMCP (Ethics Committee)
    Professional Accountants in the Public Sector IMCP 11/2003 Comisión de Etica Profesional del IMCP (Ethics Committee)
    Other (please describe)

    a. How can IFAC obtain copies of these documents?

    The IMCP publishes a book with the Code of Ethics. (Note: the IMCP currently has a project in place with respect to the revision of its code of ethics in accordance with the IFAC Code of Ethics).

    b. Are the documents available in English?
    Yes   No

Section 6B -- Standard-Setting (Comisin de Etica Profesional del IMCP (Ethics Committee))


56. For Comisin de Etica Profesional del IMCP (Ethics 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

    Private Organization stablished by the IMCP

    b. Name of standards

    Code of Ethics


57. How many voting members does the standard-setting body have?
    15


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.)?
    Professional prestige, six years as member of the Instituto Mexicano de Contadores Públicos, to have participated in one of the Commissions of the Instituto for at least two years. To have been a member of the Board of one of the chapter organizations of the IMCP. To be a Certified Public Accountant


60. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
    The Chairman and Secretary of the Commission are appointed by the Board of the Instituto Mexicano de Contadores Públicos. Others are appointed by the Chairman and the Secretary


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?
    41 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)

    0

    Please enter the exchange rate used to calculate this number.

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

    0.0



64. To what entity is the standard-setting body accountable?
    To the Instituto Mexicano de Contadores Públicos


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

    Each proposed amendment is distributed as an exposure draft among the community in general to receive comments and recommendatios. This process takes a minimum of two months

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

    The meetings of the Ethics Committee are private

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

    After the exposure process is completed, the Committee approves the amendment. After which it is approved by the Board of the Instituto Mexicano de Contadores Públicos

  4. other relevant due process activities



66. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
    6 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:
    Elementary (national education system, 6 years)
    Junior High School (national education system, 3 years)
    Senior High School (3 years)
    Professional (Public Accountant, four and a half years as an average).


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.

    Legal authority: Ministry of Education. Requirements:
    .Professional Title as Accountant given by a recognized University.
    .License (Cédula profesional).
    Special requirements for auditors of listed entities:
    .Professional Education Program.
    .Certification.


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
    Academic Title as Accountant
    Professional examinations
    If it is require at the University in order to obtain the degree
    Practical experience
    3 years
    Final qualifying examination
    Certification Uniform Exam (EUC)
    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.
    Ministry of Education (Dirección General de Profesiones, Secretaría de Educación Pública).

  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.

    Ministry of Education is the one who determines the education requirements

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

    Unknown

  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: There are no voting members. Some are volunteers and some are paid.

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

    40 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?
    Ministry of Education (Dirección General de Profesiones, Secretaría de Educación Pública)


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):


80. What entity grants the license?
    Ministry of Education.


81. Describe any additional licensing requirements for auditors of listed entities (e.g., additional education requirements, registration, etc.).
    Professional Education Program (including continuing education which is obligatory for listed entity auditors)

    Certification granted by the IMCP


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
    Ministry/department Secretaría de Hacienda y Crédito Público, dependencia de la administración pública federal centralizada 03/2004 Unidad de Contabilidad Gubernamental e Información sobre la Gestión Pública de la Secretaría de Hacienda y Crédito Público (Unit of Governmental Accounting and Information on the Public Management)
    Statutory authority/agency
    Profit entity owned by government Secretaría de Hacienda y Crédito Público, dependencia de la administración pública federal centralizada+ 03/2004 Unidad de Contabilidad Gubernamental e Información sobre la Gestión Pública de la Secretaría de Hacienda y Crédito Público (Unit of Governmental Accounting and Information on the Public Management)
    State governments
    Local governments
    Other (please describe)
    Other (please describe)

    a. How can IFAC obtain copies of these documents?

    In the Secretaria de Hacienda y Credito Publico (Unit of Unit of Governmental Accounting and Information on the Public Management on the Public Management of the Ministry of Property and Public Credit), these documents are part of the Integral System of Governmental Accounting of the SHCP

    b. Are the documents available in English?
    Yes   No

Section 8B -- Standard-Setting (Unidad de Contabilidad Gubernamental e Informacin sobre la Gestin Pblica de la Secretara de Hacienda y Crdito Pblico (Unit of Governmental Accounting and Information on the Public Management))


83. For Unidad de Contabilidad Gubernamental e Informacin sobre la Gestin Pblica de la Secretara de Hacienda y Crdito Pblico (Unit of Governmental Accounting and Information on the Public Management), 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

    Government entity

    b. Name of standards

    Integral system of Governmental Accounting that includes 5 subsystems of collection, Public sector, expenses, public debt and federal reserves, in a framework that includes:
    - Generally Accepted Accounting Principles
    - Public Sector Basic Accounting Standards
    - Manual of Standards and Procedures for the Exercise of the Expense in the Federal Public Administration
    - Classification by object of the expense
    - Financial Information Standards
    - Privatization of semi-official Entities Standards
    - Main book authorization
    - Authorization of the Chart of Accountants of semi-official Organizations
    - Chart of Reclassification of Accountants of the semi-official Sector


84. How many voting members does the standard-setting body have?
    Not applicable - They are officers of the Ministry


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.)?
    A separate body for issuing the accounting standards does not exist. They comprise of the Secretary assigned to the function. In 2004, the First National Treasury Convention is being made, to integrate task forces with different professional groups to discuss proposals for treasury and normative (regulation) matters.


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


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)

    0.0



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

    There is an internal process in the Government

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

    Private

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

    There is an internal process in the Government

  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 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 General Accepted Accounting Principles /GAAP 06/2004 CINIF (Mexican Counsel of Research and Development of Financial Information Standards)
    Other (please describe) Private entities Gennerally Accepted Acconting Principles /GAAP 06/2004 CINIF (Mexican Counsel of Research and Development of Financial Information Standards)
    Other (please describe)
    Other (please describe)
    Other (please describe)

    a. How can IFAC obtain copies of these documents?

    Prior to June 2004, the IMCP's Accounting Principles Committee was responsible for developing accounting standards. CINIF is now responsible for this activity and has started by considering the basic framework for accounting standards. The CINIF intends to continue convergence with international standards.

    The standards issued by the IMCP are published and available. The IMCP will continue to have a committee to address accounting standards issued by CNIF.

    b. Are the documents available in English?
    Yes   No

Section 9B -- Standard-Setting (CINIF (Mexican Counsel of Research and Development of Financial Information Standards))


95. For CINIF (Mexican Counsel of Research and Development of Financial Information Standards), 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

    The CINIF is a private organization established by 12 regulatory and self-regulatory bodies.

    The CINIF has an Investigation and Develop Centre (CID) formed by a Director and six investigators, and a Technical Consultant Committee (CTC) , who review the CIDs work. The projects are voting by the six members of the CID.

    The CINIF began operating in June 2004.

    b. Name of standards

    Mexican Generally Accepted Accounting Principles (GAAP)


96. How many voting members does the standard-setting body have?
    6 per Q95a


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.)?
    Professional prestige, ten years of professional experience, prominent position in the entity at which he works, to be a partner in an accounting firm, to have participated as instructor in courses or seminars or as a professor at universities covering the public accounting profession and to be certified by the IMCP


99. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
    The members are appointed by the Board of CINIF. There is no specified term.


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)

    360,000

    Please enter the exchange rate used to calculate this number.

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

    11.35



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


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

    Each standard is distributed as an exposure draft amont the community in general, to receive comments and recommendatios. This process takes a minimum of two months

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

    Private

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

    After the exposure process is completed, the CID and the CTC approves and issues the standard.

  4. other relevant due process activities



105. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
    50 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:
    Comisión Nacional Bancaria y de Valores (CNBV)
    National Banking Securities Commission


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:
    The IMCP (our organization) by its own bylaws is empowered to conduct investigations in response to complaints against its members and impose sanctions, oversee professional conduct of its members and establish continuing professional education requirements.


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

    In order to obtain registration and be able to audit the entities subject to CNBV (National Banking and Securities Commission) supervision, the public accountant is required to be certified by our organization the IMCP. CNBV through a circular letter (circular única) sets out some independence rules for external auditors and requires that the audit firms of registered auditors maintain a quality assurance program.

  2. accounting and auditing standard-setting

    The CNBV recognizes the accounting and auditing standards isued by our organization (Mexican GAAP). Some valuation and disclosure rules are modified by CNBV regulations

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

    The CNBV is authorized under the Securities Market Law (ley del mercado de valores) to conduct reviews of financial statements of listed companies and other participants in the securities markets for compliance with accounting and disclosure requirements. Other participanats include brokerage firms and investment funds, as well as banks.

    The reviews are aimed at determining compliance with applicable accounting and disclosure requirements as well as auditing requirements. Recently the CNBV began visiting audit firms, selected on a random basis, to perform reviews of audit work and to ensure compliance with applicable standards.


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
    Bolsa Mexicana de Valores, S. A. de C. V.


Section 10B -- Stock Exchange
Bolsa Mexicana de Valores, S. A. de C. V. Details


110. For Bolsa Mexicana de Valores, S. A. de C. V., 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.

    Based on the auditor´s report

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

    Suspension can be dictated if the information is not submitted on time or if the auditor´s opinion is qualified.

  3. How enforcement actions are administered.

    Through the bylaws


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?

    A new oversight body is in the process of being developed to perform reviews with respect to auditors that audit listed entities.

    The IMCP is also working a project with respect to the development of quality control standards and a quality assurance review system.

  2. The number of members on the oversight body



  3. Its powers



  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



  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


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:
    Comisión Nacional Bancaria y de Valores (CNBV) This authority has issued accounting standards in areas specific to banking activities, some of which are not consistent with Mexican GAAP. The CNBV accounting rules are applicable for both regulatory and general purpose financial reporting.


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:
    The Credit Institutions Law (Ley de instituciones de Crédito) empowers the CNBV to perform reviews over the financial statements issued by a bank and the working papers of the external auditors in order to ensure compliance with the applicable standards


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

    In order to obtain registration and be able to audit the entities subject to CNBV supervision, the public accountant requires to be certified by our organization. CNBV trough a circular letters sets out some independence rules for external auditors and requires that the audit firms of registered auditors to maintain a quality assurance program.

  2. accounting and auditing standard-setting

    Mexican law empowers regulatory agencies with the responsability of setting accounting standards for both regulatory and general purposes. The CNBV has issued various circulars with specific accounting treatments as well presentation and disclosures requirements. As a consequence of the aforementioned legal arrangements, general-purpose financial statements of banks do not conform to Mexican GAAP in certain areas specific to the regulated activities or not matters not explicitly covered by Mexican GAAP.

  3. review of financial statements prepared by listed entities

    The CNBV is authorized under the Securities Market Law (Ley de Mercado de Valores) to conduct reviews of financial statements of banks and other financial entities, aimed at determining compliance with applicable accounting and disclosure requirements and auditing requiremets. Recently the CNVB begun visiting audit firms, selected on a random basis, to perform reviews of audit work and ensure compliance with applicable standards.

  4. enforcement of accounting, reporting and auditing requirements

    For violations of accounting, reporting and auditing requirements, the CNBV is authorized under the Credit Institutions Law to impose administrative sanctions including fines and suspensions.


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.
    Comision Nacional Bancaria y de Valores (CNBV)


116. What is the source of Legal authority of the regulatory authority(ies)?
    Ley General de Organizaciones y Actividades Auxiliares de Crédito. Ley de Ahorro y Crédito Popular


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

    In order to be appointed as auditor of a non-banking financial istitution the public accountant must be registered with the CNBV and meet some requirements.

  2. accounting and auditing standard-setting

    Mexican law empowers regulatory agencies with the responsibility of setting accounting standards for both regulatory and general purposes. The CNBV has issued various circulars with specific accounting treatments as well presentation and disclosures

  3. review of financial statements prepared by listed entities

    The CNBV is authorized under the Securities Market Law (Ley de Mercado de Valores) to conduct reviews of financial statements of banks and other financial entities, aimed at determining compliance with applicable accounting and disclosure requirements. Recently the CNVB begun visiting audit firms, selected on a random basis, to perform reviews of audit work and ensure compliance with applicable standards.

  4. enforcement of accounting, reporting and auditing requirements

    For violations of accounting, reporting and auditing requirements, the CNBV is authorized to impose administrative sanctions including fines.


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.
    Comisión Nacional de Seguros y Fianzas (CNSF) (National Insurance and Banking Commission


119. What is the source of Legal authority of the regulatory authority(ies)?
    Ley General de Instituciones y Sociedades Mutualistas de Seguros. Ley federal de Fianzas Ley del Contrato del Seguro


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

    In order to be appointed as auditor of a Insurance company the public accountat must be registered with the CNSF, and this regulator requires professional experience in the regulated field and the registration must be renewed periodically.

  2. accounting and auditing standard-setting

    Insurance companies are required to apply the accounting rules set out by CNSF.

  3. review of financial statements prepared by listed listed entities

    The CNBV authorized under the Securities Market Law (Ley de Mercado de Valores) conducts reviews of financial statements of banks and other financial entities, aimed at determining compliance with applicable accounting and disclosure requirements. Recently the CNVB begun visiting audit firms, selected on a random basis, to perform reviews of audit work and ensure compliance with applicable standards.

  4. enforcement of accounting, reporting and auditing requirements

    The CNSF has legal power to dismis or impose administrative sanctions to entities under its supervision or their auditors for violation of applicable accounting, auditing and reporting rules and standards.


Section 10G -- Other Regulatory Authority


121. Name any other regulatory authority(ies) responsible for monitoring compliance with and enforcing accounting, reporting and auditing requirements.
    Administración General de Auditoria Fiscal Federal (AGAF) - Professional accountants carryingn out audits for tax requiremetns must be registered with teh AGAF.

    Secretaria de la Función Pública (SFP)
    (Taxation authorities)


122. What is the source of Legal authority of each regulatory authority?
    Codigo Fiscal de la Federación (Tax Code)
    Lineamientos Generales para la preparación y entrega de los informes de auditoría externa financiera (External audit reporting guidelines)


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

    Both authorities have the power to submit requirements to regulate the auditor's performance and the requirements that the public accountant needs to met in order to be authorized to submit an audit opinion.

  2. accounting and auditing standard-setting

    Both authorities recognize the accounting and auditing standards isued by our organization (Mexican GAAP).

    In addition the SFP submitted some rules related to accounting issues (Normas de Informacion financiera) which in some cases departs from Mexican GAAP

  3. review of financial statements prepared by listed listed entities

    The CNBV is authorized under the Securities Market Law (Ley de Mercado de Valores) to conduct reviews of financial statements of banks and other financial entities, aimed at determining compliance with applicable accounting and disclosure requirements. Recently the CNVB begun visiting audit firms, selected on a random basis, to perform reviews of audit work and ensure compliance with applicable standards.

  4. enforcement of accounting, reporting and auditing requirements

    The taxation authorities have power to impose civil and criminal penalties against those auditors or companies who provide misleading certification with regard to the accuracy of taxable profits and other federal tax obligations.

    In the case of Government entities SFP have power to impose civil and criminal penalties against those auditors or government employees who are violating the rules issued by the SFP.


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.

    See response to Q111.



125. Under what authority does the organization conduct the program of quality assurance review?


126. Who performs the review (e.g., one firm reviewing another firm, staff from the national professional organization, contractors, or a combination of these)?



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.
    The name of the national body is the Honour Board of the Instituto Mexicano de Contadores Públicos, A.C. The name of the local body is the Honour Body of each of the 61 local chapters of the Instituto Mexicano de Contadores Públicos, A.C.


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?
    National 5 Loca 5-10


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.)?
    Integrity, prestige, experience and involvement with the Instituto Mexicano de Contadores Públicos, A.C., and/or its affiliated chapters


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


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)

    0.0 (specify currency)



137. To what entity is the body accountable?
    To the Board of the IMCP and to each Board of each chapter


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


 

 

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* Indicates organizations that qualify to submit SMO Action Plans biennially