Ordre des Experts Comptables et Financiers de Madagascar
Member | Established: 1962 | Member since 1999
The Ordre des Experts Comptables et Financiers de Madagascar (OECFM) is a mandatory membership organization for Chartered Accountants established in 1962 in accordance with Ordinance No. 62–104 of October 1, 1962. The OECFM acts as a licensing authority for members of the profession and maintains a list of auditors and audit firms. It is an adviser to the accounting standard setter, the Conseil Supérieur de la Comptabilitié.
Statements of Membership Obligations (SMOs)
The Statements of Membership Obligations form the basis of the IFAC Member Compliance Program. They serve as a framework for credible and high-quality professional accountancy organizations focused on serving the public interest by adopting, or otherwise incorporating, and supporting implementation of international standards and maintaining adequate enforcement mechanisms to ensure the professional behavior of their individual members.
The OECFM, which is responsible for establishing a quality assurance (QA) review system for financial statement audits under the oversight of the Ministry of Finance and Budget, has developed a concrete plan to establish a QA review system that is compliant with revised SMO 1 requirements. The OECFM has defined a conceptual framework for QA reviews and is in the process of establishing an SMO 1 Working Group with the responsibility for its implementation. Under the leadership of the SMO 1 Working Group, the OECFM intends to (i) update relevant by-laws; (ii) raise awareness of the importance of QA reviews for improving audit quality; (iii) solicit and train volunteers to participate in a pilot program in 2016; and (iv) obtain and disseminate French translations of ISQC1 and other IAASB standards, as well as implementation guidance.
The OECFM should ensure that the future QA system is aligned with the revised requirements of SMO 1. Also, to support implementation, the OECFM is encouraged to make available, on its website and via other sources, information on standards and implementation guidance on quality control and quality assurance reviews.
The OECFM, which shares responsibility for the education and training of accountancy professionals in Madagascar, has specific plans to converge current initial professional development (IPD) and continuous professional development (CPD) requirements with IES. It has established an SMO 2 Working Group and continues to seek approval from the government for making the proposed changes to the IPD curriculum, which has been delayed due to the economic crisis. By the end of 2015, it intends to mandate minimum CPD requirements in line with IES 7 and seek the approval of the Conseil Supérieur de la Comptabilité. The OECFM also has plans to enhance the technical resource materials available to members and to work with education providers to improve the quality of education for professional accountants. It also intends to strengthen the monitoring of the fulfillment of practical training and CPD requirements.
The OECFM is encouraged to review the requirements of the revised IES and indicate actions it will undertake to address gaps, if any, in its next Action Plan submission. It should also work to obtain and disseminate translated copies of IES to facilitate the convergence process. The OECFM is also encouraged to showcase some of the specific training opportunities that it provides throughout the year as well as standard related resources that it makes available online, and via other mechanisms, for its members.
The OECFM has the responsibility for the adoption and implementation of ISA under the oversight of the Ministry of Finance and Budget and adopted the Clarified ISA in 2009. It also adopted other IAASB pronouncements; however, not all of them are available in French. The OECFM reports that it is in the process of establishing its SMO 3 Working Group to implement plans to: (i) adopt all pronouncements issued by the IAASB; (ii) prepare implementation guidance; (iii) disseminate translations of the standards to its members; and (iv) review existing translations. The OECFM also plans to establish an online forum to assist members with technical questions and to facilitate sharing and exchange of knowledge about ISA and best practices in implementation.
The OECFM is encouraged to establish processes to ensure ongoing access for its members to the latest translation of the IAASB pronouncements and their inclusion in the initial professional development and continuing professional development programs to facilitate the implementation of the international standards. The OECFM is also encouraged to consider participating in the international standard-setting process by providing comments on Exposure Drafts and other IAASB pronouncements.
The OECFM, which has direct responsibility for the adoption and implementation of a code of ethics for the profession, requires members to comply with its own Code of Ethics as well as the IESBA Code for Professional Accountants. The OECFM focuses on obtaining and making available translated versions of the latest IESBA Code of Ethics, with the 2013 version currently available for application by OECFM members. The OECFM indicates that it provides training on the Code of Ethics; however, more details on the types of training provided would be beneficial.
The OECFM is encouraged to share information on the specific activities it undertakes to support member understanding of, and compliance with, the Code of Ethics in its Action Plan. It is also encouraged to include ethics-related topics in initial professional development and continuing professional development educational material and training courses and to establish mechanisms to provide technical support to members on ethical issues. In addition, the OECFM is encouraged to consider participating in the international standard-setting process by providing comments on Exposure Drafts and other IESBA pronouncements.
The OECFM has no direct responsibility for IPSAS adoption, but it has contributed to the work of the Conseil Supérieur de la Comptabilité (CSC) of the Ministry of Finance—which is responsible for the adoption of public sector accounting standards—by having its members participate in the work of the CSC. It has also established the SMO 5 Working Group, which continues to raise awareness of the benefits of IPSAS adoption. By July 2016, the Order plans to establish a task force in collaboration with the government to review public sector accounting standards, using IPSAS as a benchmark. It is also considering how to build capacity for implementing IPSAS, strengthen support to government agencies, and educate and train government officials on IPSAS implementation.
The OECFM is encouraged to consider whether translations of the latest IPSAS are needed to raise awareness and enhance knowledge of the standards.
The OECFM has direct responsibility for the establishment of an investigative and disciplinary (I&D) system to monitor and enforce member compliance with the rules and standards of professional conduct. It aims to establish a system that is compliant with the revised SMO 6 requirements. To this effect, during the 2015 update of its SMO Action Plan, the OECFM assessed its I&D system against the requirements of SMO 6 and identified a number of areas of less than full compliance. To address the existing gaps, the OECFM intends to draft amendments to the current by-laws to align the system with the revised SMO 6 requirements. Once the system has been revised, it expects to raise awareness of the new system and provide training to members to assist with compliance.
The OECFM is encouraged to prepare a detailed action plan that includes specific activities that it will conduct to align its current system with the revised SMO 6 requirements and report on its progress in its next Action Plan submission.
The OECFM has no responsibility for the adoption and implementation of accounting standards, but it provides technical support to the standard-setter, the Conseil Supérieur de la Comptabilité, in its efforts towards convergence with IFRS and IFRS for SMEs. To build capacity and foster compliance with accounting standards, the OECFM established a Working Group on SMO 7 and is contributing to the formation of a monitoring and enforcement unit within the Ministry of Finance (MoF), raises member awareness of available resources on IFRS translated into French, and contributes to training and informing the preparers and users of financial statements about the existing accounting standards and IFRS. It also participates in the national effort to “rebrand” the Plan Comptable General 2005 to reflect the commitment of Madagascar to achieving convergence with international standards; works with the MoF and Budget to establish a system of monitoring compliance with applicable accounting standards; and assists the standard-setter in its convergence efforts.
The OECFM is encouraged to share information on the actions it has undertaken to support its members with the implementation of accounting standards (such as inclusion of IFRS-related topics into initial professional development and continuing professional development programs) in its Action Plan. It is also encouraged to make available on its website, and via other means, translated versions of new and revised IASB pronouncements. In addition, the OECFM should consider participating In the international standard-setting process by providing comments on Exposure Drafts and other IASB pronouncements.
IFAC bears no responsibility for the information provided in the SMO Action Plans prepared by IFAC member organizations. Please see our full Disclaimer for additional information.