Bolivia

Member Organizations

Member Organization Associate Other PAOs

  Colegio de Auditores de Bolivia

Legal and Regulatory Environment

  • Overview of Statuatory Framework for Accounting and Auditing

    The financial reporting framework in Bolivia is established under the Law 3911 of 1957 and the Code of Commerce of 1977. The Code of Commerce contains basic requirements for financial reporting for all companies in Bolivia, including requirements for the preparation of financial statements.

    The Law 2495 of 2003 empowers the Authority for Fiscal and Social Control of Businesses (AEMP), formerly the Superintendence of Enterprises, which is part of the Ministry of Finance, to set Bolivian Generally Accepted Accounting Principles (Bolivian GAAP) and auditing standards for all companies. In Bolivia, all legally established companies are required to present auditing and financial statements to the tax office annually.

    The AEMP has delegated its standard-setting responsibility to the National Technical Board of Auditors and Accountants (CTNAC) of the Colegio de Auditores o Contadores Públicos de Bolivia. Nevertheless, the AEMP must ultimately approve and issue the standards through an official Administrative Resolution. The AEMP has adopted Bolivian GAAP which are not aligned with IFRS. In 2008, the AEMP approved Bolivian auditing standards issued by CTNAC, which were based on the 2008 ISA. Subsequently, in 2012, the CTNAC adopted IFRS as issued by the IASB through the Resolution 002/2012 and, in 2015, ISA as issued by the IAASB by the Resolution 001/2015 for application in the absence of any other national technical pronouncements; however, as of 2017 these standards have not been approved by the AEMP.

    In addition to complying with the requirements of the AEMP, regulated companies are under the legal obligation to comply with any additional financial reporting requirements issued by the Supervisory Authority of the Financial System and the Supervisory Authority of Pensions and Insurance.

  • Regulation of Accountancy Profession

    The profession is regulated at the state level in Bolivia by the Law 3911 of 1957, which sets educational requirements, ethical requirements, and investigative and discipline (I&D) procedures for professional accountants. The law distinguishes between Financial Auditors, General Accountants, and Accountants. According to the law, the sole requirement for becoming a Financial Auditor is an approved university bachelor’s degree. General Accountants must hold an approved university certificate or its equivalent, and Accountants must hold a certificate from an approved specialized school. In accordance with the law, the Ministry of Finance (MoF) maintains a national registry for professional accountants and is responsible for I&D of professional accountants. Nevertheless, as reported by the Colegio de Auditores o Contadores Públicos de Bolivia (CAUB), the MoF has not operationalized the registry and in practice, professionals register with the departmental Colegios on a voluntary basis. However, statutory auditors that provide services for public sector and regulated entities must become members of the CAUB.

    Additionally, the Supervisory Authority of the Financial System and the Supervisory Authority of Pensions and Insurance maintain registries of audit firms authorized to audit companies under their control and establish auditing standards that these registered auditors must apply. Auditors providing services to regulated entities are required to demonstrate a number of years of practical experience. Nevertheless, it is unclear if the regulators establish any other requirements or carry out other regulatory functions such as investigation and discipline or quality assurance procedures.

    Lastly, as mentioned above, other individual professionals may voluntary join a professional accountancy organization (PAO) and be self-regulated through the requirements of the PAO. The PAOs regulate their members by setting professional standards, representing and promoting the accounting profession, providing training activities, and investigating and disciplining their members.

    There are two PAOs in Bolivia: the Colegio de Contadores Públicos de Bolivia, established in 1947, unites accountants, while the CAUB, established in 1989 and ratified by Supreme Resolution Nº 209343 in 1991, unites auditors and accountants. In order to be considered for membership, both PAOs require candidates to hold a bachelor’s degree in accounting.

  • Audit Oversight Arrangements

    There are no independent audit oversight arrangements in Bolivia. According to Law 3911 of 1957, the sole requirement for becoming a Financial Auditor is an approved university bachelor’s degree.

    Only auditors providing services to entities regulated by the Supervisory Authority of the Financial System and the Supervisory Authority of Pensions and Insurance are subject to further regulation. Each regulator maintains separate registries for external auditors and establishes auditing standards these auditors must apply. Auditors providing services to regulated entities are required to demonstrate a number of years of practical experience. It is unclear if the regulators establish any other requirements or carry out other regulatory functions such as investigative and disciplinary or quality assurance procedures.

    Additionally, membership in the Colegio de Auditores o Contadores Públicos de Bolivia (CAUB) is required for statutory auditors providing services for public sector and the abovementioned regulated entities. CAUB regulates its members by establishing ethical standards and investigating and disciplining members.

  • Professional Accountancy Organizations

    The Colegio de Auditores o Contadores Públicos de Bolivia (CAUB)

    The CAUB, established in 1989 and ratified by Supreme Resolution Nº 209343 in 1991, unites auditors and accountants and is composed of nine departmental Colegios in the country. Membership in CAUB is required only for statutory auditors providing services for public sector and regulated entities. The CAUB promotes the adoption and implementation of international standards, develops trainings activities, establishes ethical standards, investigates and disciplines its members, and promotes improvements to professional practices.

    In addition to being an IFAC Member, the CAUB is a member of the Inter-American Accounting Association (AIC), the Group of Latin American Accounting Standard Setters, and the Committee of Integration for Latin Europe and America.

    The Colegio de Contadores Públicos de Bolivia

    The Colegio de Contadores, established in 1947, unites accountants on a voluntary basis. It undertakes activities related to promoting the accounting profession, providing trainings activities, and investigating and disciplining its members. The Colegio de Contadores is a member of the AIC.

  • Projects or Other Information

    The Inter-American Development Bank undertook a project in 2006 to strengthen the accounting and auditing profession in Bolivia, under the Multilateral Investment Fund initiative. The project’s objective was to ensure that professional members of the Colegio de Auditores o Contadores Públicos de Bolivia apply accounting and auditing standards that are in line with IFRS and ISA. The project aimed to produce the following outcomes: (i) Bolivian standards harmonized with international standards; (ii) accounting professionals awareness of the new internationally compatible Bolivian standards and have access to them; and (iii) professional auditing services enhanced through a voluntary certification system, a quality-control system, and an information center.

Adoption of International Standards

  • Quality Assurance

    In the absence of legal requirement for a mandatory quality assurance (QA) review system, the Colegio de Auditores o Contadores Públicos de Bolivia (CAUB) in 2012, as part of the Multilateral Investment Fund project, developed regulations establishing a voluntary QA review system for its members that is in line with the requirements of SMO 1. However, as of 2018 the system has not become operational.

    The CAUB has adopted ISQC 1 and ISA 220 through Resolution 001/2015 for application by its members, who are the only individuals authorized to issue audit reports for public sector and regulated entities. There is no indication, however, that this standard has been approved for mandatory application by the Authority for Fiscal and Social Control of Businesses—the entity responsible for the adoption of auditing standards.

    Current Status: Partially Adopted

  • International Education Standards

    In accordance with the Law 3911 of 2017 professional accountants are required to have a university degree in accounting to practice the profession. The Ministry of Education and universities control the curriculum and qualifications of professional accountants.

    The law distinguishes between Financial Auditors, General Accountants, and Accountants. According to the Law, the sole requirement for becoming a Financial Auditor is an approved university bachelor’s degree. General Accountants must hold an approved university certificate or its equivalent, and Accountants must hold a certificate from an approved specialized school. In addition, auditors providing services to entities regulated by the Supervisory Authority of the Financial System and the Supervisory Authority of Pensions and Insurance are required to demonstrate a number of years of practical experience.

    Although some of the requirements of IES appear to have been incorporated into the national requirements, such as some initial educational and practical experience requirements, it is does not appear that any other national requirements exist that incorporate the IES.

    Current Status: Partially Adopted

  • International Standards on Auditing

    In accordance with the Law 2495 of 2003, the Authority for Fiscal and Social Control of Businesses (AEMP), which is part of the Ministry of Finance, is responsible for setting auditing standards for all companies.

    The AEMP has delegated its standard-setting responsibility to the National Technical Board of Auditors and Accountants (CTNAC), of the Colegio de Auditores o Contadores Públicos de Bolivia. Nevertheless, the AEMP must ultimately approve and issue the standards through an official Administrative Resolution.

    In 2008, the AEMP approved Bolivian Auditing Standards issued by CTNAC, which were based on the 2008 ISA as translated by the Instituto Mexicano de Contadores Públicos. Subsequently in 2015, CTNAC issued Resolution 001/2015 adopting by reference ISA as issued by the IAASB for application in the jurisdiction in the absence of national technical pronouncements in the area; however, as of 2018 the CTNAC resolution has not been approved by the AEMP.

    The CTNAC recommends the application of ISA, however, because the CTNAC resolutions lack legal backing, international standards are viewed only as guidelines by practicing auditors.

    Additionally, the Supervisory Authority of the Financial System (ASFI) and the Supervisory Authority of Pensions and Insurance (APS) are empowered to set auditing standards for audits of the regulated entities under their purview. Through the ASFI’s Regulation for the performance of external audit work, it requires the application of Bolivian Auditing Standards and ISA. It is unclear what auditing standards are required by the APS.

    Current Status: Partially Adopted

  • Code of Ethics for Professional Accountants

    The Law 3911 of 1957 sets ethical requirements for the accountancy profession in Bolivia, which are minimum and not in line with the IESBA Code of Ethics for Professional Accountants.

    There are two professional accountancy organizations (PAO) that may also set ethical requirements for members.

    The Colegio de Auditores o Contadores Públicos de Bolivia has adopted a Code of Ethics based on the 2009 IESBA Code of Ethics for its members—which include auditors on a mandatory basis and other professionals that join on a voluntarily basis—and is working to adopt the 2014 IESBA Code requirements, recently translated and published in Spanish.

    The second PAO, the Colegio de Contadores Públicos de Bolivia, has also adopted the IESBA Code of Ethics for its members that join on a voluntary basis, although the version that was adopted is unknown.

    Current Status: Partially Adopted

  • International Public Sector Accounting Standards

    The Government Administration, the Control Law No. 1178 of 1990, and Supreme Decree No. 23215 of 1992, establishes the Controller General of Bolivia as the accounting standard-setter for the public sector. The standards used are based on IPSAS; however, they are not fully converged with IPSAS, and there are no known plans to adopt IPSAS as the national public sector accounting standards.

    Current Status: Not Adopted

  • Investigation and Discipline

    In accordance with the Law No. 3911 of 1957, the Ministry of Finance (MoF) is responsible for investigating and disciplining (I&D) professional accountants. Nevertheless, as reported by the Colegio de Auditores o Contadores Públicos de Bolivia (CAUB), the MoF has not operationalized the Ad Honoren Committee that is responsible for I&D, and in practice, professionals are register with its departmental branches (“colegios) on a voluntary basis and are subject to its I&D mechanisms. However, statutory auditors providing services for public sector and regulated entities, are obligated to become members of CAUB which therefore makes them subject to its I&D system.

    The CAUB indicates that it has an Ethics Council that is authorized to investigate and discipline CAUB members. In addition, the CAUB has nine departmental colegios within each of the nine provinces of Bolivia and each branch has an Ethic Tribunal that is responsible for the I&D of members of their respective branch. The CAUB reports that its I&D system and its branches’ I&D systems are not fully in line with the SMO 6 requirements.

    There is another professional accountancy organization that may also implement an I&D system for its respective members. The Colegio de Contadores Públicos de Bolivia, has an Ethical Committee in charge of investigating and disciplining its members that join on a voluntary basis. The extent of fulfillment of the Colegio’s I&D procedures with the requirements of the SMO 6 requires further clarification.

    Current Status: Partially Adopted

  • International Financial Reporting Standards

    The Law 2495 of 2003 empowers the Authority for Fiscal and Social Control of Businesses (AEMP), which is part of the Ministry of Finance, to set accounting standards for all companies.

    The AEMP has delegated its standard-setting responsibility to the National Technical Board of Auditors and Accountants (CTNAC), of the Colegio de Auditores o Contadores Públicos de Bolivia. Nevertheless, the AEMP must ultimately approve and issue the standards through an official Administrative Resolution.

    The AEMP has adopted Bolivian Generally Accepted Accounting Principles that are not aligned with IFRS. In 2012, the CTNAC issued Resolution 002/2012 adopting IFRS as issued by the IASB for application in the jurisdiction; however, these standards have not been approved by the AEMP.

    According to the IFRS Foundation, the CTNAC has a plan for gradual adoption of IFRS for Small- and Medium-sized Entities (SMEs). The plan would require application of IFRS for SMEs for medium-sized companies starting in 2016 and for small and micro-sized companies starting in 2017. As of 2018, the resolution is awaiting approval by the AEMP.

    Current Status: Not Adopted

Disclaimer

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.

Methodology

Methodology
Last updated: 04/2018
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