Burkina Faso

Member Organizations

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  Ordre National des Experts-Comptables et des Comptables Agréés du Burkina Faso

Legal and Regulatory Environment

  • Overview of Statuatory Framework for Accounting and Auditing

    The general corporate financial framework of Burkina Faso is determined by legislation issued by two regional organizations: the West African Economic and Monetary Union (WAEMU) and the Organization for the Harmonization of Business Law in Africa (OHADA). Legislation issued at the regional level by WAEMU and OHADA has a significant impact on the legal and regulatory framework for commercial entities, banks, financial institutions, and insurance companies in Burkina Faso, as well as on the accountancy profession. Burkina Faso, as a member of these two regional groups, harmonizes national laws with directives issued at the regional level.

    WAEMU’s eight member states share the CFA franc as a common currency, a common securities regulator, and a stock exchange. In addition, since its creation, WAEMU has also progressively developed activities to assist with accounting and auditing standard setting and to support the development of the accountancy profession. OHADA sets common business regulations, including accounting standards, and adopts unified commercial laws and other legislative norms that become domestic law in its 17 member states. Member States are required to establish a Conseil National de la Comptabilité, which has the responsibility for implementation of accounting and auditing directives at the national level.

    OHADA and WAEMU are responsible for the development of member countries’ accounting standards. The WAEMU Treaty gives responsibility to the WAEMU Council to set the accounting standards to be applied by the member states. In accordance with WAEMU Regulation No. 3/97/CM/UEMOA, WAEMU delegated its accounting standard-setting activities to the Conseil Comptable Ouest Africain, which in turn now adopts the OHADA standards for application in the WAEMU member states.

    In January 2017, the Commission de Normalisation Comptable de l’OHADA (CNC)-OHADA, established in 2009 through an OHADA Uniform Act, adopted the OHADA Uniform Act on Accounting and Financial Information (AUDCIF) to update the previous OHADA Uniform Act on Organizing and Harmonizing Company Accounting Systems 2/2000. The previous Act had outlined the OHADA Accounting System and applicable standards—known as SYSCOHADA.

    The OHADA AUDCIF revised the SYSCOHADA, namely the OHADA general accounting plan as well as the consolidated and combined accounting rules in order to serve as a single accounting reference in all OHADA member states. The OHADA AUDCIF will come into effect on January 1, 2018 for individual accounts and on January 1, 2019 for consolidated accounts, combined accounts, and financial statements prepared in accordance with IFRS. The SYSCOHADA continue to differ from IFRS; however, the AUDCIF now requires public interest entities, which include listed companies, banks, insurance, and pension companies as well as any other companies determined by national Ministries of Finance, to prepare financial statements in accordance with IFRS in addition to SYSCOHADA.

    The OHADA Uniform Act Relating to Commercial Companies and Economic Interest Groups 4/1997 (revised January 2014) stipulates that statutory audits are mandatory for all public companies, limited liability companies and partnerships that exceed one of these three thresholds: (i) total balance sheet in excess of CFA franc 125 million; (ii) sales volume greater than CFA franc 250 million; or (iii) more than 50 permanent employees with a total balance sheet in excess of CFA franc 250 million and sales volume of CFA franc 500 million. Banking and insurance legislations also require mandatory audits of banks, financial institutions, and insurance companies.

    Auditing standard-setting at the regional level is determined by WAEMU Regulation No. 01/2009/CM/UEMOA of 2009, which established the Council of the Chartered Accountants Profession (le Conseil Permanent de la Profession Comptable, CPPC). The CPPC is responsible for defining auditing, ethics, and quality control standards for the WAEMU member states. The CPPC was the recipient of funding from the World Bank in 2010 to develop ISA-based auditing guidelines; however, it is not clear if the project is continuing given the adoption of auditing standards by OHADA.

    In June 2017, the OHADA issued Regulation No. 01/2017/CM/OHADA Pratiques Professionelles de la Comptabilité et de l’Audit dans les pays members de l’OHADA to harmonize regional auditing standards with international best practice. The regulation, effective from January 1, 2018, states that all audits must be conducted in accordance with ISA as issued by the IAASB.

    Prior to June 2017, due to delays at the regional level in adopting auditing standards, the Ordre des Experts Comptables et Comptables Agréés du Burkina Faso had adopted ISA as issued by the IAASB without modifications, including the effective date self-regulatory requirement for its members.

    Banking, insurance, and pension regulatory bodies—the Banque Centrale des États de l’Afrique de l’Ouest (the Central Bank of West African States), WAEMU Banking Commission, the Commission Régionale de Contrôle des Assurances (Regional Insurance Control Commission), and the Conférence Interafricaine de la Prévoyance Sociale (Inter-African Conference of Social Security (CIPRES))—stipulate additional requirement for entities under their supervision. Banks are required to appoint two auditors, who are subject to prior approval by the Banking Commission. Additionally, listed entities must comply with regulations issued by the regional stock exchange, Bourse Régionale des Valeurs Mobilières (BRVM) and the Conseil Régional de l’Epargne Publique et des Marchés Financiers (Regional Council for Public Saving and Financial Markets).

  • Regulation of Accountancy Profession

    Entry requirements for the accountancy profession within the eight member countries of the West African Economic and Monetary Union (WAEMU) are determined by WAEMU Regulation No. 12/2000/CM/UEMOA. The regulation introduced the Degree in Accounting and Finance (DECOFI) and the Higher Education Degree in Accounting and Financial Management (DESCOGEF) as requisites to practice in WAEMU countries. The DESCOGEF qualification is for the Certified Accountant designation and is received after an initial education training of three years at an institution accredited by the Regional Commission for the Formation of the Accounting and Financial Experts (CREFECF), an external body recognized by WAEMU. Subsequently, DESCOGEF-holders are eligible to complete a three-year internship that must be verified by a professionally qualified accountant. Finally, individuals with an internship certificate must pass a final examination leading to the DECOFI and Chartered Accountant qualification. The final examinations are also overseen by the CREFECF.

    Additionally, WAEMU Regulation No. 01/2009/CM/UEMOA of 2009 grants the Conseil Permanent de la Profession Comptable (CPPC) the responsibility for defining auditing, ethical, and quality control standards. The CPPC has yet to adopt these standards and has recommended that professional accountancy organizations within member states pursue the adoption and implementation of quality assurance systems and quality control standards at a national level. Furthermore, in June 2017, the Organization for the Harmonization of Business Law in Africa (OHADA) issued Regulation No. 01/2017/CM/OHADA Pratiques Professionelles de la Comptabilité et de l’Audit dans les pays membres de l’OHADA to harmonize regional auditing and ethical standards with international best practice.

    Burkina Faso, as a member country of the WAEMU, must transpose these requirements at the national level. Law No. 48/2005/AN and its implementing decree provide for the regulation of the profession within the country and establishes the Ordre des Experts Comptables et Comptables Agréés du Burkina Faso (ONECCA-BF) as the national body of the profession.

    According to the Law, ONECCA-BF is responsible for: (i) implementing and setting initial professional development and continuing professional development requirements, respectively; (ii) implementing and monitoring compliance with auditing standards and ethical requirements; (iii) establishing a quality assurance review system; and (iv) establishing an investigation and discipline system for its members.

    Law 48/2005/AN stipulates that Chartered Accountants and Certified Accountants, the two regulated categories of professional accountants, must be members of ONECCA-BF. Membership with ONECCA-BF requires a degree in public accounting or another degree deemed equivalent, among other criteria. Chartered Accountants must complete the abovementioned regional requirements as ONECCA-BF does not have a national qualification program while Certified Accountants must hold a DESCOGEF qualification. ONECCA-BF established a Registration Committee that evaluates and authorizes the registration of professional accountants to practice in Burkina Faso. Furthermore, the law specifies that audits must be performed by Chartered Accountants or professional accounting firms registered with ONECCA-BF.

  • Audit Oversight Arrangements

    There is no independent audit oversight arrangement or entity in Burkina Faso. Auditors in Burkina Faso are regulated at the regional level by the West African Economic and Monetary Union (WAEMU) Regulation No. 12/2000/CM/UEMOA, which introduced the Degree in Accounting and Finance as a mandatory qualification for Chartered Accountants, who are the only individuals permitted to practice auditing in WAEMU countries. The WAEMU Conseil Permanent de la Profession Comptable (CPPC) is responsible for defining auditing, ethical and quality control standards based on WAEMU Regulation No. 01/2009/CM/UEMOA. The CPPC has yet to adopt these standards and has recommended that professional accountancy organizations within member states pursue the adoption and implementation of QA systems and quality control standards at a national level.

    Furthermore, in June 2017, the Organization for the Harmonization of Business Law in Africa (OHADA) issued Regulation No. 01/2017/CM/OHADA Pratiques Professionelles de la Comptabilité et de l’Audit dans les pays membres de l’OHADA to harmonize regional auditing standards with international best practice. The regulation, effective from January 1st 2018, states that all audits must be conducted in accordance with ISA as issued by the IAASB. Further, the regulation states that effective from January 1, 2018, professional accountants in OHADA member states must adhere to the OHADA Code of Ethics, which will be based on the IESBA Code of Ethics, as well as the relevant parts of the OHADA Uniform Act on Accounting Law and Financial Information.

    At the national level, auditors are regulated by Ordre des Experts Comptables et Comptables Agréés du Burkina Faso (ONECCA-BF) in accordance with Law No. 48/2005/AN. ONECCA-BF is responsible for: (i) implementing and setting initial professional development and continuing professional development requirements, respectively; (ii) implementing and monitoring compliance with auditing standards and ethical requirements; (iii) establishing a quality assurance review system; and (iv) establishing an investigation and discipline system for its members.

  • Professional Accountancy Organizations

    Ordre des Experts Comptables et Comptables Agréés du Burkina Faso (ONECCA-BF)

    The ONECCA-BF was established by Law No. 48/2005/AN, which amended Law No. 22/96/ADP that originally established ONECCA-BF. Its membership comprises Certified Accountants and Chartered Accountants as well as accounting firms. Membership in ONECCA-BF is mandatory for practicing accountancy. Only Chartered Accountants registered with ONECCA-BF are allowed to conduct audits.

    In accordance with Law No. 48/2005/AN, ONECCA-BF is responsible for: (i) implementing and setting initial professional development and continuing professional development requirements, respectively; (ii) implementing and monitoring compliance with auditing standards and ethical requirements issued at the regional level; (iii) establishing a quality assurance review system; and (iv) establishing an investigation and discipline system for its members.

    In addition to being an IFAC Associate, ONECCA-BF is a member of the regional accountancy body Pan-African Federation of Accountants, the sub-regional Association of Accountancy Bodies in West Africa, and the International Federation of Francophone Accounting Bodies.

  • Projects or Other Information

    Since 2012, the World Bank has been working on the implementation of a project to assist the Organization for the Harmonization of Business Law in Africa (OHADA) in improving the investment climate within the OHADA member countries. The project aims at improving corporate financial reporting through the update of the OHADA Uniform Act Organizing and Harmonizing Company Accounting Systems of February 22, 2000, to bring it in line with international best practices. In January 2017, the Commission de Normalisation Comptable de l’OHADA-OHADA, established in 2009 through an OHADA Uniform Act, adopted the OHADA Uniform Act on Accounting and Financial Information (AUDCIF) to update the previous OHADA Uniform Act on Organizing and Harmonizing Company Accounting Systems 2/2000. The previous Act had outlined the OHADA Accounting System and applicable standards—known has SYSCOHADA.

    The OHADA AUDCIF revised the SYSCOHADA, namely the OHADA general accounting plan as well as the consolidated and combined accounting rules in order to serve as a single accounting reference in all OHADA member states. The OHADA AUDCIF will come into effect on January 1, 2018 for individual accounts and on January 1, 2019 for consolidated accounts, combined accounts, and financial statements prepared in accordance with IFRS. The SYSCOHADA continue to differ from IFRS; however, the AUDCIF now requires public interest entities (PIEs), which include listed companies, banks, insurance, and pension companies as well as any other companies determined by national Ministries of Finance, to prepare financial statements in accordance with IFRS in addition to SYSCOHADA.

    In addition, the OHADA issued Regulation No. 01/2017/CM/OHADA Pratiques Professionelles de la Comptabilité et de l’Audit dans les pays membres de l’OHADA to harmonize regional auditing standards with international best practice. The regulation, effective from January 1, 2018, states that all audits must be conducted in accordance with ISA as issued by the IAASB. Further, the regulation mandates professional accountancy organizations within OHADA member states, which includes Burkina Faso, to develop and implement QA review systems. Lastly, the regulation also states that effective from January 1, 2018, professional accountants in OHADA member states must adhere to the OHADA Code of Ethics, which will be based on the IESBA Code of Ethics, as well as the relevant parts of the OHADA Uniform Act on Accounting Law and Financial Information.

Adoption of International Standards

  • Quality Assurance

    At the regional level, West African Economic and Monetary Union (WAEMU) Regulation No. 01/2009/CM/UEMOA authorizes le Conseil Permanent de la Profession Comptable (CPPC) to establish a quality assurance (QA) review system. Draft regulation establishing this requirement was finalized by the Council of Ministers of the WAEMU in 2014. However, due to delays the CPPC has recommended that professional accountancy organizations within member states pursue the adoption and implementation of QA systems and quality control standards at a national level.

    Furthermore, in June 2017, the Organization for the Harmonization of Business Law in Africa (OHADA) issued Regulation No. 01/2017/CM/OHADA Pratiques Professionelles de la Comptabilité et de l’Audit dans les pays membresde l’OHADA mandating PAOs within OHADA member states, which includes Burkina Faso, to develop and implement QA review systems.

    The Ordre des Experts Comptables et Comptables Agréés du Burkina Faso (ONECCA-BF) has been working to establish a QA review system and adopt relevant standards. The institute adopted ISQC 1 in June 2015, with an effective implementation date of January 2016. ISQC 1 is available in French from la Compagnie Nationale des Commissaires aux Comptes and l’Institut des Reviseurs d’Entreprises, a French PAO and Belgian PAO, respectively, which are in line with IFAC’s Translation Policy.

    ONECCA-BF reports that it has established a QA Committee and has trained QA reviewers in preparation of commencing reviews in July 2018. The institute reports that it has aligned its QA review procedures with SMO 1 requirements so that once operational, its system will adhere to best practices.

    Current Status: Partially Adopted

  • International Education Standards

    Entry requirements for the accountancy profession are set at the regional level by the West African Economic and Monetary Union (WAEMU) Regulation No. 12/2000/CM/UEMOA. The regulation introduced the Higher Education Degree in Accounting and Financial Management (DESCOGEF) and Degree in Accounting and Finance Expertise (DECOFI) as requisites to practice in WAEMU countries. The DESCOGEF qualification is for the Certified Accountant designation and is received after an initial education training of three years at an institution accredited by the Regional Commission for the Formation of the Accounting and Financial Experts (CREFECF), an external body recognized by WAEMU. Subsequently, DESCOGEF-holders are eligible to complete a three-year internship that must be verified by a professionally qualified accountant. Finally, individuals with an internship certificate must pass a final examination leading to the DECOFI and Chartered Accountant qualification. The final examinations are also overseen by the CREFECF.

    At the national level, Ordre des Experts Comptables et Comptables Agréés du Burkina Faso (ONECCA-BF) complies with and enforces the above requirements as it does not have a national qualification program of its own. ONECCA-BF established a Registration Committee that evaluates and authorizes the registration of professional accountants to practice in Burkina Faso. There is no continuing professional development (CPD) requirement at the regional level; however, in July 2016, ONECCA-BF states it adopted a CPD requirement whereby all members must complete 120 hours of CPD over a three year period. This is aligned with the 2010 IES.

    ONECCA-BF reports that it has analyzed initial education training programs and CPD requirements against the 2014 IES and affirms that national requirements fulfill those IES requirements. The institute notes that it will need to establish plans to assess the CREFECF’s regional requirements against the revised 2015 IES and support plans to incorporate those requirements into regional and national educational requirements.

    Current Status: Partially Adopted

  • International Standards on Auditing

    The Organization for the Harmonization of Business Law in Africa (OHADA) Uniform Act Relating to Commercial Companies and Economic Interest Groups 4/1997 (revised January 2014) stipulates that statutory audits are mandatory for all public companies and limited liability companies that exceed determined thresholds. Banking and insurance legislations also require mandatory audits of banks, financial institutions, and insurance companies.

    The Conseil Permanent de la Profession Comptable (CPPC) is the regional auditing standard-setter based on WAEMU Regulation No. 01/2009/CM/UEMOA of 2009. The CPPC was the recipient of funding from the World Bank in 2010 to develop ISA-based auditing guidelines; however, it is not clear if the project is continuing given the adoption of auditing standards by OHADA.

    In June 2017, the OHADA issued Regulation No. 01/2017/CM/OHADA Pratiques Professionelles de la Comptabilité et de l’Audit dans les pays membresde l’OHADA to harmonize regional auditing standards with international best practice. The regulation states that effective from January 1, 2018, all audits in member states must be conducted in accordance with ISA as issued by the IAASB.

    At the national level, Law No. 48/2005/AN stipulates that the Ordre des Experts Comptables et Comptables Agréés du Burkina Faso (ONECCA-BF) is responsible for transposing regional requirements and ensuring their implementation. Prior to June 2017, ONECCA-BF indicates that it adopted ISA in June 2015 as issued by the IAASB without modifications. ONECCA-BF has adopted the English version of the standards so that all revisions to standards are adopted on an ongoing basis and become effective when issued by the IAASB in order to avoid a lag due to translations. The institute reports that auditors of public interest entities were early adopters of the 2016 ISA.

    Current Status: Adopted

  • Code of Ethics for Professional Accountants

    At the regional level, West African Economic and Monetary Union Regulation No. 01/2009/CM/UEMOA grants authority to the Conseil Permanent de la Profession Comptable (CPPC) to determine ethical requirements for member states. The CPPC has not yet adopted a Code of Ethics and it is not clear if it will do so given the adoption of ethical standards by the Organization for the Harmonization of Business Law in Africa (OHADA).

    In June 2017, the OHADA issued Regulation No. 01/2017/CM/OHADA Pratiques Professionelles de la Comptabilité et de l’Audit dans les pays membresde l’OHADA to harmonize regional ethical requirements with international best practice. The regulation states that effective from January 1, 2018, professional accountants in OHADA member states must adhere to the OHADA Code of Ethics, which will be based on the IESBA Code of Ethics, as well as the relevant parts of the OHADA Uniform Act on Accounting Law and Financial Information (AUDCIF). The OHADA Code of Ethics compiles with the 2015 IESBA Code of Ethics and is complemented by the ethical requirements related to the external auditor as contained in the AUDCIF.

    In Burkina Faso, Law No. 48/2005/AN stipulates that the Ordre des Experts Comptables et Comptables Agréés du Burkina Faso (ONECCA-BF) is responsible for implementing and enforcing regulations set at the regional level. Prior to the 2017 regulations issued by OHADA, ONECCA-BF adopted the IESBA Code of Ethics for its members in 2015. The institute has stipulated that all updates and revisions to the Code will be effective when issued and mandatory for all members in order to avoid time lags due to translation. As such, the institute indicates that the 2016 IESBA Code of Ethics is applicable and it is formulating plans for the implementation of the NOCLAR standard within Burkina Faso.

    The 2009 IESBA Code of Ethics is available in French as translated by la Compagnie Nationale des Commissaires aux Comptes and le Conseil Supérieur de l’Ordre des Experts-Comptables, two PAOs from France, in line with IFAC’s Translation Policy.

    Current Status: Adopted

  • International Public Sector Accounting Standards

    At the regional level, West African Economic and Monetary Union (WAEMU) Regulation No.09/2009/CM/UEMOA establishes public sector accounting standards for member states of the WAEMU, which includes Burkina Faso. Article 6 of that directive indicates that the government’s general accounting should be based on international accounting standards.

    At the national level, the Burkina Faso Government passed Decree No. 2005-255/PRES/PM/MFB in 2005, which transposed the regional requirements and established accrual-basis accounting standards.

    The Ordre des Experts Comptables et Comptables Agréés du Burkina Faso (ONECCA-BF) reports that the government adopted new public sector accounting decrees as of June 1, 2016 which are presently based on the OHADA Accounting System and applicable standards—known as SYSCOHADA. The institute indicates it is carrying out an assessment of the new standards outlined in the decrees with the IPSAS and it seems that aligning the publication of annual financial statements with IPSAS is slated for 2019.

    Current Status: Partially Adopted

  • Investigation and Discipline

    At the regional level, the World Bank is supporting the Organization for the Harmonization of Business Law in Africa in the development of an investigative and disciplinary (I&D) system for professional accountants within its member states. There is no further information available as of the date of the assessment regarding the status of a regional I&D system.

    At the national level, Law No. 48/2005/AN and its implementing decree authorize the Ordre des Experts Comptables et Comptables Agréés du Burkina Faso (ONECCA-BF) to I&D its members. ONECCA-BF states that it must abide by regional regulations in regards to the set-up of its I&D committees. At the regional level, these committees are identified by the same name. To address regional regulations and SMO 6 requirements, ONECCA-BF worked throughout 2017 to revise its bylaws in order to have two separate and independent committees—one for investigation and one for discipline.

    As of January 2018, the institute reports that these separate committees have been established and are functional. Furthermore, the ONECCA-BF conducted a self-assessment of its I&D system against the SMO 6 components and reports that its revised procedures are fully aligned.

    Current Status: Adopted

  • International Financial Reporting Standards

    As a member state of West African Economic and Monetary Union (WAEMU) and the Organization for the Harmonization of Business Law in Africa (OHADA), Burkina Faso’s accounting standards are defined in WAEMU Regulation No. 04/96/CM/UEMOA, WAEMU Regulation No. 05/CM/UEMOA, OHADA Uniform Act Relating to Commercial Companies and Economic Interest Groups 4/1997 (revised January 2014), and the OHADA Uniform Act on Accounting and Financial Information (AUDCIF).The Conseil Comptable Ouest Africain is authorized by WAEMU Regulation No. 3/97/CM/UEMOA to set accounting standards for member states and has decided to adopt the standards set by OHADA.

    In January 2017, the OHADA AUDCIF was signed by the OHADA Council to update the previous OHADA Uniform Act on Organizing and Harmonizing Company Accounting Systems 2/2000 which had outlined the OHADA Accounting System and applicable standards—known as SYSCOHADA.

    The OHADA AUDCIF revised the SYSCOHADA, namely the OHADA general accounting plan as well as the consolidated and combined accounting rules in order to serve as a single accounting reference in all OHADA member states. The OHADA AUDCIF will come into effect on January 1, 2018 for individual accounts and on January 1, 2019 for consolidated accounts, combined accounts, and financial statements prepared in accordance with IFRS. The SYSCOHADA continue to differ from IFRS; however, the AUDCIF also requires that public interest entities (PIEs), which include listed companies, banks, insurance, and pension companies as well as any other companies determined by national Ministries of Finance, prepare financial statements in accordance with IFRS as well as SYSCOHADA.

    Current Status: Adopted

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Methodology

Methodology
Last updated: 05/2018
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