Mauritius

Member Organizations

Member Organization Associate Other PAOs

  Mauritius Institute of Professional Accountants

Legal and Regulatory Environment

  • Overview of Statuatory Framework for Accounting and Auditing

    The accounting, auditing, and financial reporting framework in Mauritius is established by the Companies Act 2001 and the Financial Reporting Act 2004 (FRA 2004).

    Accounting Framework

    All companies as stipulated in the Companies Act 2001, except for small private companies, which do not qualify as public-interest entities (PIEs), must prepare financial statements in accordance with International Financial Reporting Standards. PIEs are defined in the First Schedule of the FRA 2004 as all companies that are listed on the Stock Exchange of Mauritius, financial institutions, other than cash dealers, regulated by the Bank of Mauritius or by the Financial Services Commission, and companies that exceed two of the following three size thresholds in the two consecutive preceding periods: (i) annual revenue of more than 200 million rupees (approximately US$ 6 million); (ii) total assets of more than 500 million rupees (approximately US$ 15 million), and (iii) more than 50 employees.

    Compliance with accounting requirements are monitored and enforced by the Financial Reporting Council (FRC) which was established under the FRA 2004 as the audit oversight body.

    Auditing Framework

    Auditing requirements are stipulated in the Companies Act 2001. Financial statements of all companies must be audited in accordance with International Standards on Auditing as issued by the IAASB. Under the FRA 2004, audits must be conducted by qualified members of the Mauritius Institute of Professional Accountants) that are licensed by the FRC. Under the Companies Act 2001, small private companies that do not qualify as PIEs are not required to have an auditor but if a company decides to have an audit, the auditor does not need to fulfill the FRA 2004 requirements.

  • Regulation of Accountancy Profession

    The Mauritius Institute of Professional Accountants (MIPA) was established under the Financial Reporting Act 2004 (FRA 2004) to supervise and regulate the accountancy profession. Membership in MIPA is mandatory for all qualified individuals.

    MIPA’s responsibilities under the Act include to: (i) establish, publish, and review a Code of Professional Conduct and Ethics for Professional Accountants which must be consistent with the IESBA Code of Ethics; (ii) keep and maintain a register of Professional Accountants, Public Accountants, and Member Firms; (iii) establish membership requirements; (iv) conduct examinations for registering Professional Accountants; (v) establish continuing professional development requirements; and (vi) establish and implement investigation and discipline procedures for Professional Accountants for breach of conduct.

    The accountancy profession in Mauritius has grown through the inclusion of professional accountants qualified overseas. The FRA 2004 specifies a list of overseas institutes that are recognized for MIPA membership purposes and all qualified individuals must register with MIPA to practice accountancy. The recognized overseas accountancy institutes include: Institute of Chartered Accountants in England and Wales; Institute of Chartered Accountants of Scotland; Institute of Chartered Accountants of India; Association of Chartered Certified Accountants (ACCA); Chartered Institute of Management Accountants; Association of International Accountants; and South African Institute of Chartered Accountants. The listed organizations require aspiring members to complete a professional accountancy program, practical experience requirements, and pass final examinations.

    Membership is also open to persons who are members of professional accountancy bodies other than above but which satisfy requirements relating to qualification in the field of accountancy and have a minimum of three years practical experience.

    To practice accountancy publicly in Mauritius, all qualified individuals must register with MIPA as a Public Accountant and then receive a practicing certificate from the institute. Therefore, no individual can offer services to the public unless registered with MIPA as a Public Accountant. Furthermore, to practice auditing, qualified members of MIPA must be licensed by the FRC, have two years’ experience of audit practice training with a licensed auditor, and have a minimum of 21 hours of training in IFRS and ISA per year.

    The Financial Reporting Council (FRC) was established under the FRA 2004 as the oversight body for auditors. The FRC’s functions include: (i) ensuring the adoption of IFRS and ISA; (ii) monitoring the practice of auditors to maintain standards of professional conduct; (iii) monitor and enforce compliance with financial reporting, accounting, and auditing standards; (iv) license auditors and establish and maintain an register of licensed auditors; (v) conduct practice quality assurance reviews of licensed auditors; (vi) establish an Enforcement Panel to investigate and sanction all licensed auditors and firms based on its practice review findings; (vii) review financial statements and reports of a Public Interest Entity; and (viii) advise the Minister on matters relating to financial reporting and accounting and auditing.

    The FRA has been amended to included mandatory rotation of audit firms for listed companies and banks. The rotation period for an audit firm is seven years for listed companies and five years for banks.

    In addition, auditors for banks and financial institutions must be approved by the Bank of Mauritius while auditors for insurance and financial services companies must be approved by the Financial Services Commission.

  • Audit Oversight Arrangements

    The Financial Reporting Council (FRC) was established under the Financial Reporting Act 2004 (FRA 2004) as the oversight body for auditors in Mauritius.

    The FRC’s functions include: (i) ensuring the adoption of IFRS and ISA; (ii) monitoring the practice of auditors to maintain standards of professional conduct; (iii) monitor and enforce compliance with financial reporting, accounting, and auditing standards; (iv) license auditors and establish and maintain an register of licensed auditors; (v) conduct practice quality assurance reviews of licensed auditors; (vi) establish an Enforcement Panel to investigate and sanction all licensed auditors and firms based on its practice review findings; (vii) review financial statements and reports of a public-interest entity; and (viii) advise the Minister on matters relating to financial reporting and accounting and auditing.

    The FRC is a member of the International Forum of Independent Audit Regulators.

    Additionally, auditors are also regulated by the Mauritius Institute of Professional Accountants (MIPA), established under the FRA 2004. Membership in the institute is mandatory for all qualified individuals. To practice accountancy publicly in Mauritius, all qualified individuals must register with MIPA as a Public Accountant and then receive a practicing certificate from the institute.

    MIPA’s responsibilities under the Act include to: (i) establish, publish, and review a Code of Professional Conduct and Ethics for Professional Accountants which must be consistent with the IESBA Code of Ethics; (ii) keep and maintain a register of Professional Accountants, Public Accountants, and Member Firms; (iii) establish membership requirements; (iv) conduct examinations for registering Professional Accountants; and (v) establish continuing professional development requirements.

  • Professional Accountancy Organizations

    The Mauritius Institute of Professional Accountants (MIPA) was established in January 2005 under the Financial Reporting Act 2004 (FRA 2004) to supervise and regulate the accountancy profession in Mauritius. It acts as an umbrella professional body for Professional and Public Accountants who are members of professional accountancy organizations specified in the FRA. Membership in MIPA is mandatory for all qualified individuals.

    MIPA’s responsibilities under the Act include to: (i) establish, publish, and review a Code of Professional Conduct and Ethics for Professional Accountants which must be consistent with the IESBA Code of Ethics; (ii) keep and maintain a register of Professional Accountants, Public Accountants, and Member Firms; (iii) establish membership requirements; (iv) conduct examinations for registering Professional Accountants; (v) establish continuing professional development requirements; and (vi) establish and implement investigation and discipline procedures for Professional Accountants for breach of conduct.

    In addition to being an Associate of IFAC, MIPA is member of the Pan African Federation of Accountants.

  • Projects or Other Information

    The Mauritius Institute of Professional Accountants (MIPA) reports that the Ministry of Financial Services has discussed possible amendments to the Financial Reporting Act 2004 with MIPA, although the exact amendments have not been disclosed. Amendments would be aimed at enhancing collaboration between MIPA and the Financial Reporting Council (FRC). The FRC would continue to provide MIPA with administrative and regulatory resources, for example, for investigation and disciplinary, and learning and development efforts.

Adoption of International Standards

  • Quality Assurance

    In accordance with the Financial Reporting Act 2004, the Financial Reporting Council (FRC) is responsible for establishing a mandatory quality assurance (QA) review system in Mauritius. The FRC adopted ISCQ 1 and ISA 220 and has conducted QA reviews through its Audit Practice Review Panel (APRP) which was established in 2008.

    The APRP carries out external quality reviews of audit practices and licensed individual practitioners. The emphasis of the QA system is placed on audit firms that are auditors of PIEs. Each practice is subject to review by the FRC every three years. A review can also be initiated by a complaint against a licensed auditor. The selection methodology is therefore both risk based and cyclical. The process for QA reviews in Mauritius is a combination of desk reviews and on-site visits.

    The Mauritius Institute of Professional Accountants reports that the scope and design of the FRC’s QA review system is line with SMO 1 requirements.

    Current Status: Adopted

  • International Education Standards

    Under the Financial Reporting Act 2004 (FRA 2004), the Mauritius Institute of Professional Accountants (MIPA) is responsible for establishing and implementing initial professional development (IPD) and continuing professional development (CPD) requirements.

    MIPA does not offer a local professional accountancy qualification. Historically, Mauritius depends on foreign institutes to provide IPD and CPD certification. The FRA 2004 sets out a list of accounting bodies whose members are eligible to apply for MIPA membership. These include: the Association of Chartered Certified Accountants (ACCA), the Chartered Institute of Management Accountants, the Institute of Chartered Accountants in England and Wales, the Institute of Chartered Accountant s of Scotland, the Institute of Chartered Accountant of Ireland, the Institute of Chartered Accountant of India, the South African Institute of Chartered Accountants, and the Association of International Accountants. All of the listed PAOs require their aspiring members to complete a professional accountancy education program, a practical experience requirement, and to pass final examinations. MIPA confirms that the institutes’ IPD requirements meet the IES requirements.

    Additionally, the Financial Reporting Council stipulates practice experience requirements and annual training for auditors in IFRS and ISA which is line with IES 8.

    In 2013, MIPA established CPD requirements which it reports are in line with IES 7 and 8. MIPA members are also required to follow their mother institute’s CPD requirements.

    MIPA does not require members to pass an examination on local tax and business law prior to receiving a practicing certificate although it is considering introducing an online examination as a future requirement.

    Current Status: Partially Adopted

  • International Standards on Auditing

    Financial statements of all companies must be audited in accordance with ISA as issued by the IAASB as prescribed by the Companies Act 2001. The Financial Reporting Council (FRC) is responsible for overseeing the ongoing adoption of and compliance with international auditing standards. The FRC approves and promulgates changes to the ISA on an ongoing basis.

    Current Status: Adopted

  • Code of Ethics for Professional Accountants

    The Financial Reporting Act 2004 stipulates that the Mauritius Institute of Professional Accountants (MIPA) must establish, publish, and review a Code of Professional Conduct and Ethics for professional accountants and ensure that it is consistent with the IESBA Code of Ethics.

    MIPA has adopted the 2014 IESBA Code of Ethics in its entirety for applicable by its members and it indicates it is in the process of adopting the 2015 version.

    Additionally, MIPA members must adhere to the ethical requirements issued by their respective mother institutes.

    Current Status: Adopted

  • International Public Sector Accounting Standards

    The Government of Mauritius is responsible for setting public sector accounting standards in the country.

    In 2011, the Statutory Bodies (Accounts and Audit) Act was amended to require the application of the IPSAS for all ministries and government bodies. Accrual IPSAS have been adopted and many parastatal bodies have adopted full accrual IPSAS. Nonetheless, the Mauritius Institute of Professional Accountants states that several government ministries are still reporting under cash basis IPSAS and a plan for full implementation is yet to be established for all government departments.

    Current Status: Partially Adopted

  • Investigation and Discipline

    All Professional Accountants in Mauritius are subject to investigative and disciplinary (I&D) procedures. In accordance with the Financial Reporting Act 2004, the Mauritius Institute of Professional Accountants (MIPA) is responsible for establishing an I&D system for its members for breach of conduct while the Financial Reporting Council (FRC) is responsible for establishing an Enforcement Panel to investigate and sanction all licensed auditors and firms, which include MIPA members.

    MIPA reports that the FRC has operationalized its Enforcement Panel with sanctioning carried out by the FRC and an appeals mechanism available. MIPA indicates that the system complies with SMO 6 requirements.

    In 2015, MIPA has established its own I&D regulations in accordance with its responsibility under the Financial Reporting Act. The Regulations established Investigation, Disciplinary, and Appeal Committees.

    The Committees are not yet set-up; however, MIPA indicates that it intends to finalize the Committees by June 30, 2016 and present them to its members at the Forum of Accountants in August 2016. MIPA has obtained the assistance of the Association of Chartered Certified Accountants through an MoU and the Institute of Chartered Accountants in England and Wales to set up its I&D structure, which it reports will be in line with the revised SMO 6 requirements.

    Current Status: Partially Adopted

  • International Financial Reporting Standards

    The Companies Act 2001 stipulates that all companies, except small, private companies that do not qualify as public-interest entities, must prepare financial statements in accordance with IFRS.

    The Financial Report Council (FRC), established under the Financial Reporting Act 2004, is responsible for overseeing the ongoing adoption of and compliance with international accounting standards. The FRC approves and promulgates changes to the IFRS on an ongoing basis.

    The Mauritius Institute of Professional Accountants reports that IFRS for SMEs was circulated by the FRC to seek comment from members as to implementation. However, implementation would require an amendment to the Companies Act 2001 and there is no immediate timeline for the introduction of this pronouncement.

    Current Status: 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: 10/2016
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