Morocco

Member Organizations

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  Ordre des Experts Comptables du Royaume du Maroc

Legal and Regulatory Environment

  • Overview of Statuatory Framework for Accounting and Auditing

    Several Moroccan laws and institutions govern the corporate financial reporting, accounting, and auditing requirements in Morocco.

    The National Accounting Council (Conseil National de la Comptabilité (CNC)), established by decree in 1989, is mandated by Law 15-89 of January 1993 (enacted by Dahir 1-92-139 of 14 Rejab 1413) to set accounting standards. The CNC has adopted Moroccan Generally Accepted Accounting Principles (GAAP) which differ significantly from IFRS. Since 2007, the CNC has been working to require the application of IFRS for listed entities and public interest entities and allowing other entities to apply either the IFRS or the Moroccan GAAP. However, the Ordre des Experts-Comptables du Royaume de Maroc (OEC-Morocco)—the regulatory body—reports that this requirement is not legally binding as of 2016.

    The Central Bank of Morocco (Bank Al Maghrib) is responsible for issuing accounting standards for banks and financial institutions. Circular 56/G/2007 issued by Bank Al Maghrib requires that all entities under its supervision use IFRS for accounting periods beginning January 2008.

    The Securities Commission is responsible for issuing financial reporting and accounting standards for public companies. Public companies are defined as: (i) any listed company; (ii) any company that engages in advertising to sell its stock; and (iii) any company with more than 100 shareholders. Circular No. 06/05 of 2007 reaffirms the Moroccan Stock Exchange Law (Law No. 52-01) which stipulates that all companies listed on the Casablanca Stock Exchange, other than banks and similar financial institutions, can choose between IFRS and Moroccan GAAP. In practice, most public companies are using IFRS.

    The Insurance and Social Welfare Directorate oversees financial reporting and accounting standards for insurance companies. At the time of the assessment, the financial reporting standards for insurance companies are not clear.

    The Companies Law of 1999 (Law on Corporations 17-95) requires audits for public companies, banks, insurance companies, and all other companies with an annual turnover of more than 50 million MAD. Public companies, banks, and insurance companies must appoint two auditors to conduct audits. Article 160 of Law 17-95 stipulates that audits must be conducted by a certified member of OEC-Morocco. OEC-Morocco is responsible for establishing auditing standards for all entities in Morocco in accordance with Law 15-89. OEC-Morocco has adopted Clarified ISA for application in all contractual audit engagements. There is a convergence process underway between the Moroccan Standards on Auditing with ISA for statutory audit engagements with an expected completion date of December 2017.

  • Regulation of Accountancy Profession

    Moroccan Law 15-89 1993 enacted by Dahir 1-92-139 of 14 Rejab 1413 regulates the profession of Chartered Accountants and establishes the Ordre des Experts-Comptables du Royaume de Maroc (OEC-Morocco) as the regulatory body. Membership of the institute is comprised of Chartered Accountants and membership is mandatory in order to practice accounting. Furthermore, only OEC-Morocco members can conduct audits.

    Under Law 15-89, the institute is responsible for: (i) setting and implementing auditing standards; (ii) implementing accounting standards; (iii) ruling on membership applications and enforcing initial professional development standards; (iv) setting and monitoring compliance with continuous professional development standards through the Training institute of OEC-Morocco; (v) maintaining and publicly publishing a register of its members; (vi) issuing a professional Code of Ethics for its members; (vii) investigating and disciplining members for misconduct and breach of professional rules; and (viii) establishing a quality assurance system for all audits.

    Candidates for OEC-Morocco membership are required to complete a program of professional accountancy education, a three-year practical experience requirement, and pass final examinations in accordance with Decree No. 2.89.519 of 23 hija 1410 (16 July 1990) which established the accountancy qualification. The Advanced Institute of Commerce and Business Administration (Institut Supérieur de Commerce et d’Administration des Entreprises), a public institution attached to the Ministry of Commerce and Industry, prepares candidates for their accounting certification. The program is open to individuals who have completed specific Bachelor’s degrees outlined in Decree No. 2.89.519. The program consists of (i) a three-year curriculum, with an examination after each year, (ii) a three-year professional internship throughout the program; and (iii) the preparation and defense of a dissertation after successfully completing the program.

    After completion of the accounting certification program, qualified individuals must register as a member of OEC-Morocco in order to practice accountancy. Article 160 of Law 17-95 states that audits may only be conducted by qualified members of OEC-Morocco.

  • Audit Oversight Arrangements

    The profession is self-regulated and there is no independent audit oversight authority.

    Auditors are regulated by the Ordre des Experts-Comptables du Royaume de Maroc (OEC-Morocco) in accordance with Law 15-89. OEC-Morocco membership is mandatory to practice accountancy. In accordance with Article 160 of Law 17- 95, only OEC-Morocco members can conduct audits.

    Under Law 15-89, the institute is responsible for: (i) setting and implementing auditing standards; (ii) ruling on membership applications and enforcing initial professional development standards; (iii) setting and monitoring compliance with continuous professional development standards through the Training Institute of OEC-Morocco; (iv) maintaining and publicly publishing a register of its members; (v) issuing a professional Code of Ethics for its members; (vi) investigating and disciplining members for misconduct and breach of professional rules; and (vii) establishing a quality assurance system for all audits.

    During its 2016 SMO Action Plan update, OEC-Morocco indicated that it is working with relevant authorities to establish an oversight body. However, there is no estimated timeline for its establishment and operationalization.

  • Professional Accountancy Organizations

    Moroccan Law 15-89 1993 enacted by Dahir 1-92-139 of 14 Rejab 1413 established the Ordre des Experts-Comptables du Royaume de Maroc (OEC-Morocco). Membership of the institute is comprised of Chartered Accountants and membership is mandatory in order to practice accounting. Furthermore, only OEC-Morocco members can conduct audits.

    Under Law 15-89, the institute is responsible for: (i) setting and implementing auditing standards; (ii) implementing accounting standards; (iii) ruling on membership applications and enforcing initial professional development standards; (iv) setting and monitoring compliance with continuous professional development standards through the Training Institute of OEC-Morocco; (v) maintaining and publicly publishing a register of its members; (vi) issuing a professional Code of Ethics for its members; (vii) investigating and disciplining members for misconduct and breach of professional rules; and (viii) establishing a quality assurance system for all audits.

    In addition to being a member of IFAC, OEC-Morocco is also a member of the Pan African Federation of Accountants, the Federation of Mediterranean Certified Accountants, and the International Federation of Francophone Accountants.

Adoption of International Standards

  • Quality Assurance

    The Ordre des Experts-Comptables du Royaume de Maroc (OEC-Morocco) is responsible for the adoption and implementation of ISQC 1 and establishing a mandatory quality assurance (QA) review system for all audits of financial statements under Law 15-89. OEC-Morocco reports it has adopted ISQC 1 and it has been conducting QA reviews using a mixed-approach since 2012. OEC-Morocco reports that its QA system incorporates the main requirements of SMO 1.

    Current Status: Adopted

  • International Education Standards

    Initial professional development requirements are set by law and the Ordre des Experts-Comptables du Royaume de Maroc (OEC-Morocco) is responsible for implementing the IPD requirements in addition to setting and monitoring members’ compliance with continuing professional development (CPD) requirements.

    Decree No. 2.89.519 of 23 hija 1410 (16 July 1990) established the accountancy qualification which states that candidates for OEC membership are required to complete a program of professional accountancy education, a three-year long practical experience requirement, and pass final examinations through the Advanced Institute of Commerce and Business Administration (Institut Supérieur de Commerce et d’Administration des Entreprises), a public institution attached to the Ministry of Commerce and Industry. Education and training requirements to enter the institute are also stipulated in Law 15-89 and OEC-Morocco reports they are in line with IES requirements.

    In 2004, OEC-Morocco established the Training Institute of OEC-Morocco to strengthen its CPD programs. The institute states that its CPD requirements are in line with the revised IES 7 requirements. OEC-Morocco reports in its Action Plan that the IES requirements were taken into consideration in the revision of local training standards.

    The institute has French translations of IES 7 requirements available for its members.

    Current Status: Adopted

  • International Standards on Auditing

    The Ordre des Experts-Comptables du Royaume de Maroc (OEC-Morocco) is responsible for establishing auditing standards to be applied in all mandatory audits in Morocco. OEC-Morocco has adopted Clarified ISA for application in all contractual audit engagements and the Moroccan Standards on Auditing for statutory audit engagements. The Moroccan Standards on Auditing are based on ISA but with significant omissions. There is a convergence process underway between the national auditing standards with ISA with an expected completion date of December 2017.

    Current Status: Partially Adopted

  • Code of Ethics for Professional Accountants

    Ethical requirements are established by the Companies Law (Law 17-95) and by the Ordre des Experts-Comptables du Royaume de Maroc (OEC-Morocco) in regards to its members.

    In 2013, OEC-Morocco updated its Code of Ethics and adopted the 2009 version of the IESBA Code of Ethics for its members. OEC-Morocco reports that authorities have also set legal requirements to be in accordance with the 2009 IESBA Code of Ethics.

    While the institute reports that it monitors IESBA amendments in order to include revisions in its Code on an ongoing basis, it is remains to be clarified if OEC-Morocco has incorporated revisions to its Code since 2009.

    OEC-Morocco states that its Code of Ethics is available in French for its members.

    Current Status: Adopted

  • International Public Sector Accounting Standards

    The Conseil National de la Comptabilité (CNC) is mandated to adopt public sector accounting standards in Morocco. In 2007, the CNC with the assistance of French consultants, began working on testing implementation of IPSAS for the General Treasury of Morocco. Subsequently, the CNC approved the new General Treasury of Morocco’s State Chart of Accountants, which is aligned with accrual-basis IPSAS, issued in December 2008. No other public sector accounting standards have been adopted since then and there are no further plans to update the Treasury’s standards or adopt IPSAS at other levels of government.

    Current Status: Partially Adopted

  • Investigation and Discipline

    In accordance with Law 15-89, the National and Regional Councils of the Ordre des Experts-Comptables du Royaume de Maroc (OEC-Morocco) have direct responsibility for the investigation and discipline (I&D) of OEC-Morocco members.

    OEC-Morocco reports that its I&D mechanisms incorporate most of the SMO 6 requirements. However, areas where improvements are required include: reporting the results of disciplinary processes to the public, and the composition of its Councils to include non-accountants.

    Current Status: Partially Adopted

  • International Financial Reporting Standards

    The Conseil National de la Comptabilité (CNC), established by decree in 1989, is mandated by Law 15-89 of January 1993 (enacted by Dahir 1-92-139 of 14 Rejab 1413) to set accounting standards. The CNC has adopted Moroccan Generally Accepted Accounting Principles (GAAP) which differ significantly from IFRS. Since 2007, the CNC has been working to require the application of IFRS for listed entities and public interest entities and allowing other entities to apply either the IFRS or the Moroccan GAAP. However, the Ordre des Experts-Comptables du Royaume de Maroc (OEC-Morocco)—the regulatory body—reports that this requirement is not legally binding as of 2016.

    The Central Bank of Morocco (Bank Al Maghrib) is responsible for issuing accounting standards for banks and financial institutions. Circular 56/G/2007 issued by Bank Al Maghrib requires that all entities under its supervision must use IFRS for accounting periods commencing in January 2008.

    The Securities Commission is responsible for issuing financial reporting and accounting standards for public companies. Circular No. 06/05 of 2007 reaffirms the Moroccan Stock Exchange Law (Law No. 52-01) which stipulates that all companies listed on the Casablanca Stock Exchange, other than banks and similar financial institutions, can choose between IFRS and Moroccan GAAP. In practice, most public companies are using IFRS.

    The Insurance and Social Welfare Directorate oversees financial reporting and accounting standards for insurance companies. At the time of the assessment, the financial reporting standards for insurance companies are not clear.

    Current Status: Partially 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: 07/2016
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