Senegal

Member Organizations

Member Organization Associate Other PAOs

  Ordre National des Experts Comptables et Comptables Agréés du Sénégal

Legal and Regulatory Environment

  • Overview of Statuatory Framework for Accounting and Auditing

    The corporate financial framework of Senegal is determined by legislation issued by two regional bodies: 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 Senegal as well as on the accountancy profession. Senegal, as a member of the 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, once adopted, become domestic law in its 17 member states. Member States are required to establish a Conseil National de la Comptabilité (CNC) with 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 the WAEMU Regulation No. 3/97/CM/UEMOA, the 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.

    The OHADA Uniform Act Relating to Commercial Companies and Economic Interest Groups 4/1997 (revised January 2014) and OHADA Uniform Act Organizing and Harmonizing Company Accounting Systems 2/2000 stipulate accounting, auditing, and financial reporting requirements for the OHADA member states. The CNC-OHADA, established in 2008 through an OHADA Uniform Act, adopted the OHADA Accounting System in 2001, which differs from IFRS and comprises a three-tier system that allows companies to prepare full or abridged financial statements based on their size. With assistance from the World Bank, revisions to the OHADA legislations governing accounting standards are underway to bring the requirements in line with international best practices. As of 2016, a new Uniform Act on accounting standards is being finalized and submitted to the Council of Ministers for review. The new Act is expected to introduce IFRS for public interest entities as well as a revised OHADA Accounting System for Small and Medium Enterprises.

    The OHADA Uniform Act Relating to Commercial Companies and Economic Interest Groups 4/1997 (revised January 2014) and OHADA Uniform Act Organizing and Harmonizing Company Accounting Systems 2/2000 stipulate that statutory audits are mandatory for all public companies and limited liability companies (LLCs) that exceed one of these three thresholds: (i) share capital in excess of CFA franc 10 million; (ii) sales volume greater than CFA franc 250 million; or (iii) have more than 50 permanent employees. 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, 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, as of 2016, the CPPC has not yet established auditing standards at the regional level.

    In light of these delays, in 2010, the Ordre National des Experts-Comptables et Comptables Agréés du Sénégal (ONECCA-Senegal) drafted and adopted the Senegal Auditing Standards (SAS) that are based on the Clarified ISA without any modifications as a self-regulatory requirement for members and submitted the standards to the Ministry of Finance for its approval. In February 2016, ONECCA-Senegal reports that the Ministry of Finance and Justice approved the SAS as the applicable auditing standards in Senegal.

    Banking and insurance regulatory bodies—Banque Centrale des États de l’Afrique de l’Ouest (the Central Bank of West African States (BCEAO)), WAEMU Banking Commission, and the Commission Régionale de Contrôle des Assurances (Regional Insurance Control Commission)—issue instructions on accounting and auditing requirements for entities within their purview. Under the OHADA Uniform Act Relating to Commercial Companies and Economic Interest Groups, the Instruction of the Governor of the BCEAO of January 1, 1996, and the WAEMU Treaty, banks and other financial institutions are obliged to use the Bank Chart of Accounts established by the WAEMU Banking Act (1990) supplemented by BCEAO Regulations. Banks are required to appoint two auditors, who are subject to prior approval by the Banking Commission. Insurance companies are required to apply accounting standards outlined in the Conférence Interafricaine des Marchés d’Assurance (Inter-African Conference on Insurance Markets (CIMA)) Code 1992. The CIMA Accounting Chart differs significantly from IFRS. Listed entities must comply with regulations issued by the regional stock exchange, Bourse Régionale des Valeurs Mobilières.

  • Regulation of Accountancy Profession

    Entry requirements for the accountancy profession are set at the regional level by West African Economic and Monetary Union (WAEMU) Regulation No. 12/2000/CM/UEMOA, which introduced the Degree in Accounting and Finance (DECOFI) and the Higher Education Degree in Accounting and Financial Management (DESCOGEF) as pre-requisites to practice the profession in WAEMU countries. Ordre National des Experts-Comptables et Comptables Agréés du Sénégal (ONECCA-Senegal) states the qualification system has been reformed to align with International Education Standards. The DESCOGEF qualification is for Certified Accountants and the DECOFI qualification is for Chartered Accountants. Only Chartered Accountants registered by a professional institute in WAEMU countries are permitted to practice auditing. Furthermore, candidates for entry to the profession must complete three years of verified practical experience and pass final examinations with the Regional Commission for the Formation of the Accounting and Financial Experts, an external body recognized by WAEMU.

    Additionally, WAEMU Regulation No. 01/2009/CM/UEMOA of 2009 grants the Conseil Permanent de la Profession Comptable responsibility for defining auditing, ethics, and quality control standards.

    At a national level, Law 2000-05 regulates the profession and establishes the ONECCA-Senegal as the regulatory body of the accountancy profession, pursuant to a Community Directive issued in September 1997. In accordance with Law 2000-05, membership in the institute is mandatory for all Certified Accountants and Chartered Accountants.

    The institute is responsible for: (i) maintaining a register of Chartered Accountants and Certified Accountants; (ii) licensing qualified members to practice auditing; (iii) drafting and implementing auditing standards; (iv) setting ethical requirements for its members; (v) establishing an investigative and disciplinary (I&D) system; (vi) implementing initial professional development requirements; (vii) setting continuing professional development requirements; and (viii) monitoring conduct and performance of members, including voluntary quality assurance reviews of all audits and services carried out by members. Law 2000-05 stipulates that the Order’s activities are subject to the oversight and supervision of the Ministry of Finance.

    Candidates for ONECCA membership must fulfill the abovementioned regional requirements and their three-year internship must be with a Chartered Accountant licensed by ONECCA-Senegal in order to have appropriate knowledge of Senegal’s business and legal environment.

  • Audit Oversight Arrangements

    There is no independent audit oversight body at the regional or national level.

    Auditors 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 publicly practice auditing in WAEMU countries. The WAEMU Conseil Permanent de la Profession Comptable (CPPC) is responsible for defining auditing, ethics, and quality control standards based on WAEMU Regulation No. 01/2009/CM/UEMOA.

    The CPPC was the recipient of funding from the World Bank in 2010 to develop ISA-based auditing guidelines. However, as of 2016, the CPPC has not yet established auditing standards at the regional level.

    At the national level, auditors are regulated by the Ordre National des Experts-Comptables et Comptables Agréés du Sénégal (ONECCA-Senegal) which is responsible for: (i) maintaining a register of Chartered Accountants; (ii) licensing qualified members to practice auditing; (iii) drafting and implementing auditing standards; (iv) setting ethical requirements for its members; (v) establishing an investigation and discipline system for its members; (vi) implementing initial professional development standards; (vii) setting continuing professional development standards for members; and (viii) monitoring conduct and performance of members. Law 2000-05 stipulates that the institute’s activities are subject to the oversight and supervision of the Ministry of Finance.

    In light of regional level delays in the areas of QA and ISA adoption and implementation, ONECCA-Senegal established a Quality Assurance Review System for its members, and adopted ISQC 1 and ISA 220 as quality control standards in 2013. All of ONECCA-Senegal’s members are subject to QA reviews effective in 2017. The institute also drafted and adopted the Senegal Auditing Standards (SAS) which are based on the Clarified ISA without any modifications as a self-regulatory requirement for members. As of February 2016, the Ministry of Finance approved the SAS as the nationally applicable auditing standards.

  • Professional Accountancy Organizations

    The Ordre National des Experts-Comptables et Comptables Agréés du Sénégal (ONECCA-Senegal) was established by Senegalese Law 2000-05 in January 2000, pursuant to a Community Directive issued in September 1997. Its membership is comprised of Certified Accountants and Chartered Accountants. Membership in the institute is mandatory for practicing accountancy. Only Chartered Accountants of ONECCA-Senegal may conduct audits.

    The institute is responsible for: (i) maintaining a register of Chartered Accountants and Certified Accountants; (ii) licensing qualified members to practice auditing; (iii) drafting and implementing auditing standards; (iv) setting ethical requirements for its members; (v) establishing an investigation and discipline system for its members; (vi) implementing initial professional development standards; (vii) setting continuing professional development standards for members; and (viii) monitoring conduct and performance of members, including voluntary quality assurance reviews of all audits and services carried out by members. Law 2000-05 stipulates that the Order’s activities are subject to the oversight and supervision of the Ministry of Finance.

    In addition to being a member of IFAC, ONECCA-Senegal is a member of the Pan African Federation of Accountants, the International Federation of Francophone Accountants, and the Association of Accountancy Bodies in West Africa (ABWA). As part of its involvement in regional accountancy associations, ONECCA-Senegal has been providing assistance to the accountancy profession in Guinea Conakry and Mauritania. ONECCA-Senegal has been focused on capacity building of the professional accountancy organizations in both countries.

  • Projects or Other Information

    The Ordre National des Experts-Comptables et Comptables Agréés du Sénégal (ONECCA-Senegal) is currently spearheading the creation of a regional accountancy knowledge center. The findings of the World Bank’s Report on the Observance of Standards and Codes on Accounting and Auditing confirmed that accounting and auditing development efforts are fragmented at both national and regional levels on the African continent. As a result, ONECCA-Senegal submitted a proposal to the World Bank for the establishment of a Knowledge Center for Africa. The objective of the knowledge center is to build up the knowledge base on accounting and auditing standards and professional practices.

    Separately, since 2012, the World Bank has been also working on the implementation of a project to assist the Organization for the Harmonization of Business Law in Africa (OHADA) to improve 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. As of 2016, a new Uniform Act on accounting standards is being finalized and submitted to the Council of Ministers for review. The new Act is expected to introduce IFRS for public interest entities as well as a revised OHADA Accounting System for Small and Medium Enterprises.

    In addition, the project envisions the adoption of a new OHADA Uniform Act Relating to Commercial Companies and Economic Interest Groups of April 17, 1997, to establish applicable auditing standards in accordance with international standards. Additional components of the project also include developing a code of ethics; establishing a quality assurance (QA) review system, and an effective investigation and discipline (I&D) mechanism. As of 2016, the Code of Ethics has been drafted and distributed for consultations before being approved by the accountancy profession. It is expected to be completed by April 2017. The status of the QA review system and the I&D system elements are unknown at this time.

    Furthermore, the project also included assisting OHADA Secretariat in the development of a regional professional qualification curriculum and continuing professional development. The World Bank reports that the implementation of this component has been delayed and a mid-term review is underway to accelerate the implementation of this activity.

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 member states pursue the adoption and implementation of QA systems and quality control standards at a national level.

    The World Bank is also supporting the Organization for the Harmonization of Business Law in Africa (OHADA) in developing and implementing a QA review system in its member countries. The status of this project is unknown although the Ordre National des Experts-Comptables et Comptables Agréés du Sénégal (ONECCA-Senegal) reports that OHADA is holding a workshop on this topic for member states on June 30, 2016. OHADA will be directly responsible for the implementation of the QA system in its member states and WAEMU will adopt the OHADA system.

    In the absence of an operational regional QA review system, in 2013, under the oversight of the Ministry of Finance, ONECCA-Senegal established a Quality Assurance Review System (QARS) for its members and adopted ISQC 1 and ISA 220 as quality control standards. ONECCA-Senegal reports that the Ministries of Finance and Justice approved the adoption of ISQC 1 in February 2016. All of ONECCA-Senegal’s members regardless of their legal form and activities are subject to QA reviews.

    The institute conducts QA reviews every three years for public interest entity (PIE) audits and every six years for all other audits. The institute has been receiving assistance from the French professional accountancy organizations in order to conduct the QA reviews.

    QA reviews were performed on a voluntary basis for PIE statutory audits in 2013. In 2014, the reviews extended to all of ONECCA-Senegal members on a voluntary basis and beginning in 2017, ONECCA-Senegal states that the QA reviews will be mandatory for all.

    As part of the 2016 SMO Action Plan update process, the institute conducted a review of its QARS against the revised SMO 1 requirements and it indicates that its system meets the majority of the SMO 1 requirements. However, the QA review system is not yet linked to its investigative and disciplinary system given the voluntary nature of the QA reviews at the time of the assessment.

    Current Status: Partially Adopted

  • International Education Standards

    Entry requirements for the accountancy profession are set at the regional level by West African Economic and Monetary Union (WAEMU) Regulation No. 12/2000/CM/UEMOA. The regulation introduced the Degree in Accounting and Finance and the Higher Education Degree in Accounting and Financial Management, for Chartered Accountants and Certified Accountants, respectively, as mandatory requirements to practice accountancy within WAEMU countries. The Ordre National des Experts-Comptables et Comptables Agréés du Sénégal (ONECCA-Senegal) indicates that the regional qualification system has been reformed to align with the IES. To practice the profession, candidates are also required to complete three years of verified practical experience and must pass final examinations with the Regional Commission for the Formation of the Accounting and Financial Experts which is an external body recognized by WAEMU. Although the initial professional development (IPD) requirements at the regional level seem to incorporate some of the IES requirements, it is unclear if all IES requirements have been adopted.

    Candidates for ONECCA-Senegal membership must fulfill the regional requirements and their three-year internship must be with a Chartered Accountant licensed by ONECCA-Senegal and demonstrate that they have an appropriate knowledge of Senegal’s business and legal environment.

    Under Law 2000-05, ONECCA-Senegal is responsible for implementing IPD requirements, licensing qualified members to practice, and establishing continuing professional development (CPD) requirements. ONECCA-Senegal reports that its CPD requirements are in line with IES.

    It is unclear whether revised IES are available in French.

    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) and OHADA Uniform Act Organizing and Harmonizing Company Accounting Systems 2/2000 stipulate that statutory audits are mandatory for all public companies and limited liability companies (LLCs) 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 West African Economic and Monetary Union 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. It is not clear what the status of this project is and the timeline for the adoption and implementation of ISA at the regional level.

    In the absence of regionally adopted auditing standards, in 2010, the Ordre National des Experts-Comptables et Comptables Agréés du Sénégal (ONECCA-Senegal) drafted and adopted the Senegal Auditing Standards (SAS) that are based on the Clarified ISA without any modifications as a self-regulatory requirement for members and submitted the standards to the Ministry of Finance for its approval. In February 2016, ONECCA-Senegal reports that the Ministry of Finance and Justice approved the SAS as the applicable auditing standards in Senegal and has established procedures to update the standards on an ongoing basis.

    Current Status: Adopted

  • Code of Ethics for Professional Accountants

    At the regional level, West African Economic and Monetary Union (WAEMU) 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.

    The World Bank is also supporting the Organization for the Harmonization of Business Law in Africa (OHADA) in the development of a Code of Ethics for its member states. As of January 2016, a draft Code has been produced and is being circulated for consultations. OHADA will be directly responsible for the implementation of the Code in its member states and WAEMU will adopt the Code of OHADA for its member states.

    Under Law No. 2000-05, the institute is responsible for establishing ethical requirements for its members subject to the approval of the Ministry of Finance.

    In February 2016, the Ministry of Finance approved the Ordre National des Experts-Comptables et Comptables Agréés du Sénégal’s updated Code of Ethics which is based on the 2013 IESBA Code of Ethics. The institute indicates that it will continue to incorporate revisions to its Code on an ongoing basis.

    It is unclear if the Code of Ethics is available to members in French.

    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 requires adoption of IPSAS by members of the WAEMU by 2017.

    At the national level, the Senegalese government is responsible for adopting public sector accounting standards. The current standards used in Senegal are set by the Ministry of Finance in accordance with public sector accounting standards issued by WAEMU. Ordre National des Experts-Comptables et Comptables Agréés du Sénégal (ONECCA-Senegal) reports that the standards are undergoing a revision process in order to be aligned with the WAEMU’s directive requiring accrual-basis standards.

    ONECCA-Senegal, with financial support from the World Bank, plans to assist the government with the adoption and implementation of IPSAS. The institute indicates that the adoption of accrual-basis IPSAS will occur before the end of 2016.

    The 2005 version of the IPSAS is available in French and has been distributed to the Ministry of Finance.

    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 (OHADA) in the development of an I&D system for its member states. There is no further information available at this time regarding the status of a regional I&D system. The West African Economic and Monetary Union will adopt the system of OHADA for its member states

    At the national level, in accordance with Ordre National des Experts-Comptables et Comptables Agréés du Sénégal’s (ONECCA-Senegal) Rules, approved by the Ministry of Finance, the institute is responsible for establishing an investigative and disciplinary (I&D) system for its members. The Rules stipulate the establishment of a Disciplinary Committee to hear cases of misconduct, investigate, and sanction members. The Disciplinary Committee is chaired by a judge appointed by Dakar’s Court of Appeals.

    As part of the 2016 SMO Action Plan update process, ONECCA-Senegal conducted a review of its existing I&D system against the revised SMO 6 requirements. Results of the review indicate that its I&D system is partially compliant with the SMO 6 requirements and requires improvements in the disciplinary process, certain administrative procedures, public interest considerations, and liaising with outside entities.

    Current Status: Partially Adopted

  • International Financial Reporting Standards

    As a member of the West African Economic and Monetary Union (WAEMU) and the Organization for the Harmonization of Business Law in Africa (OHADA), Senegal’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 OHADA Uniform Act Organizing and Harmonizing Company Accounting Systems 2/2000. The Conseil Comptable Ouest Africain is authorized by WAEMU Regulation No. 3/97/CM/UEMOA to set accounting standards for member states and has adopted the standards set by OHADA. The OHADA Accounting Standards are not in line with IFRS.

    OHADA is conducting a review process to align its standards with IFRS. With support from the World Bank, a new Uniform Act on accounting standards is being finalized and submitted to the Council of Ministers for review. The new Act is expected to introduce IFRS for public interest entities as well as a revised OHADA Accounting System for Small and Medium Enterprises.

    Banks are obliged to prepare their financial statements in accordance with the Bank Chart of Accounts determined by the WAEMU Banking Act (1990), while insurance companies use the CIMA Accounting Chart outlined in the Conférence Interafricaine des Marchés d’Assurance (CIMA) Code 1992. Some of the requirements of the IAS/IFRS had initially been incorporated in the WAEMU Banking Law, the BCEAO regulations, and CIMA Code but were not updated in an ongoing manner.

    Current Status: Not Adopted

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Methodology

Methodology
Last updated: 09/2016
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