Colegio de Auditores de Bolivia
Member | Established: 1989 | Member since 1993
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, the Group of Latin American Accounting Standard Setters, and the Committee of Integration for Latin Europe and America.
Statements of Membership Obligation (SMO)
The Statements of Membership Obligations form the basis of the IFAC Member Compliance Program. They serve as a framework for credible and high-quality professional accountancy organizations focused on serving the public interest by adopting, or otherwise incorporating, and supporting implementation of international standards and maintaining adequate enforcement mechanisms to ensure the professional behavior of their individual members.
SMO 1: Quality Assurance
Although the CAUB has no legal authority to establish a mandatory quality assurance (QA) review system for all audits of financial statements, since 2012, the CAUB has been working to operationalize a voluntary QA review system for its members and proactively adopted ISA 220 and ISQC 1 for application by its members through the Resolution 001/2015.
As part of these efforts, in 2012, the CAUB established a voluntary QA system for its members, executed numerous steps to promote the QA review system and communicate with stakeholders and members, and created a CAUB’s Quality Control Review Committee. Subsequently, it launched a pilot review with four firms participating on a voluntary basis in 2013 that has increased to five firms as of 2018. The CAUB states that a lack of support and coordination from the regulators and resistance by its members and firms to participate in the QA review system are significant challenges that the institute is facing to progress further with the implementation of its QA review system.
Nonetheless, since 2016, the CAUB has pursued and held multiple meetings with the regulators—the Authority for Fiscal and Social Control of Businesses, the Authority of the Financial System Supervision (ASFI) and the General Comptroller of the State—to raise awareness about the QA system and relevant standards. As result of these activities, the ASFI has adopted ISA and ISQC 1 as the mandatory standards that audit firms authorized to audit companies under its control must apply.
To overcome challenges and support its members’ understanding of the QA system, the CAUB has developed Train the Trainers workshops in each of the country’s provinces where it has branch offices in order to better disseminate information about the system nationwide; issued a Quality Control Manual; and collaborated with the Inter-American Accounting Association to develop training activities on Quality Control for Small- and Medium-Sized Practice. In addition, the CAUB disseminates information on quality control standards to its members and stakeholders on an ongoing basis.
As of 2018, the CAUB reports it is focusing its efforts on benchmarking its system with other QA systems in the region; and has a stated objective of increasing the number of firms participating in the QA system.
During the next round of its Action Plan update, the CAUB is encouraged to specify actions it has undertaken to further promote and support the development of a mandatory QA review system in line with SMO 1 requirements at the jurisdiction level for all audits. In addition, the CAUB is encouraged to include specific actions about processes it has in place to increase the number of firms participating in the voluntary QA system.
SMO 2: International Education Standards
In Bolivia, the Ministry of Education, Ministry of Finance, universities, and regulators all have a role in implementing initial professional development requirements for professional accountants; however, the CAUB, indicates that these requirements are not in line with IES requirements.
The CAUB indicates that its activities primarily include actions to promote the adoption and implementation of IES requirements to the regulators. Accordingly, the CAUB has signed an inter-institutional cooperation agreement with several universities and is working with the Executive Committee of the Bolivian University in order to promote the incorporation of updated IES requirements into the professional curricula. As part of a Multilateral Investment Fund (FOMIN) project, the CAUB hired a consultant in 2012 to assess the accounting curricula against the IES requirements with the objective of developing a curricula model for students in the jurisdiction. The consultancy culminated in a document that outlined a curricula model and was shared with the universities. During 2013–2017, CAUB has been monitoring progress of the universities in updating the professional curricula by conducting meetings with each of the universities and developing seminars and conferences to inform university instructors about the latest IES. Until 2017, 12 public universities and 15 private universities have included IFRS and NIA in their curricula. Despite CAUB’s efforts, however, the universities’ autonomy over the accounting curricula means that it is ultimately their decision to progress with the initiative in a timely manner.
In addition, under the FOMIN project, the consultant was responsible for designing a voluntary certification program that included a final assessment, practical experience requirements, and continuing professional development (CPD) obligations for CAUB members. However, aside from a general statement, no specific activities have been indicated although CAUB notes it has been promoting volunteer professional certifications in IFRS, ISA, and IFRS for Small- and Medium-sized Entities, in collaboration of the Inter-American Accounting Association as ways to offer CPD.
Finally, the CAUB reports that it is considering ways to obtain the translations of the IES and distribute information to regulators on recent developments and the revised standards issued by the IAESB.
During the next round of its Action Plan update, the CAUB is encouraged to establish plans to conduct a review of the revised 2015 IES and continue to engage with the regulators, particularly those that have registration requirements for external auditors, and the government to promote and support the incorporation of the revised IES requirements into national educational requirements.
SMO 3: International Standards on Auditing
The CAUB is not legally responsible for the final adoption of auditing standards in Bolivia but it does play an important role in the standard-setting process through its National Technical Board of Auditors and Accountants (CTNAC). The CTNAC is a technical board of the CAUB, which was delegated the responsibility as the auditing standard-setter by the Authority for Fiscal and Social Control of Businesses (AEMP). However, the AEMP must ultimately approve and issue the standards through an official Administrative Resolution. In addition, the Supervisory Authority of the Financial System (ASFI) and the Supervisory Authority of Pensions and Insurance (APS) set auditing standards for audits of the regulated entities under its purview.
The CAUB, through CTNAC, has been engaged in a series of convergence projects since 2008. 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 any other national technical pronouncements in the area. Nevertheless, because of lack of the legal authority to adopt auditing standards for the jurisdiction and lack of support from the official standard-setter, the AEMP, the 2015 Resolution has not been approved.
Despite the fact that the standards are not legally binding, CAUB encourages its members to apply ISA and supports them with implementation. As part of the efforts to support and promote the adoption and implementation of ISA, since 2016, the CAUB has held meetings with relevant regulators—the Authority for Fiscal and Social Control of Businesses (AEMP) and the Authority of the Financial System Supervision (ASFI)—to raise awareness about the audit standards. As result of these activities, the ASFI has included ISA as applicable standards audits of companies under its control.
The CAUB indicates that it continues to promote the application and understanding of the standards by disseminating ISA-related materials to the universities to encourage its incorporation in the accountancy curricula.
Additionally, to support its members, the CAUB provides trainings on ISA on an ongoing basis through congresses and seminars; offers a voluntary ISA certification program; and disseminates information on the standards and international developments in this area through printed materials and its website. In addition, the CAUB has stated plans to develop and disseminate guidelines on ISA implementation.
Finally, the CAUB participates in the international standard-setting process by coordinating with other member organizations in the region through the Inter-American Accounting Association (AIC) to send comments to exposure drafts to the IAASB and contributes to the Ibero-American Cooperation Framework ( HYPERLINK "http://www.ifac.org/news-events/2012-10/ifac-signing-ceremony-marks-establishment-ibero-american-cooperation-framework-s" IberAM)—a regional project coordinated by the AIC and IFAC, which aims to produce a single, unified, high-quality Spanish translation.
The CAUB is encouraged to continue promoting the need to adopt ISA for all mandatory audits to the AEMP and APS. The CAUB is encouraged to ensure reference to the standards is available through its website and proper policy agreements are in place with IFAC. Please see the policies here.
SMO 4: Code of Ethics for Professional Accountants
In Bolivia, professional accountants are subject to ethical requirements set in Law 3911 of 1957 and may become subject to additional ethical requirements by voluntarily joining a professional accountancy organization (PAO). The CAUB, as one of the Bolivian PAOs, has established an Ethics Council that is responsible for setting and updating the ethical requirements, and ensuring compliance with the Code among its members—which include auditors on a mandatory basis and other professionals that join on a voluntary basis. The CAUB has adopted has adopted a Code of Ethics based on the 2009 IESBA Code of Ethics for its members, and is working to adopt the 2014 IESBA Code requirements.
The CAUB indicates that it has processes in place to consider and update the Code of Ethics; for example, the institute states that it working to adopt the 2014 IESBA Code that was recently translated and published in Spanish by the Ibero-American Cooperation Framework ( HYPERLINK "http://www.ifac.org/news-events/2012-10/ifac-signing-ceremony-marks-establishment-ibero-american-cooperation-framework-s" IberAM). In addition, the CAUB reports that it has mechanisms to disseminate information about the Code, especially to new members, and has also included the IESBA Code of Ethics in its training programs.
Additionally, the CAUB reports that since 2013 it has been encouraging universities to incorporate the Code of Ethics into accounting curricula and that its engagements with universities on this topic have been well-received.
The CAUB is encouraged to include specific actions in its SMO Action Plan about processes it has in place to consider the full adoption of the IESBA Code of Ethics or consider a convergence process to eliminate differences, if any, with the IESBA Code of Ethics. The CAUB is encourage to include actions to promote the need to adopt the IESBA Code of Ethics for all professional accountants to relevant authorities and stakeholders. The CAUB is also encouraged to review the 2016 IESBA Code and the new NOCLAR standard—a significant, international ethics standard for auditors and other professional accountants—in order to incorporate the new standard into ethical requirements and establish implementation support activities around NOCLAR. In addition, if deemed feasible and relevant, it would be beneficial for the CAUB to participate in the international standard-setting process by providing comments on exposure drafts and other IESBA pronouncements.
SMO 5: International Public Sector Accounting Standards
The Controller General is the entity that is legally responsible for public sector accounting standards and CAUB indicates that it uses its best endeavors to promote the adoption of IPSAS to the Controller General by contributing to Controller General’s activities in this area.
Since 2012, the CAUB has worked to facilitate Controller General representatives’ participation in the conference Accounting and Accountability for Regional Economic Growth (CReCER) in order to increase their knowledge and awareness of IPSAS. While this has improved relationships and communication channels, the Controller General has not indicated plans to adopt IPSAS. The CAUB reports that during these events, it has proposed a signed agreement between the two organizations to work towards the adoption of IPSAS but no agreement was reached during this time.
Subsequently, in 2014–2015, the CAUB reports that it delegated a technical staff person who would be responsible for the coordination of education and training on IPSAS with the Controller. However, while it seems a series of courses on IPSAS were prepared, it is unclear if the initiative was carried out as no specific activities have been confirmed by CAUB.
Finally, in 2017, as a result of several years’ of engagement, the CAUB was able to sign a cooperation agreement with the Controller General to raise awareness of international developments, promote IPSAS, coordinate institutional activities, and develop strategies to strengthen the audit services of auditors for regulated companies.
The institute also states that it has digital dissemination mechanisms to distribute information regarding recent developments and revised standards issued by the IPSASB.
During the next round of its Action Plan update, the CAUB is encouraged to update the actions it has executed under the cooperation agreement with the Controller General to promote the adoption and implementation of IPSAS.
SMO 6: Investigation and Discipline
The CAUB is responsible for establishing and operating an investigative and disciplinary (I&D) system for its members—which include auditors on a mandatory basis and other professionals that join on a voluntary basis. The CAUB indicates that it has an Ethics Council that is authorized to investigate and discipline CAUB members and has implemented a dissemination plan for its members and the general public on its current I&D policies.
In 2014, the CAUB conducted an assessment of its I&D policies and processes against the requirements of SMO 6 and acknowledged there were gaps in compliance. Based on this assessment, the CAUB developed a project to reform its bylaws and regulations in order establish an I&D system in line with the requirements of SMO 6. The project was to be approved by the Council in 2017. In 2018, the CAUB updated the assessment and identified the gaps, such as no linkage quality assurance reviews, members of the disciplinary committee do not include non-accountants, and the CAUB is limited in its abilities to impose penalties.
During the next submission of its Action Plan, it is recommended that the CAUB develop and include action steps it will take to address the existing gaps of its I&D policies based on the self-assessment against the requirements of SMO 6. The CAUB is encouraged to also provide an update on its project to reform its bylaws and regulations and how it has affected its I&D system. Lastly, the CAUB may consider including specific actions to promote the adoption of an I&D system that is in line with SMO 6 requirements to regulators and other professional accountancy organizations that are involved in the I&D of professional accountants with the objective of ensuring full compliance at the jurisdictional level.
SMO 7: International Financial Reporting Standards
Although the Authority for Fiscal and Social Control of Businesses (AEMP) is legally responsible for the final approval and issuance of accounting standards, the CAUB actively participates and contributes to the standard-setting process through its National Technical Board of Auditors and Accountants which was delegated standard-setting responsibilities from the AEMP. At present, the AEMP has formally adopted the Bolivian Generally Accepted Accounting Principles which are not aligned with IFRS.
To promote the legal adoption of IFRS and IFRS for Small- and Medium-sized Entities (SMEs), the CAUB reports that it has adopted the standards as issued by the IASB through Resolution 002/2012. Nevertheless, because the CAUB lacks the legal authority to officially adopt accounting standards and there is a lack of support from the official standard-setter, the AEMP, the standards have not yet been formally approved.
Despite the fact that the standards are not legally binding, CAUB encourages its members to apply IFRS and supports them with implementation. The CAUB indicates that it has trained its members on the application of the standards, and created a dissemination mechanism to digitally distribute the IFRS and IFRS for SMEs. Additionally, the CAUB promotes the application and understanding of the standards by disseminating IFRS and IFRS for SMEs-related materials to the universities to encourage its incorporation in the accounting curricula and offers the Inter-American Accounting Association’s IFRS for SMEs certification. The certification has been well-received by professionals as more than 600 CAUB members have been certified since 2013.
Furthermore, the CAUB is a member of the Latin American Accounting Standard Setters Group and participates in the international standard-setting process by providing comments to exposure drafts on a regional level. In addition, the CAUB actively participates in the IFRS Foundation Spanish translation review committee.
The CAUB is encouraged to update its SMO Action Plan with more recent activities being carried out to engage regulators and stakeholders to promote the adoption and implementation of IFRS and IFRS for SMEs as the applicable accounting standards in the jurisdiction.
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