Colegio de Contadores Públicos y Auditores de Guatemala
Associate | Established: 2001 | Associate since 2013
The CCPAG, established by the Decree No. 72 of 2001, unites public accountants and auditors. Membership of the CCPAG is mandatory for all public accountants and auditors in the CCPAG in order to practice the profession. The CCPAG mandate includes: setting accounting and auditing standards for its members; maintaining a registry of accountancy professionals; establishing membership requirements; setting ethical requirements; carrying out investigative and disciplinary procedures; providing training programs for its members; and promoting improvements to the profession.
In addition to being an IFAC Member, the CCPAG 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
In the absence of a legally required and operational quality assurance (QA) review system, the CCPAG—as the accountancy profession regulator—indicates it is pursuing plans to support the establishment and implementation of a mandatory QA review system. As a first step, the CCPAG reports that it has adopted ISA 220 and ISQC 1 for application by its members, and has created a National Quality Control Board that would be responsible for the establishment and implementation of a QA review system in line with the SMO 1 requirements. This initiative is expected to be completed by 2021.
The CCPAG is collaborating with the Instituto Guatemalteco de Contadores Públicos y Auditores to amend Law No. 72 of 2001 and its regulations to allow for the creation of a QA review system. In addition, both organizations signed a cooperative agreement with the French International and Development Partnerships Directorate (DDPI) to receive technical support in the design of a roadmap aimed at establishing a QA review system as well as training in the implementation of the quality control standards.
The CCPAG states that it will support members’ implementation of the quality control standards by providing training activities, designing questionnaires for audit firms to assess quality control standards, and preparing procedures and implementation guidelines.
During the next round of its Action Plan update, the CCPAG is encouraged to update the actions it has executed under the partnership with DDPI to establish a QA review system in line with SMO 1 requirements in the jurisdiction. In addition, the CCPAG encouraged to clarify in its SMO Action Plan if the roadmap includes activities to collaborate with regulators and obtain support for the legal establishment and development of a mandatory QA review system for all audits in the jurisdiction,
The CCPAG is also encouraged to disseminate updates on new and revised standards issued by the IAASB with respect to quality control in the audits of financial statements.
- SMO 2: International Education Standards
In Guatemala, universities and the CCPAG have the leading roles in setting and implementing initial professional development requirements for professional accountants, which include earning a bachelor’s degree in accounting and at least two years’ practical experience. The CCPAG indicates that it has limited authority to incorporate the requirements of IES into national requirements and is only legally capable and responsible for regulations related to its membership requirements.
In 2015, the CCPAG with the support of the Instituto Guatemalteco de Contadores Públicos y Auditores (IGCPA) adopted the IES requirements for all professional accountants; however, because CCPAG lacks of authority over the universities and the curricula of the accounting programs, the IES are viewed only as guidelines for universities to consider. In addition, the CCPAG offers voluntary continuing professional development (CPD) for its members. Nonetheless, to further encourage the adoption of the IES requirements, CCPAG and IGCPA developed a gap analysis of the training programs leading to the public accountant and auditor qualification of training public accountant and auditor, which has been shared with the universities. In addition, both organizations have met with universities to promote the adoption of the IES requirements.
As of 2017, CCPAG and IGCPA indicate that they have been working toward the adoption and implementation of the IES requirements in Guatemala with a focus on implementing a professional exam for candidates prior to enrollment in the professional accountancy organizations. To achieve this, the organizations are raising awareness amongst their members and have reported actions to adopt the new requirement by 2018.
To support members’ awareness and understanding of the standards, the CCPAG includes IES-related topics in its training activities and disseminates developments and revised standards issued by the IAESB.
During the next submission of its Action Plan, the CCPAG is encouraged to update the actions it has executed in regards to its plans for a professional examination for individuals seeking CCPAG membership. Overall, the CCPAG is encouraged to continue promoting the adoption and implementation of IES to stakeholders involved in the education of professional accountants in the jurisdiction. Along these lines, the CCPAG in collaboration with the IGCPA, should consider reviewing the gaps in national educational requirements, partnering with universities and developing a roadmap for bringing these requirements for all professional accountants in line with IES—especially considering the 2015 revised IES. In addition, the CCPAG is encouraged to indicate the specific actions it undertakes to introduce mandatory CPD requirements for its members and share the IES requirements amongst the regulators that have registration requirements for external auditors.
- SMO 3: International Standards on Auditing
The CCPAG is responsible for the adoption of auditing standards for its members and has adopted ISA in 2007 through a Resolution, which was included in the Official Gazette with a provision stating the ongoing adoption of all subsequent modifications as of the effective date of the IAASB Handbook.
To support the ongoing adoption of the standards, the CCPAG monitors new and amended standards issued by the IAASB, and disseminates information on updates to the standards and international developments in the area through printed materials and its website.
To facilitate its members’ implementation of the standards, the CCPAG undertakes a number of activities, including: collaborating with the Instituto Guatemalteco de Contadores Públicos y Auditores (IGCPA) to develop practical implementation guidelines for its members; including ISA in its continuing professional development activities; and providing additional trainings to different Guatemalan business chambers through international conferences in order to enhance stakeholders’ understanding of the standards.
The CCPAG is encouraged to demonstrate how it may be promoting to the Superintendent of Banks the importance to fully adopt the ISA as issued by the IAASB, especially in light of the 2016 ISA which include the new auditor’s report, and provide an update on its efforts in its Action Plan. In addition, if deemed feasible, it may be beneficial for the CCPAG in collaboration with the IGCPA to participate in the international standard-setting process by providing comments on exposure drafts and other IAASB pronouncements.
- SMO 4: Code of Ethics for Professional Accountants
The CCPAG is legally responsible for setting ethical requirements for all professional accountants. Accordingly, its Court of Honor has adopted the IESBA Code of Ethics since 2013 with ongoing processes to continuously adopt and update the Code so it remains aligned with the IESBA Code of Ethics.
To support members’ implementation of the Code, the CCPAG, in collaboration with the Instituto Guatemalteco de Contadores Públicos y Auditores (IGCPA), has carried out various support activities such as seminars and courses and published articles on the Code in its magazine and website.
Additionally, both organizations report that since 2014 they have been disseminating the Code to universities and encouraging universities to incorporate the Code of Ethics into their accounting curricula.
As part of the ongoing adoption of the IESBA Code of Ethics, the CCPAG is encouraged to review and share with stakeholders the 2016 IESBA Code of Ethics which includes the NOCLAR standard, and consider how it can best support its members with the implementation of the standard. The NOCLAR standard is a significant, new framework and will require collaboration with stakeholders in order to achieve proper implementation. Also, if deemed feasible and relevant, it would be beneficial for the CCPAG, in collaboration with the IGCPA, 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
In Guatemala, the Accounting Administration Authority of the Ministry of Public Finance (MoF)—the governmental organization responsible for adopting public sector accounting standards—has adopted the 2013 IPSAS for all public entities, except for the municipalities. The CCPAG reports that, while it has no direct responsibility in this standard-setting area, it significantly contributed to the consultation activities and meetings that led to the MoF adopting IPSAS in 2013.
Since 2015, the CCPAG indicates that it has been collaborating with the Instituto Guatemalteco de Contadores Públicos y Auditores (IGCPA) to hold courses and conferences on IPSAS and provide training activities for its members and relevant stakeholders.
As of 2017, the CCPAG and IGCPA have stated plans to support the MoF with the implementation of IPSAS through a number of activities. These include: encouraging the MoF to sign an agreement with IFAC to reproduce and use the IPSAS; providing technical training to MoF staff; testing the application of IPSAS in the MoF’s information system; preparing a manual on policies and procedures for applying IPSAS; and preparing pro forma financial statements in accordance with IPSAS.
During the next submission of its Action Plan, the CCPAG is also encouraged to provide a status update on the execution of actions it has planned to support the MoF with the implementation of IPSAS.
In addition, the CCPAG is encouraged to establish plans in its Action Plan to notify members and stakeholders of all new, proposed, and revised IPSAS and other pronouncements. Also, if deemed feasible and relevant, it would be beneficial for the CCPAG, in collaboration with the IGCPA, to participate in the international standard-setting process by providing comments on exposure drafts and other IPSASB pronouncements.
- SMO 6: Investigation and Discipline
The CCPAG is responsible for establishing and operating an investigative and discipline (I&D) system for all professional accountants in Guatemala, and has established an Honor Tribunal to carry out the implementation of I&D procedures.
In 2012, the CCPAG reported it conducted a comparison between its I&D system and the requirements of the SMO 6 and subsequently planned to address the identified gaps and disseminate information on the updates. To achieve this, the CCPAG has regularly incorporated actions in its SMO Action Plan to prepare regulation and procedures in line with the SMO 6 requirements since 2014. The CCPAG expects to be able to align its I&D system with the requirements of SMO 6 by 2018 as it is collaborating with the Instituto Guatemalteco de Contadores Públicos y Auditores to prepare amendments to Decree No. 72 of 2001 that would incorporate the missing SMO 6 requirements to the CCPAG’s I&D system. As all professional accountants must be members of the CCPAG to practice in Guatemala, this would significantly help align the jurisdictional I&D system with SMO 6 requirements.
Finally, the CCPAG has also developed activities to distribute information to members regarding developments and planned revisions of its I&D system, such as provisions to link the results of its proposed quality assurance review system with the I&D system.
During the next round of its Action Plan update, the CCPAG is encouraged to update the actions it has executed to establish an I&D system in line with SMO 6 requirements. In addition, the CCPAG is encouraged to provide a status update on the amendments to legislation that would incorporate missing SMO 6 requirements into its I&D system for all professional accountants.
- SMO 7: International Financial Reporting Standards
The CCPAG is responsible for the adoption of applicable accounting standards for its members and has adopted IFRS in 2007 and IFRS for Small- and Medium-sized Entities (SMEs) in 2010. These Resolutions were included in the Official Gazette with a provision stating the ongoing adoption of all subsequent modifications with the effective date as issued by the IASB.
The CCPAG and the Instituto Guatemalteco de Contadores Públicos y Auditores (IGCPA) indicate that the two institutes cooperate to review, disseminate, and offer training on standard updates. In addition, the organizations have established a dissemination mechanism to share IASB pronouncements and work together to provide seminars and training events to support professional accountants with standards’ implementation. To carry out the training activities, the organizations have collaborated with regional organizations such as the Group of Latin American Accounting Standard Setters (GLENIF) and the Inter-American Accounting Association.
Moreover, as a member of the GLENIF, the CCPAG participates in the international standard-setting process by providing comments to exposure drafts on a regional level.
In its Action Plan, the CCPAG is encouraged to include plans that have defined timelines and have the objective of promoting the full adoption of IFRS and IFRS for SMEs as the applicable accounting standards in the jurisdiction to the respective regulators. The CCPAG is also encouraged to consider, in collaboration with the IGCPA, developing technical guidelines on IFRS and IFRS for SMEs to support its members with the implementation of the standards.
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