Colegio de Peritos Mercantiles y Contadores Públicos
Member | Established: 1966 | Member since 1998
The CPMCPH was established by Decree No. 74 of 1966, as amended by Decree No. 71 of 2004. Under the law, the CPMCPH is responsible for representing and promoting the profession of Accounting Technicians and Public Accountants in Honduras to the government, regulators, and universities; establishing ethical requirements; setting investigative and disciplinary procedures; providing training programs for its members; and supporting the adoption of international standards and the regulation of the profession through its participation on the Accounting and Auditing Standards Technical Board.
In addition to being a member of IFAC, the CPMCPH is a member of the Inter-American Association of Accountants.
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 Honduras, the Accounting and Auditing Standards Technical Board (JUNTEC) is responsible for the adoption and implementation of a quality assurance (QA) review system; however, such a system is not yet established in the jurisdiction. The CPMCPH indicates that it is actively supporting the JUNTEC to establish such a system through its representation on the JUNTEC.
As part of the efforts to support and promote the adoption and implementation of a QA system, in 2016, the CPMCPH participated in a Train the Trainers quality control workshop held in Panama. The workshop was organized the Inter-American Accounting Association and CPMCPH representatives attended in order to train Honduran accountants on quality control standards. Subsequently, the CPMCPH supported a conference on quality control organized by JUNTEC in November 2016, which further emphasized the need to implement quality control programs aligned with ISQC 1. Shortly after, CPMCPH indicated that it submitted an official letter to JUNTEC recommending the adoption of a QA review system by resolution in line with the SMO 1 requirements.
During 2017, the CPMCPH has stated plans to develop two standard-related topics training activities for audit firms registered with the CPMCPH, follow up on the recommendation to JUNTEC to adopt a QA system, and coordinate actions with JUNTEC to provide training activities and prepare implementation guidelines to support its members.
Lastly, the CPMCPH has stated plans to promote to the National Banking and Insurance Commission the support and endorsement to the planned JUNTEC’s QA review system for auditors providing services to regulated companies.
During the next submission of its Action Plan, the CPMCPH is encouraged to update the SMO 1 section of its Action Plan following the guidance of IFAC staff and indicate which actions have been completed. Importantly, it should 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. The CPMCPH 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
Although membership of a professional accountancy organization (PAO) is mandatory for professional accountants in order to practice the profession, the national PAOs are not empowered to set initial professional development or continuing professional development (CPD) requirements. Accordingly, the CPMCPH, one of these PAOs, does not have the authority to directly adopt IES and, moreover, is not legally able to adopt IES requirements such as practical experience or CPD for its members.
Therefore, CPMCPH’s activities in this area primarily include promoting the adoption and implementation of IES requirements to the Ministry of Education and universities which are responsible for the curriculum leading to the two accountancy-related qualifications.
In 2012, the National Congress of Honduras issued Legislative Decree No. 262/2011 which introduced a reform in the national education system. Based on this law, the Ministry of Education issued the Agreement No. 15155-SE-2012 that eliminated, as of 2012, the Commercial Education program. Completion of this program granted individuals the title of accounting technician (perito mercantil). The program was replaced by a new degree of Professional Baccalaureate in Accounting and Finance, which, the CPMCPH reported, is significantly less technically stringent and demanding and not aligned with the IES. The CPMCPH indicates that it has plans to discuss the impacts of the new degree program on its activities and the quality of the new professionals. The institute envisions presenting amendments to its founding legislation the Decree No. 74 of 1966, as amended by Decree No. 71 of 2004 to try and address these concerns.
In addition, as part of the CPMCPH’s efforts to support the incorporation of IES requirements at the jurisdiction level, the CPMCPH has sent official letters to the Ministry of Education, the National Autonomous University of Honduras and the Central American Technological University recommending the adoption of the IES requirements. Furthermore, the CPMCPH has stated that it developed strategies to distribute information regarding recent developments of IES to its members and relevant stakeholders. Lastly, the CPMCPH offers CPD trainings although it is not mandatory for members to complete them.
During 2017, the CPMCPH has stated plans to promote the IES to the National Banking and Insurance Commission to implement educational requirements for auditors providing services to regulated companies.
The CPMCPH is encouraged to demonstrate with specific examples in its Action Plan how it might be collaborating with other stakeholders involved in the education of professional accountants in the jurisdiction, such as other professional organizations, stakeholders and universities, to develop a roadmap for bringing national educational requirements for all professional accountants in line with IES—especially in light of the revised IES.
- SMO 3: International Standards on Auditing
The Accounting and Auditing Standards Technical Board (JUNTEC) is the entity responsible for setting auditing standards in Honduras and did formally adopt ISA in 2008. The CPMCPH indicates that it supported the adoption process through its participation in the JUNTEC; however, the CPMCPH reports that the JUNTEC does not have ongoing processes to adopt and translate changes and updates to the standards.
Accordingly, the CPMCPH states that it regularly encourages the JUNTEC to establish these ongoing adoption processes by requesting the Board to update, adopt, and implement changes and/or modifications issued by the IAASB in a timely manner and highlight the need to monitor and enforce compliance with the standards. Additionally, the institute also reports that it coordinates with the JUNTEC to develop implementation guidelines for practitioners.
Furthermore, the CPMCPH has also sent official letters to the National Banking and Insurance Commission (CNBS) to emphasize the importance of registered audit firms complying with the applicable standards and encourage the entity to monitor compliance.
Finally, in order to assist its members with implementing the standards, the CPMCPH reports that it has plans to organize two training activities in 2017 for its members on the ISA and disseminate new and amended standards through its communications channels.
During the next submission of its Action Plan, the CPMCPH is encouraged to update the SMO 3 section of its Action Plan following the guidance provided by IFAC staff. Importantly, the CPMCPH is encouraged to provide clarifying information on the most recent version of ISA the JUNTEC and the CNBS have adopted. The CPMCPH is encouraged to continue promoting the need to establish ongoing processes to adopt the latest updates of ISA, 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.
The CPMCPH is also encouraged to ensure the regulators have the proper policy agreements in place with IFAC to reproduce ISA. Please see the policies here.
- SMO 4: Code of Ethics for Professional Accountants
The CPMCPH is responsible for setting ethical requirements for its members, and reports that it has adopted a Code of Ethics in 2005. However, these ethical requirements are reportedly not aligned with the IESBA Code of Ethics and the institute indicates its Code of Ethics is less stringent than the IESBA Code.
The CPMCPH indicates that it has plans to adopt the IESBA Code of Ethics by 2018. To achieve this goal, the CPMCPH, in coordination with its Court of Honor, plans to carry out an impact analysis of adopting the IESBA Code of Ethics. Subsequently, it intends to present the IESBA Code of Ethics Code for approval to its General Assembly by June 2017 and then consider plans to disseminate ethics-related materials and coordinate trainings activities on the IESBA Code of Ethics for its members throughout Q2 2017–Q2 2018.
In addition, the CPMCPH indicates that it has recommended that the Colegio Hondureño de Profesionales Universitarios en Contaduría Pública, another professional accountancy organization in Honduras, to establish procedures to ensure ongoing adoption of the IESBA Code of Ethics.
During the next round of its Action Plan update, the CPMCPH is encouraged to indicate which actions have been completed as part of its stated plan and timeline to adopt the IESBA Code of Ethics for its members. The CPMCPH is encouraged to continue promoting the need to adopt the IESBA Code of Ethics at the national level to relevant organizations. As part of this process, the CMPCH is encouraged to review and share with stakeholders the 2016 IESBA Code of Ethics which includes the NOCLAR standard. The NOCLAR standard is a significant, new framework and will require collaboration with several stakeholders in order to achieve proper implementation.
The CPMCPH 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 5: International Public Sector Accounting Standards
The General Accounting Office (CGR) and the Accounting and Auditing Standards Technical Board (JUNTEC)—the entities responsible for the adoption of public sector accounting standards in Honduras—adopted the 2013 IPSAS in 2015 as the applicable public sector accounting standards. While the CPMCPH was not legally responsible for the standards’ adoption, it indicates that it supported the adoption process by participating in consultation activities with the CGR and the JUNTEC.
With the adoption and implementation of IPSAS becoming effective in 2017, the CPMCPH indicates that it has sent letters to the CGR and JUNTEC encouraging the agencies to provide assistance to public sector entities to apply the standards and to establish a monitoring plan to evaluate the implementation of the public sector accounting standards.
Furthermore, the CPMCPH indicates that it has also requested that the JUNTEC establish procedures to monitor, update, and adopt any changes and/or modifications issued by the IPSASB in a timely manner. Finally, the CPMCPH reports that it has plans to coordinate with the CGR and the Superior Court of Accounts to carry out an awareness campaign and disseminate IPSAS to public sector entities.
In its next Action Plan submission, the CPMCPH is encouraged to provide specific examples of activities, such as trainings and workshops, to support its members with the implementation of IPSAS. In addition, the CPMCPH could consider sharing updates on the IPSAS and IPSASB pronouncements to the CGR and JUNTEC.
- SMO 6: Investigation and Discipline
The CPMCPH is responsible for establishing and operating an investigation and discipline (I&D) system for its members and has established and implemented an I&D system accordingly. Presently, the CPMCPH reports that its I&D system is complaints-based and it primarily acts as a mediator between the parties involved in any complaint.
The CPMCPH conducted an assessment of its I&D policies and processes against the requirements of SMO 6 and has identified the main gaps, such as members of the I&D committee do not include non-accountants and lack of administrative processes for its I&D system, among others. The CPMCPH indicates that it plans to fully incorporate the SMO 6 requirements into its I&D system by 2018. To achieve this objective, the CPMCPH reports that it will coordinate its actions with its Court of Honor as the Court is simultaneously working to adopt the IESBA Code of Ethics. Once the institute’s General Assembly has approved the proposed I&D system, the CPMCPH intends to implement an awareness raising campaign of its revised system.
Additionally, the CPMCPH indicates that it has encouraged the Colegio Hondureño de Profesionales Universitarios en Contaduría Pública, another professional accountancy organization in the jurisdiction, to establish an I&D system in line with the SMO 6 requirements.
During the next submission of its Action Plan, the CPMCPH is encouraged to update the actions it has executed to incorporate the missing SMO 6 requirements it identified during its review and update its Action Plan to include these plans and actions.
- SMO 7: International Financial Reporting Standards
In Honduras, the Accounting and Auditing Standards Technical Board (JUNTEC) is legally responsible for the adoption of accounting standards, with the CPMCPH actively participating and contributing to the standard-setting process. Through its participation on the JUNTEC Board, the institute helped promote the successful adoption of IFRS and IFRS for Small-and Medium-sized Entities (SMEs) in 2010.
However, the CPMCPH indicates that the JUNTEC has not yet established procedures to continuously monitor, update, and disseminate translations of the standards. Accordingly, the CPMCPH indicates that it has encouraged the JUNTEC to establish such procedures and plans to support activities carried out by the JUNTEC in order to strengthen the JUNTEC’s technical and operational capacity to monitor and enforce compliance with the standards.
Moreover, in order to assist its members with the implementation of the standards, the CPMCPH reports that it has developed training sessions on IFRS and IFRS for SMEs.
The CPMCPH is encouraged to indicate in its Action Plan which version of the IFRS the JUNTEC and the National Banking and Insurance Commission have adopted for application. The CPMCPH is encouraged to continue promoting the need for the JUNTEC to establish ongoing processes to adopt updates and changes to the IFRS as issued by the IASB and publish translations in the official gazette. Lastly, the CPMCPH is encouraged to notify members and stakeholders of all new, proposed, and revised international standards and other pronouncements when issued by the IASB.
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