Instituto Guatemalteco de Contadores Públicos y Auditores
Member | Established: 1968 | Member since 1998
The IGCPA, established in 1968, is a professional accountancy organization with voluntary membership. The IGCPA sets ethical standards, and investigates and disciplines its members in addition to promoting the adoption and implementation of international standards.
The IGCPA is a member of IFAC and of the Inter-American Accounting Association.
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 IGCPA has no legal authority or responsibility to establish a mandatory quality assurance (QA) review system for all audits of financial statements, the IGCPA states that it is working with the Colegio de Contadores Públicos y Auditores de Guatemala (CCPAG to amend the Decree No. 72 of 2001 and the regulations of the CCPAG to allow for the creation of a QA review system. The institute is playing a key role to promote the adoption and implementation of a QA review system in line with the SMO 1 requirements by supporting the development of the CCPAG’s National Quality Control Board, which would carry out QA reviews in the jurisdiction.
The CCPAG 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–which are ISQC 1. In preparation of the establishment and implementation of the QA system, the IGCPA is working on raising awareness amongst auditors, providing training activities, and coordinating with regulatory entities.
As part of its additional efforts to support and promote the adoption and implementation of a QA system, in 2016, the IGCPA participated in a Train the Trainers quality control workshop held in Panama that was organized by the Inter-American Accounting Association. IGCPA representatives attended the event in order to return and train Guatemalan accountants on quality control standards.
During the next submission of its Action Plan, the IGCPA 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. This might include plans to collaborate with the regulators and CCPAG to promote and support the establishment of a unified, mandatory QA system at the jurisdiction level, and to promote such a system’s compliance with the revised SMO 1 requirements. In addition, the IGCPA 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 Colegio de Contadores Públicos y Auditores de Guatemala (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. As an entity established by general consensus and with voluntary membership, the IGCPA lacks authority to further adopt IES requirements for its members. Therefore, its activities primarily include promoting the full adoption and implementation of IES requirements to the regulators. For example, the IGCPA has established a University Exchange Commission responsible for promoting the IES to universities and the CCPAG.
In 2015, the IGCPA supported the CCPAG in the adoption of the IES requirements for all professional accountants; nevertheless, because the CCPAG lacks of authority in this area, the IES are viewed only as guidelines for universities. Nonetheless, to further promote the adoption of the IES requirements, IGCPA and CCPAG developed a diagnosis 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, IGCPA and CCPAG 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 within their members and have reported actions to adopt the new requirement by 2018.
To support members’ awareness and understanding of the standards, the IGCPA 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 IGCPA is encouraged to update the actions it has executed in regards to its plans for a professional examination for individuals seeking IGCPA and CCPAG membership. Overall, the IGCPA is encouraged to continue promoting the adoption and implementation of IES to stakeholders involved in the education of professional accountants in the jurisdiction. In particular, the institute is encouraged to promote the adoption of mandatory continuing professional development requirements by the CCPAG and share the IES requirements amongst the regulators that have registration requirements for external auditors. Along these lines, the IGCPA, in collaboration with the CCPAG, could consider reviewing the gaps in educational requirements, and developing a roadmap for bringing national educational requirements for all professional accountants in line with IES—especially considering the 2015 revised IES.
SMO 3: International Standards on Auditing
The IGCPA is not legally responsible for the adoption of auditing standards in Guatemala but it does play an important role in the standard-setting process by supporting the Colegio de Contadores Públicos y Auditores de Guatemala (CCPAG) in the adoption of ISA, which the CCPAG has adopted since 2007 for application by its members.
The IGCPA has established a Standards Commission and reports that it monitors new and amended standards issued by the IAASB as well as disseminates information on updates to the standards and international developments in the area through printed materials and its website. In addition, the IGCPA includes ISA in its continuing professional development activities and provides additional trainings such as international conferences to different Guatemalan business chambers to enhance understanding on the standards.
The IGCPA states that it has developed practical implementation guidelines for its members.
Within its Action Plan, the IGCPA is encouraged to demonstrate how it may be promoting to the Superintendent of Banks the need to fully adopt the ISA as issued by the IAASB, especially in light of the 2016 ISA which include the new auditor’s report. In addition, if deemed feasible, it may be beneficial for the IGCPA, in collaboration with the CCPAG, 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
In Guatemala, the IESBA Code of Ethics has been adopted by the Colegio de Contadores Públicos y Auditores de Guatemala (CCPAG), whose membership includes all professional accountants. The CCPAG has established ongoing processes to continuously adopt and update its Code so it remains aligned with the IESBA Code of Ethics. Additionally, the IGCPA is responsible for setting ethical requirements for its members, who join on a voluntarily basis, and accordingly it has adopted the IESBA Code of Ethics since 2012.
To support implementation of the Code, the IGCPA, in collaboration with the CCPAG, has carried out various support activities such as seminars and courses and publishing 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 IGCPA 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 several stakeholders in order to achieve proper implementation.
The IGCPA is also encouraged to consider including plans in its Action Plan to promote the IESBA Code of Ethics to universities in order to have the Code incorporated into curricula. Also, if deemed feasible and relevant, it would be beneficial for the IGCPA, in collaboration with the CCPAG, 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 IGCPA is not responsible for setting public sector accounting standards, which are adopted by the Accounting Administration Authority of the Ministry of Public Finance (MoF) in Guatemala. Nevertheless, the institute reports that it promotes the adoption of IPSAS by significantly contributing to consultation activities around the adoption and standard-setting process. To this end, the IGCPA reports that it has participated in different meetings with the MoF to promote the adoption and implementation of IPSAS in Guatemala. As a result of these meetings, the MoF decided to adopt IPSAS in 2013.
Since 2015, the IGCPA has been collaborating with the Colegio de Contadores Públicos y Auditores de Guatemala (CCPAG) to hold courses and conferences on IPSAS and provide training activities for its members and stakeholders.
As of 2017, the IGCPA and CCPAG 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 IPSAS; and preparing pro forma financial statements in accordance with IPSAS.
During the next submission of its Action Plan, the IGCPA 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 IGCPA is encouraged to establish plans in its Action Plan to notify members and stakeholders of all new, proposed, and revised IPSAS and other pronouncements. In addition, if deemed feasible and relevant, it would be beneficial for the IGCPA, in collaboration with the CCPAG, to participate in the international standard-setting process by providing comments on exposure drafts and other IPSASB pronouncements.
SMO 6: Investigation and Discipline
The IGCPA is responsible for establishing and operating an investigative and disciplinary (I&D) system for its members and accordingly it has established an Honor Tribunal that responsible for the I&D procedures of the institue.
In 2012, the IGCPA reported that it carried out 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. Nonetheless, as of 2017 no actions in this regard have been reported.
However, the IGCPA states that it is has been collaborating with the Colegio de Contadores Públicos y Auditores de Guatemala (CCPAG) to prepare amendments to legislation to Decree No. 72 of 2001 to incorporate 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.
During the next submission of its Action Plan, the IGCPA is encouraged to prioritize the development of strategic plans to incorporate the missing SMO 6 requirements it identified during its review and update its Action Plan to include these plans and actions. In addition, the IGCPA is encouraged to provide a status update on the amendments to legislation to incorporate missing SMO 6 requirements to the CCPAG’s I&D system for all professional accountants.
SMO 7: International Financial Reporting Standards
Although the Colegio de Contadores Públicos y Auditores de Guatemala (CCPAG), the Superintendencia de Administración Tributaria, the Securities and Commodities Market, and the Superintendence of Banks are the entities legally responsible for the adoption of accounting standards, the IGCPA actively participates and contributes to the standard-setting process of the CCPAG, and encourages the application of IFRS and IFRS for Small- and Medium-sized Entities (SMEs).
The IGCPA has established an IFRS Standards Committee, responsible for monitoring changes to the standards and pronouncements issued by the IASB, promoting updates to the regulators and ensuring dissemination and training activities for its members.
The IGCPA and CCPAG cooperate to review, disseminate, and train on updates to the standards. 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 standard’s implementation. As part of 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.
Lastly, the IGCPA provides technical support to the CCPAG’s in its participation in GLENIF and participates in the international standard-setting process by making comments to exposure drafts at the regional level.
The IGCPA is encouraged to include plans with defined timelines in its Action Plan with 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. Additionally, the IGCPA is encouraged to consider, in collaboration with the CCPAG, developing technical guidelines on IFRS and IFRS for SMEs to support its members with the implementation of the standards.
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