Instituto Mexicano de Contadores Públicos, A.C.
Member | Established: 1923 | Member since 1977
The Instituto Mexicano de Contadores Públicos (IMCP) is a federation composed of 60 professional associations that bring together CPAs from around the country. The IMCP has a large range of legal responsibilities that includes regulation of the accountancy profession, standard setting, and the promotion of the accountancy profession. Membership in the IMCP is voluntary and consists of certified and non-certified members. In 1999, the IMCP introduced voluntary certification of Contador Publico Certificado (CPCs). Only IMCP-certified CPCs can perform audits of public interest companies registered with the National Banking and Securities Commission and the National Insurance and Surety Commission. The IMCP is a member of the Inter-American Association of Accountants and of the Group of Latin-American Accounting Standard Setters.
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 legislation establishing a mandatory quality assurance (QA) review system for all audits of financial statements, the IMCP has assumed a leadership role in this area by introducing a mandatory QA system for its members beginning in 2012. The reviews began by only evaluating compliance with the ISQC 1; however, since 2015, the institute states that full QA inspections have been carried out in line with the SMO 1 requirements.
To operationalize its QA system, the IMCP has established two commissions responsible for operating and reviewing the system with a view to continuously improve it—the Quality Managing Commission and Quality Technical Commission, respectively. The IMCP has developed train the trainers’ sessions across the country, provided guidance to its members to support the implementation process, and disseminated updates on new and revised standards issued by the IAASB with respect to quality control in the audits of financial statements. As of the date of the assessment, the IMCP states it is working on the design of a software system to monitor firms’ registration, as well as QA reviews.
Additionally, the IMCP indicates it continues to promote to the regulators the need to implement a mandatory QA review system for all audits in the jurisdiction, not just for audits of IMCP members. However, it has successfully reached an agreement with the National Banking and Securities Commission and the National Insurance and Surety Commission that only its members with the certification of Contador Publico Certificado can perform audits of companies under their regulation. This effectively ensures that all practitioners and firms that conduct audits of public interest entities in Mexico are subject to QA inspections.
The IMCP is encouraged to provide further details related to its activities to promote the legal establishment and development of a mandatory QA review system for all audits in the jurisdiction in line with the SMO 1 requirements.
SMO 2: International Education Standards
In Mexico, the Ministry of Education (MoE) and universities are responsible for setting and implementing initial professional development (IPD) requirements for professional accountants. The only requirement to practice in the accounting profession is to have a bachelor’s degree in accounting from a higher education institution and receive a license from the MoE.
The IMCP has focused its activities on implementing IPD and CPD requirements for its members that are more closely aligned with the IES and international best practice. For example, in 1999, the IMCP introduced the voluntary certification of Certified Public Accountant (CPA; Contador Publico Certificado—CPC), which the IMCP’s states is in line with the IES requirements. The IMCP has also set CPD requirements for its members at 65 CPD credits per year. In addition, the IMCP is also offering certifications by disciplines to professionals providing specialty services, such as financial planning, public sector accounting and auditing, tax, and anti-money laundering. The IMCP states that the certification is in line with the revised IES requirements.
Moreover, the IMCP has been working with the National Association of Colleges and Schools of Accounting and Management (ANFECA), an organization that represents more than 400 institutions of higher education in Mexico. The IMCP has been working to promote the incorporation of the IES requirements effective May 2016 into ANFECA’s accountancy curricula. As of the date of the assessment, the ANFECA is beginning to update its curricula to align with these requirements and to support this initiative, the IMCP is in the process of translating the 2015 IES into Spanish.
The IMCP has also provided implementation guidelines and encouraged the Ministry of Education and other universities to adopt IES requirements in the education of professional accountants in Mexico. Finally, it has also established communication channels for distributing information to members about recent developments and revisions issued by the IAESB.
The IMCP is encouraged to consider adopt a mandatory certification program for all IMCP members promoting best practices among its membership.
SMO 3: International Standards on Auditing
The IMCP is legally empowered to set auditing standards that its members must apply when conducting audits while regulators, such as the National Banking and Securities Commission, and the National Insurance and Surety Commission may set auditing standards for audits of companies under their regulation. ISA have been adopted without modification in Mexico by the IMCP’s Committee on Standards of Auditing and Assurance (CONAA), effective since January 1, 2012, with an ongoing system in place to incorporate new and revised ISA as they become available. As of 2018, the 2016–2017 ISA is being applied. In turn, the regulators accept the auditing standards issued by the IMCP, such that all mandatory audits are conduct in accordance with the latest ISA.
To support the ongoing adoption of the standards, the CONAA and IMCP: (i) monitor new and amended standards issued by the IAASB, and (ii) complete timely translations of the ISA. To achieve this, the IMCP has been a leader in the Ibero-American Cooperation Framework (IberAM)—a regional project, which aims to produce a single, unified, high-quality Spanish translation.
To facilitate members’ implementation of the standards, the CONAA prepares implementation guides, translates the IFAC “Guide to Using International Standards on Auditing in the Audits of Small- and Medium-Sized Entities into Spanish, and has developed a book with models and template examples on the new auditor’s report for its members. Additionally, the institute is raising awareness amongst the regulators on the new standards.
Finally, the IMCP notes it has included ISA in its education, training, and continuing professional development program in addition to its established communication channels, such as printed materials and its webpages, to distribute standard-related information to members.
If deemed feasible, it may be beneficial for the IMCP to participate in the international standard-setting process by providing comments on exposure drafts and other IAASB pronouncements to share its experiences and perspective.
SMO 4: Code of Ethics for Professional Accountants
The IMCP is responsible for establishing ethical requirements for its members. The institute developed and adopted the IMCP Code of Ethics based on the 2014 IESBA Code of Ethics and is now focused on incorporating amendments from the 2015–2016 requirements of the IESBA Code of Ethics.
To ensure alignment of its own code, the IMCP monitor changes to the IESBA Code of Ethics in order to review, translate, approve, and publish new sections of its Code of Ethics or amending existing parts when necessary. To achieve this, the IMCP has been a leader in the Ibero-American Cooperation Framework (IberAM)—a regional project, which aims to produce a single, unified, high-quality Spanish translation of accountancy standards.
For its members, the IMCP supports the implementation of its Code by providing training and mandating that a portion of CPD credits be fulfilled by ethics-related courses as well as disseminating updates of its Code.
Furthermore, the IMCP promotes adherence to the IESBA Code of Ethics to non-members through conferences with regulators, chambers of commerce, professional organizations, and universities in attendance as part of its efforts to facilitate and encourage national adoption. Additionally, the IMCP has been working with the National Association of Colleges and Schools of Accounting and Management (ANFECA), an organization that represents more than 400 institutions of higher education in Mexico, to promote the incorporation of the IES requirements effective May 2016 into ANFECA’s accountancy curricula. One goal of the agreement is to ensure the inclusion of the IESBA Code of Ethics into university curricula.
The IMCP is encouraged to provide an update on its efforts and actions to adopt the 2016 IESBA Code of Ethics and the effective date of its application for its members, thereby eliminating differences with IESBA Code and its own Code. In addition, the IMCP is encouraged to continue promoting the adoption and implementation of the IESBA Code of Ethics for application by all professional accountants in Mexico. Lastly, if deemed feasible and relevant, it would be beneficial for the IMCP, 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 IMCP is not responsible for setting public sector accounting standards, which are adopted by the National Council of Accounting Harmonization (CONAC). State-owned enterprises are required to apply the Governmental Accounting Standards (accrual basis) in the preparation of their financial statements. In addition, since 2014, the CONAC has authorized that Mexican Financial Reporting Standards and IPSAS may be used as a supplementary standards for certain entities.
The IMCP is nonetheless proactive in this area and serves on the Advisory Committee of the CONAC, through its Governmental Sector Vice President’s Office. The IMCP also coordinates the Governmental Accounting Work Group, which analyzes any accounting norms projects that may be submitted to CONAC in order to promote compliance with the provisions of the General Law of Governmental Accounting.
The IMCP is offering public sector accounting certification to professionals providing services in the public sector. In addition, the IMCP has disseminated information on accounting standards for the public sector.
The IMCP is encouraged to demonstrate in its Action Plan how it is supporting members that work in the public sector with the application of currently adopted standards. For example through trainings activities, other guidance materials, etc. In addition, the IMCP is encouraged to more clearly demonstrate its activities to promote full adoption of IPSAS in Mexico.
SMO 6: Investigation and Discipline
The IMCP is responsible for implementing an investigation and discipline (I&D) mechanism for its members. Accordingly, it has implemented an I&D system and reviews its procedures on an ongoing basis to incorporate best practices. The IMCP is a federal umbrella organization and therefore, the state level accountancy organizations under its supervision operate the I&D system through a National Honor Board and 60 localized Honor Committees.
The IMCP has developed a comparison of the local professional accountancy organizations’ I&D systems and processes against the requirements of SMO 6. Through this assessment it has concluded that two areas of the SMO 6 requirements—separate disciplinary committee and enhancing the administrative processes (timeframe targets for disposal of all cases and tracking mechanisms to monitor progress in I&D cases)—have not been incorporated and require further harmonization between its members.
The IMCP is encouraged to provide more information in its SMO Action Plan about the activities it is undertaking to address the SMO 6 requirements that have not been incorporated. In addition, the IMCP is encouraged to consider its role in promoting and supporting the establishment of I&D systems or a single, unified I&D system that meets SMO 6 requirements for all accountancy professionals within the jurisdiction.
SMO 7: International Financial Reporting Standards
It is the responsibility of the Mexican Board for Research and Development of Financial Reporting Standards (CINIF) and the financial sector regulators—the National Banking and Securities Commission (CNBV), and the National Insurance and Surety Commission (CNSF)—to set corporate accounting standards for financial statements of the respective companies under each agency’s supervision. The IMCP delegated its standard-setting authority in this area for its members to CINIF upon its establishment.
CINIF issues Mexican Financial Reporting Standards (MFRS), which are being converged with IFRS and has published an analysis of main differences. Although CINIF plans to eliminate the differences between MFRS and IFRS, it is unclear when full convergence may be achieved. Listed companies are required to use standards issued by the CNBV, which are the IFRS. Financial institutions and insurance companies apply MFRS in addition to certain requirements issued by the CNBV and the CNSF.
When delegating authority to the CINIF, the IMCP became a founding member of CINIF and actively participates in standard-setting process as a member of CINIF’s Technical Consulting Committee. In this role, it provides comments on new accounting standards projects and also contributes to the review of and submission of comments to IASB-issued exposure drafts.
Amongst its members, the IMCP supports the implementation of MFRS by reviewing and drafting a supplementary MFRS handbook, which includes the key differences between MFRS and IFRS; preparing a glossary of technical terms; and participating in specialized groups such as a Revenue and Contract Costs Translation Group to assist preparers to better understand of these standards. Furthermore, the institute also supports IFRS implementation by providing training activities, distributing information of the standards through various dissemination means, such as its website and its monthly technical magazine, and maintaining an ongoing dialogue with regulators.
The IMCP is encouraged to continue raising awareness with regulators of financial institutions and insurance companies on the importance of adopting full IFRS for the companies under their supervision. The IMCP is similarly encouraged to consider further plans to support the CINIF to eliminate differences between the MFRS and IFRS and fully adopt the IFRS. As part of these efforts, the IMCP may also consider outlining further plans to support the implementation of IFRS by working with universities to utilize updated accountancy curricula that includes the IFRS.
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