Instituto Mexicano de Contadores Públicos, A.C.

Member | Established: 1923 | Member since 1977

The IMCP is an umbrella federation composed of 60 professional associations that bring together professional accountants from around the country. Membership in the IMCP is voluntary and consists of certified and non-certified members. Certified members have earned the IMCP's certification of Contador Publico Certificado–CPC. Only IMCP-CPCs can perform audits of public interest entities registered with the National Banking and Securities Commission and the National Insurance and Surety Commission.

The IMCP, along with its state professional organizations, carries out the following regulatory activities for its members: (i) setting auditing standards; (ii) establishing ethical standards; (iii) setting and enforcing continuing professional development (CPD) requirements; (iv) implementing an investigation and discipline system; and (v) establishing and operating a quality assurance (QA) review system.

In addition to being an IFAC member, the IMCP is a member of the Inter-American Association of Accountants.

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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.

Methodology
Last updated: 12/2022
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SMO Action Plan

Status of Fulfillment by SMO

• 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 (known as NRCC) for its members beginning in 2012. The reviews started by only evaluating compliance with the ISQC 1; however, since 2015, the institute completes QA inspections have been carried out in line with the SMO 1 requirements.

  To operationalize its QA system, the IMCP established two commissions responsible for continuously operating and reviewing the system to 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. In addition, the IMCP developed a software system to monitor firms' registration and QA reviews.

  In August 2021, the IMCP officially announced the mandatory adoption of ISQM1 and ISQM 2 to become effective on December 15, 2022. In addition, the IMCP is reviewing and amending its NRCC to consider the ISQM standards.

  The IMCP indicates it continues to urge regulators on need to implement a mandatory QA review system for all audits in the jurisdiction, not just for audits of IMCP members. The IMCP has successfully agreed with the National Banking and Securities Commission and the National Insurance and Surety Commission to ensure that only individuals with the certification of Contador Publico Certificado performs 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.

  Current Status: Sustain

• 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 main requirement to practice accountancy in Mexico is a bachelor's degree in accounting from a higher education institution and universities set the curriculum for accounting degrees. Several universities require their students to undertake a final exam when they finish their formal education program. An independent evaluation body manages the exam (CENEVAL), and the exam's content is aligned with the 2019 International Education Standards (IES). The MoE then licenses professional accountants to practice public accountancy.

  The IMCP has focused its activities on implementing Initial Professional Development and Continuous Professional Development (CPD) requirements for its members that join voluntarily. The IMCP endeavors to align its IPD and CPD with the 2019 IES and international best practices. For example, in 1999, the IMCP introduced the voluntary certification of Certified Public Accountant (CPA; Contador Publico Certificado—CPC) for auditors of public interest entities, which the IMCP states it is in line with the 2019 IES requirements.

  The obtain the CPC designation, an individual needs to conclude an undergraduate program in accounting and have a period of practical experience of at least three years, and take a comprehensive examination in accounting topics that include financial accounting and reporting, cost accounting, taxation business law and regulation, finance and auditing and professional ethics. These requirements are accepted as equivalent to those required for CPA Canada and CPA US.

  The IMCP undertook a strategic survey and analysis on adopting a mandatory certification program for other IMCP members and decided that the initiative would not be able to succeed based on the voluntary nature of its membership.

  The IMCP also has set CPD requirements for its members between 45 - 65 CPD credits per year, depending on if they are a CPA or not. In addition, the IMCP also offers certifications by disciplines for professionals providing specialty services, such as financial planning, public sector accounting and auditing, tax, and anti-money laundering. The IMCP states that the certifications are in line with the IES requirements.

  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 promoted incorporating the IES requirements into ANFECA's accountancy curricula. 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.

  In addition, the IMCP is also in communication with academics from the leading universities in the country (UNAM, ITAM, Tecnológico de Monterrey) to include the IES framework in their accountancy curricula. The IMCP had worked with CENEVAL to include the IES framework in the Accounting Bachelor integrated test (the final exam).

  The IMCP has translated the 2019 IES Handbook. Since 2019, it has developed materials for IES communication and facilitated their application through virtual and in-person seminars for students, academics, and accounting professionals. In 2021, the IMCP launched a national continuing education program about digital competencies that includes topics on Analytics, Big Data, Information Security, among others. In addition, the IMCP also has a special program about ethics called "HYPERLINK "https://imcp.edu.mx/course/etica-profesional/"Conversatorio de Etica". Finally, the IMCP Continuous Development Committee includes digital competencies in the CPD for IMCP members.

  The IMCP has a representative on the IFAC International Panel on Accountancy Education, and it is committed to following IPAE projects and recommendations; for example, the IMCP is working to develop a program about sustainability and ESG indicators, considering the recent revisions to CPA education models in the United States and Canada.

  Finally, the IMCP has also established communication channels for distributing information to members about recent developments and revisions around education requirements.

  The IMCP has demonstrated an ongoing process to maintain its fulfillment of the SMO 2 obligations and is committed to continuous improvement.

  Current Status: Sustain

• SMO 3: International Standards on Auditing

  Article 5 of the Mexican Constitution grants legal authority to the IMCP to issue auditing standards that its members must apply in all audits they conduct. ISAs have been adopted without modification by the IMCP's Committee on Standards of Auditing and Assurance, effective since January 2012, for all mandatory audits. When the IAASB issues new and revised ISA, the standards are reviewed, translated, and published by the IMCP, mandating the same effective adoption dates as the IAASB. As of 2022, the 2020 ISA are being applied.

  In addition, financial sector regulators—the National Banking and Securities Commission, and the National Insurance and Surety Commission—are empowered to set sector-specific audit rules for the companies they regulate. Both the CNBV and CNSF accept the auditing standards issued by the IMCP such that all audits of listed companies, financial institutions, and insurance companies—effectively the public interest entities (PIEs) in Mexico—are conducted in accordance with the latest ISA. In addition, the Mexican Internal Revenue Department also accepts the auditing standards issued by the IMCP.

  To support the ongoing adoption of the standards, the IMCP: (i) monitors new and amended standards issued by the IAASB and (ii) completes timely translations.

  The IMCP has included ISA in its education, training, and continuing professional development program and its established communication channels, such as printed materials and webpages, to distribute standard-related information to members. It has also developed a book with models and template examples for its members.

  The IMCP participates in the international standard-setting process by nominating and supporting a representative to serve on the IAASB, and contributing to various IAASB task forces, working groups, and committees.

  Current Status: Sustain

• 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 2018 International Code of Ethics issued by IESBA and is now focused on incorporating amendments from the 2021–2022 requirements of the International Code of Ethics.

  To ensure alignment of its Code, the IMCP monitors changes to the IESBA Code of Ethics to review, translate, approve, and publish new sections of its Code of Ethics or amend existing parts when necessary.

  The IMCP supports the implementation of its Code by providing training, mandating that a portion of CPD credits be fulfilled by ethics-related courses, and disseminating its Code updates.

  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 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 into ANFECA's accountancy curricula. One goal of the agreement is to ensure the inclusion of the IESBA Code of Ethics into university curricula.

  It is in the public interest that professional accountants adhere to the latest ethical requirements issued by the IESBA. The IMCP is encouraged to continue pursuing its timely convergence process to eliminate differences between its Code and the International Code of Ethics. The 2021 Handbook is currently effective, with changes in the terms and concepts used in the IAASB's International Standard on Assurance Engagements (ISAE) 3000 (Revised), and revisions to promote the role and mindset expected of all professional accountants. In addition, the objectivity of an engagement quality reviewer and other appropriate reviewers, revisions to the non-assurance services, and revisions to the fee-related provisions will be effective in December 2022.

  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.

  Current Status: Review & Improve

• SMO 5: International Public Sector Accounting Standards

  The IMCP is not responsible for setting public sector accounting standards adopted by the National Council of Accounting Harmonization (CONAC). Mexico has adopted national standards with reference to IPSAS as the federal public sector accounting standards (IFAC/CIPFA International Public Sector Financial Accountability Index 2020). The national standards are on a partial accrual basis.

  State-owned enterprises are required to apply the Governmental Accounting Standards on an 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 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 to promote compliance with the provisions of the General Law of Governmental Accounting and promote the adoption of accrual-IPSAS.

  The IMCP offers a 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 has demonstrated an ongoing process to maintain its fulfillment of the SMO 5 obligations and is committed to continuous improvement.

  Current Status: Sustain

• 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 compared the local professional accountancy organizations' I&D systems and processes against the requirements of SMO 6 (global best practices). Through this assessment, it has concluded that three areas of the SMO 6 requirements—having a separate disciplinary committee, linkage with the results of Quality Assurance reviews, and certain 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 and improvements.

  I&D procedures that meet the SMO 6 benchmark are foundational to maintaining public trust and confidence in the profession. While the IMCP has updated its regulations, it is not evident that it has strengthened alignment with SMO 6 best practices. The IMCP is therefore encouraged to include a plan to address the existing gaps.

  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.

  Current Status: Execute

• SMO 7: International Financial Reporting Standards

  It is the responsibility of the Mexican 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) that are regularly converged with IFRS and publishes an analysis of any differences. As 2022, almost all the rules established in MFRS converge with IFRS; however, CINIF continuously reviews the existing differences to confirm whether they should remain or whether they should be eliminated in accordance with current circumstances (e.g., inflation; cryptocurrencies). Financial institutions and insurance companies apply MFRS in addition to certain requirements issued by the CNBV and the CNSF. Listed companies are required to use IFRS

  When delegating authority to the CINIF, the IMCP became a founding member of CINIF and actively participates in the standard-setting process as a member of CINIF's Technical Consulting Committee. In this role, it provides comments on new accounting standards projects and contributes to reviewing and submitting 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 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 consider further plans to support the CINIF to eliminate differences between the MFRS and IFRS and fully adopt the IFRS.

  Current Status: Sustain

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