Instituto Salvadoreño de Contadores Públicos
Associate | Established: 1997 | Associate since 2011
The Salvadoran Institute of Chartered Accountants (ISCP) was constituted in 1997 through a merger of three professional associations. The ISCP represents and promotes the accountancy profession in El Salvador. It supports the adoption of international standards and regulation of the profession through participation in the Accounting and Auditing Monitoring Board and developing professional training programs.
Statements of Membership Obligations (SMOs)
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.
The ISCP has no direct responsibility for the quality assurance (QA) system; nevertheless, it supports the Accounting and Auditing Monitoring Board (CVPCPA) by having two of its members sit on the Board.
The ISCP has been promoting within the CVPCPA compliance with the SMO 1 requirements. The ISCP has established a Quality Control Committee to promote corrective actions to the CVPCPA QA system and develop activities to support implementation.
The ISCP disseminates information on QA and works with the universities by promoting the incorporation of QA topics into their curricula. The ISCP plans training activities to raise the awareness of the importance of the system.
The ISCP is encouraged to carry out a comparison between the CVPCPA QA system and SMO 1 requirements and to report the results to IFAC’s Q&M Staff. Once the comparison is completed, actions should be planned to address any gaps.
Given the lack of responsibility to incorporate IES requirements into the national requirements, the ISCP has focused its activities on promoting an update of the universities’ curricula and using its best endeavors with the government to propose legal changes that would require the accountancy profession in El Salvador to implement IES requirements.
The ISCP has been working with the Board of Professional Associations of El Salvador and the Accounting and Auditing Monitoring Board (CVPCPA) to promote initial professional development requirements. Furthermore, the ISCP has been communicating with Brazilian and Mexican IFAC member bodies to learn about their certification systems.
The ISCP is encouraged to advance the different initiatives to have IES requirements adopted in El Salvador. The ISCP should consider developing opportunities for accountants, whether members or not, to engage in a certification process that is in line with the requirements of IES. This can be achieved independently or through twinning or other arrangements with foreign or regional PAOs. Such a system could potentially be recognized by the CVPCPA as well.
The ISCP is also encouraged to establish communication mechanisms for distributing information to its members on recent developments and revisions issued by the IAESB. The ISCP would also benefit from participation in the international standard-setting process by providing comments on Exposure Drafts and other consultative papers issued by the IAESB.
The ISCP does not have any responsibility for adopting ISA. But, with ISA adopted in El Salvador, the ISCP has developed training to support its members with their implementation, and includes ISA in its continuing professional development activities and seminars. Also, the ISCP disseminates information on the updates to the standards and international developments in the area through printed materials and its website.
The ISCP is cooperating in the IberAm project at the regional level to produce a single, high-quality Spanish translation of ISA.
The ISCP is encouraged to provide in its SMO Action Plan information on the latest version of ISA that has been adopted in El Salvador, and to continue to promote the establishment of an ongoing process to incorporate ISA amendments.
Since the Accounting and Auditing Monitoring Board has adopted the IESBA Code of Ethics for Professional Accountants, the ISCP has disseminated information on the updates of the Code of Ethics through printed materials and its website and supported its members with implementation of the Code.
The ISCP has developed training in topics related to ethical standards, promoted the Code to the universities, and developed an annual survey of compliance with the Code of Ethics.
The ISCP is encouraged to participate in the international standard-setting process by providing comments on IESBA Exposure Drafts and other consultative papers.
Although the ISCP does not have legal responsibility for adopting public sector accounting standards, it promotes the adoption of IPSAS to the government. The ISCP plans to conduct a research study on the status of IPSAS adoption within the Central America region.
The ISCP is encouraged to continue to promote and develop IPSAS-related activities. It should assist its members in the public sector by providing training on the requirements of the existing public sector accounting standards, introducing IPSAS into its continuing professional development activities, and disseminating information on IPSAS updates.
With an Accounting and Auditing Monitoring Board (CVPCPA)-administered investigative and disciplinary (I&D) system in place, the ISCP monitors that system, working closely with the regulator to propose improvements. The ISCP has also been gathering statistical information on I&D cases for tracking and reporting purposes.
The ISCP is working on updating its agreement with the CVPCPA for collaboration and assistance on I&D.
The ISCP is encouraged to carry out a comparison between the CVPCPA I&D system for accountants and auditors and the requirements of SMO 6. Once the comparison is completed, actions should be planned to address any gaps. Also, the ISCP should establish communication mechanisms with its members to let them know about the CVPCPA I&D system.
Although the ISCP does not have legal responsibility for adopting IFRS, its activities are focused on providing training programs and disseminating information on IFRS developments to its members.
The ISCP is encouraged to consider further plans to promote the full adoption of IFRS and plans to support the effective implementation of the standards, particularly through supporting universities in updating their curricula to incorporate IFRS information. The ISCP should continue to promote to the Superintendent of Financial System the adoption of IFRS for bank, insurance, and pension companies.
The ISCP should ensure reference to the standards is available through its website. Also, it would be beneficial for the institute to submit comments on Exposure Drafts issued by the IASB.
The ISCP is encouraged to provide further details in its Action Plan on the Accounting and Auditing Monitoring Board’s ongoing process to incorporate amendments to IFRS.
IFAC bears no responsibility for the information provided in the SMO Action Plans prepared by IFAC member organizations. Please see our full Disclaimer for additional information.