Junta de Decanos de Colegios de Contadores Públicos del Perú
Member | Established: 1962 | Member since 1977
JDCCPP was established by Law No. 25892 of 1992 as an umbrella organization, with mandatory membership, uniting representatives from the 24 departmental associations of public accountants.
JDCCPP is the representative body of the public accountancy profession domestically and internationally. It provides advice to universities on their accounting curricula and is authorized to certify and recertify public accountants at the national level.
Law No. 28951 of 2007 delegates audit and ethics standard-setting authority to the departmental associations of public accountants. In practice, however, all departmental associations defer to the national technical commissions established by the JDCCPP to set and adopt the standards. The standards issued by the JDCCPP are adopted by the departmental associations for mandatory application in their jurisdictions.
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 Peru, each departmental association of public accountants, JDCCPP, and the financial sector regulators—Superintendence of Security Markets (SMV) and the Superintendence of Banking, Insurance, and Pensions (SBS)—have the legal authority to establish a quality assurance (QA) review system for all mandatory audits. While JDCCPP—as the recognized audit standard setter—has adopted ISA 220 and ISQC1; as of 2019, no specific rules have been issued regarding a QA review system. JDCCPP has also reported that the QA review procedures of the SMV and SBS are not fully aligned with SMO 1 best practices.
In 2016, JDCCPP created a Technical Commission of Quality Control, conducted a survey to gather information about the quality control systems in Peru’s audit firms, and planned on launching an initial QA review system by 2017, which would necessitate the development of regulations governing the QA system. However, the initiative did not gain traction due to changes in the governance structure of the JDCCPP. In 2019, JDCCPP reinstated plans to pursue the initiative with the support of two new technical committees: an audit forum of firms, with the mandate to achieve compliance with SMOs 1 and 3, and the regulatory coordination committee, responsible for promoting regulatory consistency in the jurisdiction. JDCCPP expects to carry out a voluntary, pilot QA review program at the beginning of 2022 and make reviews mandatory in 2023.
JDCCPP reports it will support the implementation of relevant standards by developing guidelines on quality control and quality management.
As the JDCCPP is considering its plans to establish a QA review system, it is encouraged to work in collaboration with the SMV and SBS which already have (QA) review system for audits of financial statements of regulated companies, to promote a single, unified QA review system that meets the SMO 1 best practices.
During the next round of updates, JDCCPP is encouraged to provide an update on the status of the establishment and pilot of a QA review system. The JDCCPP is also encouraged to disseminate updates on new and revised standards issued by the IAASB with respect to quality management in the audits of financial statements.
- SMO 2: International Education Standards
In Peru, the Ministry of Education, universities and each departmental association of public accountants have a role in implementing initial professional development requirements for professional accountants, which are established in the Law No. 28951 of 2007.
According to the law, a university accounting degree is the only requirement to be licensed as a professional accountant by the departmental associations. To become a certified independent auditor, departmental associations require an additional practical experience requirement of five years, or three years plus a specialization acquired in an approved auditing course. Mandatory continuing professional development (CPD) is not required.
JDCCPP has developed programs to promote and support the adoption and implementation of IES. JDCCPP has implemented a voluntary national certification to enable the mobility of professionals nationwide. Applicants must complete a final uniform exam of competencies and are subject to CPD requirements to maintain the certification.
To further consider how the 2015 IES requirements—which emphasize approaches that demonstrate competencies—might be incorporated into national accountancy education, JDCCPP reports plans to: disseminate a 2015 Spanish translation of the IES to universities; issue guidance and advice on the university curriculum for public accountants; and develop a professional accountancy education manual for Peru. In addition, JDCCPP plans to develop a competencies-based certification process for all professional accountants by 2020 and offer specific certifications for professionals providing specialty services, such as financial planning, audit, tax, and public sector accounting by 2021—all of which JDCCPP states would be in line with the revised IES.
As the national board of the departmental associations, the JDCCP is encouraged to develop plans to coordinate the adoption and implementation of IES requirements, such as practical experience, a final exam and mandatory CPD for all professional accountants in Peru. JDCCPP is encouraged to develop a gap analysis against the 2015 revised IES and develop a roadmap for bridging the gaps within the current national education requirements. As part of this roadmap, the JDCCP should report on its progress related to its certification initiatives and how they might extend out to each departmental association.
- SMO 3: International Standards on Auditing
The departmental associations of public accountants are responsible for setting auditing standards in Peru under Law No. 28951 of 2007. However, in practice, the departmental associations defer to the auditing standards issued by JDCCPP. JDCCPP has created national technical commissions to set and adopt standards that become mandatory in each department. JDCCPP has been adopting ISA since 2006, and the most recent Resolution No. 50 of 2014 requires ISA version 2009 to be applied by all auditors. JDCCPP reports that it plans to adopt the 2016-2017 ISA in 2019, with an effective application date of 2021.
As evidenced by recent plans to adopt the 2016–2017 ISA, the JDCCPP has developed processes to monitor new and amended standards issued by the IAASB and is concentrated on keeping adopted standards up-to-date.
To facilitate members’ implementation of the standards, JDCCPP offers continuing professional development programming and training sessions on the standards; disseminates information on updates and revisions to ISA; and develops implementation guidelines. As part of the adoption of the 2016-2017 ISA, JDCCPP plans to develop an audit opinion manual, with cases and examples categorized by industry.
Lastly, JDCCPP states that it participates in the international standard-setting process by submitting comments on IAASB exposure drafts through the Inter-American Association of Accountants.
JDCCPP is encouraged to revisit its adoption processes to reduce the time lag in the adoption and implementation of the most recent international standards. The 2018 ISA is now effective, which, in addition to the new auditor’s report, includes revised standards ISA 250 and 540.
- SMO 4: Code of Ethics for Professional Accountants
In Peru, Law No. 28951 of 2007 grants authority to the departmental associations of public accountants to set ethical requirements for their members. In practice, the departmental associations defer to the ethical standards issued by JDCCPP’s technical commissions. As of the date of the assessment, JDCCPP has adopted the 2014 IESBA Code of Ethics through Board Resolution No. 009 of 2015.
The JDCCP has developed processes to monitor new and amended standards issued by the IESBA and is concentrated on keeping adopted standards up-to-date. In 2019, the JDCCPP stated plans to adopt the 2018 International Code of Ethics, including the NOCLAR standard issued in 2016, with an effective application date of 2021.
JDCCPP supports its members with the implementation of the Code by incorporating ethics topics in its training activities and disseminating information on the standards. JDCCPP indicates that it has multiple initiatives planned to support the proper adoption and subsequent implementation of the 2018 International Code of Ethics.
Furthermore, JDCCPP states that it participates in the international standard-setting process by submitting comments on IESBA exposure drafts through the Inter-American Association of Accountants, the regional organization for PAOs in Latin America.
JDCCPP is encouraged to revisit its adoption processes to reduce the time lag in the adoption and implementation of the most recent international standards.
- SMO 5: International Public Sector Accounting Standards
JDCCPP is not responsible for setting public sector accounting standards, which are adopted by the National Direction of Public Accounting (DGCP) under the Ministry of Economy and Finance. The DGCP has adopted accrual-based IPSAS since 2011, and the most recent Resolution No. 010-2018-EF/51.01 of 2018 requires the 2017 IPSAS to be applied. However, the JDCCPP indicates the DGCP has indefinitely postponed the application for the first time of accrual IPSAS and the institute is using its best endeavors to advocate for the application of the standards.
JDCCPP plans to prepare a study on the challenges in applying IPSAS in non-financial public sector entities and suggest application guidelines that are tailored for different government levels. It also notes that it has established communication mechanisms for sharing recent developments and revisions issued by the IPSASB. Additionally, the JDCPP already offers training, including an annual Symposium on the Public Sector Financial Management System and a biennial National Convention of Public Accounting and Public.
Finally, the JDCCPP also reports it participates in the international standard-setting process by submitting comments on IPSASB-issued exposure drafts through the Inter-American Association of Accountants.
During the next round of updates, JDCCPP is encouraged to illustrate how it is supporting the DGCP and government agencies to enhance public financial management in the jurisdiction.
- SMO 6: Investigation and Discipline
The departmental associations of public accountants are responsible for establishing investigative and disciplinary (I&D) systems for their members per Law No. 28951 of 2007. JDCCPP, as the national board of the departmental associations, has created national technical commissions to adopt investigation and disciplinary procedures, which are in turn adopted by each departmental association. JDCCPP issued Resolution No. 014 in 2015 adopting some of the SMO 6 requirements.
In 2019, the JDCCPP conducted an assessment of its I&D policies and processes against the requirements of SMO 6 and has identified gaps, such as the records of investigations and disciplinary processes have not been established, a process for the independent review of complaints on which there was no follow-up have not been established, results of the investigative and disciplinary proceedings are not made available to the public, there are not appropriate process for liaison with outside bodies, and there is not a regular review of implementation and effectiveness of the system.
Each departmental association has an Ethics Committee responsible for receiving and resolving allegations or complaints of malpractice and an Honor Tribunal that resolves appeals. JDCCPP indicates it has established communication mechanisms to inform members and other stakeholders about the importance of the I&D mechanism.
The JDCCPP is encouraged to develop and include a plan to address the existing gaps of its I&D policies based on its self-assessment against the requirements of SMO 6.
During the next round of updates, JDCCPP is encouraged to provide more details and information about its activities to monitor the implementation of the SMO 6 requirements by each departmental associations. In addition, JDCCPP should consider compile compendiums of cases and applicable sanctions as examples to continue communicating the importance of the I&D mechanism.
- SMO 7: International Financial Reporting Standards
It is the responsibility of the Accounting Standards Board (CNC)—which operates under the auspices of the National Direction of Public Accounting (DGCP) as part of the Ministry of Economy and Finance—and the financial sector regulators—Superintendence of Security Markets (SMV) and the Superintendence of Banking, Insurance, and Pensions (SBS)—to set corporate accounting standards for financial statements of the respective companies under each agency’s supervision. The standard-setters all have adopted IFRS and IFRS for Small- and Medium-sized Enterprises (SMEs) by reference.
JDCCPP supports the national standard-setting process through representation on the CNC. It also participates in the Latin American Accounting Standard Setters Group and provides comments to IASB exposure drafts through the same representation.
JDCCPP created its National Technical Committee of Financial Information Standards to provide views on amended and new standards issued by the IASB and to promote the application of IFRS nationwide. In 2019, JDCCPP has reported plans to conduct a survey among its departmental associations of public accountants on any challenges with the application of the standards, with a view to prepare practical guidelines and a benchmark study on the use of IFRS in relation to other countries.
JDCCPP currently offers continuing professional development programming and training sessions; disseminates information on updates and revisions to IFRS and IFRS for SMEs, and prepares implementation guidelines to support members’ application of the standards.
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