Ordre des Experts-Comptables of Luxembourg

Under the Law of 23 July 2016 concerning the audit profession, as amended, the Commission de Surveillance du Secteur Financier (CSSF), as the public oversight authority for the audit profession and financial services regulator in Luxembourg, is responsible for the adoption and implementation of the quality assurance (QA) review system for statutory audits.

While members of the Ordre des Experts-Comptables (OEC) do not perform statutory audit engagements, the OEC reports that it has maintained a peer review system, Règlement sur le Contrôle confraternel, since 2011 for the professional activities carried out by its members. This system is designed to ensure that members comply with their legal obligations and applicable professional standards, including International Standards on Related Services, International Standards on Review Engagements, and International Standards on Assurance Engagements.

With respect to members’ obligations under anti-money laundering and counter-terrorist financing legislation, the OEC has transitioned from a peer review system to a dedicated professional examination system, supported by specialized staff and enhanced monitoring processes.

The OEC reports that it assessed its review system against the requirements of SMO 1 and concluded that, for the components applicable to its membership, the system is aligned with the requirements. To support implementation, the OEC has established control committees and an information technology system to manage and monitor inspections. The OEC also reports that it continues to strengthen its procedures by systematically obtaining and retaining documentation related to general peer reviews. Accordingly, SMO 1 continues to be assessed as Sustain.

Current Status: Sustain

In Luxembourg, the Law of 10 June 1999 regulates the accounting profession and establishes the initial professional development and continuing professional development requirements for certified chartered accountants, experts-comptables. These include a minimum bachelor’s degree, three years of practical experience, and completion of complementary education and professional examinations. The University of Luxembourg organizes and delivers the initial professional development program, including the professional examinations, in accordance with the legal requirements.

To support alignment with the International Education Standards (IES), the Ordre des Experts-Comptables (OEC) holds a position on the University of Luxembourg committee responsible for the professional education program and the organization of the test d’aptitude. The OEC reports that the initial professional development requirements are aligned with IES 1–6.

The OEC is also responsible for establishing and implementing continuing professional development requirements for its members, which are set at 60 credits over a three-year period. Members who are also members of the Institut des Réviseurs d’Entreprises are required to complete 120 hours over three years. Since 2017, the OEC has monitored members’ compliance with these requirements.

The OEC reports that it offers an annual continuing professional development program to support members in meeting their obligations and also disseminates relevant training opportunities offered by the Institut des Réviseurs d’Entreprises. Since 2023, the OEC has delivered training on tax matters, anti-money laundering, detection of corruption indicators, FATCA and CRS, and data protection requirements, in collaboration with the House of Entrepreneurship, the Ministry of Justice, and the Cellule de Renseignement Financier.

In addition, the OEC has established partnerships with training providers to offer preferential access to conferences and learning cycles and provides access through its website to selected e-learning courses. Accordingly, SMO 2 continues to be assessed as Sustain.

Current Status: Sustain

Under the Law of 23 July 2016 concerning the audit profession, as amended (Audit Law), the application of International Standards on Auditing (ISA) is required for all statutory audits in Luxembourg, and the Commission de Surveillance du Secteur Financier (CSSF) may issue standards in the field of statutory audit for matters not otherwise covered by the auditing standards.

The Institut des Réviseurs d’Entreprises (IRE), the professional accountancy organization for statutory auditors and audit firms, is responsible for issuing standards for engagements outside the statutory audit scope. The membership of the Ordre des Experts-Comptables (OEC) does not carry out statutory audit engagements.

As part of its best endeavors, the OEC requires its members to adhere to International Standards on Related Services, International Standards on Review Engagements, and International Standards on Assurance Engagements issued by the International Auditing and Assurance Standards Board. These pronouncements are adopted in their original English text without add-ons or carve-outs.

The OEC also supports implementation by communicating new and revised pronouncements to its members through email updates, newsletters, and a dedicated International Federation of Accountants (IFAC) RSS feed available on its website. Accordingly, SMO 3 continues to be assessed as Sustain.

Current Status: Sustain

The Ordre des Experts-Comptables (OEC) is responsible for establishing ethical requirements for its members. The OEC has developed and adopted a Code de déontologie, which the member reports is currently aligned with the 2024 International Code of Ethics for Professional Accountants (including International Independence Standards) issued by the International Ethics Standards Board for Accountants, with Luxembourg-specific provisions relevant to the profession.

The OEC supports implementation of its code by incorporating ethics as part of the initial professional development program, providing training and seminars on ethics-related matters, and disseminating updates on changes to both the International Ethics Standards Board for Accountants Code and its own Code de déontologie. The OEC also participates in the international standard-setting process through its membership in Accountancy Europe.

While the OEC reports that its Ethics Task Force continues to monitor developments and incorporate amendments on an ongoing basis, the publicly evidenced alignment remains with the 2024 edition rather than the current 2025 edition of the International Code. Accordingly, SMO 4 is assessed as Review & Improve.

The OEC should focus on updating its Code de déontologie to fully align with the latest 2025 International Code of Ethics, including any new revisions and conforming amendments, and continue strengthening the process for timely incorporation of future updates.

Current Status: Review & Improve

Public sector accounting standards in Luxembourg are established by the Ministry of Finance (MoF) through laws, regulations, and administrative circulars. Luxembourg continues to apply a national modified cash accounting framework in the public sector.

The Ordre des Experts-Comptables (OEC) does not have direct responsibility for the adoption or implementation of public sector accounting standards, and public sector standard-setting activities are outside the scope of its legal mandate and membership responsibilities.

The OEC reports that it stands ready to provide relevant information on International Public Sector Accounting Standards (IPSAS) to its members and to contribute to any future public sector accounting reform initiatives, including potential work undertaken through governmental committees or Accountancy Europe, should such initiatives be launched by the competent authorities.

Accordingly, given the nature of its mandate and the legal and regulatory framework in Luxembourg, SMO 5 continues to be assessed as Sustain.

Current Status: Sustain

The Ordre des Experts-Comptables (OEC) is responsible for implementing an investigation and discipline (I&D) mechanism for its members. The OEC reports that it has completed a self-assessment of its I&D system and that its procedures are largely aligned with the requirements of SMO 6.

The President of the OEC, or another member of the OEC Council who is not a member of the Disciplinary Council, conducts the initial investigation of complaints. The OEC has established a Disciplinary Council with authority to impose sanctions on members, including monetary fines, temporary prohibition from carrying out specific activities, and permanent prohibition from the right to practice.

Decisions of the Disciplinary Council may be appealed by both the individual concerned and the General State Prosecutor. Appeals are brought before the Civil Chamber of the Cour d’Appel, which issues a final judgment.

The OEC also reports that it uses its website and newsletter to keep members informed of current legal and regulatory requirements applicable to the profession, ethical obligations, and the consequences of non-compliance.

In addition, the OEC publishes sanctions and repressive measures taken in relation to breaches of anti-money laundering and counter-terrorist financing legislation on its website and has established a whistleblower reporting platform. Accordingly, SMO 6 continues to be assessed as Sustain.

Current Status: Sustain

In accordance with the European Union (EU) Accounting Directive, International Financial Reporting Standards (IFRS Accounting Standards) as adopted by the EU are mandatory for the preparation of consolidated financial statements of listed entities. In addition, non-listed entities may apply IFRS Accounting Standards as adopted by the EU for their consolidated financial statements. Upon authorization from the Commission des Normes Comptables (CNC), other non-listed entities may choose between IFRS Accounting Standards as adopted by the EU and Luxembourg generally accepted accounting principles for the preparation of their statutory financial statements.

The Ordre des Experts-Comptables (OEC) reports that it actively participates in the work of the CNC through its representatives in the Commission’s subgroups. Through this involvement, the OEC provides technical advice on the application of both EU and national accounting laws and regulations, as well as on the implementation of IFRS Accounting Standards as adopted by the EU.

The OEC also supports implementation among its members by covering IFRS developments in its newsletter and sharing CNC circulars and frequently asked questions related to new standard-setting developments. In addition, the OEC directs members to relevant training opportunities offered by other organizations, including the Institut des Réviseurs d’Entreprises and the CNC.

Given that IFRS Accounting Standards are infrequently applied by the majority of the OEC’s membership, which primarily serves unlisted entities, the OEC has not incorporated dedicated IFRS training into its own continuing professional development program.

Lastly, the OEC contributes to the international standard-setting process through its membership in Accountancy Europe, including by providing comments to the International Accounting Standards Board. Accordingly, SMO 7 continues to be assessed as Sustain.

Current Status: Sustain