Associate | Established: 1999 | Associate since 2009
OEC was established by the Law of 10 June 1999 On the Profession of Accountant. It is a mandatory membership organization for all certified chartered accountants (“experts-comptables”), individuals and firms that wish to offer accountancy and tax services. OEC’s responsibilities include to: (i) ensure that its members comply with all applicable laws and regulations; (ii) establish ethical requirements for its members; (iii) protect the rights and interest of the profession; (iv) advocate for the profession in legal and technical matters; (v) set and enforce continuing professional development requirements for its members; and (vi) to implement and oversee disciplinary measures of its members. In addition to IFAC membership, OEC is a member of Accountancy Europe.
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 Luxembourg, the Commission de Surveillance du Secteur Financier (CSSF) —the public oversight body of the audit profession and financial services regulator in the jurisdiction—is responsible for the adoption and implementation of a quality assurance (QA) review system for statutory audits.
While Ordre des Experts-Comptables (OEC) members do not perform any audit engagements, OEC reports that it has developed and implemented a peer review system, “HYPERLINK "http://www.oec.lu/myeteam/index.htm" \l "PDF/50417"Règlement sur le Contrôle confraternel”, for the work activities of its members since 2011. The peer review system seeks to ensure that members respect their legal obligations and professional rules (e.g., application of ISRS, ISRE, or ISAE).
With regards to their professional obligations arising from legislation relating to anti-money laundering and terrorism financing, ), the OEC has moved from a peer review system to a professional examination system (3 people – soon to be 4 – have been hired for this purpose).
In 2018, the OEC conducted an assessment of its peer review system policies and processes against the requirements of SMO 1 and concluded that where components of SMO 1 that are applicable to its members, they review systems align with the requirements. Details are included in the OEC’s SMO Action Plan.
To operate the review systems, OEC has created a Control committees complemented by an IT software that enables OEC to manage and monitor inspections.. OEC is strengthening its review procedures by beginning to systematically have documentation of general peer reviews (non- AML/FT) sent to the OEC.
SMO 2: International Education Standards
In Luxembourg, the Law of 10 June 1999 regulates the accounting profession and establishes the initial (minimum bachelor’s degree, three years’ practical experience, and complementary education and exam) and continuing professional development (IPD and CPD) requirements for certified chartered accountants (“experts-comptables”). The University of Luxembourg organizes and delivers the IPD program, including professional examinations, based on the requirements outlined in the law.
To support incorporation of the IES requirements, the OEC holds a position on the University of Luxembourg‘s committee that is responsible for the professional education program and the organization of the examinations (test d’aptitude). The Ordre des Experts-Comptables (OEC) report that IES 1–6 are aligned with the IES.
The OEC is responsible for establishing and implementing CPD, which for OEC members are set at 60 credits within three years. Any members of OEC that are also members of IRE (the professional organization for auditors) must fulfill 120 hours over three years. In 2017, OEC began monitoring members’ compliance with the CPD requirements. The institute indicates that it offers an annual CPD program to support its members in meeting CPD obligations and will also highlight trainings offered by the IRE. Since the beginning of 2023, , the OEC offered several trainings on tax matters and anti-money laundering; detection of corruption indicators; FATCA & CRS; GDPR and more in collaboration with the House of Entrepreneurship as well as the Ministry of Justice and the FIU.
The institute has also partnered with a number of training to organize (at preferential conditions)training and conference cycles for members; and dedicated access through the OEC website to selected e-learning courses.
SMO 3: International Standards on Auditing
According to the Audit Law, the application of ISA is required in all statutory audits and the Commission de Surveillance du Secteur Financier (CSSF) may issue standards in the field of statutory audit for matters that are not covered by the auditing standards. The Institut de Réviseurs d’Enterprise (IRE), the professional accountancy organization for statutory auditors and audit firms, to issue standards on various activities with the exception of those application to statutory audit. The OEC’s membership is not carrying out audit engagements.
As part of employing its best endeavors, the OEC has established that its membership must adhere to ISRS, ISRE, and ISAE standards that are issued by the IAASB. Pronouncements are adopted in the original English text with no add-ons/carve-outs.
When IAASB pronouncements are issued, the OEC indicates that it shares this information to its members via email, newsletter, and a dedicated IFAC RSS feed on its website.
SMO 4: Code of Ethics for Professional Accountants
The Ordre des Experts-Comptables (OEC) is responsible for establishing ethical requirements for its members. The OEC developed and adopted the “Code de déontologie” which has been updated to currently align with the 2022 IESBA Code of Ethics with specificities included as they pertain to the profession in Luxembourg. Its Ethics Task Force remains aware of changes and updates to the IESBA Code to incorporate amendments and updates on an ongoing basis.
The OEC supports the implementation of its Code amongst its members by: (i) incorporating a course on ethics as part of the initial professional development program, (ii) providing trainings and seminars on ethics-related courses, and (iii) disseminating updates of the IESBA Code of Ethics and of its Code. Finally, the OEC participates in the international standard-setting process by providing comments to the IESBA through its membership with Accountancy Europe.
SMO 5: International Public Sector Accounting Standards
Public sector accounting standards are set by the Ministry of Finance (MoF) through regulations and circulars and Luxembourg is currently using a national cash accounting system.
The Ordre des Experts-Comptables (OEC) is not responsible for the adoption of public sector accounting standards and that activities related to the public sector are not within its scope. The institute indicates that it stands ready to provide relevant information on IPSAS to its members and could participate in promoting IPSAS adoption through governmental committees or Accountancy Europe in the event that these initiatives were started by authorities.
SMO 6: Investigation and Discipline
The Ordre des Experts-Comptables (OEC) is responsible for implementing an investigation and discipline (I&D) mechanism for its members. OEC completed a self-assessment of its I&D system and while its procedures are largely aligned with SMO 6 requirements, there are some gaps in areas of public interest considerations and administrative procedures.
The OEC President or another member of the OEC Council who is not a member of the Disciplinary Council will do an initial investigation of the complaint. The OEC has established a Disciplinary Council to impose sanctions on any of its members including monetary fines, prohibition to exercise specific activities, or permanent prohibition on the right to practice. Decisions of the Disciplinary Council may be challenged through appeal both by the individual and by the General State Prosecutor. The appeal should be brought before the Civil Chamber of the Court d’Appel (Court of Appeal) which will give its decision by way of a final judgment.
Additionally, the OEC reports that it uses its newsletter and website to ensure that its members are informed of current regulations application to the profession, the ethical requirements, and consequences of non-compliance with any of these standards.
The OEC publishes any sanction or repressive measure taken as a result of a breach of the provisions of the AML/CFT law on its website. It also established a platform for whistleblowers on its website.
SMO 7: International Financial Reporting Standards
In accordance with the EU Accounting Directive, EU-endorsed IFRS are mandatory for the preparation of consolidated financial statements of listed entities. In addition, non-listed entities are permitted to apply EU endorsed IFRS for their consolidated financial statements. Upon authorization from the Luxembourg accounting advisory board (“CNC”), other non-listed entities have the choice between using EU endorsed IFRS or LuxGAAP for the preparation of their statutory financial statements.
The Ordre des Experts-Comptables (OEC) states that it actively participates in the activities of CNC via its representatives in the Commission’s subgroups. Through its involvement in these subgroups, the OEC provides technical advice to the CNC about the application of both the EU and national accounting laws and regulations as well as the implementation of EU-endorsed IFRS.
Among its members the OEC supports IFRS implementation by ensuring coverage of IFRS within its newsletter and sharing CNC circulars that include FAQs related to new standard-related developments. The institute will also direct members to IFRS trainings hosted by other organizations, such as the IRE—the professional accountancy organization for auditors—or the CNC. Given the number of trainings offered by these and other organizations and the fact that IFRS are rarely used by unlisted companies (which comprises most of the work undertaken by OEC members), the institute has not included IFRS within its own CPD program.
Lastly, the OEC will participate in the international standard-setting process by providing comments to the IASB through its membership with Accountancy Europe.
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.
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