Ordre des Experts Comptables du Royaume du Maroc
Member | Established: 1993 | Member since 2004
Moroccan Law 15-89 1993 enacted by Dahir 1-92-139 of 14 Rejab 1413 established the Ordre des Experts-Comptables du Royaume de Maroc (OEC-Morocco). Membership of the institute is comprised of Chartered Accountants and membership is mandatory to practice accounting or auditing.
Under Law 15-89, the institute is responsible for: (i) maintaining a public registry for members; (ii) establishing continuing professional development requirements for members; (iii) establishing auditing standards; (iv) establishing ethical requirements; (v) establishing and conducting audit quality assurance reviews; (vi) investigating and disciplining its members for misconduct and breach of professional rules.
In addition to being a member of IFAC, OEC-Morocco is also a member of the Pan African Federation of Accountants, the Federation of Mediterranean Certified Accountants, and the International Federation of Francophone Accountants.
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
OEC-Morocco has direct responsibility for establishing a quality assurance (QA) review system, and since 2012, has operated a QA review system that it reports is in line with the main SMO 1 requirements.
The institute adopted the French version of ISQC 1 and is focused on assisting its members with the implementation of ISQC 1. It has incorporated ISQC 1 in to its Standards Handbook and has organized seminars to raise members’ awareness of the standards. Additionally, the institute provides annual training to QA reviewers and members on ISQC 1 requirements and states that it researches, develops, and updates appropriate tools to further support implementation.
OEC-Morocco reports that it organized a virtual training in 2021 to prepare auditors in the jurisdiction for the implementation of the new suite of Quality management standards that will become effective in 2021-2022 which will require significant change management for regulators and firms. OEC-Morocco indicated that it is closely following the developments and publication of implementation support materials, and has publicized the forthcoming change via e-newsletters to members. OEC-Morocco also plans to update its educational programming to ensure that its members are sufficiently prepared for the application of the standards once they become effective.
OEC-Morocco is encouraged to continue monitoring and preparing members for the changes from quality control standards to quality management standards. Additionally, OEC-Morocco should consider providing further information on the number of QA reviews conducted during the next SMO Action Plan update.
SMO 2: International Education Standards
While initial professional development (IPD) requirements are set by law, OEC-Morocco is responsible for enforcing the IPD requirements and setting and monitoring members’ compliance with continuous professional development (CPD) requirements. The institute reports both IPD and CPD requirements are aligned with 2015 IES requirements and that it continuously reviews the IES requirements to ensure that OEC-Morocco’s education and training are compliant. OEC-Morocco reports that it is in the process of completing a review against the 2019 revised IES that address learning and development for information and communications technologies (ICT) and professional skepticism.
To this effect, OEC-Morocco has strengthened its Training Center and provides an annual calendar of CPD events to its members. The institute raises awareness of the CPD requirements and the upcoming events by publishing them on its website. OEC-Morocco also monitors compliance by annually collecting forms that state members’ training attendance. In cases of non-compliance, OEC-Morocco implements sanctions issued by National and Regional Council members.
OEC-Morocco is encouraged to provide an update on the review against 2019 revised IES, and plans to incorporate the revised standards into its education and training programs. OEC-Morocco could also consider participating in the international standard-setting process by providing comments on Exposure Drafts issued by the IAESB.
SMO 3: International Standards on Auditing
The Ordre des Experts-Comptables du Royaume de Maroc (OEC-Morocco) is responsible for establishing auditing standards to be applied in all mandatory audits in Morocco under Moroccan Law 15-89 1993 enacted by Dahir 1-92-139 of 14 Rejab 1413.
OEC-Morocco adopted the 2016-2017 Handbook of International Quality Control, Auditing, Review, Other Assurance and Related Services Pronouncements for application in all contractual audit engagements and reports to have completed the convergence between Moroccan Standards on Auditing with the 2016-2017 Handbook for statutory audit engagements..
As part of the convergence process, the institute has a formal agreement with Fédération Internationale des Experts Comptables et Commissaires aux Comptes Francophones (the International Federation of Francophone Accountants) to have regular access to translated IAASB pronouncements and other papers to update the Moroccan Standards on Auditing and established an International Standard-setting Committee to monitor and review developments to the translated standards.
Additionally, OEC-Morocco disseminates Exposure Drafts of the Moroccan Standards on Auditing to obtain comments from members in order to assess their impact on implementation. To further assist members with implementation, OEC-Morocco informs members about the activities of the International Standard-setting Committee and IAASB pronouncements on a monthly basis. The institute also hosts continuing professional development events and training programs on ISA and works to ensure that ISA is included in its initial professional development program.
The 2020 Handbook is now effective and available in French, which includes revised standards ISA 250 and 540. OEC-Morocco should consider including the most recent standards into its programming and outlining its planned implementation support.
SMO 4: Code of Ethics for Professional Accountants
Ordre des Experts-Comptables du Royaume de Maroc (OEC-Morocco) is responsible for adopting ethical requirements for its members, which includes all professional accountants in the jurisdiction, in accordance with Law 15-89 1993 enacted by by Dahir 1-92-139 of 14 Rejab 1413.
OEC-Morocco reports that it incorporates revisions to the IESBA Code of Ethics on an ongoing basis as they become effective.
OEC-Morocco works on raising members’ awareness on the Code and providing training. In line with this, the institute has updated its continuing professional development programs and training programs to include the Code of Ethics and has provided French translations of the Code to its members. Additionally, it reviews the Code of Ethics with its members at its Annual General Meeting.
The institute also participates in the standard-setting process by submitting comments to Exposure Drafts published by the IESBA.
SMO 5: International Public Sector Accounting Standards
OEC-Morocco has no direct responsibility for the adoption and implementation of IPSAS, however, it states that it supports the adoption of IPSAS for Moroccan public sector entities. OEC-Morocco has three representatives (out of seven) within the Conseil National de la Comptabilité (CNC)—the body responsible for adopting IPSAS—and participates in activities carried out by the CNC regarding IPSAS. The institute also reports that it monitors the activities of IPSASB to follow developments to the standards. While there seems to be a lack of developments and plans to adopt IPSAS at the government level, OEC-Morocco indicated that it advocated for the adoption of IPSAS through various meetings with the CNC between 2020-2021.
OEC-Morocco membership includes accountants that provide services in the public sector. Accordingly, OEC-Morocco reports that its continuing professional development (CPD) programs, as well as other training and educational activities (primarily virtual), include IPSAS-related materials. To increase awareness amongst its members, OEC-Morocco reports to monitor international developments in the area and disseminates the French version of the IPSASB Handbook to its members and shares announcements via its website and e-newsletter.
Although OEC-Morocco appears to be supporting adoption of IPSAS in the jurisdiction, it is encouraged to provide more details in its SMO Action Plan on how it supports members with the implementation of the existing public sector accounting standards.
SMO 6: Investigation and Discipline
In accordance with Law 15-89, the National and Regional Councils of the Ordre des Experts-Comptables du Royaume de Maroc (OEC-Morocco) has direct responsibility for the investigation and discipline (I&D) of OEC-Morocco members, which includes all practicing professional accountants in the jurisdiction. OEC-Morocco indicates that the system is operational, and reported that in 2015 there were nine (9) cases that were processed.
To address SMO 6 requirements, OEC-Morocco worked to revise its bylaws to ensure that its members are made aware of the results of investigative and disciplinary proceedings. OEC-Morocco, in line with the Law, also ensures that judicial decisions are made available to the public.
In 2021, OEC-Morocco conducted a self-assessment of its I&D system against SMO 6 requirements and reports that its revised procedures are fully aligned.
OEC-Morocco works to ensure that its members and the public are aware of the disciplinary mechanisms by organizing annual seminars and publishing its I&D procedures on its website (available in French).
OEC-Morocco is encouraged to indicate the number of cases that were processed in recent years (post 2015). In addition, OEC-Morocco is encouraged to elaborate about the I&D mechanism in the SMO Action Plan: e.g. how to make a complaint or consequences for non-compliance. These are examples of best practices that can be shared and highlighted in the SMO Action Plan.
SMO 7: International Financial Reporting Standards
OEC-Morocco has no direct responsibility for the adoption of IFRS but is actively involved in promoting the adoption of IFRS and IFRS for SME in the jurisdiction. The institute has three representatives on a committee within the Conseil National de la Comptabilité (CNC) responsible for drafting a law on new national accounting standards and four representatives on a committee within the CNC that is responsible for the convergence process. With its representatives on these committees, OEC-Morocco has worked to raise awareness on the importance of converging the Moroccan Generally Accepted Accounting Principles with IFRS to the CNC and the Securities Commission.
The CNC has adopted Moroccan Generally Accepted Accounting Principles (GAAP) which differ significantly from IFRS. However, OEC-Morocco reports that the World Bank initiated an IFRS Conversion Project in 2020 with CNC and Phase 1-Diagnosis has been completed. Phase 2 was initiated in July 2021, and OEC Morocco reports that it is expecting Moroccan GAAP to mostly converge with IFRS and IFRS for SME once the project is complete.
Additionally, the institute encourages the CNC to submit comments on Exposure Drafts on the IFRS for SME.
To keep its members informed on IFRS developments, the institute provides updates through pre-qualification and continuing professional development trainings.
Recognizing that adoption of IFRS is not within the direct responsibilities of OEC-Morocco, the institute is encouraged to continue promoting adoption of new and revised IFRSs as they become effective. The association is also encouraged to ensure that its programming is continuously updated to include new and revised standards.
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