Ordre des Experts Comptables du Royaume du Maroc
Member | Established: 1993 | Member since 2004
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.
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 ISQC 1 in 2008 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 has annually trained QA reviewers and members on ISQC 1 requirements and states that it researches, develops, and updates appropriate tools to further support implementation.
Based on the comments in the institute’s self-assessment of its existing QA review system and SMO 1 requirements, it is encouraged to provide more details in the SMO 1 Background Note on the oversight body that is under development. In its Action Plan, OEC-Morocco is encouraged to provide describe ongoing and planned activities of how it is supporting its members with the implementation of QA reviews. Additionally, further information on the number of QA reviews conducted would be helpful.
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 IES requirements and that it continuously reviews the IES requirements to ensure that OEC-Morocco’s education and training are compliant.
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 clarify if it has reviewed the revised IES, effective as of July 2016, and if it has 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.
OEC-Morocco has direct responsibility for the adoption of auditing standards and has adopted Clarified ISA for application in all contractual audit engagements while it is working towards its stated objective of converging the Moroccan Standards on Auditing with ISA for statutory audits by December 2017. The institute monitors its members’ application of the Moroccan Standards on Auditing through its quality assurance review system.
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.
In its Action Plan, OEC-Morocco is encouraged provide recent and planned examples of trainings and learning activities it undertakes to support its members with the implementation of the applicable auditing standards. Additionally, it is encouraged to include examples of dissemination mechanisms in its Action Plan such as emails, newsletters, and/or its website. In its next Action Plan submission, OEC-Morocco is encouraged to provide an update on the status of converging the Moroccan Standards on Auditing with ISA for application in all statutory audits.
Ethical requirements are established both in the Companies Law and by OEC-Morocco for its members. The institute has adopted the 2009 IESBA Code of Ethics for its members and reports that it monitors IESBA amendments in order to include revisions in its Code on an ongoing basis. However, it is remains to be clarified if OEC-Morocco has incorporated revisions to its Code since 2009.
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.
OEC-Morocco is encouraged to clarify in its Action Plan if it is planning to incorporate revisions to its Code based on the latest IESBA Code of Ethics. OEC-Morocco is also encouraged to include in its Action Plan examples of dissemination mechanisms for updating members about the Code of Ethics as well as recent and planned examples of trainings or workshops for members the institute is conducting.
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 in regards to IPSAS. The institute also reports that it monitors the activities of IPSASB to follow developments to the standards.
Nonetheless, there seems to be a lack of developments and plans to adopt IPSAS at the government level and the OEC-Morocco appears to be engaged in a limited amount of activities aimed at promoting IPSAS.
The institute is encouraged to identify specific activities it is undertaking to promote the adoption of IPSAS to the CNC and other relevant stakeholders, such as disseminating IPSAS and IPSASB pronouncements. These actions should be included within its Action Plan. Furthermore, it would be helpful for OEC-Morocco to provide information on some of the activities it undertakes as part of the CNC in regards to the adoption of IPSAS.
The National Council and Regional Council of OEC-Morocco share responsibility for the investigative and disciplinary (I&D) system for OEC-Morocco members. OEC-Morocco reports that the I&D system is operational and in 2015, nine cases were processed.
As part of the 2016 SMO Action Plan update process, the institute conducted a self-assessment of its I&D system against the SMO 6 requirements and reports that its I&D mechanisms incorporates most of the SMO 6 requirements. However, further information is still needed on the progress made regarding the composition and independence of the Regional Council’s Disciplinary Committee which was an area identified for improvement by the National Council of the institute in 2008.
OEC-Morocco works to ensure that its members and the public are aware of the disciplinary mechanisms by organizing annual seminars and sending out its I&D rules to targeted audiences.
Based on the results of its review of the revised SMO 6 requirements and its existing I&D mechanisms, OEC-Morocco is encouraged to consider plans to address the following areas: (i) reporting on the results of disciplinary processes to the public; and (ii) the composition of its Councils to include non-accountants. It should include any planned actions to improve compliance with SMO 6 requirements in its Action Plan.
OEC-Morocco has no direct responsibility for the adoption and implementation 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. 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. It also plans to provide trainings about the new and revised standards once adopted.
OEC-Morocco is encouraged to include examples of dissemination mechanisms and activities it is planning for members related to IFRS as well as recent and planned activities it is undertaking to support its members with the implementation of applicable accounting standards.
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