Bolivia

The financial reporting framework in Bolivia is established under the Law 3911 of 1957 and the Code of Commerce of 1977. The Code of Commerce contains basic requirements for financial reporting for all companies in Bolivia, including requirements for the preparation of financial statements.

The Law 2495 of 2003 empowers the Authority for Fiscal and Social Control of Businesses (AEMP), an entity within the Ministry of Finance, to set Bolivian Generally Accepted Accounting Principles (Bolivian GAAP) and auditing standards for all companies. In Bolivia, all legally established companies are required to present auditing and financial statements to the tax office annually.

The AEMP has delegated its standard-setting responsibility to the National Technical Board of Auditors and Accountants (CTNAC) of the Colegio de Auditores o Contadores Públicos de Bolivia. However, the AEMP must ultimately approve and issue the standards through an official Administrative Resolution. In 2012, the CTNAC adopted IFRS and IFRS for Small- and Medium-sized Entities (SMEs) as issued by the IASB through the Resolution 002/2012 and, in 2015, ISA as issued by the IAASB by the Resolution 001/2015 in the absence of any other national technical pronouncements from the AEMP. In 2021, the AEMP, through Administrative Resolution AEMP No. 009/2021, approved the CTNAC standards. In addition, the AEMP resolution stated that the technical pronouncements issued by the International Federation of Accounting (IFAC) must be adopted in the absence of any national technical pronouncements or local regulations on a given matter (e.g., accounting, auditing, ethics, education, administration and finance, public sector).

Lastly, to comply with the requirements of the AEMP, regulated companies are under the legal obligation to comply with any additional financial reporting requirements issued by the Supervisory Authority of the Financial System and the Supervisory Authority of Pensions and Insurance.

The profession is regulated at the state level in Bolivia by the Law 3911 of 1957, which sets educational requirements, ethical requirements, and investigative and discipline (I&D) procedures for professional accountants. The law distinguishes between Financial Auditors, General Accountants, and Accountants. According to the law, the sole requirement for becoming a Financial Auditor is an approved university bachelor’s degree. General Accountants must hold an approved university certificate or its equivalent, and Accountants must hold a certificate from an approved specialized school. In accordance with the law, the Ministry of Finance (MoF) is to maintain a national registry for professional accountants and is responsible for I&D of professional accountants. As reported by the Colegio de Auditores o Contadores Públicos de Bolivia (CAUB), the MoF has not operationalized the registry and in practice, professionals register with the departmental Colegios on a voluntary basis. However, statutory auditors that provide services for the public sector and regulated entities must become members of the CAUB.

Additionally, the Supervisory Authority of the Financial System and the Supervisory Authority of Pensions and Insurance maintain registries of audit firms authorized to audit companies under their control and establish auditing standards that these registered auditors must apply. Auditors providing services to regulated entities are required to demonstrate a certain number of years of practical experience. Nevertheless, it is unclear if the regulators establish any other requirements or carry out other regulatory functions such as investigation and discipline or quality assurance procedures.

Lastly, as mentioned above, other individual professionals may voluntary join a professional accountancy organization (PAO) and be self-regulated through the requirements of the PAO. The PAOs regulate their members by setting professional standards, representing, and promoting the accountancy profession, providing training activities, and investigating and disciplining their members.

There are two PAOs in Bolivia: the Colegio de Contadores de Bolivia, established in 1947 and unites accountants, while the CAUB, established in 1989 and ratified by Supreme Resolution Nº 209343 in 1991, unites auditors and accountants. In order to be considered for membership, both PAOs require candidates to hold a bachelor’s degree in accounting.

There are no independent audit oversight arrangements in Bolivia. According to Law 3911 of 1957, the sole requirement for becoming a Financial Auditor is an approved university bachelor’s degree.

Auditors providing services to entities regulated by the Supervisory Authority of the Financial System and the Supervisory Authority of Pensions and Insurance are subject to further regulation. Additionally, membership in the Colegio de Auditores o Contadores Públicos de Bolivia (CAUB) is required for statutory auditors providing services for the public sector and the abovementioned regulated entities. CAUB regulates its members by establishing ethical standards and investigating and disciplining members.

The Colegio de Auditores o Contadores Públicos de Bolivia (CAUB)

The CAUB, established in 1989 and ratified by Supreme Resolution Nº 209343 in 1991, unites auditors and accountants and is composed of nine departmental Colegios in the country. Membership in CAUB is required only for statutory auditors providing services for the public sector and regulated entities. The CAUB promotes the adoption and implementation of international standards, develops training activities, establishes ethical standards, investigates, and disciplines its members, and promotes improvements to professional practices.

In addition to being an IFAC Member, the CAUB is a member of the Inter-American Accounting Association (AIC), the Group of Latin American Accounting Standard Setters, and the Committee of Integration for Latin Europe and America.

The Colegio de Contadores de Bolivia

The Colegio de Contadores, established in 1947, unites accountants on a voluntary basis. It undertakes activities related to promoting the accounting profession, providing trainings, and investigating and disciplining its members. The Colegio de Contadores is a member of the AIC.

In the absence of the legal requirement for a mandatory quality assurance (QA) review system, in 2012, the Colegio de Auditores o Contadores Públicos de Bolivia (CAUB), as part of the Multilateral Investment Fund project, developed regulations establishing a voluntary QA review system for its members that is in line with the requirements of SMO 1. However, as of 2022, the system has not become operational.

The CAUB’s National Technical Board of Auditors and Accountants (CTNAC) has adopted ISA by reference as issued by the IAASB, including the ISQC 1 and ISA 220 through Resolution 001/2015 for application by its members, who are the only individuals authorized to issue audit reports for public sector and certain regulated entities. In 2020, through Resolution No. 02/2020 the CTNAC confirmed that the new suite of IAASB Quality Management standards would become effective in December 2022. The Authority for Fiscal and Social Control of Businesses—the entity ultimately responsible for the adoption of auditing standards— approved the standards issued by CTNAC by the Administrative Resolution AEMP No. 009/2021.

Current Status: Partially Adopted

In accordance with the Law 3911 of 1957 professional accountants are required to have a university degree in accounting to practice the profession. The Ministry of Education and universities control the accountancy curriculum.

The law distinguishes between Financial Auditors, General Accountants, and Accountants. According to the Law, the sole requirement for becoming a Financial Auditor is an approved university bachelor’s degree. General Accountants must hold an approved university certificate or its equivalent, and Accountants must hold a certificate from an approved specialized school. In addition, auditors providing services to entities regulated by the Supervisory Authority of the Financial System and the Supervisory Authority of Pensions and Insurance are required to demonstrate a certain number of years of practical experience.

A minimal portion of the IES requirements appear to be adopted into national requirements, such as some initial educational and practical experience requirements. There are additional requirements in the latest IES (2019 Handbook plus revisions to IES 2, 3, 4, and 8 effective in January 2021) that would need to be incorporated for all professional accountants to progress adoption in the jurisdiction.

Current Status: Partially Adopted

In accordance with the Law 2495 of 2003, the Authority for Fiscal and Social Control of Businesses (AEMP), an entity within the Ministry of Finance, is responsible for setting auditing standards for all companies.

The AEMP has delegated its standard-setting responsibility to the National Technical Board of Auditors and Accountants (CTNAC) of the Colegio de Auditores o Contadores Públicos de Bolivia (CAUB). The AEMP must still ultimately approve and issue the standards through an official Administrative Resolution.

In 2008, the AEMP approved Bolivian Auditing Standards issued by CTNAC, which were based on the 2008 ISA. Subsequently, in 2015, CTNAC issued Resolution 001/2015 adopting by reference ISA as issued by the IAASB for application in the jurisdiction. In 2021, the AEMP approved Bolivian Auditing Standards issued by CTNAC by the Administrative Resolution AEMP No. 009/2021.

Additionally, the Supervisory Authority of the Financial System (ASFI) and the Supervisory Authority of Pensions and Insurance (APS) are empowered to set auditing standards for audits of the regulated entities under their purview. Through the ASFI’s Regulation for the performance of external audit work, it requires the application of ISA. As indicated by CAUB, APS has not issued any specific audit standards, and the CTNAC regulations are de facto applied.

Current Status: Adopted

The Law 3911 of 1957 sets ethical requirements for the accountancy profession in Bolivia, which are minimum and not in line with the International Code of Ethics for Professional Accountants.

There are two professional accountancy organizations (PAO) that may also set ethical requirements for members.

The Colegio de Auditores o Contadores Públicos de Bolivia (CAUB) has adopted the International Code of Ethics for Professional Accountants by reference and as issued by the IESBA for application in the jurisdiction since 2021.

The second PAO, the Colegio de Contadores de Bolivia, has also adopted the IESBA Code of Ethics for its members that join on a voluntary basis, although the version that was adopted is unknown.

Current Status: Partially Adopted

The Government Administration, the Control Law No. 1178 of 1990, and Supreme Decree No. 23215 of 1992, establish the Controller General of Bolivia as the accounting standard-setter for the public sector. The Controller General has developed national standards that are on a partial accrual-basis. According to the IFAC/CIPFA International Public Sector Financial Accountability Index 2020, by 2025 national standards will be on an accrual basis with reference to the IPSAS.

Current Status: Not Adopted

In accordance with the Law 3911 of 1957, the Ministry of Finance (MoF) is responsible for investigating and disciplining (I&D) professional accountants. Nevertheless, as reported by the Colegio de Auditores o Contadores Públicos de Bolivia (CAUB), the MoF has not operationalized the Ad Honoren Committee that is responsible for I&D, and in practice, professionals register with its departmental branches (“colegios”) on a voluntary basis and are subject to its I&D mechanisms. Statutory auditors providing services for the public sector and regulated entities are obligated to become members of CAUB, making them subject to its I&D system.

The CAUB indicates that it has an Ethics Council that is authorized to investigate and discipline CAUB members. In addition, the CAUB has nine departmental colegios within each of the nine provinces of Bolivia. Each branch has an Ethic Tribunal responsible for the I&D of members of their respective branch. The CAUB reports that its I&D system and its branches’ I&D systems have been fully aligned with the SMO 6 requirements since 2020.

There is another professional accountancy organization that may also implement an I&D system for its respective members. The Colegio de Contadores de Bolivia has an Ethical Committee in charge of investigating and disciplining its members that join on a voluntary basis. The extent of fulfillment of the Colegio’s I&D procedures with the requirements of the SMO 6 requires further clarification.

Current Status: Partially Adopted

The Law 2495 of 2003 empowers the Authority for Fiscal and Social Control of Businesses (AEMP), an entity of the Ministry of Finance, to set accounting standards for all companies.

The AEMP has delegated its standard-setting responsibility to the National Technical Board of Auditors and Accountants (CTNAC) of the Colegio de Auditores o Contadores Públicos de Bolivia. The AEMP must still ultimately approve and issue the standards through an official Administrative Resolution.

In 2012, the CTNAC issued Resolution 002/2012 adopting IFRS as issued by the IASB for application in the jurisdiction. In 2021, the AEMP approved Bolivian Accounting standards issued by CTNAC by the Administrative Resolution AEMP No. 009/2021.

The CTNAC has not adopted IFRS for Small- and Medium-sized Entities (SMEs), and stills require Bolivian Generally Accepted Accounting Principles (Bolivian GAAP) that are not aligned with IFRS.

Current Status: Adopted

Relevant Organizations

• Authority for Fiscal and Social Control of Businesses (AEMP)
• Colegio de Auditores o Contadores Públicos de Bolivia (CAUB)
• Colegio de Contadores de Bolivia
• Latin American Accounting Standard Setters Group
• National Technical Board of Auditors and Accountants (CTNAC)
• Supervisory Authority of the Financial System (ASFI)
• Supervisory Authority of Pensions and Insurance (APS)

Relevant Legislation

• ASFI, regulation
• CAUB, Code of Ethics
• Code of Commerce, 1977
• CTNAC, Resolution 001/2015
• CTNAC, Resolution 002/2012
• CTNAC, Resolution 001/2017
• Law 3911, 1957

Relevant Publications

• CAUB, SMO Action Plan, February 2022.
• IFRS Foundation, “IFRS Application Around the World, Jurisdictional Profile: Bolivia,” June 2016.