Mauritius

The accounting, auditing, and financial reporting framework in Mauritius is established by the Companies Act 2001 and the Financial Reporting Act (FRA) 2004.

Accounting Framework

The Companies Act 2001 requires companies to prepare financial statements in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB). Companies that do not qualify as Public Interest Entities (PIEs) may apply IFRS for Small- and Medium-sized Entities (SMEs). Public Interest Entities are defined in the Financial Reporting Act 2004 and include listed companies, financial institutions regulated by the Bank of Mauritius or the Financial Services Commission, and companies exceeding prescribed thresholds relating to turnover or total assets.

The Financial Reporting Council (FRC), established under the FRA 2004, is responsible for laying down financial reporting, accounting, and auditing standards in Mauritius. Through its Standards Review Panel, the FRC adopts IFRS and IFRS for SMEs without modification and ensures that updates issued by the IASB are incorporated into the national framework.

Auditing Framework

The Companies Act 2001 requires audits to be conducted in accordance with International Standards on Auditing (ISA) as issued by the International Auditing and Assurance Standards Board (IAASB). The Financial Reporting Act 2004 further stipulates that audits must be conducted by qualified members of the Mauritius Institute of Professional Accountants (MIPA) who are licensed by the Financial Reporting Council (FRC).

The FRC is responsible for licensing auditors, conducting practice quality assurance reviews, monitoring compliance with auditing standards, and taking enforcement actions where necessary. Small private companies that do not qualify as PIEs are not required to appoint an auditor. Where such companies voluntarily appoint an auditor, the auditor is not required to fulfill the FRA licensing requirements.

Professional accountants in Mauritius are regulated by the Mauritius Institute of Professional Accountants (MIPA) in accordance with the Financial Reporting Act 2004 (FRA 2004). Auditors are subject to additional oversight by the Financial Reporting Council (FRC), also established under the FRA 2004.

MIPA was established in 2005 as the statutory body responsible for regulating and promoting the accountancy profession in Mauritius. Its responsibilities under the FRA 2004 include establishing and reviewing a Code of Professional Conduct and Ethics consistent with the International Code of Ethics issued by the International Ethics Standards Board for Accountants (IESBA); maintaining registers of Professional Accountants, Public Accountants, and Member Firms; establishing membership and licensing requirements; conducting examinations where appropriate; setting and monitoring continuing professional development requirements; and establishing and implementing investigation and disciplinary procedures.

Membership in MIPA is mandatory for individuals wishing to use the title of Professional Accountant and to provide professional services relating to accounting, auditing, taxation, management consulting, and financial management in Mauritius. Individuals who wish to offer services to the public must register as Public Accountants and obtain a practicing certificate from MIPA.

To provide audit services, Public Accountants must additionally obtain a license from the Financial Reporting Council. The FRC is responsible for licensing auditors and audit firms, conducting practice quality assurance reviews, monitoring compliance with applicable standards, and operating an Enforcement Panel to investigate and sanction licensed auditors and firms.

The accountancy profession in Mauritius has historically developed through the recognition of overseas professional qualifications. The FRA 2004 specifies recognized professional accountancy bodies whose members are eligible for MIPA membership. These bodies require candidates to complete professional education, practical experience requirements, and final examinations. Individuals qualified through other professional bodies may also apply for membership subject to meeting prescribed experience and competence requirements.

MIPA establishes mandatory continuing professional development requirements for its members and requires annual declarations of compliance through its web-based system. The institute also conducts interviews for applicants seeking practicing certificates and is working to strengthen entry requirements through the introduction of local examinations on tax and company law.

MIPA has established Investigation, Disciplinary, and Appeal Committees in accordance with its Investigation and Disciplinary Regulations, which were operationalized in 2018. These committees include professional and non-professional members and are responsible for handling complaints and disciplinary matters concerning MIPA members.

Auditors in Mauritius are subject to independent oversight by the Financial Reporting Council (FRC), established under the Financial Reporting Act 2004. The FRC is responsible for promoting high-quality financial reporting and auditing standards and strengthening public confidence in the profession.

The FRC’s functions include ensuring the adoption of International Standards on Auditing (ISA); licensing auditors and maintaining a register of licensed auditors; conducting practice quality assurance reviews of licensed auditors and firms; monitoring compliance with applicable auditing standards; reviewing financial statements and reports of Public Interest Entities; and operating an Enforcement Panel to investigate and sanction licensed auditors and firms where necessary.

The FRC is a member of the International Forum of Independent Audit Regulators (IFIAR). Through its Audit Practice Review Panel, the FRC conducts periodic quality assurance reviews using a mixed cyclical and risk-based approach.

Mauritius Institute of Professional Accountants (MIPA)

The Mauritius Institute of Professional Accountants (MIPA) was established in January 2005 under the Financial Reporting Act 2004 (FRA 2004) to regulate the accountancy profession in Mauritius, comprising Professional and Public Accountants. Membership in MIPA is mandatory for qualified individuals who wish to provide services relating to accounting, auditing, taxation, management consulting, and financial management in Mauritius.

Under the FRA 2004, MIPA is responsible for establishing, publishing, and reviewing a Code of Professional Conduct and Ethics consistent with the International Code of Ethics issued by the International Ethics Standards Board for Accountants (IESBA); maintaining registers of Professional Accountants, Public Accountants, and Member Firms; establishing membership and licensing requirements; conducting examinations where appropriate; establishing and monitoring continuing professional development requirements; and establishing and implementing investigation and disciplinary procedures.

MIPA is a Member of the International Federation of Accountants (IFAC) and a member of the Pan African Federation of Accountants (PAFA). There are no other professional accountancy organizations in Mauritius with statutory authority to regulate the profession.

In accordance with the Financial Reporting Act 2004, the Financial Reporting Council (FRC) is responsible for establishing and operating a mandatory quality assurance (QA) review system in Mauritius. The FRC conducts practice reviews of licensed auditors and audit firms through its Audit Practice Review Panel (APRP), which was established in 2008.

Each licensed audit practice is subject to review at least once every three years, using a mixed cyclical and risk-based selection approach. Reviews assess compliance with International Standards on Auditing and applicable quality management standards. The FRC has conducted more than 250 reviews and has taken corrective and disciplinary actions where necessary.

The QA review system is linked to the FRC’s Enforcement Panel, which is empowered to investigate and sanction licensed auditors and firms. The FRC is a member of the International Forum of Independent Audit Regulators (IFIAR).

MIPA does not have direct responsibility for conducting QA reviews but maintains representation on the FRC Board and reports that the scope and design of the QA system are aligned with the requirements of SMO 1.

Current Status: Adopted

The Financial Reporting Act 2004 establishes the initial professional development (IPD) framework for professional accountants in Mauritius. The Mauritius Institute of Professional Accountants (MIPA) does not offer a local professional qualification. Instead, membership is granted to individuals who are members of recognized overseas professional accountancy organizations specified in the legislation. These organizations require completion of professional education programs, practical experience requirements, and final examinations that are reported to align with the International Education Standards (IES).

MIPA is responsible for establishing, monitoring, and enforcing continuing professional development (CPD) requirements for its members. MIPA requires members to complete 40 hours of CPD annually, including a minimum of 21 verifiable hours, and members declare compliance through MIPA’s web-based system. Members are also required to comply with the CPD requirements of their qualifying overseas professional body.

MIPA reports that it is strengthening entry and licensing requirements through the introduction of examinations on local tax and company law to ensure that professional accountants demonstrate competence in the local regulatory environment.

Overall, the jurisdiction achieves substantial alignment with the requirements of SMO 2 through reliance on internationally recognized professional accountancy organizations and the establishment of mandatory CPD requirements. However, as there is no locally administered professional qualification framework fully mapped to the latest IES requirements.

Current Status: Partially Adopted

The Companies Act 2001 requires audits of financial statements to be conducted in accordance with International Standards on Auditing (ISA) as issued by the International Auditing and Assurance Standards Board (IAASB). The Financial Reporting Act 2004 mandates the Financial Reporting Council (FRC) to lay down auditing standards in Mauritius.

Through its Standards Review Panel, the FRC adopts ISA without modification. Updates issued by the IAASB are incorporated into the national framework and communicated to stakeholders. The FRC also monitors compliance with ISA through its practice quality assurance review system and enforcement mechanisms.

Accordingly, ISA in their entirety, as issued by the IAASB and in effect at the time of the assessment, are adopted for application in all mandatory audits in Mauritius.

Current Status: Adopted

The Financial Reporting Act 2004 mandates the Mauritius Institute of Professional Accountants (MIPA) to establish, publish, and review a Code of Professional Conduct and Ethics for professional accountants that is consistent with the International Code of Ethics issued by the International Ethics Standards Board for Accountants (IESBA).

MIPA has adopted the International Code of Ethics in its entirety and requires all members to comply with the Code. Members are required to declare annual compliance as part of their membership renewal process. MIPA monitors updates issued by the IESBA and communicates changes to its members through its professional education activities and other dissemination mechanisms.

Accordingly, the International Code of Ethics, including the International Independence Standards, in effect at the time of the assessment, has been adopted for application by all professional accountants in Mauritius.

Current Status: Adopted

Public sector accounting standards in Mauritius are determined by the Government of Mauritius. Amendments to the Statutory Bodies (Accounts and Audit) Act require the application of International Public Sector Accounting Standards (IPSAS) for ministries and government bodies.

Accrual IPSAS have been adopted by many public sector entities, and several parastatal bodies apply full accrual IPSAS. The Finance and Audit Act has been amended to require that financial statements for the fiscal year 2022–2023 onward be prepared in compliance with IPSAS as issued by the International Public Sector Accounting Standards Board (IPSASB). However, prior to this transition, certain ministries were reporting under cash-basis IPSAS.

As IPSAS are not yet fully implemented across all public sector entities at the time of the assessment, the jurisdiction is assessed as partially adopted under SMO 5.

Current Status: Partially Adopted

All professional accountants in Mauritius are subject to investigative and disciplinary (I&D) mechanisms established under the Financial Reporting Act 2004.

The Mauritius Institute of Professional Accountants (MIPA) is responsible for establishing and operating an investigation and disciplinary system for its members. MIPA has adopted Investigation and Disciplinary Regulations based on the revised SMO 6 requirements and has established Investigation, Disciplinary, and Appeal Committees, which became operational in 2018. The committees include professional accountants and non-accountants to ensure appropriate public interest representation.

In parallel, the Financial Reporting Council (FRC) operates an Enforcement Panel responsible for investigating and sanctioning licensed auditors and audit firms. The FRC’s disciplinary powers are established under the Financial Reporting Act 2004 and are linked to its quality assurance review system.

Accordingly, an investigation and disciplinary system incorporating the requirements of SMO 6 is established and operational for all professional accountants in Mauritius.

Current Status: Adopted

The Companies Act 2001 requires companies to prepare financial statements in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB). Companies that do not qualify as Public Interest Entities (PIEs) may apply IFRS for Small- and Medium-sized Entities (SMEs).

The Financial Reporting Act 2004 mandates the Financial Reporting Council (FRC) to lay down financial reporting standards in Mauritius. Through its Standards Review Panel, the FRC adopts IFRS and IFRS for SMEs without modification. Updates issued by the IASB are incorporated into the national framework and disseminated to stakeholders.

Accordingly, IFRS in their entirety, as issued by the IASB and in effect at the time of the assessment, are adopted for application by all Public Interest Entities in Mauritius. The jurisdiction is therefore assessed as adopted under SMO 7.

Current Status: Adopted

Relevant Organizations

Financial Reporting Council (FRC)

International Forum of Independent Audit Regulators (IFIAR)

National Committee on Corporate Governance

Mauritius Institute of Professional Accountants (MIPA)

Relevant Legislation

Companies Act, 2001

Financial Reporting Act, 2004

MIPA’s Rules

Relevant Publications

IFRS Foundation, IFRS Application around the World - Jurisdictional Profile: Mauritius, June 2016.

International Forum of Independent Audit Regulators (IFIAR) Member Profiles.

MIPA, SMO Action Plan, 2019.

World Bank, Report on the Observance of Standards and Codes: Accounting and Auditing - Mauritius, 2003.

World Bank, Report on the Observance of Standards and Codes: Accounting and Auditing - Mauritius, 2011.