2003年-世界发展银行全球_Colombia___Accounting_and_Auditing_18页_307kb

Summary of the Report on the Observance of Standards and Codes (ROSC) in Colombia

Executive Summary

This report evaluates the current state of accounting and auditing standards and practices in Colombia, focusing on the institutional framework and its impact on the quality of corporate financial reporting. The Colombian government, in collaboration with Congress, has initiated reforms to improve the financial reporting regime by adopting International Accounting Standards (IAS) and International Standards on Auditing (ISA), implementing a professional code of ethics, and establishing internationally comparable arrangements for licensing public accountants.

The review highlights several issues, including conflicting accounting standards from multiple legal sources, the absence of external financial statements audit requirements, and the lack of a modern, independent audit function. The current system leads to a prevalence of special-purpose financial reporting, with general-purpose reporting not being recognized or practiced effectively.

Core Content

Institutional Framework

• Statutory Framework: Colombia has multiple sources of accounting standards, including the Code of Commerce, Law 43 of 1990, and Decree 2649. These sources often conflict, leading to confusion among preparers and auditors.
• Accounting Rules for Specific Entities: Banks and insurance companies are required to follow specific accounting rules issued by the Superintendent of Banking. These rules are also used for prudential reporting, which affects the consistency of financial statements.
• Legal Requirements for Financial Reporting: Enterprises with significant assets or income must prepare consolidated financial statements. However, compliance is inconsistent, particularly with regard to nonbanking subsidiaries.
• Annual Audits: The revisor fiscal is the legal auditor in Colombia, responsible for certifying internal controls, safeguarding assets, and ensuring compliance with obligations. This role is not aligned with the modern concept of an independent auditor.
• Professional Regulation: The Central Board of Accountancy (CBA) is responsible for regulating the profession but lacks capacity and enforcement mechanisms. The law allows entry into the profession with just a university degree and one year of experience, not requiring professional qualification exams or practical training.

The Profession

• Professional Qualifications: Registration as a public accountant requires only a bachelor’s degree in accounting and one year of experience. Practical training under supervision is not mandatory.
• Ethics and Liability: There is no legal requirement for auditors to hold professional indemnity insurance or follow a code of ethics comparable to the IFAC Code of Ethics. Ethical guidelines are minimal and not enforceable.
• Supply and Demand: There is an oversupply of registered public accountants, with about 110,000 currently licensed and an expected increase of 100,000 in the next five years. The demand for qualified professionals is not met, leading to a potential skills gap.

Professional Education and Training

• Curriculum Deficiencies: University accounting programs in Colombia focus on legal compliance and bookkeeping rather than modern accounting theories, auditing practices, and business ethics.
• Teaching Quality: Only a few programs are considered high quality, and there is a lack of qualified instructors. This results in poor teaching of modern standards and ethical practices.
• Continuing Education: There is no requirement for licensed public accountants to pursue continuing professional education, which weakens the profession's ability to adapt to international best practices.

Setting Accounting and Auditing Standards

• GAAP Development: Colombian GAAP was established in 1993 based on U.S. GAAP and IAS but has not been updated since then. It lacks detailed guidance and disclosure requirements.
• Lack of Binding Audit Standards: There are no legally binding financial statement audit standards in Colombia. The role of the revisor fiscal is not aligned with the independent audit function.
• Standardization Challenges: The diversity of accounting standards issued by various regulatory bodies leads to confusion and inconsistency in financial reporting.

Ensuring Compliance

• Weak Enforcement Mechanisms: Regulatory bodies focus more on issuing standards than enforcing them. There is no effective mechanism to monitor compliance or impose sanctions for noncompliance.
• Administrative Sanctions: While administrative penalties are authorized, they are rarely applied. The standard response to violations is to request corrections without thorough investigation or punitive action.
• No Oversight for Auditors: There is no organization responsible for ensuring that auditors follow high-quality standards or adhere to a professional code of ethics.

Main Policy Recommendations

• Establish a Statutory Regulatory Body: To enforce compliance with accounting and auditing standards and ensure independence.
• Create a Higher Council: To issue IAS and ISA as mandatory standards for public interest entities.
• Form a New Professional Organization: For financial statement auditors, to align with international practices.
• Reform Accounting Curriculum: To include modern theories, international standards, and business ethics.
• Improve Teaching Capacity: By training qualified instructors and enhancing educational programs.
• Mandate Continuing Professional Education: To keep accountants and auditors updated on international standards and practices.
• Implement Practical Training Requirements: To ensure that all professionals have the necessary experience and skills to meet international standards.

Key Information

• Colombian GAAP is outdated and inconsistent with IAS and ISA.
• Revisor fiscal is not an independent auditor but performs multiple control functions.
• Tax accounting heavily influences financial reporting, often conflicting with international standards.
• Enforcement mechanisms are weak, and compliance with standards is not effectively ensured.
• Professional education lacks modern content and practical training, leading to a skills gap.
• There is no legal requirement for professional indemnity insurance or a comprehensive code of ethics for auditors.

Conclusion

Colombia faces significant challenges in aligning its accounting and auditing practices with international standards. The institutional framework is fragmented, leading to inconsistencies in financial reporting. The profession lacks adequate regulation, enforcement, and education, which hampers the quality and reliability of financial statements. Policy reforms are urgently needed to address these issues and enhance the transparency and integrity of the financial reporting system.