Peru : Accounting and Auditing
The report provides an assessment of accounting, financial reporting, and auditing practices within the corporate sector in Peru, using International Financial Reporting Standards (IFRS), and International Standards on Auditing (ISA) as benchmarks,...
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| Format: | Accounting and Auditing Assessment (ROSC) |
| Language: | English en_US |
| Published: |
Washington, DC
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2004/06/6581670/peru-report-observance-standards-codes-rosc-accounting-auditing http://hdl.handle.net/10986/14526 |
| Summary: | The report provides an assessment of
accounting, financial reporting, and auditing practices
within the corporate sector in Peru, using International
Financial Reporting Standards (IFRS), and International
Standards on Auditing (ISA) as benchmarks, drawing on
international experience and best practices in that field.
This Report on the Observance of Standards and Codes (ROSC)
Accounting & Auditing review included the analysis of a
sample of 20 published audited financial statements, and
found that financial reporting standards broadly complied
with by Peruvian corporations, although a number of cases of
departures from IAS, and possibly from ISA, were noted. This
points the need to strengthen the enforcement of financial
reporting and auditing requirements for entities of public
interest. The review also noted that existing arrangements
for the licensing of auditors do not provide compulsory
minimum academic course content in accounting and auditing,
nor do they include professional examination; moreover,
continuing education requirements are not effectively
followed. This is detrimental to the quality of the
accounting and audit practice in the country. The lack of
quality control of auditors is also a cause of serious
concern. The report offers several policy recommendations
aimed at strengthening the regulatory framework governing
accounting and auditing, including establishing an
independent oversight body for the audit profession, that
would ensure qualified auditors with a strong academic
background, and professional skills, and that they comply
effectively with both ISA and applicable ethical
requirements. Another recommendation of this ROSC is that
large, non-listed companies be required to have their
financial statements audited, and to publish these financial
statements through CONASEV - National Supervisory commission
of Enterprises and Securities. |
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