Mauritius Institute of Professional Accountants

As the responsibility for conducting quality assurance (QA) reviews lies with the Audit Practice Review Panel (APRP) of the Financial Reporting Council (FRC), MIPA’s role involves monitoring the implementation of the system through its representatives on the FRC’s Board. MIPA indicates that through this representation it works to ensure that the QA review system is aligned with the SMO 1 best practices.

In order to support its members with the QA review procedures, MIPA has established a training program to increase members’ understanding of the professional standards and disseminates information on the updates to the standards and international developments in the area through printed materials and its website.

Additionally, the FRC hosts an annual workshop on issues arising from QA reviews which it conducts in coordination with MIPA. All MIPA members are automatically invited to attend this workshop.

Over the course of 2017—2021, MIPA has been establishing plans to set-up its own Practice Review Committee to review non-audit professional services. The institute plans to officially set-up the new committee by 2022 with the funds received from increased license fees. MIPA intends to hire retired members of the profession to operate the committee.

As MIPA progresses with the establishment of its own Practice Review Committee, it is encouraged to review the relevant SMO 1 requirements to ensure its procedures meet best practices. In its next Action Plan, the institute should provide an update on its progress with operationalizing the non-audit review process. Furthermore, the new suite of Quality Management standards will become effective in 2021-22 and will require significant change management for regulators and firms. To prepare auditors in the jurisdiction for the implementation of the standards, MIPA is encouraged to closely follow the developments and publication of implementation support materials, raise awareness of its members about the forthcoming change, and update its educational programming to ensure that its members are sufficiently prepared for the application of the standards once they become effective.

Current Status: Sustain

The Financial Reporting Act 2004 (FRA 2004) establishes the initial professional development (IPD) requirements for professional accountants in Mauritius. MIPA is then responsible for establishing, monitoring, and enforcing continuing professional development (CPD) requirements. As there is no local professional accountancy qualification, IPD requirements pertain to fulfilling the requirements of overseas professional accountancy organizations (PAOs) set out in the FRA 2004. The PAOs listed in the legislation require aspiring professional candidates to complete a professional accountancy education program, practical experience requirements, and pass final examinations that are reported to meet the 2019 revised IES requirements. In turn, MIPA has developed activities to assist its members with understanding the local regulations as an approved Training Institution of the Mauritius Qualifying Authority.

The World Bank ROSC 2011 recommended that applicants complete a local tax paper before being accepted as members. Presently, MIPA does not require members to pass an examination on local tax and business law prior to receiving a practicing certificate. However, as of the date of the assessment, MIPA reports that it is in the process of establishing these examinations by July 2022.

MIPA has established a Professional Education Committee to lead discussions on registration and licensing requirements. The institute has acknowledged the need for local tax and company law papers due to the number of foreign trained professionals working in Mauritius. It has been considering having a paper on the Companies Act that aspiring MIPA members must pass before registering. In the short-term, MIPA’s Professional Education Committee is concentrating on three areas: strengthening entry requirements for new members; a new mechanism for issuing practicing certificates; and guidance on CPD. Beginning in 2021, MIPA has been conducting interviews of applicants seeking a practicing certificate to further assess the competence of the professional accountant. The Professional Education Committee has recommended the introduction of an online exam which will assess and ensure individuals adhere to the latest technical updates.

With regards to CPD, the institute has established its own continuing professional development (CPD) requirements in addition to the requirements set by the overseas PAOs. MIPA has Memorandums of Understanding (MoUs) in place with ACCA and ICAEW to ensure compliance with CPD. Beginning in 2017, MIPA members declare their CPD compliance to MIPA via an online system.

The institute provides several trainings throughout the year covering topics such as ISQC 1, IFRS, along with blockchain and cryptocurrencies. Additionally, in 2019 MIPA partnered with ICAEW to utilize its online International Standards service. The online service contains a range of tools on international accounting, auditing and ethical standards, and practical guidance in the form of live webinars, on-demand video recordings, technical factsheets, guides, thought leadership articles and case studies. Trainings in 2017 and 2018 were executed with the Bank of Mauritius and the Mauritius Revenue Authority. In 2019, MIPA intended to leverage its Professional Education Committee to design and offer more effective trainings based on research. Additionally, in 2019 MIPA partnered with ICAEW to utilize its online International Standards service. The online service contains a range of tools on international accounting, auditing and ethical standards, and practical guidance in the form of live webinars, video recordings, technical factsheets, guides, thought leadership articles and case studies.

The revised IES emphasize the need for professional accountants to demonstrate competencies to carry out their roles. IES 6 outlines the need for an assessment of professional competence at the conclusion of their initial professional development. The institute is encouraged to continue with its plans to have a paper or other examination on local legislation for aspiring MIPA members as part of its registration and membership process to ensure that practicing professional accountants are equipped to best serve the public. Any timeline or developments in this regard should be included within its Action Plan.

Current Status: Execute

Financial statements of all companies must be audited in accordance with ISA as issued by the IAASB as prescribed by the Companies Act 2001. The Financial Reporting Council (FRC), as the audit oversight authority, is responsible for overseeing the ongoing adoption of and compliance with international auditing standards.

The main focus for MIPA is collaborating with the FRC, providing technical support (implementation guidelines, trainings, etc.), and disseminating information on the updates to the standards.

MIPA is involved in the FRC’s activities through its representative on the FRC’s Standard Review Panel. It also works with the FRC to enhance MIPA members’ technical competence in applying ISA. The two entities have signed a Memorandum of Understanding to address the training needs of MIPA’s members on ISA.

Independently, MIPA states it is considering the establishment of its own Technical Committee to address topical issues as well as consider technical queries from members. In the meantime, the institute regularly organizes seminars and workshops that cover the standards (i.e. in 2018, a training on ISQC 1 was carried out) and exposure drafts issued by the IAASB and emails all updates to the auditing standards to its members. By April 2020, MIPA has plans to issue its first e-Newsletter which will further disseminate both local and international articles and technical updates to its members. MIPA notes that its members can also receive updates on the standards from the FRC and the FRC will send out requests for comments to IAASB-issued exposure drafts. Finally, as the 2018 Handbook became effective in December 2019 with revised some revised standards, MIPA has made the Handbook available on its website for members’ reference.

MIPA should consider including specific examples of its implementation support within its Action Plan. As the 2020 Handbook became fully effective on September 14, 2021, MIPA should also consider outlining its activities for raising members’ awareness of the revisions. Lastly, the IAASB has issued an exposure draft of the proposed separate standard for audits of Less Complex Entities. MIPA is encouraged to participate in the public consultation process for this landmark new draft standard.

Current Status: Sustain

The Financial Reporting Act 2004 (FRA) stipulates that MIPA must establish, publish, and review a Code of Professional Conduct and Ethics for professional accountants and ensure that it is consistent with the IESBA Code of Ethics. In turn, MIPA states it has adopted the 2020 International Code of Ethics in its entirety and that its members are required to make an annual declaration that they adhere to the adopted Code of Ethics.

In 2019, MIPA’s Ethics Committee was merged with its Professional Education Committee which supports members’ awareness of the Code, monitors changes to the International Code, and organizes trainings on ethics and good governance. MIPA has made the eCode a feature on its website to encourage members to utilize it and plans to organize a course for its members in light of the significant changes of the International Code of Ethics between 2018-2020.

In addition to MIPA’s adopted ethical requirements, the FRA also stipulates that professional accountants should report to the Financial Intelligence Unit (FIU) all suspicious transactions regarding their organizations. The FIU liaises with MIPA as needed to ensure compliance.

Given the significant changes of the 2020 International Code of Ethics, MIPA is encouraged to include specific examples of its implementation support within its Action Plan..

Current Status: Sustain

In 2011, the Mauritius government amended the Statutory Bodies (Accounts and Audit) Act to require the application of the IPSAS for all ministries and government bodies. Since then, MIPA indicates that accrual IPSAS have been adopted and many parastatal bodies apply full accrual IPSAS. However, several government ministries are still reporting under cash-basis IPSAS. The government has announced that all authorities should apply accrual IPSAS as of the fiscal year 2022-2023.

MIPA reports that it uses its best endeavors to promote the implementation of IPSAS across the entire public sector. MIPA is working to build its relationship with the government and provide advice and support as it executes its implementation plan for accrual-IPSAS by 2023. Throughout 2017—2018, the institute states that it met regularly with the Accountant General’s Office and in from 2019—2020, MIPA will hold a seat on the Ministry of Finance’s IPSAS Committee. MIPA indicates it is active in coordinating training for parastatal bodies and held a one-day forum on IPSAS in 2018.

MIPA also notes that it monitors pronouncements issued by IPSASB and assists its members in the public sector by providing trainings on the requirements of the IPSAS and disseminating information on the updates of the standards. As part of its 2018 Annual Forum of Accountants a training session on IPSAS was held with speakers from the public sector. Subsequently, at the 2019 Forum, a session on public financial management was presented to MIPA members by speakers from the public sector.

MIPA’s engagement in advising on the adoption and implementation of IPSAS is commendable. The institute is encouraged to continue this and provide updates on the progress of the following: (i) the government ministries’ reporting on accrual IPSAS and (ii) the institute’s involvement and support. The institute should consider including specific examples of training it has offered for MIPA members and government staff related to IPSAS and public financial management within its Action Plan.

Current Status: Sustain

In line with its mandate under the Financial Reporting Act 2004, MIPA has formulated a set of Investigation and Disciplinary Regulations based on the revised SMO 6 requirements for its members while the Financial Reporting Council (FRC) operates an Enforcement Panel to investigate and sanction all licensed auditors and firms, which include MIPA members. MIPA indicates that the FRC’s system complies with SMO 6 best practices

In 2015, MIPA formulated a set of Investigation and Disciplinary Regulations which it indicates are based on the revised SMO 6 requirements. The Regulations established Investigation, Disciplinary, and Appeal Committees. MIPA outlines the I&D framework as follows: the Investigation Committee will consider the complaint; subsequently, based on the information gathered, the Investigation Committee will decide whether to refer the matter to the Disciplinary Committee to conduct a disciplinary hearing. The Disciplinary Committee would then take over the case and make a final decision. Appeals can be made against the decisions of the Disciplinary Committee.

MIPA partnered with the Association of Chartered Certified Accountants and the Institute of Chartered Accountants in England and Wales to draft and set-up its I&D procedures. After revising guidelines to adapt to MIPA’s operating context, the committees were formally operationalized in June 2018. Individuals on the committee represent the accountancy profession, legal field, and others working in the public interest. Over 2020, the Investigation Committee processed three (3) cases, and imposed sanctions on two (2) of the three cases.

Prior to 2018, MIPA’s Board had been responsible for handling disciplinary matters. In 2015-2016, MIPA received 11 complaints against members and in 2016—2017, 10 cases were received.

MIPA’s recent progress in operationalizing its I&D procedures that are in line with SMO 6 best practice is commendable and essential to building confidence in the Mauritian accountancy profession. As the institute implements its new procedures, it is encouraged to continue reviewing and referring to the SMO 6 best practices to maintain alignment. Additionally, as the FRC investigates and disciplines auditors, which include MIPA members, the institute is encouraged to outline how the two organizations communicate and cooperate regarding any enforcement matters to avoid duplication of efforts.

Current Status: Review & Improve

The Companies Act 2001 requires the application of IFRS as issued by the IASB for all companies, except small private companies that do no qualify as public interest entities (PIEs), and the Financial Reporting Council (FRC) is responsible for approving and disseminating all updates to the standards. Companies that are not PIEs are to apply the IFRS for SMEs. MIPA is active in supporting the standard-setting process and implementation of the applicable standards.

MIPA has representatives that sit on the FRC’s Standards Review Panel and MIPA reports that they advocate for continuous adoption and promulgation of IFRS and IFRS for SMEs without amendments.

To support implementation of the standards, the institute reports that it regularly holds workshops, seminars, and other training on the standards. As part of these efforts, MIPA and the PWC IFRS Academy of Mauritius have entered into an agreement to conduct half-day seminars on IFRS once a month.

Additionally, MIPA states that, separately from its representation in the FRC, it also monitors changes to the IFRS and IFRS for SMEs and will communicate changes to members in addition to providing trainings on the revisions. MIPA also disseminates exposure drafts and requests for comments from the IASB to its members. MIPA members can also receive updates on the standards from the FRC and the FRC will send out requests for comments to IASB-issued exposure drafts. The institute notes it has plans to channel these activities through a Technical Committee in the future.

As part of its next Action Plan update, the institute is encouraged to include examples of its implementation support as well as progress made in creating a Technical Committee to further assist its members.

Current Status: Sustain