Colegio de Contadores, Economistas y Administradores del Uruguay

In Uruguay, the Central Bank of the Republic (BCU) regulates financial institutions, listed companies, insurance companies, and pension funds and is empowered to regulate auditors and audit firms providing services to these companies, which includes the establishment of a quality assurance (QA) review system. The BCU will carry out a review when a risk or suspicion is reported.

The CCEAU has reported that it advocates and encourages the Superintendence of Financial Services within the Central Bank of the Republic (BCU) to explore a joint effort and create a national QA review system, and in turn, implement the SMO 1 requirements.

The CCEAU has no legal authority or responsibility to establish a mandatory QA review system; however, it is the de facto audit standard-setter, and it has adopted IAASB standards as issued, including relevant standards for QA reviews.

The CCEAU has a Quality Control Commission, responsible for issuing guidelines and regulations to implement a voluntary QA review system, providing training activities, and disseminating information on relevant standards. The CCEAU continues to experience challenges in establishing a QA system due to the lack of legal authority and firms' resistance to participate in a voluntary system.

As the BCU has the authority to develop and operate a QA review system, but only carries out reviews when a suspicion or risk is identified rather than on an ongoing, cyclical basis, the CCEAU should continue using its best efforts to collaborate with the BCU and relevant stakeholders to successfully adopt and implement the SMO 1 best practices.

Current Status: Review & Improve

In Uruguay, the Ministry of Education (MoE), universities, and the Central Bank of the Republic (BCU) all have roles in implementing initial professional development requirements for professional accountants, established in Decree No. 103 of 1991. These include a university degree in accounting and registering with the MoE. The BCU requires additional professional experience requirements for auditors that wish to register with the BCU.

Given the CCEAU's lack of authority to adopt IES requirements into the national educational programs or its membership requirements, its activities primarily include actions to promote the adoption and implementation of IES requirements to the other regulators.

The CCEAU states that it collaborated with the universities to assess the accounting curricula against the IES requirements to develop a curricula model for students in the jurisdiction. For this purpose, the CCEAU created a University Matters Committee, which has signed agreements with several national universities, including the Universidad de la República, to provide academic support to courses taught at CCEAU.

The CCEAU notes it is well-aware of the need to establish continuing professional development (CPD) requirements as part of best practices for the profession. The CCEAU indicates that it offers voluntary CPD for its members, and many participate in trainings and courses to receive updated information on professional practices and standards. However, it has not been able to establish mandatory CPD obligations for its members due to the voluntary nature of its membership and the cost of such a system.

The CCEAU is encouraged to continue collaborating with the BCU and universities to promote and support adopting and implementing the IES requirements. The CCEAU can refer to examples in the region for best practices and learnings, including a voluntary certification aligned with the IES, adopting mandatory CPD requirements for its members, and a university accreditation scheme.

The Accountancy Education E-Tool and the IES Checklist developed by IFAC may help identify implementation support materials.

Current Status: Plan

In Uruguay, financial institutions, listed companies, insurance companies, and pension funds are regulated by the Central Bank of the Republic (BCU) and required to be audited. Companies with debts over 20% of RPBB (Net Asset Value for Financial Accountability) are also required to have audited financial statements. Auditing standards are not specified in the law, and although the CCEAU is not legally responsible for the adoption of auditing standards in Uruguay, it has become the de facto audit standard-setter for all audits in the jurisdictions. In 2010, the CCEAU adopted ISA as issued by the IAASB. The BCU subsequently approved ISA as adopted by the CCEAU through Regulation Nº 2136 of 2013 for audits of companies under its supervision.

The CCEAU reports that it monitors new and amended standards issued by the IAASB, has ongoing processes to disseminate information on the new and modified IAASB pronouncements, and provides training activities.

The CCEAU has demonstrated an ongoing process to maintain its fulfillment of the SMO 3 obligations and is committed to continuous improvement.

Current Status: Sustain

Auditors of entities regulated by the Central Bank of the Republic (BCU) and individuals who voluntarily join the CCEAU are subject to ethical requirements in Uruguay. The BCU has adopted the IESBA Code of Ethics as issued, while the CCEAU has adopted the IESBA Code of Ethics by reference for all auditors and developed its own Code of Ethics based on the 2009 IESBA Code of Ethics for other members while utilizing the latest version of the IESBA Code as a supplement to its own Code.

The CCEAU indicates that it has processes to disseminate information about its Code and has also included the IESBA Code of Ethics in its training programs. In August 2024, the CCEAU established a dedicated committee to review and update its own Code of Ethics with the latest version of the IESBA Code to close any potential gap.

IFAC commends CCEAU for the recent decision to update the ethical requirements and align those to the IESBA Code of Ethics for all members. The CCEAU is encouraged to provide an update on the decision.

Current Status: Plan

The Court of Accounts (TCR) is responsible for adopting public sector accounting standards in Uruguay. The TCR has adopted national standards on a partial accrual-basis.

The CCEAU notes that it has organized a committee to maintain a relationship with the relevant public sector regulators. The committee has organized conferences on IPSAS matters. To support the implementation of the current standards, the CCEAU reports it has provided training to the TCR and other governmental agencies, in addition to continuing professional development courses.

Additionally, the CCEAU indicates that it has established dissemination mechanisms to distribute information regarding IPSAS amongst its members and public sector institutions and is considering further opportunities to assist in strengthening public financial management.

The CCEAU has demonstrated an ongoing process to maintain its fulfillment of the SMO 5 obligations and is committed to continuous improvement.

Current Status: Sustain

Auditors of entities regulated by the Central Bank of the Republic (BCU) and individuals who voluntarily join the CCEAU are subject to investigative and disciplinary (I&D) systems. The BCU has responsibility for the I&D of auditors registered in its registry; however, it is not evident if the I&D system established by the BCU aligns with the best practices of SMO 6.

The CCEAU has established an Ethics Commission responsible for operationalizing the I&D system for its members. The Commission receives complaints about malpractices and misconduct, which is defined as criminal activity, breaches of professional standards, and breaches of ethical requirements. The CGE reports that its system is aligned with the main requirements of SMO 6.

CCEAU states that it has established dissemination mechanisms to inform the public about the I&D system.

I&D procedures that meet the SMO 6 benchmark are foundational to supporting public trust and confidence in the profession. The CCEAU is encouraged to continue collaborating with the BCU to advance the implementation of I&D processes in line with the SMO 6 benchmark. The CCEAU should, as a first step, share the SMO 6 benchmark with the BCU (available in Spanish) and discuss if there are any areas for improvement.

Current Status: Review & Improve

The Permanent Commission of Adequate Accounting Standards (CPNCA) within the Ministry of Economy and Finance is the authority responsible for the adoption of corporate accounting standards. The CCEAU actively participates and contributes to the standard-setting process as a primary technical resource for the CPNCA. The association nominates members to sit on the Commission and played a crucial role in driving the legislative reform that adopted IFRS for application by public interest entities in 2010 and IFRS for Small and Medium-sized Entities (SMEs) in 2014 within the country.

The CCEAU indicates that it supports its members’ implementation of the standards by providing training activities on both IFRS and IFRS for SMEs, and monitoring and disseminating information on the international developments in this area. In addition, the CCEAU details that it organizes forums and dialogues with relevant stakeholders, such as Business Chambers, the Central Bank of the Republic, and universities, to discuss the implementation of IFRS.

Lastly, the CCEAU is a member of Latin American Accounting Standard Setters Group (GLENIF) and participates in the international standard-setting process by providing comments to exposure drafts which are collated through GLENIF at a regional level.

The CCEAU has demonstrated an ongoing process to maintain its fulfillment of the SMO 7 obligations and is committed to continuous improvement.

Current Status: Sustain