Ordre des Experts Comptables et Financiers de Madagascar

Under Ordonnance No. 92-047 du 5 novembre 1992 relative à l’Organisation de la Profession d’Expert Comptable, as amended, the Ordre des Experts Comptables et Financiers de Madagascar (OECFM) is responsible for establishing and operating a quality assurance (QA) review system.

OECFM has implemented a QA review system with support from the European Union-funded Programme d’Appui à l’Emploi et à l’Intégration Régionale (PROCOM) and technical assistance from international partners. The institute has conducted QA reviews of member firms and established a pool of trained reviewers, while continuing to expand coverage across the profession.

To support implementation, OECFM provides guidance and training to members on quality management standards and related requirements, including through seminars, technical updates, and ongoing communication. The institute also gathers feedback from practitioners to inform improvements to its QA processes.

While the QA system is operational, further enhancements are needed to fully align with SMO 1 requirements. These include strengthening the methodology for selecting firms for review, formalizing the linkage between QA findings and the investigative and disciplinary system, and ensuring a regular and comprehensive review cycle covering all mandatory audits. OECFM is in the process of updating its QA review framework and related guidance to address these areas.

OECFM is encouraged to prioritize the establishment of a fully risk-based and cyclical QA review system covering all mandatory audits, formalize the integration of QA findings into its investigative and disciplinary processes, and continue strengthening capacity to ensure consistent implementation in line with SMO 1 requirements.

Current Status: Execute

Initial and continuing professional development requirements for the title of Expert comptable et financier (Chartered Accountant) are established under Decree No. 92-960 of November 11, 1992. The Ordre des Experts Comptables et Financiers de Madagascar (OECFM) is responsible for determining education, practical experience, and continuing professional development (CPD) requirements, while universities and higher education institutions deliver initial professional development (IPD) programs.

OECFM has taken steps to strengthen the quality of professional education, including implementing an accreditation process for higher education institutions and enhancing oversight of practical experience requirements through supervised training arrangements. Candidates are required to complete a period of practical experience, pass professional examinations, and defend a final thesis. OECFM also collaborates with academic institutions and international partners to support the development of candidates and the quality of assessments.

OECFM has established CPD requirements of 40 hours annually (120 hours over a three-year period) and provides training and guidance to support members in maintaining professional competence. The institute offers continuing education activities covering technical and emerging topics relevant to the profession.

While elements of the education system align with aspects of the International Education Standards (IES), the IES in effect as of the time of the assessment have not been fully adopted or incorporated at the jurisdiction level. OECFM has initiated efforts to review national requirements against the IES and identify areas for convergence; however, progress is subject to legal and institutional constraints and requires coordination with external stakeholders.

Within the scope of its authority, OECFM is executing activities to strengthen alignment with the IES. OECFM is encouraged to prioritize the formal adoption of the IES in effect, further align national requirements with a learning outcomes-based approach, and continue working with relevant stakeholders to ensure consistent implementation across all stages of professional development.

Current Status: Execute

Under Ordonnance No. 92-047 du 5 novembre 1992 relative à l’Organisation de la Profession d’Expert Comptable, as amended, the Ordre des Experts Comptables et Financiers de Madagascar (OECFM) is responsible for establishing auditing standards in the jurisdiction.

OECFM has adopted International Standards on Auditing (ISA) as issued by the International Auditing and Assurance Standards Board (IAASB) for application in all statutory audits. The institute supports implementation through the dissemination of standards in French, regular communication with members, and the organization of training and technical sessions on auditing standards and related developments.

To further support application of ISA, OECFM provides practical tools and guidance tailored to small and medium-sized practices, including resources to assist auditors in documenting and performing audit engagements in accordance with ISA.

OECFM maintains ongoing processes to support the implementation of auditing standards and to keep members informed of new and revised pronouncements. Through these activities, the institute demonstrates a sustained commitment to maintaining high-quality auditing practices in line with ISA.

Current Status: Sustain

Under Ordonnance No. 92-047 du 5 novembre 1992 relative à l’Organisation de la Profession d’Expert Comptable, as amended, the Ordre des Experts Comptables et Financiers de Madagascar (OECFM) is responsible for establishing ethical requirements for professional accountants in the jurisdiction.

OECFM has adopted the Code international de déontologie des professionnels comptables (including International Independence Standards) (IESBA Code) and reports the use of the 2022 version for application by its members. The institute supports implementation through dissemination of the Code in French, member communications, and training activities led by its ethics bodies.

OECFM has taken steps to promote awareness and understanding of the Code among members and students, including engagement with academic institutions and the provision of guidance and learning resources. The institute also monitors developments in ethical standards and considers updates to its framework.

While OECFM maintains established processes to support implementation of the IESBA Code, the version applied is not the most current version in effect as of the time of the assessment. As such, further efforts are needed to ensure timely adoption and incorporation of revisions to the Code.

OECFM is encouraged to reduce the time lag between the issuance of updates to the IESBA Code and their adoption at the jurisdiction level, and to continue strengthening implementation support to ensure alignment with the latest ethical requirements.

Current Status: Review & Improve

Public sector accounting standards in Madagascar are established by the Conseil Supérieur de la Comptabilité (CSC) within the Ministry of Finance and Budget, in accordance with Decree No. 89-161 of June 13, 1989, as amended by Decree No. 98-442 of June 18, 1998. Government entities are required to apply the Plan Comptable des Opérations Publiques (PCOP), which is based on a cash-basis framework and incorporates elements of earlier versions of International Public Sector Accounting Standards (IPSAS).

The Ordre des Experts Comptables et Financiers de Madagascar (OECFM) does not have direct responsibility for the adoption of public sector accounting standards. Within the scope of its mandate, the institute maintains engagement with relevant stakeholders, including through representation and collaboration with the CSC, and promotes awareness of international standards where appropriate.

OECFM has identified the importance of strengthening knowledge and capacity in public sector financial reporting and has engaged with partners to explore opportunities for training and support in this area. These efforts reflect the institute’s ongoing commitment to supporting the development of the profession in the broader public interest.

Given the nature of its mandate and the legal and regulatory environment, OECFM is not directly involved in activities related to the adoption of IPSAS.

Current Status: Sustain

Under Ordonnance No. 92-047 du 5 novembre 1992 relative à l’Organisation de la Profession d’Expert Comptable, as amended, the Ordre des Experts Comptables et Financiers de Madagascar (OECFM) is responsible for establishing and administering an investigative and disciplinary (I&D) system for its members.

OECFM has established I&D procedures through its bylaws, including an ethics and discipline committee responsible for conducting investigations and reporting findings to a disciplinary chamber, which determines and imposes sanctions. Members have the right to appeal decisions, and a government representative participates in the disciplinary process.

While the I&D system is operational, further enhancements are needed to fully align with the requirements of SMO 6. Areas for improvement include strengthening the role of non-accountants in the disciplinary process, formalizing the linkage between quality assurance review findings and disciplinary actions, and enhancing public interest considerations such as transparency of outcomes and accessibility of the complaints process. OECFM is in the process of revising its bylaws to address these areas, with proposed changes subject to government approval.

Within the scope of its authority, OECFM is executing activities to strengthen its I&D system. OECFM is encouraged to continue progressing reforms to align with SMO 6 requirements, including enhancing transparency, formalizing processes, and ensuring effective integration with its quality assurance framework.

Current Status: Execute

Corporate financial reporting standards in Madagascar are established by the Conseil Supérieur de la Comptabilité (CSC) within the Ministry of Finance and Budget. Companies are required to apply the Plan Comptable Général (PCG), while sector-specific frameworks apply to financial institutions and insurance entities, including the Plan Comptable des Établissements de Crédit (PCEC) and insurance accounting requirements, which are based on earlier versions of International Financial Reporting Standards (IFRS).

The Ordre des Experts Comptables et Financiers de Madagascar (OECFM) does not have direct responsibility for the adoption of accounting standards. Within the scope of its mandate, OECFM engages with the CSC and supports the development of the financial reporting framework, including through participation in discussions on convergence with IFRS. Representation within the CSC supports ongoing coordination between the profession and the standard-setting authority.

OECFM supports implementation of applicable standards by providing training and guidance to members and raising awareness of developments in financial reporting. The institute has also engaged in initiatives to assess the feasibility of adopting more recent versions of IFRS and to support capacity building in this area.

Within the scope of its authority, OECFM is executing activities to support the adoption and implementation of high-quality financial reporting standards. OECFM is encouraged to continue strengthening its engagement with the CSC to promote convergence with current IFRS Accounting Standards and to expand dissemination of guidance and training to members on recent developments.

Current Status: Execute