Mauritius

The accounting, auditing, and financial reporting framework in Mauritius is established by the Companies Act 2001 and the Financial Reporting Act (FRA) 2004.

Accounting Framework

The Companies Act 2001 stipulates that all companies, except for small private companies which do not qualify as Public Interest Entities (PIEs), must prepare financial statements in accordance with International Financial Reporting Standards (IFRS). Companies that do not qualify as a PIE may prepare financial statements in accordance with the IFRS for Small- and Medium-sized Entities (SMEs).

PIEs are defined in the FRA 2004 as all companies that are listed on the Stock Exchange of Mauritius, financial institutions, other than cash dealers, regulated by the Bank of Mauritius or by the Financial Services Commission, and companies that exceed one of the following thresholds in the two consecutive preceding periods: (i) annual turnover exceeding 500 million rupees; or (ii) total assets exceeding 500 million rupees.

Auditing Framework

Auditing requirements are stipulated in the Companies Act 2001. Financial statements of all companies must be audited in accordance with International Standards on Auditing (ISA) as issued by the IAASB. As per the FRA 2004, audits must be conducted by qualified members of the Mauritius Institute of Professional Accountants (MIPA) that are licensed by the FRC. Under the Companies Act 2001, small private companies that do not qualify as PIEs are not required to have an auditor. If a company decides to have an audit, the auditor does not need to fulfill the FRA 2004 requirements.

Professional accountants in Mauritius are subject to the regulation of the Mauritius Institute of Professional Accountants (MIPA) in accordance with the Financial Reporting Act 2004 (FRA 2004). Auditors are then subject to the oversight of the Financial Reporting Council (FRC) in accordance with the FRA 2004.

MIPA was established to regulate the accountancy profession. It’s responsibilities are to: (i) establish, publish, and review a Code of Professional Conduct and Ethics for Professional Accountants which must be consistent with the IESBA Code of Ethics; (ii) establish and maintain a register of Professional Accountants, Public Accountants, and Member Firms; (iii) establish membership requirements; (iv) conduct examinations for registering Professional Accountants; (v) establish and monitor continuing professional development requirements; and (vi) establish and implement investigation and discipline procedures.

The accountancy profession in Mauritius has grown through the inclusion of professional accountants qualified overseas. The FRA 2004 specifies a list of overseas institutes that are recognized for MIPA membership purposes—and consequently the initial professional development requirements for professional accountants in the jurisdiction—and all qualified individuals must register with MIPA to use the title of Professional Accountant (PFA). The recognized overseas accountancy institutes include: (i) The Association of Chartered Certified Accountants (ACCA) (ii) The Chartered Institute of Management Accountants (CIMA) (iii) The Institute of Chartered Accountants in England and Wales (ICAEW) (iv) The Institute of Chartered Accountants of Scotland (ICAS); (v) The Institute of Chartered Accountant of Ireland (vi) The Institute of Chartered Accountant of India; (vii) The South African Institute of Chartered Accountants (SAICA); and (viii) The Association of International Accountants (AIA). The listed organizations require aspiring professional candidates to complete a professional accountancy education program, practical experience requirements, and pass final examinations. Individuals who are members of professional accountancy bodies other than above, but which satisfy requirements relating to qualification in the field of accountancy and have a minimum of three years practical experience may also apply to register as a PFA. PFAs are generally employees and provide services to their employers.

To provide professional services relating to accounting, auditing, taxation, management consulting and financial management in Mauritius, PFAs must register with MIPA as a Public Accountant (PBA) and receive a practicing certificate from the institute. No individual can offer services to the public unless registered with MIPA as a Public Accountant.

Lastly, to offer auditing services, PBAs must have two years’ experience of audit training with a licensed auditor, register and be licensed by the FRC, and fulfill a minimum of 21 hours of training in IFRS and ISA per year.

As noted above, the FRC was established under the FRA 2004 as the oversight body and to strengthen the credibility and quality of financial reporting and audit in Mauritius. The FRC’s functions include: (i) ensuring the adoption of IFRS and ISA; (ii) monitoring the practice of auditors to maintain standards of professional conduct; (iii) monitor and enforce compliance with applicable financial reporting, accounting, and auditing standards; (iv) license auditors and establish and maintain an register of licensed auditors; (v) conduct practice quality assurance reviews of licensed auditors; (vi) investigate and sanction all licensed auditors and firms based on its practice review findings; (vii) review financial statements and reports of a Public Interest Entity; and (viii) advise the Minister on matters relating to financial reporting and accounting and auditing.

Auditors are subject to the independent oversight of the Financial Reporting Council as established by the Financial Reporting Act 2004. The FRC is a member of the International Forum of Independent Audit Regulators (IFIAR) and its objectives are to (i) promote the provision of high quality reporting of financial and non-financial information by public interest entities; (ii) promote the highest standards among licensed auditors; (iii) enhance the credibility of financial reporting; and (iv) improve the quality of accountancy and audit services.

The FRC’s functions include: (i) ensuring the adoption of ISA; (ii) monitoring the practice of auditors to maintain standards of professional conduct; (iii) monitor and enforce compliance with applicable auditing standards; (iv) license auditors and establish and maintain a register of licensed auditors; (v) conduct practice quality assurance reviews of licensed auditors; (vi) establish an Enforcement Panel to investigate and sanction all licensed auditors and firms based on its practice review findings; (vii) review financial statements and reports of a public interest entity; and (viii) advise the Minister on matters relating to financial reporting and accounting and auditing.

Mauritius Institute of Professional Accountants (MIPA)

MIPA was established in January 2005 under the Financial Reporting Act 2004 (FRA 2004) to regulate the accountancy profession, comprising Professional and Public Accountants in Mauritius. Membership in MIPA is mandatory for all qualified individuals in order to provide services relating to accounting, auditing, taxation, management consulting and financial management in Mauritius.

MIPA’s responsibilities under the Act include to: (i) establish, publish, and review a Code of Professional Conduct and Ethics for Professional Accountants which must be consistent with the IESBA Code of Ethics; (ii) establish and maintain a register of Professional Accountants, Public Accountants, and Member Firms; (iii) establish membership requirements; (iv) conduct examinations for registering Professional Accountants; (v) establish continuing professional development requirements; and (vi) establish and implement investigation and discipline procedures.

In addition to being a Member of IFAC, MIPA is member of the Pan African Federation of Accountants.

The Mauritius Institute of Professional Accountants (MIPA) reports that the Ministry of Financial Services has discussed possible amendments to the Financial Reporting Act 2004 with MIPA, although the exact amendments have not been disclosed. Amendments would be aimed at enhancing collaboration between MIPA and the FRC. The FRC would continue to provide MIPA with administrative and regulatory resources, for example, for investigation and disciplinary, and learning and development efforts.

In accordance with the Financial Reporting Act 2004 (FRA 2004), the Financial Reporting Council (FRC) is responsible for establishing and operating a mandatory quality assurance (QA) review system in Mauritius. The FRC adopted ISCQ 1 and ISA 220 and has conducted QA reviews through its Audit Practice Review Panel (APRP) which was established in 2008.

The APRP carries out external quality reviews of audit practices and licensed individual practitioners. Each practice is subject to review by the FRC every three years. A review can also be initiated by a complaint against a licensed auditor. The selection methodology is therefore both risk-based and cyclical. The process for QA reviews in Mauritius is a combination of desk reviews and on-site visits.

MIPA reports that the scope and design of the FRC’s QA review system is line with SMO 1 best practices.

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 intends to set-up the new committee by 2022.

Current Status: Adopted

The Financial Reporting Act 2004 (FRA 2004) establishes the initial professional development (IPD) requirements for professional accountants in Mauritius. The Mauritius Institute of Professional Accountants (MIPA) is responsible for establishing, monitoring, and enforcing continuing professional development (CPD) requirements.

MIPA does not offer a local professional accountancy qualification. The FRA 2004 sets out a list of accountancy organizations—and consequently the IPD requirements for the jurisdiction—whose members are eligible to apply for MIPA membership. These include: (i) The Association of Chartered Certified Accountants (ACCA) (ii) The Chartered Institute of Management Accountants (CIMA) (iii) The Institute of Chartered Accountants in England and Wales (ICAEW) (iv) The Institute of Chartered Accountant s of Scotland (ICAS); (v) The Institute of Chartered Accountant of Ireland (vi) The Institute of Chartered Accountant of India and (vii) The South African Institute of Chartered Accountants (SAICA); The listed organizations 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. Individuals who are members of professional accountancy bodies other than above, but which satisfy requirements relating to qualification in the field of accountancy and have a minimum of three years practical experience may also apply to register as a professional accountant.

In 2013, MIPA established CPD requirements which it reports are in line with IES 7 and 8. MIPA members are also required to follow their qualifying (overseas) institute’s CPD requirements.

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.

Current Status: Partially Adopted

The Companies Act 2001 stipulates that the financial statements of all companies, except for small private companies that do not exceed thresholds related to annual turnover and total assets, must be audited in accordance with ISA as issued by the IAASB.

Current Status: Adopted

The Financial Reporting Act 2004 (FRA) stipulates that the Mauritius Institute of Professional Accountants (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.

MIPA states it has adopted the 2020 International Code of Ethics in its entirety.

Current Status: Adopted

The Government of Mauritius is responsible for setting public sector accounting standards in the country.

In 2011, the Statutory Bodies (Accounts and Audit) Act was amended to require the application of the IPSAS for all ministries and government bodies. 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 (IFAC, CIPFA 2018).

Current Status: Adopted

All professional accountants in Mauritius are subject to investigative and disciplinary (I&D) procedures. In accordance with the Financial Reporting Act 2004 (FRA), the Mauritius Institute of Professional Accountants (MIPA) is responsible for establishing an I&D system for its members for breach of conduct while the Financial Reporting Council (FRC) is responsible for establishing an Enforcement Panel to investigate and sanction all licensed auditors and firms, which also encompasses MIPA members.

The FRC operates an Enforcement Panel with sanctioning carried out by the FRC and an appeals mechanism available. MIPA indicates that FRC’s procedures comply with SMO 6 best practices.

In 2015, MIPA formulated its own 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. 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. MIPA reports that it processed three (3) cases, and imposed sanctions on two (2) of the three cases in 2020.

MIPA reports that the framework operates 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.

Current Status: Adopted

All companies as stipulated in the Companies Act 2001, except for small private companies, which do not qualify as Public Interest Entities (PIEs), must prepare financial statements in accordance with International Financial Reporting Standards (IFRS) as issued by the IASB. PIEs are defined in the First Schedule of the Financial Reporting Act (FRA) 2004 as all companies that are listed on the Stock Exchange of Mauritius, financial institutions, other than cash dealers, regulated by the Bank of Mauritius or by the Financial Services Commission, and companies that exceed one of the following thresholds in the two consecutive preceding periods: (i) annual turnover exceeding 500 million rupees; or (ii) total assets exceeding 500 million rupees.

Companies that do not qualify as a PIE may prepare financial statements in accordance with the IFRS for Small- and Medium-sized Entities.

Current Status: Adopted

Relevant Organizations

Financial Reporting Council (FRC)

International Forum of Independent Audit Regulators (IFIAR)

National Committee on Corporate Governance

Mauritius Institute of Professional Accountants (MIPA)

Relevant Legislation

Companies Act, 2001

Financial Reporting Act, 2004

MIPA’s Rules

Relevant Publications

IFRS Foundation, IFRS Application around the World - Jurisdictional Profile: Mauritius, June 2016.

International Forum of Independent Audit Regulators (IFIAR) Member Profiles.

MIPA, SMO Action Plan, 2019.

World Bank, Report on the Observance of Standards and Codes: Accounting and Auditing - Mauritius, 2003.

World Bank, Report on the Observance of Standards and Codes: Accounting and Auditing - Mauritius, 2011.