Tunisia

Several pieces of legislation define the corporate financial reporting framework in Tunisia.

Accounting Framework

Law 96-112 on the Enterprise Accounting System outlines the conceptual framework for accounting. It establishes the Conseil National de la Comptabilité (CNC) as an advisory body to the Ministry of Finance, with responsibility for setting accounting standards.

In 2018 the CNC decided to adopt IFRS for public interest entities—listed companies, banks, insurance and reinsurance firms and public offering financial institutions—by January 1, 2021, which was extended to 2023. CNC plans to also adopt IFRS for all other companies by 2025.

All other entities are required to apply national accounting standards–Tunisian Accounting Standards (TAS)–in the preparation of their financial statements, which are not aligned with IFRS. TAS are enacted by the Ministry of Finance via Ministerial Orders.

Auditing Framework

Decree No. 1546-2006 overhauled the auditing practice profession and subsequently, the Law on Commercial Companies was revised to stipulate that statutory audits are required for joint stock companies and limited liability corporations that meet two of the following three criteria: (i) total assets equal to or above 100,000 TND; (ii) total revenues excluding taxes equal to or above TND 300,000; and (iii) average number of employees equal to or above 10. Additionally, non-government organizations that have a budget equal to or above 100,000 TND and all state-owned enterprises are also required to appoint a statutory auditor.

Applicable auditing standards for all statutory audits are International Standards on Auditing (ISA) as adopted by OECT and approved by the Ministry of Finance in accordance with a decree issued by the Ministry of Finance in 2003. In general, OECT adopts ISA as issued by the IAASB and translated into French; however, it will set up a task force whenever a significant change is introduced. As of the date of the assessment, the French translation of the 2018 Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements is applicable in the jurisdiction.

The laws related to the accountancy profession in Tunisia authorize the professional accountancy organizations in the jurisdiction to regulate the profession. The Ordre des Experts Comptables de Tunisie (OECT) was established in 1982 and is currently governed under Law 88-108 on the Chartered Accountancy Profession while the Compagnie des Comptables (CCT) was created in 2002 in accordance with Law 2002-16 on the Accounting Profession. The OECT is responsible for Chartered Accountants, while the CCT is responsible for Professional Accountants (primarily accountants in business). The requirements set by each institute are subject to final approval and oversight by the Ministry of Finance and membership in one of the institutes is mandatory to offer accounting and auditing services in Tunisia.

For individuals to qualify as Professional Accountant, candidates must have a bachelor’s degree, and complete a yearlong internship. Individuals are then eligible for CCT membership and CCT will issue a license to practice. Following the passage of Decree 1546-2006, CCT members may conduct audits for non-public interest entities (PIEs) and limited companies that are under the following thresholds: (i) (i) total assets equal to or above 1,500,000 Tunisian Dinars (TND); (ii) total revenues excluding taxes equal to or above TND 2,000,000; and (iii) average number of employees equal to or above 30.

The CCT is responsible for the following activities in regard to its members: (i) setting continuing professional development (CPD) requirements for its members; (ii) issuing a Code of Professional Duties for its members (iii) investigating and disciplining its members; (iv) licensing its members to practice; (v) ensuring that members of the profession comply with all professional rules and obligations; and (vi) representing and encouraging the development of the accountancy profession in Tunisia. The requirements established by the CCT are subject to final approval from the Ministry of Finance.

For the designation of Chartered Accountant, individuals fulfill the initial professional development (IPD) requirements stipulated in Law 88-108 on the Chartered Accountancy Profession, which are to complete a five year accounting program and pass the national exam organized by the Ministry of Education. Decree 95–2604, as amended in 2015, authorizes the Ministry of Higher Education to organize the examination and certification processes. Universities deliver the required professional accountancy programs and collaborate with the OECT to continue to update and improve the curricula.

Individuals are then required to complete three years of practical experience with at least two years under the supervision of an OECT member. Furthermore, during the practical experience period, candidates are required to complete 40 training hours annually with 20 of those hours at the OECT internal training institute, the Institut de Formation de la Profession Comptable (IFPC). After the internship period, a dissertation must be prepared and defended in a university. Individuals are then eligible to become a OECT member and have the legal authority to conduct statutory audits for PIEs that are defined as: (i) credit institutions; (ii) investment funds; (iii) listed on the Tunisian Stock Exchange; and (iv) an association authorized to grant microcredit, among others; as well as companies that exceed the abovementioned size criteria.

The OECT’s mandate includes: (i) setting auditing standards for the jurisdiction; (ii) setting ethical standards for its members; (iii) overseeing the practical experience component of the IPD requirements; (iv) setting CPD requirements for members; (v) supporting the quality assurance reviews of all statutory audits carried out by the Control Committee; and (vi) investigating and disciplining its members through the Control Committee. The requirements established by OECT are subject to final approval from the Ministry of Finance.

Finally, regulators require that auditors of regulated entities report directly to them on any matter that they become aware of that could threaten the viability of the entity. Law 2016-48 (that replaced Law 2001-65) on Credit Institutions outlines the relationship between bank auditors and the Central Bank and Law 94-117 does the same for auditors of listed entities and the CMF. In addition, the Central Bank of Tunisia has authority to prohibit a statutory auditor form conducting audits of credit institutions temporarily or permanently. Lastly, the Insurance Law requires auditors to report matters that come to their attention during the audit that could threaten the viability of the insurance company to the Ministry of Finance.

There is no independent oversight authority in Tunisia that has been established or operationalized (refer to the section on Projects and Other Initiatives for additional details), and auditors are regulated at the professional level by the Ordre des Experts Comptables de Tunisie (OECT) and the Compagnie des Comptables (CCT).

The OECT was established under Law 88-108 on the Chartered Accountancy Profession while the CCT was created in 2002 in accordance with Law 2002-16 on the Accounting Profession. The OECT is responsible for regulating Chartered Accountants, while the CCT is authorized to regulate its members who are professional accountants. Membership in one of the institutes is mandatory to offer auditing services in Tunisia.

OECT’s Chartered Accountants are the only individuals permitted to conduct statutory audits of public interest entities (PIEs). Following the passage of Decree 1546-2006, Professional Accountants, members of CCT, may conduct audits for non-PIEs and companies that are under the abovementioned thresholds.

The OECT’s mandate includes: (i) setting auditing standards for the jurisdiction; (ii) setting ethical standards for its members; (iii) overseeing the practical experience component of the initial professional development (IPD) requirements; (iv) setting continuing professional development (CPD) requirements for members; (v) supporting the quality assurance reviews of all statutory audits carried out by the Control Committee; and (vi) investigating and disciplining its members through the Control Committee. The requirements established by OECT are subject to final approval from the Ministry of Finance.

The CCT is responsible for the following activities in regards to its members: (i) setting CPD requirements; (ii) issuing a Code of Professional Duties (iii) investigating and disciplining; (iv) licensing its members to practice; (v) ensuring that members of the profession comply with all professional rules and obligations; and (ii) representing and encouraging the development of the accountancy profession in Tunisia. The requirements established by the CCT are subject to final approval from the Ministry of Finance.

Compagnie des Comptables (CCT)

The CCT was established in 2002 in accordance with Law 2002-16 on the Accounting Profession and is subject to the oversight of the Ministry of Finance. Membership of the society is primarily comprised of Professional Accountants who, following the passage of Decree 1546-2006, may conduct audits for non-public interest entities (PIEs) and companies that are under certain size thresholds. The CCT is responsible for: (i) setting continuing professional development (CPD) requirements for its members; (ii) issuing a Code of Professional Duties for its members (iii) investigating and disciplining its members; (iv) licensing its members to practice; (v) ensuring that members of the profession comply with all professional rules and obligations; and (vi) representing and encouraging the development of the accountancy profession in Tunisia. CCT is not a Member of IFAC.

Ordre des Experts Comptables de Tunisie (OECT)

The OECT was established in 1982 and is governed by Law 88-108 on the Chartered Accountancy Profession. OECT is subject to oversight by the Ministry of Finance and its mandate includes: (i) setting auditing standards for the jurisdiction; (ii) setting ethical standards for its members; (iii) overseeing the practical experience component of the initial professional development (IPD) requirements; (iv) setting CPD requirements for members; (v) supporting the quality assurance reviews of all statutory audits carried out by the Control Committee; (vi) investigating and disciplining its members through the Control Committee; and (vii) ensuring appropriate functioning of the accountancy industry. Its membership consists of Chartered Accountants who are the only individuals are permitted to conduct statutory audits for PIEs and companies over a certain size threshold in Tunisia.

OECT is a Member of IFAC and the following regional organizations: the Arab Federation of Accountants and Auditors (AFAA), the Pan African Federation of Accountants (PAFA), the Federation of Mediterranean Accountants (FCM), and the International Federation of Francophone Accountants (FIDEF).

The Ministry of Finance, with an assistance of the World Bank, has commenced a study related to the reform of the audit and accounting profession. The study covers a wide range of topics and may lead to major changes in the quality assurance review system, standard-setting process, continuing professional development, and more.

For example, the Control Committee (responsible for quality assurance reviews) established by Law 88-108 as an independent body and was intended to serve as a public oversight body, subject to supervision by the Ministry of Finance. In practice, the Committee is fully funded by the OECT, 50% of the Committee is comprised of OECT members, it is supported administratively by the OECT Secretariat, and review team members are drawn from the profession. Accordingly, in 2013, the OECT approved new bylaws. The envisioned system would consist of a quality control commission linked to the OECT that only reviews statutory audits; an independent oversight body known as the Institute of Assurance Services Control (IASC), which would have a wider remit and be responsible for reviewing all audit engagements and audits of public interest entities; and lastly, a quality committee within the OECT that would be responsible for supporting OECT members to ensure they are providing high quality services. A draft report containing several recommendations for the plan of the proposed oversight system and QA review system was submitted to the Ministry of Finance. In 2017 OECT issued responses to the recommendations and as of the date of the assessment the draft plan is still under consideration by the new Ministry of Finance as part of the larger project to enhance the Tunisian accountancy profession.

According to Law 88-108 on the Chartered Accountancy Profession, the Control Committee is responsible for the establishment of a quality assurance (QA) review system. The Control Committee, while formally independent from the Ordre des Experts Comptables de Tunisie (OECT), is fully funded by the OECT, 50% of the Control Committee is comprised with OECT members, it is supported administratively by the OECT Secretariat, and review team members are drawn from the profession.

The OECT and the Control Committee are in the process of revising the QA review system to establish a fully independent public oversight body. In this regard, the OECT has indicated that, with the assistance of the World Bank, an action plan was prepared in June 2015 and as of June the date of the assessment, the draft plan is still under discussion as part of the overall accounting profession reform project with the new Tunisian Ministry of Finance.

As of the date of this assessment, ISQM 1 & 2 are being integrated in QA reviews with full adoption expected to be completed within 2024.

OECT reports that the QA review system operating in the jurisdiction is in line with the requirements of SMO 1.

Current Status: Adopted

In Tunisia, initial professional development (IPD) requirements are set in law for Professional and Chartered Accountants with universities delivering the required professional accountancy programs and the professional accountancy organizations (PAOs) in the jurisdiction implementing additional IPD requirements such as practical experience.

In accordance with Law 88-108, the Ordre des Experts Comptables de Tunisie (OECT) is responsible for Chartered Accountants, while the Compagnie des Comptables (CCT) is responsible for Professional Accountants. The requirements set by each institute are subject to final approval and oversight by the Ministry of Finance and membership in one of the institutes is mandatory to offer accounting and auditing services in Tunisia.

For the designation of Chartered Accountant, individuals fulfill the IPD requirements stipulated in Law 88-108 on the Chartered Accountancy Profession, which are to complete a five year accounting program and pass the national exam organized by the Ministry of Education. Decree 95–2604, as amended in 2015, authorizes the Ministry of Higher Education to organize the examination and certification processes. Between 2017-2018, the Ministry of Higher Education collaborated with OECT and universities to align university accounting curricula with 2015 IES, which came into force from the academic year 2019-2020. Universities deliver the required professional accountancy programs and collaborate with the OECT to continue to update and improve the curricula.

Individuals are then required to complete three years of practical experience with at least two years under the supervision of an OECT member. Furthermore, during the practical experience period, candidates are required to complete 40 training hours annually with 20 of those hours at the OECT internal training institute, the Institut de Formation de la Profession Comptable (IFPC). After the internship period, a dissertation must be prepared and defended in a university. Individuals are then eligible to become a OECT member. OECT members are required to adhere to its continuing professional development (CPD) regulations which are in line with IES requirements. The CPD system follows an input-based approach whereby members are required to complete a minimum of 120 hours over a three-year period. Of the 120 required hours, a minimum of 60 hours must be verifiable in line with the internal reporting requirements.

For individuals to qualify as Professional Accountants, candidates must have a bachelor’s degree, and complete a yearlong internship. Individuals are then eligible for CCT membership and CCT will issue a license to practice.

While some of the IES requirements appear to be adopted in the jurisdiction, the alignment of the national IPD and CPD requirements for all professional accountants in Tunisia with those of latest IES needs to be clarified.

Current Status: Partially Adopted

In Tunisia, applicable auditing standards for all financial statements audits are ISA as adopted by the Ordre des Experts Comptables de Tunisie (OECT) and approved by the Ministry of Finance in accordance with a decree issued by the Ministry of Finance in 2003.

In general, OECT adopts ISA as issued by the IAASB and translated into French and it sets up a task force whenever a significant change is introduced.

As of the date of the assessment, the French translation of the 2022 Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements is applicable in the jurisdiction.

Current Status: Adopted

The professional accountancy organizations in Tunisia each establish ethical requirements for their members, subject to the approval of the Ministry of Finance.

In accordance with Law 88-108 on the Chartered Accountancy Profession, the Ordre des Experts Comptables de Tunisie (OECT) is responsible for establishing ethical requirements for its members who are Chartered Accountants.

In general, OECT adopts IESBA Code of Ethics as issued by the IESBA and translated into French.

As of the date of the assessment, the French translation of the 2022 Handbook of the International Code of ethics for Professional Accountants is applicable in the jurisdiction.

OECT notes that the Tunisian Companies Law already contains some ethical provisions, which are more restrictive than those of the 2016 NOCLAR standard. For example, an auditor may face criminal charges if they do not disclose to the procurer any non-compliance with legislations.

The Compagnie des Comptables (CCT), under Law 2002-16, is responsible for setting ethical requirements for its members–professional accountants who may also act as auditors of certain non-public interest entities. CCT members are subject to the CCT-issued Code of Professional Duties; however, it is not clear if it is aligned with the IESBA Code of Ethics.

Additional ethical requirements for professional accountants are set in other Tunisian laws, such as the Financial Securities Law and the abovementioned Companies Law.

Current Status: Partially Adopted

The Ministry of Finance is responsible for the adoption of public sector accounting standards under the Public Accounting Code Law No. 73-81. Current standards are national standards on a cash-basis (IFAC, CIPFA 2021) with plans to move to national standards with reference to IPSAS on an accrual-basis by 2025.

Current Status: Not Adopted

Investigation and discipline (I&D) procedures for professional accountants in Tunisia are carried out by professional accountancy organizations (PAOs).

In accordance with Law 88-108 on the Chartered Accountancy Profession, the Control Committee is responsible for ensuring that members of the Ordre des Experts Comptables de Tunisie (OECT) comply with the rules, regulations, and standards of the profession.

The Control Committee forwards cases of non-compliance to the Disciplinary Chamber of OECT, which is comprised of representatives from the Ministry of Finance, Justice, and three professionals who are not OECT board members. OECT notes that while the current I&D system complies with many aspects of the requirements in SMO 6, the full incorporation of all SMO 6 requirements is still pending. However, these enhancements would require legislative changes. Therefore, OECT drafted a new law that would enable it to implement the necessary changes, and as of the date of the assessment, due to the successive transitions of government authorities, OECT is awaiting the draft law’s approval.

The Compagnie des Comptables (CCT), under Law 2002-16, is responsible for ensuring that its members–accounting professionals who may act as auditors of non-public interest entities–are complying with all professional standards and obligations; however, it is not clear if it has established and operates its own I&D system that is line with SMO 6 requirements.

Current Status: Partially Adopted

The Law 96-112 on the Enterprise Accounting System establishes the Conseil National de la Comptabilité (CNC) with responsibility to review and issue accounting standards subject to approval by the Ministry of Finance.

In 2018 the CNC decided to adopt IFRS for public interest entities—listed companies, banks, insurance and reinsurance firms and public offering financial institutions—by January 1, 2021, which was extended to 2023. CNC plans to also adopt IFRS for all other companies by 2025.

All entities are currently required to apply national accounting standards–Tunisian Accounting Standards (TAS)–in the preparation of their financial statements, which are not aligned with IFRS.

IFRS for SMEs has not been adopted in Tunisia.

Current Status: Partially Adopted

Relevant Organizations

• Compagnie des Comptables de Tunisie (CCT)
• Ordre des Experts Comptables de Tunisie (OECT)

Relevant Legislation

• Law 96-112 on the Enterprise Accounting System
• Law 2001-65 on Credit Institutions
• Law 94-117
• Law 2001-65
• Decree 1546—2006
• Law 88-108 of 1988 on the Chartered Accountancy Profession

Relevant Publications

• Deloitte, “Use of IFRS by jurisdiction”, n.d.
• Deloitte & Touche, “IPSAS in Your Pocket,” 2021.
• OECT, “Plan d’action 2015–2017”, n.d.
• OECT, SMO Action Plan, January 2022.
• Moore Stephens Tunisia, “The Accounting and Auditing Environment”, n.d.
• RSM, Doing Business in Tunisia, 2012.
• World Bank, Report on the Observance of Standards and Codes: Tunisia, May 2004.