The report provides an assessment of accounting, financial reporting, and auditing practices within the corporate sector in Peru, using International Financial Reporting Standards (IFRS), and International Standards on Auditing (ISA) as benchmarks, drawing on international experience and best practices in that field. This Report on the Observance of Standards and Codes (ROSC) Accounting & Auditing review included the analysis of a sample of 20 published audited financial statements, and found that financial reporting standards broadly complied with by Peruvian corporations, although a number of cases of departures from IAS, and possibly from ISA, were noted. This points the need to strengthen the enforcement of financial reporting and auditing requirements for entities of public interest. The review also noted that existing arrangements for the licensing of auditors do not provide compulsory minimum academic course content in accounting and auditing, nor do they include professional examination; moreover, continuing education requirements are not effectively followed. This is detrimental to the quality of the accounting and audit practice in the country. The lack of quality control of auditors is also a cause of serious concern. The report offers several policy recommendations aimed at strengthening the regulatory framework governing accounting and auditing, including establishing an independent oversight body for the audit profession, that would ensure qualified auditors with a strong academic background, and professional skills, and that they comply effectively with both ISA and applicable ethical requirements. Another recommendation of this ROSC is that large, non-listed companies be required to have their financial statements audited, and to publish these financial statements through CONASEV - National Supervisory commission of Enterprises and Securities.
Details
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Document Date
2004/06/10
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Document Type
Accounting and Auditing Assessment (ROSC)
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Report Number
35170
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Volume No
1
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Total Volume(s)
1
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Country
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Region
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Disclosure Date
2010/07/01
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Disclosure Status
Disclosed
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Doc Name
Peru - Report on the observance of standards and codes (ROSC) : accounting and auditing
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Keywords
small and medium enterprise;financial reporting;financial statement;statutory auditor;accounting standards;accounting profession;international standard;law;accounting and auditing standard;private sector accounting;Code of Ethics;financial information;lack of resource;financial reporting standard;Continuing Education;auditor oversight;audit oversight;Financial Sector;Insurance and Pension;economies of scale;level of compliance;quality of information;internal control system;consulting trust fund;types of reforms;human resource issues;external audit practice;access to financing;international development partner;accurate financial information;deferred income tax;private pension fund;private sector entities;financial transparency;professional examination;security market;auditing practice;corporate sector;ethics code;oversight body;insurance companies;accounting rule;corporate profit;
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Citation
Peru - Report on the observance of standards and codes (ROSC) : accounting and auditing (English). Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/771801468298456358/Peru-Report-on-the-observance-of-standards-and-codes-ROSC-accounting-and-auditing