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Page 1 | Proprietary and Copyrighted Information
Mexico Code of Professional Ethics
IESBA Meeting
New York
June 29 – July 1, 2015
Marisa Orbea, IESBA Member
Page 2 | Proprietary and Copyrighted Information
Introduction (1)
Date
• 15 June 2010 • The National Executive Committee of the Mexican Institute of Public Accountants agreed to the adoption of the International Standards on Auditing issued by the International Auditing Standards Board of the International Federation of Accountants
Page 3 | Proprietary and Copyrighted Information
Introduction (2)
• It was performed a comprehensive review to the Code of Professional Ethics which was in force since February 2009, to align its content, fundamentally, with the International Ethics Code issued by IFAC, in June 2009, and in force since 1 January 2011
Page 4 | Proprietary and Copyrighted Information
Introduction (3)
Date
• 1 January 2012 • It entered into force in Mexico the Code of Professional Ethics issued by the Mexican Institute of Public Accountants taking as starting point the International Ethics Code
Page 5 | Proprietary and Copyrighted Information
• The Mexican Institute of Public Accountants (hereafter IMCP) is co-founder of the International Federation of Accountants (IFAC), for this reason, the IMCP undertook the task of developing a Code of Ethics that will allow us to deal with new trends and needs, as a result of the development achieved by our profession, as well as harmonize its content with the International Ethics Code developed by IFAC
Introduction (4)
Page 6 | Proprietary and Copyrighted Information
Reasons for main changes to the Code of Professional Ethics of the IMCP (1)
• The main changes to the current Code of the IMCP are that it was tried to use terminology commonly used in Mexico, eliminating, basically, those paragraphs non applicable or that represented unusual safeguards in the accountancy in Mexico
Page 7 | Proprietary and Copyrighted Information
Reasons for main changes to the Code of Professional Ethics of the IMCP (2)
• Added provisions included in the previous edition of Mexican code which were considered essential to make it more strict and to strengthen the practice of the accountancy in Mexico
Page 8 | Proprietary and Copyrighted Information
Additions to the Code of Professional Ethics of the IMCP
IMCP IESBA
• Includes Section D – Public Accountants in Teaching
- Introduction y rules
• Includes Section E – Penalties- Introduction and penalties
• Not included
• Not included
Page 9 | Proprietary and Copyrighted Information
Main changes to the Code of Professional Ethics of the IMCP
Section A - General application of the Code• The corresponding update to conflicts of interest has not been included yet and
communicating with those charged with governance (100.17, 100.18 y 100.25)
Section B – Public Accountants in Independent Practice• The update to conflicts of interest corresponding to section 220 – Conflicts of
interest
Page 10 | Proprietary and Copyrighted Information
Main changes to the Code of Professional Ethics of the IMCP
290.35 – Added: d) Document all of the above, including the obtaining of an authorization in writing from the corporate governance of the client
290.121 y 290.122 – Removed the safeguard: unless the loan or the guarantee is not materiality both for a) the firm or member of the audit team and his/her immediate family member b) client
290.126 bis – Added: The independent public accountant, in any case may obtain or pay commissions or fees for referring or receiving a professional work, in relation to an audit client. Only can grant participation in fees or profits from his work, to individuals, firms or associations with whom he shares the professional practice
Page 11 | Proprietary and Copyrighted Information
Main changes to the Code of Professional Ethics of the IMCP
290.168 – Added: Therefore, a firm shall not provide accounting and/or bookkeeping services to an audit client, including payroll services, or preparation of financial statements or financial information on which the firm will express an opinion, since the threat of self review would be so important that any safeguard could eliminate it or reduce it to an acceptable level
290.171, 290.172, 290.173, 290.174, 290.177, 290.179 y 290.186 intentionally left blank
290.193 – Removed: Determine what constitutes a "court or public court" will be according to how are the audiences of tax procedures in the particular jurisdiction
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Main changes to the Code of Professional Ethics of the IMCP
290.215 –Added: The firm will not provide the following recruitment services to an audit client, which is an entity of public interest with respect to an officer or director of the entity, or to a person of the senior management, whose position allows him/her to exercise significant influence on the preparation of the accounting records of the client or the financial statements on which the firm will express an opinion
• Search or request of candidates for such positions, and
• Performing checks of the references of potential candidates for such positions
291.34 a 291.99 intentionally left blank
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Main changes to the Code of Professional Ethics of the IMCP
290.219 bis – Added: Should not provide services of custody of resources or other assets of an audit client unless permitted by law and, if so, compliance with any additional duties imposed on the Public Accountant in the independent practice who manage these assets. Safeguards contained in paragraphs 270.2 and 270.3 are applicable
The Public Accountant will not be responsible of management of resources or other assets of an audit client, since the threat created would be so important that any safeguard could eliminate it or reduce it to an acceptable level
