Financial Crime World

Bolivia Strengthens Accounting Standards and Professional Ethics

The Bolivian accounting profession is making significant progress towards international convergence and best practices, according to a recent assessment by the International Federation of Accountants (IFAC).

Standard-Setting Body

The Authority for Fiscal and Social Control of Businesses (AEMP) has delegated its standard-setting responsibility to the National Technical Board of Auditors and Accountants (CTNAC) of the Colegio de Auditores o Contadores Públicos de Bolivia (CAUB). The CTNAC has issued Bolivian Accounting standards that are aligned with International Financial Reporting Standards (IFRS), including Resolution 002/2012 adopting IFRS as issued by the International Accounting Standards Board (IASB).

Code of Ethics

In addition, CAUB has adopted the International Code of Ethics for Professional Accountants, and the Colegio de Contadores de Bolivia has also adopted the code on a voluntary basis.

Areas for Improvement

However, there are still some areas where progress is needed:

  • The Government Administration, Control Law No. 1178 of 1990, and Supreme Decree No. 23215 of 1992 establish the Controller General of Bolivia as the accounting standard-setter for the public sector, but national standards are only on a partial accrual-basis.
  • The Ministry of Finance is responsible for investigation and discipline (I&D), but has not operationalized the Ad Honoren Committee.
  • There is no specific audit standard for regulated entities under the purview of the Supervisory Authority of Pensions and Insurance (APS).

Relevant Organizations

  • Authority for Fiscal and Social Control of Businesses (AEMP)
  • Colegio de Auditores o Contadores Públicos de Bolivia (CAUB)
  • Colegio de Contadores de Bolivia
  • National Technical Board of Auditors and Accountants (CTNAC)
  • Supervisory Authority of the Financial System (ASFI)
  • Supervisory Authority of Pensions and Insurance (APS)

Relevant Legislation

  • ASFI regulation
  • CAUB Code of Ethics
  • Code of Commerce, 1977
  • CTNAC Resolution 001/2015
  • CTNAC Resolution 002/2012
  • Law 3911, 1957

Relevant Publications

  • CAUB SMO Action Plan, February 2022
  • IFRS Foundation, “IFRS Application Around the World, Jurisdictional Profile: Bolivia,” June 2016