Financial Crime World

Haiti Lags Behind International Accounting Standards

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Haiti’s accounting standards are not fully compliant with international guidelines, despite efforts to adopt some of these standards. A recent assessment by the World Bank has highlighted several areas where the country needs to improve.

University Programs Not Aligned with International Standards

The report found that Haiti’s university programs for accounting and auditing are not aligned with international standards. This is a concern as it may lead to a shortage of skilled professionals in the industry.

Lack of Auditing Standards

The Tax Decree 29 of 2005 does not specify any auditing standards, making it unclear if independent auditors are applying International Standards on Auditing (ISA).

Ethics Code Not Converged with International Standards

OCPAH has its own code of ethics, known as the “Golden Book,” which was adopted in 1988. However, it does not appear to be based on or converged with the International Ethics Standards Board for Accountants (IESBA) Code of Ethics.

Investigation and Discipline Procedures Not Up to Standard

While OCPAH has an investigative and disciplinary system in place, it does not fully meet all of the requirements of the SMO 6 framework, which is a set of standards for accountancy organizations.

Financial Reporting Needs Improvement

Haiti’s Plan Comptable National (PCN) accounting standard system is outdated and tax-oriented. Small enterprises are only required to keep records of their cash inflows and outflows, while larger companies must prepare financial statements in accordance with the PCN.

Requirements for Financial Statements

Small enterprises are exempt from preparing detailed financial statements, which can make it difficult for investors and creditors to make informed decisions about the company’s financial health.

Conclusion

While Haiti has made some progress towards adopting international accounting standards, more work needs to be done to bring its standards into line with those of other countries.

Sources

  • World Bank Report on the Observance of Standards and Codes (ROSC) - Accounting and Auditing: Haiti
  • OCPAH SMO Action Plan
  • Relevant publications from Deloitte IAS Plus, International Accounting Bulletin, Accountancy Age, and U.S. Department of State

Disclaimer

IFAC bears no responsibility for the information provided in the SMO Action Plans prepared by IFAC member organizations.