Financial Crime World

Haiti’s Accounting Standards: A Mixed Bag

The accounting landscape in Haiti is complex, with various standards and requirements in place for different sectors. While some areas have made progress towards international best practices, others remain outdated or lacking.

University Accounting Programs

According to a recent report by the World Bank, the content of university accounting programs in Haiti does not align with International Education Standard (IES) requirements. However, the Ordre des Comptables Professionels Agrees d’Haiti (OCPAH), the country’s professional accountants’ organization, is working towards bringing its examinations and continuing professional development (CPD) requirements in line with IES 6 and 7.

Auditing Standards

Tax Decree 29 of 2005 requires companies and sole proprietorships with annual sales or total assets above a certain threshold to have their financial statements audited by an independent accountant. However, no specific auditing standards are specified in the decree, leaving it unclear what version of International Standards on Auditing (ISA) is applicable.

Code of Ethics

The Code of Ethics for Professional Accountants in Haiti is also not aligned with international best practices. While OCPAH has adopted its own code, known as the “Golden Book”, it is not based on or converged with the International Ethics Standard Board for Accountants (IESBA) Code of Ethics. However, OCPAH has reported plans to adopt the IESBA Code of Ethics through a new accountancy law.

Public Sector Accounting Standards

The Direction Générale du Trésor et de la Comptabilité Publique (DGTCP) is responsible for adopting public sector accounting standards, but it is unclear when IPSAS will be adopted.

Investigation and Discipline Mechanisms

Investigation and discipline mechanisms are also in place, but they do not fully meet International Standards on Auditing (ISA) requirements. OCPAH has reported plans to strengthen its investigative and disciplinary systems through a new accountancy law, which would establish separate procedures for investigating and disciplining members.

Financial Reporting Standards

Financial reporting standards in Haiti are largely outdated, with the Plan Comptable National (PCN) being used as the basis for financial reporting. While small enterprises are only required to keep a record of their cash inflows and outflows, larger companies must prepare financial statements using the PCN system.

Conclusion

Overall, while there have been some efforts towards modernization and international alignment, Haiti’s accounting standards remain a mixed bag. With ongoing efforts towards reform, it is hoped that the country will eventually achieve full compliance with international best practices.

Sources:

  • World Bank Report on the Observance of Standards and Codes - Accounting and Auditing: Haiti (2007)
  • OCPAH SMO Action Plan (2017)
  • Deloitte IAS Plus - Financial Reporting Framework in Haiti (n.d.)
  • Relevant publications from International Accounting Bulletin, Accountancy Age, and others.