SSF Warns of Consequences for Non-Compliance with Accounting Standards

Tegucigalpa, El Salvador - The Superintendent of the Financial System (SSF) has issued a stern warning to auditors and accountants in El Salvador that failure to comply with accounting standards can result in fines and license suspension or revocation.

Efforts to Strengthen the Country’s Financial System

The SSF’s move comes as part of its efforts to strengthen the country’s financial system and ensure transparency and accountability in the sector. The authority has been working closely with the Oversight Board of the Profession of Public Accounting and Auditing (CVPCPA) to implement international standards and best practices in accounting and auditing.

Actions Taken Against Non-Compliant Auditors

According to sources, the SSF has already taken action against several auditors who have failed to comply with accounting standards, issuing fines and suspending or revoking their licenses. The authority is also working to strengthen its investigative and disciplinary procedures to ensure that violators are held accountable for their actions.

Challenges in Implementing International Standards

The CVPCPA has been working to adopt international standards in accounting and auditing, including the International Financial Reporting Standards (IFRS) and the International Public Sector Accounting Standards (IPSAS). However, sources indicate that there are still gaps in the implementation of these standards, particularly in the public sector.

Consequences for Non-Compliance

The SSF’s warning comes at a time when El Salvador is seeking to improve its financial system and attract foreign investment. The country’s economy has been growing steadily in recent years, driven by a strong manufacturing sector and increased tourism activity.

Accountants’ Concerns

In response to the SSF’s warning, accountants and auditors in El Salvador have expressed concerns about the lack of clarity on the implementation of accounting standards and the need for more support and resources from the government and regulatory authorities.

• “It is essential that we have clear guidelines and support from the authorities to ensure compliance with international standards,” said a senior accountant.
• “We understand the importance of transparency and accountability in our sector, but we need more resources and guidance to achieve this.”

SSF’s Commitment

The SSF has promised to continue working closely with the CVPCPA and other stakeholders to strengthen the country’s financial system and ensure that accountants and auditors are held accountable for their actions.

• “Investors and stakeholders must be assured that our financial system is transparent, accountable and reliable,” said an SSF spokesperson.
• “We will not tolerate any non-compliance with accounting standards and will take action against those who fail to comply.”