RESTRICTED
WORLD TRADE S/WPPS/W/7/Add.26
24March 1997
ORGANIZATION(97-1302)
Original: Spanish Working Party onProfessional Services
COMMUNICATION FROM PERU
Response totheQuestionnaire ontheAccountancy Sector
Thefollowing communication iscirculated attherequest ofPeru.
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I. GENERAL
1. What aretheprofessional titles ofaccountants inyour country? Arethese professional
titles protected? Please specify how.
Theprofessional titleis"Contador Público" (Public Accountant), awarded byPeruvian
universities inconformity withLawNo.13253 (Law onProfessionalization ofPublic Accountancy
of11September 1959) andLawNo.23733 (University Lawof9December 1983). Thetitleisthus
protected. Registration withtheAssociation ofAccountants ofthejurisdiction inquestion isa
prerequisite toexercising theprofession ofpublic accountant. These associations, intheirturn, are
grouped together toform theFederation ofAssociations ofPublic Accountants ofPeru.
2. How istheaccountancy sector regulated inyour country: bylaw,professional self-
regulation, acombination ofboth?
InPeru, theaccountancy sector isregulated byacombination oflawandprofessional self-
regulation. Theregulatory framework consists of:
- Law No. 13253 (Law onProfessionalization ofPublic Accountantcy of
11September 1959);
- LawNo.24680 (Law ontheNational System ofAccountancy of3June1987);
- provisions issued bytheFederation ofAssociations ofPublic Accountants ofPeruand
theAssociation ofPublic Accountants.
3. Arethere anyprovisions toprotect company names, whether national orforeign, inyour
country?
Yes,there arelawstoprotect thenames ofnational andforeign companies. Inaddition to
therelevant provisions oftheGeneral LawonCompanies, theLawonIndustrial Property concerning
service marks andtrade names alsoapplies (Legislative Decree No.823of23April 1996).S/WPPS/W/7/Add.26
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4. What aretheprofessional bodies inyour country? Aretheyrecognized bylawasa
regulatory ordisciplinary body fortheaccountancy profession inyour country, orarethese
functions fulfilled byother institutions (please specify)?
InPeru,theprofessionalbodyistheAssociationofPublicAccountants.Itwaslegallyconstituted
bySupreme Decree No.28of26August 1960, which determines itscompetence. TheAssociation
isresponsible fortheregistration andcontrol ofpublic accountants, forensuring thatthestandards
ofprofessional ethics areupheld, andforpromoting technical progress andimprovement ofthe
profession.
5. Howmany members dothese professional bodies have? What istheestimated proportion
ofthose?
According totheprofessional census ofSeptember 1995, Peruhas11,952 public accountants
practising inthefollowing areas:
1,605 inthepublic sector
1,490 inindustry
1,275 incommerce
293ineducation
7,289 inother areas
6. What isthescope ofactivities regularly practised byaccountants inyour country?
Thescope ofactivities regularly practised byaccountants covers:
Accounting -Identifying, assessing andcommunicating thefinancial situation andeconomic
performance ofanentity inorder tohelpthepersons using suchinformation tomake rational
decisions. Oneoftheachievements oftheprofession hasbeentosetupaprocessing and
communication system which condenses extensive amounts ofinformation ontheoperations
ofacompany. Inthatrespect, accountancy canbeviewed asthelinkbetween theeconomic
activity ofacompany andthedecision makers.
Auditing -Establishing, through critical investigation, certified conclusions onthefinancial
accounting andrecords oftransactions ofaneconomic organization. Critical investigation
involves anorderly accumulation ofevidence, andtheestablishment ofcertified conclusions
involves theinterpretation oftheevidence accumulated.
Expert advice andinvestigation ofaccounts -Expert economic andfinancial advice tothecourts
ofthedifferent jurisdictions indetecting faulty financial statements.
Taxadvice -Thiscomprises:
- Overall advice, including practical review ofthetaxsituation;
- preparation oftaxreturns andself-assessments;
- reports prior tothepreparation oftaxreturns andself-assessments, insupport of
decision-making;
- assistance andrepresentation during taxaudits;S/WPPS/W/7/Add.26
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- customer-specific information onchanges inlegislation orregulations affecting the
client'staxsituation.
7. Which ofthese activities areregulated inyour country?
Theabove-mentioned activities areregulated byLawNo.13253 (Law onProfessionalization
ofPublic Accountants of11September 1959) andbySupreme Decree No.28of26August 1960.
8. Which ofthese activities arereserved bylawtoaccountants, shared byaccountants with
other professions (please specify), orevenforbidden toaccountants inyourcountry, e.g.byfull
prohibition orbynotallowing cumulation ofcertain activities which areconsidered incompatible
ormutually exclusive?
Theactivities reserved bylawtoaccountants areauditing andexpert accounting advice.
II. QUALIFICATION REQUIREMENTS
9. What arethequalification requirements forthese activities inyour country interms of
university/higher education degree, practice andprofessional exam? Specify thenumber ofyears
required foreachelement, andthedifferences according totheactivities (audit, insolvency, tax,
etc.)covered bythequalification.
ThequalificationrequirementsforpublicaccountantsarelaiddowninLawNo.23733(University
Law) of9December 1983 andLegislative Decree No.739of8November 1991 which provide for
automatic access totheprofessional degree (bachillerato )inaccounting upon successful completion
ofuniversity studies. Atleast10academic semesters ofuniversity studies arerequired toobtain a
professional degree, which isawarded:
(a) Upon presentation andacceptance ofathesis; or
(b) uponcompletion ofthreeconsecutive years ofprofessional service inthespecific field
inquestion following graduation, andupon presentation ofapaper oradocument in
accordance withthecriteria established bytheuniversity concerned; or
(c) through anyother procedure considered appropriate bytheuniversity.
10. Arethere anypreconditions tomeet tostart theprofessional education: minimum age,
particular diploma ortitle, prior education, registration withaprofessional body, payment of
afee,other (please specify)?
Theprecondition foruniversity teaching istobeJefedePráctica Docente (Qualified Teacher)
orAsistente deCátedra (Teaching Assistant), andtoparticipate inanopenpublic selection process
inconformity withtheUniversity Lawinorder toobtain, successively, thetitlesofAssistant Professor,
Associate Professor andFullProfessor (Articles 46,47and48ofLawNo.23733 of9December 1983).
Therequired subjects forteaching include university methodology, university teaching, psychology
oflearning andothers.
11. What arethesubjects tobecovered bytheeducation: accounting, audit, tax,general
law,economics, ethics, information technology, other (please specify)?
InPeruvian universities, theDepartment ofAccounting offers compulsory andelective subjects.
Thecompulsorysubjectsinclude:economics,environmentandnaturalresources,generaladministration,S/WPPS/W/7/Add.26
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general accounting, applied statistics, analysis offinancial statements, costaccounting, finance,
managerial accounting, advanced accounting, administration oftransactions, accounting information
systems, taxaccounting, auditing, professional ethics, development ofthePeruvian economic and
financial system, company law,marketing, andaspects ofaccounting andtaxation ininternational trade.
Theelective subjects include various courses relating toaccounting, finance andadministration.
III. TECHNICAL STANDARDS AND ETHICS
12. Inrelation towhich activities donational standards exist(audit, accounting, insolvency,
other)? Please specify their main policy objectives.
Peruhasanumber ofstandards relating toauditing andaccounting issued bytheNational
Accounting System withaviewtodeveloping thescience ofaccounting andhelping ittoattain itssocial
objectives, andtostandardizing accounting inthepublic andprivate sectors (Law No.24680 of
3June1987). Moreover, theNational Supervisory Commission forEnterprises andSecurities
(CONASEV) issues certain standards toensure thatcompanies, whether ornottheirshares arequoted
onthestock exchange, keeptheiraccounts insuchawayastofacilitate supervision andcontrol. The
TaxAdministration Supervisory Authority (SUNAT) issues anumber ofspecific accounting standards
fortaxpurposes.Finally,theAssociationofAccountantsissuescertainstandardswithaviewtoensuring
proper conduct ofprofessionals, andanumber ofother standards derive frominternational accounting
institutions suchasIFAC andIASC.
13. Which body orinstitution develops these standards andmonitors their implementation?
What aretheconsequences ofabreach ofthestandards (fortheprofessional, forclients, etc.)?
Thestandards aredeveloped bythefollowing bodies:
- National Supervisory Commission forEnterprises andSecurities;
- TaxAdministration Supervisory Authority;
- National Public Accounting Office.
Breaches ofthestandards arepunished according totherelevant provisions of:
- theCriminal TaxLaw(Legislative Decree No.823);
- theTaxCode (Legislative Decree No.816);
- theCode ofProfessional Ethics oftheAssociation ofPublic Accountants.
14. Aretheinternational standards developed bytheIFAC (International Education Standards
andGuidelines, International Standards onAuditing) andIASC (International Accounting
Standards) recognized orusedinyourcountry? Ifyes,please explain how. Ifno,please explain
why.
Yes,thestandards developed byIFAC andIASC areused.S/WPPS/W/7/Add.26
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15. Inrelation towhich activities does aparticular ethical code exist (audit, accounting,
insolvency, other)? Please specify itsmain policy objectives.
There istheCode ofProfessional Ethics, whose objective istoregulate theprofessional conduct
ofthepublic accountant working either asadependent employee orindependently. Itsetsforth the
duties, theprohibitions, andtheprocedures forthesetting offees.
16. Which body orinstitution develops thiscode andmonitors itsimplementation? What
aretheconsequences incaseofbreach oftheethical codebyaprofessional orafirm?
Theinstitution which applies theCode ofProfessional Ethics istheProfessional Association
ofPublic Accountants under thesupervision ofthecourt ofhonour.
17. Arethere restrictions onmarketing, solicitation, advertising?
Professional advertising isregulated bytheCode ofProfessional Ethics, which restricts such
advertising toname, titleandaddress.
18. Arethere restrictions onfee-setting (minimum/maximum levels imposed, indicative scale,
etc.)?
Professional feesareregulated according tothetimebudgeted for,thetechnical difficulty,
theavailability ofinformation, thetechnical staffinvolved andthedegree ofresponsibility.
IV. LICENSING REQUIREMENTS AND PROCEDURES
19. Apart from thequalification requirements, what arethelicensing requirements for
individuals inyour country?
- Membership ofaprofessional body (inthejurisdiction, elsewhere): Yes
- Registration withtheministry oranyother institution: Yes
- Subscription toaprofessional indemnity insurance: No
- Taking ofanoath: Yes
- Absence ofanycriminal record: Yes
- Police enquiry: Yes,proof must beprovided ofabsence ofapolice record.
20. Arethere anyconditions imposed tobeeligible formembership oftherelevant professional
body(ies)? Please specify.
Application formembership, personal dataandregistration records, andpayment ofregistration
maintenance fees.S/WPPS/W/7/Add.26
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21. Arethere specific licensing requirements forprofessional firms?
Anauditing firmmustbeconstituted asaSociedad Civil(partnership regulated bytheCivil
Code) inaccordance withtheprovisions ofTitleIVoftheCivil Code, andthearticles ofassociation
must beapublic instrument.
22. Cananapplication forlicensing befiledatanytimeoftheyearorarethere specific dates
torespect? How longdoesittaketocomplete thewhole licensing procedure? Please specify in
caseofdifferences between individuals andfirms.
Theapplication canbefiledatanytimeoftheyear. Once thedocumentation iscomplete,
theestimated maximum timerequired is30days. There isnodistinction whatsoever between the
procedures applied tonatural persons andtolegalpersons.
23. Arethere differences interms oflicensing requirements and/or procedures, according
totheactivities covered bythelicense (audit, insolvency, etc.)? Please specify. What kindof
documentation isnecessary/accepted? Aredocuments issued inother countries acceptable? Please
specify.
Public accountants wishing tosetupanauditing firmmustfirstsubmit totheAssociation an
application toestablish anauditing firmtogether withtheprivate partnership agreement (Minuta de
Constitucion) .Theapplication mustbesubmitted totheAssociation before thefirmisentered inthe
public register. Asaprivate contract, thepartnership agreement should contain, essentially: personal
dataconcerning theprofessionals inquestion (name, address andidentity documents), business address,
purpose ofthefirm, management system andresponsibility ofthepartners.
24. What happens when thelicensing conditions arenolonger respected bytheindividual
orthefirm?
Anyamendments tothepartnership agreement must becommunicated immediately tothe
Association together withtherelevant documentary evidence (Article 87oftheInternal Regulations
oftheAssociation ofPublic Accountants).
V. RECOGNITION OFQUALIFICATIONS
25. Arethere anypossibilities fortaking account ofqualifications acquired byforeign
professionals inanother country? Arethere bilateral agreements withother countries inthis
respect?
Such apossibility doesexistinthesense thatprofessional degrees obtained abroad maybe
validated inPeruinaccordance withthelegislation inforce (Article 2ofLawNo.13253).
26. Arethere anyautomatic recognition ormutual recognition agreements between your
professional bodies andtheir counterparts inother countries? Ifso,please specify themain
characteristics ofsuchagreements; ifnot,please explain why.
There arenoautomatic mutual recognition agreements intheaccountancy sector.
27. Where possibilities oftaking account offoreign qualifications exist, isafulllocal
examination oralocaltraining exceeding 12months required? Please specify. Isalocallicence
always necessary topractice aregulated accountancy activity? Please specify when thisisnot
thecase.S/WPPS/W/7/Add.26
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Eachuniversity isresponsible, through itsuniversity council, forvalidating university degrees
obtained abroad inaccordance withtheprocedures setforth intheirregulations (Law No.23733,
Article 32f).
28. What aretheaccreditation/licensing requirements imposed onforeign professionals
authorized topractice intheir home country? Maycertain (regulated) activities becarried out
onthebasis ofaforeign licence?
Natural persons arerequired tovalidate theirprofessional degree. Thiscanbedone byan
authorized Peruvian university inaccordance withtherelevant provisions ofitsregulations. Registration
andmembership intheAssociation ofPublic Accountants ofthejurisdiction inwhich theprofessional
intends topractice isalsorequired. Foreign professionals maynotpractice inPerusolely onthebasis
ofqualifications obtained abroad.
VI. REGULATIONSGOVERNINGTHEESTABLISHMENTOFACOMME RCIALPRESENCE
29. Arethere anyrestrictions ontheform under which onecanestablish (partnership,
incorporation, other)? Please specify.
There arenomajor restrictions, except thatanauditing firmmustbeestablished intheform
ofasociedad civilanditspartnership agreement entered inthepublic register (Title IVoftheCivil
Code). Asregards natural persons, public accountants must beresidents ofPeru.
30. Arethere restrictions onforeign direct investment andownership, including restrictions
applying tonotlocally qualified individuals orfirms? Please specify.
InPeru, there arenorestrictions onforeign investment. Domestic andforeign investments
aresubject tothesameconditions (Article 63oftheConstitution of1993). Asregards theirprofessional
activities, accountants must, whether practising individually orthrough acompany, comply withthe
legal qualification andlicensing regulations mentioned inthereplies toquestions 28and29ofthis
questionnaire.
31. Isthere arequirement ofaminimum number orpercentage oflocaldirectors, managers
orstaff(please specify)?
Article 85oftheInternal Regulations oftheAssociation ofPublic Accountants stipulates that
"Public Accountants whoagree tosetupanauditing firmshall firstsubmit totheAssociation an
application together withtheoriginal textofthepartnership agreement which mustcontain, essentially,
thefollowinginformation:....d)Managementsystem:agreementsandotherlegalconditionsestablished".
Suchagreementsmusttakeaccountofthegeneralrestrictionsonhiringforeignemployees,whichprovide
foramaximum period ofthree years withthepossibility ofextension andaceiling of20percentof
thetotalnumber ofemployees andworkers employed or30percentofthetotalpayroll (Peru -Schedule
ofSpecific Commitments inServices, Uruguay Round Agreements, 15April 1994).
32. Arethere anyrestrictions ontheability oflocally established firms todevelop international
relations (membership ofaninternational network, association withforeign firms, etc.)? Please
specify.
InPeru, insofar asthere isfreedom ofhiring, there isnorestriction whatsoever onthe
development ofinternational traderelations between private firms. Itmustbeborne inmind, however,
thataccording toArticle 81oftheInternal Regulations oftheAssociation ofPublic Accountants, auditingS/WPPS/W/7/Add.26
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firmsmustbeformedexclusivelybypublicaccountantsthataremembersoftheAssociationandresidents
ofthecountry.
33. Istheuseofinternational orforeign names restricted forfirms?
There arenorestrictions astotheuseofforeign company names. The"bigsix"operate in
Peruandtheirsubsidiaries havebeensetupinconformity withPeruvian Law.
VII. REGULATIONS GOVERNING THEENTRY AND TEMPORARY STAY OFNATURAL
PERSONS FOR THE PURPOSE OFSUPPLYING ACCOUNTANCY SERVICES
34. Istheentryandstayofprofessionalssubjecttolabourmarkettestsoranyotherrestrictions?
Please specify.
Yes,general labour legislation provides foraso-called "probationary period" consisting in
aperiod ofthree months following which theemployee acquires theright tostability. Theparties
mayagree toextend thetime-limit ifthework inquestion requires alonger training oradjustment
period, orifthenature ofthework ordegree ofresponsibility justifies suchastep. Extension ofthe
probationary period mustbereported inwriting, andthetotalperiod mustnotexceed sixmonths in
thecaseofqualified employees andoneyearinthecaseofmanagerial stafforprofessionals inpositions
ofconfidence (Article 43ofLegislative Decree No.728,LawonthePromotion ofEmployment of
8November 1991).
35. Isthere anyprocedure facilitating thetemporary entry andstayofprofessionals tosupply
accountancy services? Please explain.
There isnosuchprocedure except intheframework ofinternational technical cooperation,
forwhich theMinistry ofLabour andSocial Promotion hasestablished atemporary entry procedure
forprofessionals withaviewtostrengthening thecountry 'stechnical institutional capacity.
36. Arethereanyrestrictionsonhiringoflocalprofessionalsbyforeignfirmsandprofessionals?
Please explain.
Insofar asthere isfreedom ofhiring inPeru, there arenorestrictions, asarule,onhiring
oflocalprofessionals byforeign firms andprofessionals provided itdoesnotviolate public order and
morality.
VIII. NATIONALITY/RESIDENCY REQUIREMENTS
37. Isacondition ofnationality/citizenship imposed topractice certain activities, tostartan
education, toobtain alicence, tobecome amember ofaprofessional body, etc? Please specify.
Nocondition ofnationality/citizenship isimposed topractice theprofession ofaccountant,
tostartaneducation, toobtain alicence ortobecome amember ofaprofessional body. Foreigners
must comply withPeru'simmigration laws.
38. Isacondition ofestablishment, prior residency orresidency imposed topractice certain
activities, toobtain alicence, tobecome amember ofaprofessional body, etc.? Please specify
theconditions andthedefinition ofestablishment, residency, etc.when relevant. Isitpossible
tohave aprofessional establishment inmore thanonecountry?S/WPPS/W/7/Add.26
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Yes,inthatitisnotpossible toregister andbecome amember oftheAssociation ofPublic
Accountants inorder toobtain alicence topractise accountancy without firstindicating theresidence
ofthenatural person orthehead office ofthesociedad civil,which must bemade upofpublic
accountants residing inPeru.