RESTRICTED
WORLD TRADE S/WPPS/W/7/Add.14
16August 1996
ORGANIZATION(96-3228)
Original: French Working Party onProfessional Services
COMMUNICATION FROM MOROCCO
Response totheQuestionnaire ontheAccountancy Sector
Thefollowing communication iscirculated attherequest ofMorocco.
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I. GENERAL
1. What aretheprofessional titles ofaccountants inyour country? Arethese professional
titles protected? Please specify how.
Theprofessional titles ofaccountants which areprotected arethefollowing:
- Chartered accountant (expert-comptable );
- certified accountant (comptable agréé).
Theillegal useofthese titles makes offenders liable tocivilorcriminal penalties.
2. How istheaccountancy sector regulated inyour country: bylaw, professional
self-regulation, acombination ofboth?
Theaccountancy sector isregulated bylegislative andregulatory texts.
3. Arethere anyprovisions toprotect company names, whether national orforeign, inyour
country?
National orforeign company names areprotected bycommercial lawandbyspecific texts
related totheAssociation ofChartered Accountants (Ordre desexperts-comptables ).
4. What aretheprofessional bodies inyour country? Aretheyrecognized bylawasa
regulatory ordisciplinary body fortheaccountancy profession inyour country, orarethese
functions fulfilled byother institutions (please specify)?
Theprofessional bodyiscurrently theAssociation ofChartered Accountants. TheAssociation
isalegal person under public lawwhich monitors theadministration andobservance oflegislation
governing theprofession ofchartered accountant.
There arealsoanumber ofnon-profit-making associations under private law,composed of
chartered accountants oraccountants, which pursue professional goals anddefend theinterests oftheir
members.S/WPPS/W/7/Add.14
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5. Howmany members dothese professional bodies have? What istheestimated proportion
ofthose:
- Inpublic practice;
- inindustry orcommerce;
- inthepublic sector;
- ineducation;
- unoccupied (retired, etc.);
- other.
Thebreakdown ofthenumbers exercising theprofession isasfollows:
- Chartered accountants, members oftheAssociation, inpublic practice: 200;
- certified accountants inpublic practice: 103;
- other accountants inpublic practice: almost 500;
- accountants inprivate enterprises: 6,000 (estimate);
- accountants inthepublic sector: 3,000 (estimate);
- accountants ineducation: 400(estimate);
- unoccupied: insignificant number.
6. What isthescope ofactivities regularly practised byaccountants inyour country?
Thescope ofactivities regularly practised isasfollows:
- Statutory audit: independent audit (commissariat auxcomptes );
- audit andcertification oftheaccounts ofpublic andprivate enterprises;
- audit ofcontributions;
- accounting;
- taxadvice;
- legaladvice;
- organization;
- investment advice;
- expert witness inaccounting.S/WPPS/W/7/Add.14
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7. Which ofthese activities areregulated inyour country?
Theregulated activities are:
- Statutory audit: independent auditing;
- audit andcertification ofaccounts.
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 bylawtomembers oftheAssociation ofChartered Accountants are:
- Audit andcertification ofaccounts;
- independent auditing.
Members oftheAssociation mayalsoexercise thefollowing activities inthesame capacity
asother professionals:
- Audit ofcontributions;
- evaluation andorganization ofaccounting systems;
- accounting;
- legal, tax,economic, financial andorganizational advice andopinions concerning
enterprises andfirms.
Amember oftheAssociation maynotexercise anyother activity orcarry outanyactliable
toprejudice hisindependence (paid employment, undertaking trade transactions oracting asan
intermediary, onbehalf ofthedirector ofabusiness firmorasacommercial agent, etc.).
II. QUALIFICATION REQUIREMENTS
9. What arethequalification requirements forthese activities inyour country interms of
university/higher education degree, practice andprofessional exam? Specify thenumber ofyears
required foreach element, andthedifferences according totheactivities (audit, insolvency,
tax,etc.)covered bythequalification.
Thefollowing arethequalification requirements forpractising theprofession:
- Chartered accountants mustholdtheNational Chartered Accountants 'Diploma orany
other diploma recognized asequivalent.
Thestudy andtraining programme fortheNational Chartered Accountants 'Diploma comprises
examinations thatleadtothegranting ofthree certificates, aswellasprofessional work experience
andthedefence ofadissertation. Itisopentocandidates holding adegree ineconomics (management
orbusiness economy option) oranequivalent diploma whohavepassed anentrance examination.S/WPPS/W/7/Add.14
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After passing theentrance examination, thestudy programme leading tothegranting ofthe
certificates isatleastthree years. Professional work experience inachartered accountancy practice
takes place simultaneously withthestudy programme andlastsforthree years.
- Certified accountant
Inclusion inthelistofcertified accountants requires adiploma equivalent toadegree in
economics orbusiness administration andoverfiveyears'professional experience inaccounting.
10. Arethere anypreconditions tomeet tostart theprofessional education: minimum age,
particular diploma ortitle, prior education, registration withaprofessional body, payment of
afee,other (please specify)?
Thefollowing aretherequirements forcommencing professional training:
Before commencing professional training, atrainee chartered accountant must havepassed
theentrance examination tothechartered accountants 'training programme andhavebeentaken on
byasupervisor incharge ofachartered accountancy firm.
11. What arethesubjects tobecovered bytheeducation, accounting, audit, tax,general law,
economics, ethics, information technology, other (please specify)?
Thetraining programme comprises thefollowing subjects: accounting, auditing, business law,
taxation, financial mathematics, business economics andmanagement, business environment, valuation
ofbusinesses, ethics, national andinternational accounting standards.
III. TECHNICAL STANDARDS AND ETHICS
12. Inrelation towhich activities donational standards exist(audit, accounting, insolvency,
other)? Please specify their main policy objectives.
There arenational standards onthepreparation anddrawing upofannual accounts andfinancial
statements. Thisstandardization allows financial information fordifferent periods andsectors tobe
compared andalsotheintegration ofinformation atasectoral ornational level. Italsohasanimpact
atthelegallevel(assets, payment ofdividends, therights ofcreditors andthirdparties, etc.).
13.Which body orinstitution develops these standards andmonitors their implementation?
What aretheconsequences ofabreach ofthestandards (fortheprofessional, forclients, etc.)?
Theinstitution responsible fordeveloping accounting standards istheNational Accountancy
Council (Conseil national delacomptabilité ),aninterministerial andinterprofessional body of
50members chaired bythePrime Minister.
Chartered accountants andauditors areresponsible formonitoring theimplementation ofthe
standards. Thetaxadministration andthecourts alsoexamine theconformity oftheaccounts byproper
application ofaccounting standards.
Civil, criminal andtaxpenalties maybeimposed onaccountancy professionals anddirectors
ofenterprises whodonotobserve theaccounting regulations.S/WPPS/W/7/Add.14
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14. Aretheinternational standards developed byIFAC (International Education Standards
andGuidelines, International Standards onAuditing) andIASC (International Accounting
Standards) recognized orusedinyourcountry? Ifyes,please explain how. Ifno,please explain
why.
IASC standards werethemain basis fordeveloping national standards. Moroccan standards
arefullyconsistent withtheIASC standards.
IFAC standards areusedbyMoroccan professional accountants asareference ifthere areno
relevant national standards.
15. Inrelation towhich activities does aparticular ethical code exist (audit, accounting,
insolvency, other)? Please specify itsmain policy objectives.
Adraftethical codehasrecently beenelaborated bytheAssociation ofChartered Accountants.
Itsobjective istoimpose rules ofethics, discipline andmorality within theprofession.
16. Which body orinstitution develops thiscode andmonitors itsimplementation? What
aretheconsequences incaseofbreach oftheethical codebyaprofessional orafirm?
TheAssociation ofChartered Accountants develops thecodeandmonitors itsimplementation.
Anyprofessional orcompany thatdoesnotobserve thecodemaybepunished byawarning, areprimand,
temporary ordefinitive expulsion.
17. Arethere restrictions onmarketing, solicitation, advertising?
Members oftheAssociation areprohibited fromanysolicitation orpersonal publicity andfrom
carrying outanycommercial transaction.
18. Arethere restrictions onfee-setting (minimum/maximum levels imposed, indicative scale,
etc.)?
There arenorestrictions onfee-setting.
IV. LICENSING REQUIREMENTS AND PROCEDURES
19. Apart from thequalification requirements, what arethelicensing requirements for
individuals inyour country?
Persons wishing tobecome members oftheAssociation ofChartered Accountants mustmeet
thefollowing requirements:
- BeaMoroccan citizen orcitizen ofacountry thathassigned anagreement with
Morocco authorizing thecitizens ofbothStates topractise theprofession ofchartered
accountant intheother State;
- beover20years ofageandenjoy civilrights;
- comply withthelawsoncivilandmilitary service;
- holdaNational Chartered Accountants 'Diploma oradiploma recognized bythe
administration asequivalent;S/WPPS/W/7/Add.14
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- nothavereceived acustodial sentence foractscontrary tohonour, integrity orgood
morals;
- beinpossession ofcivilliability insurance.
20. Arethere anyconditions imposed tobeeligible formembership oftherelevant professional
body(ies)? Please specify .
Persons wishing tobeincluded inthelistofcertified accountants must meet thefollowing
requirements:
- BeaMoroccan citizen;
- enjoy civilrights;
- comply withthelawsoncivilandmilitary service;
- holdadegreeineconomics(businessadministrationoreconomyoption)oranequivalent
diploma;
- nothavereceived acustodial sentence foractscontrary tohonour, integrity orgood
morals;
- havepractised theaccountancy profession inMorocco withcompetence foratleast
fiveyears, respecting professional practices.
21. Arethere specific licensing requirements forprofessional firms?
Theconditions imposed onprofessional firms members oftheAssociation ofChartered
Accountants arethefollowing:
- Thefirm'ssolepurpose must beexercise ofthechartered accountancy profession;
- atleastthreequarters oftheshares mustbeowned bychartered accountants belonging
totheAssociation;
- directors must beselected from among thechartered accountant partners;
- inthecaseofpublic limited firms, theshares must beregistered shares;
- theadmission ofanynewpartner mustbesubject totheprior agreement either ofthe
board ofdirectors ortheshareholders;
- thefirmmust notbedependent, evenindirectly, onanynatural orlegalperson.
Partners areindividually responsible foranyactstheysign(audit reports andindependent
auditing).S/WPPS/W/7/Add.14
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22. Cananapplication forlicensing befiledatanytimeoftheyearorarethere specific dates
torespect? How longdoesittaketocomplete thewhole licensing procedure? Please specify in
caseofdifferences between individuals andfirms.
Anapplication formembership oftheAssociation ofChartered Accountants maybefiledat
anytimeoftheyear. Iftherequirements aremet,membership isapproved afterafewdays.
Inclusion inthelistofcertified accountants isonanannual basis. Candidatures arefiledbefore
theendofSeptember. Thelistispublished intheOfficial Journal before theendofNovember.
23. Arethere differences interms oflicensing requirements and/or procedures, according
totheactivities covered bythelicence (audit, insolvency, etc.)? Please specify. What kindof
documentation isnecessary/accepted? Aredocuments issued inother countries acceptable? Please
specify.
There arenodifferences interms oflicensing requirements forcertain activities. Amember
oftheAssociation maycarry outalltheactivities permitted totheAssociation bylaw.
24. What happens when thelicensing conditions arenolonger respected bytheindividual
orthefirm?
When persons nolonger respect theconditions governing membership, theyareexpelled from
theAssociation ofChartered Accountants orstruck from thelistofcertified accountants.
V. RECOGNITION OFQUALIFICATIONS
25. Arethere anypossibilities fortaking account ofqualifications acquired byforeign
professionals inanother country? Arethere bilateral agreements withother countries inthis
respect?
Qualifications acquired byforeign professionals inanother country maybetaken intoaccount
under reciprocal bilateral agreements. Todate, nosuchbilateral agreement hasbeensigned.
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 isnoautomatic mutual recognition between professional bodies inMorocco andtheir
counterparts inother countries. Such recognition requires areciprocal bilateral agreement between
States.
27. Where possibilities oftaking account offoreign qualifications exist, isafulllocal
examination oralocaltraining exceeding 12months required? Please specify. Isalocallicence
always necessary topractise aregulated accountancy activity? Please specify when thisisnot
thecase.
AMoroccan professional holding either aforeign qualification recognized asequivalent by
theadministration ortheNational Chartered Accountancy qualification isallowed topractise the
profession ofchartered accountant inMorocco. Inthecaseofforeigners, theremustalsobeareciprocal
bilateral agreement.S/WPPS/W/7/Add.14
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Foreign professionals practising inMorocco before 3February 1993 were admitted tothe
Association ofChartered Accountants asatransitional special measure related tothecreation ofthe
Association.
28. What aretheaccreditation/licensing requirements imposed onforeign professionals
authorized topractise intheir home country? Maycertain (regulated) activities becarried out
onthebasis ofaforeign licence?
Foreign chartered accountants authorized topractice intheircountry oforigin maynotpractise
inMorocco unless there isareciprocal bilateral agreement. Accreditation abroad isnottaken into
account.
VI. REGULATIONSGOVERNINGTHEESTABLISHMENTOFACOMME RCIALPRESENCE
29. Arethere anyrestrictions ontheform under which onecanestablish (partnership,
incorporation, other)? Please specify.
Afirmmaybecome freely established inMorocco evenifitonlyhasforeign capital.
30. Arethere restrictions onforeign direct investment andownership, including restrictions
applying tonotlocally qualified individuals orfirms? Please specify.
There arenogeneral restrictions concerning foreign direct investment orownership. Firms
thataremembers oftheAssociation mustrespect theconditions mentioned inthereply toquestion 21
above.
31. Isthere arequirement ofaminimum number orpercentage oflocaldirectors, managers
orstaff(please specify)?
There arenospecial restrictions applying totherecruitment ofaminimum number orpercentage
oflocaldirectors, managers orstaff.
32. Arethere restrictions ontheability oflocally established firms todevelop international
relations (membership ofaninternational network, association withforeign firms, etc.)? Please
specify.
There arenospecial restrictions ontherelations ofprofessional firms withforeign firms subject
totheprovisions mentioned inthereply toquestion 21above.
33. Istheuseofinternational orforeign names restricted forfirms?
There arenospecial restrictions ontheuseofinternational orforeign names.
VII. REGULATIONS GOVERNING THEENTRY AND TEMPORARY STAY OFNATURAL
PERSONS FOR THE PURPOSE OFSUPPLYING ACCOUNTANCY SERVICES
34. Istheentryandstayofprofessionalssubjecttolabourmarkettestsoranyotherrestrictions?
Please specify.
Thetemporary entry andstayofprofessionals arenotsubject tolabour market tests.S/WPPS/W/7/Add.14
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35. Isthere anyprocedure facilitating thetemporary entry andstayofprofessionals tosupply
accountancy services? Please explain.
There isnoprocedure facilitating thetemporary entry andstayofprofessionals tosupply
accountancy services.
36. Arethereanyrestrictionsonhiringoflocalprofessionalsbyforeignfirmsandprofessionals?
Please explain.
There arenospecial restrictions onthehiring oflocal professional byforeign firms and
professionals.
VIII. NATIONALITY/RESIDENCY REQUIREMENTS
37. Isacondition ofnationality/citizenship imposed topractise certain activities, tostartan
education, toobtain alicence, tobecome member ofaprofessional body, etc.? Please specify.
Admission ofaforeigner totheAssociation ofChartered Accountants issubject toareciprocal
bilateral agreement andthepossession ofaMoroccan residence permit, subject totheconditions
mentioned inthereply toquestion 19above.
Inclusion inthelistofcertified accountants islimited toMoroccan citizens.
38. Isacondition ofestablishment, prior residency orresidency imposed topractise certain
activities, toobtain alicence, tobecome member ofaprofessional body, etc.? Please specify the
conditions andthedefinition ofestablishment, residency, etc.when relevant. Isitpossible to
have aprofessional establishment inmore thanonecountry?
Subject tothereply toquestion 37above, aprofessional belonging theMoroccan Association
ofChartered Accountants maypractise inanother country.