Intent Declared Summary
According to the 2006 Inter-American Development Bank (IDB) Donor's Memorandum, the existing accounting and auditing framework in Bolivia is incomplete. Bolivia has approved just five auditing standards and none of the Bolivian standards are consistent with the International Standards on Auditing (ISAs) promulgated by the International Auditing and Assurance Standards Board. Therefore, in March 2006, the IDB approved the funding for a project to aid the adoption of International Financial Reporting Standards and ISAs in Bolivia. The 36-month long project is divided into three main components comprising (1) the alignment of national standards with international standards, (2) dissemination and training on the application of the newly developed standards, and finally (3) a voluntary certification system to improve the quality of Association of Auditors of Bolivia professional services. Upon completion, it is expected that Bolivian accounting and auditing standards will be harmonized with the international standards.
General Overview
As explained in the 2006 Inter-American Development Bank (IDB) Donors Memorandum report "Bolivia: Convergence with Accounting and Auditing Standards," under Law No. 2495 of August 2003, the authority to issue and enforce compliance with accounting and auditing standards lies with the Superintendency of Companies. However, given the fact that "the Superintendency does not have the technical expertise, experience, or structure to issue accounting and auditing standards because of insufficient resources" (IDB 2006, pp. 3-4), the Association of Auditors of Bolivia (CAUB), through its National Technical Council of Auditing and Accounting, plays the leading role in setting professional standards relating to accounting and auditing. The CAUB is a not-for-profit, autonomous professional association of accounting and auditing professionals and consulting firms legally established under the Supreme Resolution No. 209343 of July 1991. Under its charter and regulations, the CAUB sets accounting and auditing standards. It also oversees the auditing and public accounting profession and ensures compliance with professional ethics. With regard to the code of ethics, a 2007 CAUB self-assessment notes that Bolivia adopted the International Federation of Accountants (IFAC) Code without any modifications. However, this is a 1994 version whereas the latest IFAC Code was issued in 2006. The CAUB is listed as a member on the IFAC website.
The above-mentioned 2006 IDB report notes that the Bolivian accounting and auditing framework suffers from a number of shortcomings. Firstly, there is a lack of trained and experienced accounting professionals to help develop a conceptual framework for bringing national standards in line with international ones. Each year 2,000 students graduate from Bolivian universities trained mainly in bookkeeping. Educating these students in latest international accounting and auditing practices does not take place since most Bolivian teachers are not up to date with the current developments in international standards. As a result, the Memorandum states, entry-level professionals in most businesses do not apply international standards. Secondly, the existing regulatory framework in Bolivia is incomplete as the country has approved just five auditing standards which are not consistent with the International Standards on Auditing (ISAs) promulgated by the International Auditing and Assurance Standards Board.
Consequently, in March 2006, the IDB approved the funding for a project to aid the adoption of International Financial Reporting Standards (IFRSs) and ISAs in Bolivia. The Memorandum states that "the aim of the project is to help ensure that business financial reporting in Bolivia is technically reliable, objective, comparable, uniform, and
transparent. The objective is to ensure that professional members of the CAUB apply accounting and auditing standards that are in line with International Financial Reporting Standards (IFRS) and International Standards on Auditing (ISA)" (p. 1). Further, the successful implementation of the project would improve financial reporting and information management procedures and contribute to the professionalization of accounting in Bolivia. The 36-month long project is divided into three main components: (1) the alignment of national standards with international standards; (2) dissemination and training on the application of the newly developed standards; and finally (3) a voluntary certification system to improve the quality of CAUB professional services. The first component of the project will involve analyzing the existing Bolivian standards and the international accounting and auditing standards. The memorandum notes that "initially, standards that need to be applied immediately will be adapted and, if necessary, handbooks providing an interpretation of the standards and guidance on regulations will be prepared" (p. 5). Later, standards will be devised that are aligned with international standards along with a review of the new international standards issued each year. This will be coordinated by the CAUB Technical Council. Upon completion, it is expected that Bolivian accounting and auditing standards will be harmonized with international standards.
The Principles
IIISA 200 Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with International Standards on Auditing (effective 2009)
There is insufficient information publicly available as to Bolivia's compliance with this principle.
IIISA 210 Agreeing the Terms of Audit Engagements (effective 2009)
There is insufficient information publicly available as to Bolivia's compliance with this principle.
IIISA 220 Quality Control for an Audit of Financial Statements (effective 2009)
There is insufficient information publicly available as to Bolivia's compliance with this principle.
IIISA 230 Audit Documentation (effective 2009)
There is insufficient information publicly available as to Bolivia's compliance with this principle.
IIISA 240 The Auditor’s Responsibilities Relating to Fraud in an Audit of Financial Statements (effective 2009)
There is insufficient information publicly available as to Bolivia's compliance with this principle.
IIISA 250 Consideration of Laws and Regulations in an Audit of Financial Statements (effective 2009)
There is insufficient information publicly available as to Bolivia's compliance with this principle.
IIISA 260 Communications of Audit Matters with Those Charged With Governance (effective 2009)
There is insufficient information publicly available as to Bolivia's compliance with this principle.
IIISA 300 Planning an Audit of Financial Statements (effective 2009)
There is insufficient information publicly available as to Bolivia's compliance with this principle.
IIISA 315 Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement (effective 2009)
There is insufficient information publicly available as to Bolivia's compliance with this principle.
IIISA 320 Materiality in Planning and Performing an Audit (effective 2009)
There is insufficient information publicly available as to Bolivia's compliance with this principle.
IIISA 330 The Auditor’s Procedures in Response to Assessed Risks (effective 2009)
There is insufficient information publicly available as to Bolivia's compliance with this principle.
IIISA 402 Audit Considerations Relating to an Entity Using a Service Organization (effective 2009)
There is insufficient information publicly available as to Bolivia's compliance with this principle.
IIISA 500 Audit Evidence (effective 2009)
There is insufficient information publicly available as to Bolivia's compliance with this principle.
IIISA 501 Audit Evidence—Specific Considerations for Selected Items (effective 2009)
There is insufficient information publicly available as to Bolivia's compliance with this principle.
IIISA 505 External Confirmations (effective 2009)
There is insufficient information publicly available as to Bolivia's compliance with this principle.
IIISA 510 Initial Audit Engagements—Opening Balances (effective 2009)
There is insufficient information publicly available as to Bolivia's compliance with this principle.
IIISA 520 Analytical Procedures (effective 2009)
There is insufficient information publicly available as to Bolivia's compliance with this principle.
IIISA 530 Audit Sampling (effective 2009)
There is insufficient information publicly available as to Bolivia's compliance with this principle.
IIISA 540 Audit of Accounting Estimates (effective 2009)
There is insufficient information publicly available as to Bolivia's compliance with this principle.
IIISA 550 Related Parties (effective 2009)
There is insufficient information publicly available as to Bolivia's compliance with this principle.
IIISA 560 Subsequent Events (effective 2009)
There is insufficient information publicly available as to Bolivia's compliance with this principle.
IIISA 570 Going Concern (effective 2009)
There is insufficient information publicly available as to Bolivia's compliance with this principle.
IIISA 580 Written Representations (effective 2009)
There is insufficient information publicly available as to Bolivia's compliance with this principle.
IIISA 600 Special Considerations—Audits of Group Financial Statements (Including the Work of Component Auditors) (effective 2009)
There is insufficient information publicly available as to Bolivia's compliance with this principle.
IIISA 610 Using the Work of Internal Auditors (effective 2009)
There is insufficient information publicly available as to Bolivia's compliance with this principle.
IIISA 620 Using the Work of an Auditor’s Expert (effective 2009)
There is insufficient information publicly available as to Bolivia's compliance with this principle.
IIISA 700 Forming an Opinion and Reporting on Financial Statements (effective 2009)
There is insufficient information publicly available as to Bolivia's compliance with this principle.
IIISA 705 Modifications to the Opinion in the Independent Auditor’s Report (effective 2009)
There is insufficient information publicly available as to Bolivia's compliance with this principle.
IIISA 710 Comparative Information—Corresponding Figures and Comparative Financial Statements (effective 2009)
There is insufficient information publicly available as to Bolivia's compliance with this principle.
IIISA 720 The Auditor’s Responsibilities Relating to Other Information in Documents Containing Audited Financial Statements (effective 2009)
There is insufficient information publicly available as to Bolivia's compliance with this principle.
IIISA 800 Special Considerations—Audits of Financial Statements Prepared in Accordance with Special Purpose Frameworks (effective 2009)
There is insufficient information publicly available as to Bolivia's compliance with this principle.
