The report provides an assessment ofaccounting, financial reporting, and auditing practiceswithin the corporate sector in Peru, using InternationalFinancial Reporting Standards (IFRS), and InternationalStandards on Auditing (ISA) as benchmarks, drawing oninternational experience and best practices in that field.This Report on the Observance of Standards and Codes (ROSC)Accounting & Auditing review included the analysis of asample of 20 published audited financial statements, andfound that financial reporting standards broadly compliedwith by Peruvian corporations, although a number of cases ofdepartures from IAS, and possibly from ISA, were noted. Thispoints the need to strengthen the enforcement of financialreporting and auditing requirements for entities of publicinterest. The review also noted that existing arrangementsfor the licensing of auditors do not provide compulsoryminimum academic course content in accounting and auditing,nor do they include professional examination; moreover,continuing education requirements are not effectivelyfollowed. This is detrimental to the quality of theaccounting and audit practice in the country. The lack ofquality control of auditors is also a cause of seriousconcern. The report offers several policy recommendationsaimed at strengthening the regulatory framework governingaccounting and auditing, including establishing anindependent oversight body for the audit profession, thatwould ensure qualified auditors with a strong academicbackground, and professional skills, and that they complyeffectively with both ISA and applicable ethicalrequirements. Another recommendation of this ROSC is thatlarge, non-listed companies be required to have theirfinancial statements audited, and to publish these financialstatements through CONASEV - National Supervisory commissionof Enterprises and Securities.
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