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    Country by Country Financial Reporting and Auditing Framework

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    Argentina – Crowe Horwath – Cánepa, Kopec y Asociados S.R.L. (prepared February 2015)

    Preparation and Filing of Statutory Financial Statements
     
    In Argentina, all companies, whether Corporations or Limited Liability Partnerships (LLPs), whether listed
    or not, are required to prepare statutory financial statements.  Listed companies are required to file their annual financial statements with the CNV (Comisión Nacional de Valores) within 70 days after the balance sheet closing date, and their financial statements for interim periods within 42 days after the ending date of each quarter.  Private corporations and LLPs are required to file their financial statements with the Registro Público de Comercio Jurisdiccional within 120 days after the balance sheet closing date.   
     
    Financial Reporting Framework
     
    Listed  companies in  Argentina  are  required  to  prepare  their  financial  statements  in  accordance  with International Financial Reporting Standards (IFRS). All other non-listed companies, Corporations/LLPs in Argentina, can choose whether to apply the IFRS, IFRS for SMEs, or the Argentinean accounting standards issued by the FACPCE (Federación Argentina de Consejos Profesionales de Ciencias Ecónomicas).  Financial entities are moving towards the application of IFRS to their financial statements. Full-adoption is planned for 2018.
     
    Audit Requirements 
     
    All companies must prepare statutory financial statements and all statutory financial statements must be audited.  In the case of periods starting on July 1st 2013 onwards, the International Standards of Auditing (ISAs) must be applied when auditing financial statements that must be issued under the IFRS.  The rest of the statutory financial statements can be audited either applying Technical Resolution No. 37 issued by the FACPCE or the ISAs.  
     
    Audit Appointment, Rotation and Joint Audits
     
    Auditors are elected by the shareholders and appointed by management. In the case of listed companies, the CNV established a mandatory firm rotation every 3 years. This regulation applies to periods starting after September 2013.  As a result, the last calendar year to be audited without the need for firm rotation would be 2016. Apart from that, all professionals who are part of the work team must rotate each two years (partner and team rotation). 
     
     
    The rest of the companies do not fall under the application of any rules relating to mandatory rotation of audit firms although there are guidelines within the ethical standards regarding partner rotation.  Whilst not prohibited, joint audits are very rare in Argentina.
     
    Auditing Standards 
     
    In Argentina, audits can be conducted following Technical Resolution No.37 (RT 37) of the FACPCE or the ISAs issued by the IAASB. ISAs must be applied when the financial statements to be audited must be prepared with the IFRS. Today this is only compulsory for listed companies.  In  order  to  apply  the ISAs,  the  ISQC1  issued  by  the IAASB  of  the IFAC as  well  as  the  Independence Regulations established by section 290 of the International Ethics Code must be complied with.  All  audits conducted following  the  auditing  standards  established  by  the  RT  37 must  comply  with  the independence requirements established there. Argentina has also adopted the ISRE (International Standards on Review Engagements). However, the regulation included in the ISRE 2400 cannot be applied to the audit of complete economical periods. The International Standards on Assurance Engagements (ISAE) and the International Standards on Related Services (ISRS) have also been adopted.  As with the application of the ISAs, in order to work on engagements following the ISRE, ISAE and ISRS, the ISQC1 issued by the IAASB of the IFAC as well as the Independence Regulations established by section 290 of the International Ethics Code must be complied with.
     
    Ethical Framework
     
    Public  accountants  and  any  other  professionals  of  the  Economic Sciences area must comply with  the Ethics Code issued by the FACPCE (the version adopted by each of the provinces). As previously mentioned, in order to apply the ISAs, the ISQC1 issued by the IAASB of the IFAC as well as  the  Independence  Regulations  established  by  section  290 of the  International  Ethics  Code  must  be complied  with.  And  to  apply  the  audit  standards  included  in  the  RT  37  issued  by  the  FACPCE,  the independence requirements established by the regulation must be complied with. 
     
    Audit Regulation
     
    In Argentina, Crowe Horwath is subject to the following external and internal monitoring processes with regards to their audit practice.
     
    External Monitoring
     
    When carrying out statutory audits of listed entities, Crowe Horwath Argentina may be subject to a CNV review.  When carrying out statutory audits of financial statements belonging to financial entities and banks, firms are subject to regular inspections performed by the BCRA (Banco Central de la Republica Argentina).  There is no peer review policy in force in Argentina.                                                                                    
       
      
    Internal Monitoring
     
    An annual firm-wide monitoring process known as internal quality control review is in place in Crowe Horwath Argentina. This internal review is led by the Quality Control Partner in the firm and conducted following procedures defined by Crowe Horwath International applicable to Quality Control Reviewers.  In  addition,  as  a member  of Crowe  Horwath  International  we  receive  periodical  quality  control reviews in our office.
     
    Transparency Reporting

     

    There are no transparency reporting requirements in Argentina.


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