Header Image
    Recently Visited
    • Print
    • Share

    Country by Country Financial Reporting and Auditing Framework

    Download pdf

    Mexico – Crowe Horwath Gossler (prepared December 2013)

    Financial Reporting Framework and Audit Requirements

     

    The Mexican Institute of Certified Public Accountants (MICPA) is a member of the International Federation of Accountants (IFAC); therefore the MICPA is committed with IFAC to adopt and follow its norms.

     

    In 2010, IAS adoption was approved in México for the accounting periods starting on January, 1 2012.  In the case of reissuance of the financial statements of an entity for accounting periods previous to January 1, 2012, the Mexican Audit Standards may be used.

     

    During 2008, 2009 and 2010, the MICPA auditing commission issued some amended auditing norms with the purpose to homologate those with the IAS, concluding this process in 2010.

     

    The IAS version used by the MICPA is the version issued by IFAC through the International Assurance and Auditing Standards Boards that was translated into Spanish by the Instituto de Censores Jurados de España and reviewed and approved by the Directorado General de Traducciones de la Unión Europea and by many Latin American CPA's associations including México.  Many terms may vary from country to country; therefore, a glossary of terms is included in the Mexican version.

     

    Mexican Financial Information Norms

     

    The Mexican Commission of Generally Accepted Accounting standards was engaged for mores than 30 years of the issuance of Bulletins and circulars to norm the accounting standards in Mexico.

     

    Starting June 1, 2004, the Mexican Council of Financial Information Norms (CINIF) following the worldwide trend, was engaged of the Mexican accounting Norms issuance as of to date.

     

    One of the main objectives of the CINIF is to issue norms in order to converge with the IFRS.

     

    Public Environment

     

    Starting January 1, 2012, Mexican entities listed on the Mexican Stock Market have to issue their financial statements prepared under IFRS.  Quarterly reports must include the Financial Information prepared under IFRS.

     

    Tax Report

     

    It is mandatory for entities with revenue of USD 2.8 Million, or assets of USD 5.7 million, or on average with 300 workers and / or employees in its previous fiscal year, to audit the financial statements for tax purposes.

     

    The tax report is comprised of:

    • The audit report in compliance with IAS,
    • A taxpayer tax obligations compliance report,
    • The financial statements and of the Entity,
    • A tax compliance questionnaire, and
    • A transfer price compliance questionnaire.

     

    The report has to be electronically signed and sent electronically to the tax authorities.

                                                                            

    Certified Public Accountants in México are required by the tax authorities to do the following:

    • To obtain register granted by the tax authorities,
    • To be a CPA in México,
    • To comply with the continued education program every year (66 points for CPAs), and
    • To have been a MICPA member for 5 years.

     

    Audit Regulation

     

    External Monitoring

     

    Starting January 2012, the MICPA started with the firm's IAS compliance review such as a QAR. Each Mexican audit firm will be subject to this review.

     

    The Mexican Fiscal Federal Code provides the authorization to the tax authorities to review the auditor's work as they deem to be necessary. Every year the tax authorities perform several audit working papers reviews, focused on compliance with audit standards as well as tax compliance.

     

    Internal Monitoring

     

    We have established annual monitoring procedures known as Quality Assurance Reviews (QAR), led by the QAR Partner and, run by the head office. The QARs are conducted under carefully defined procedures and address all our service lines and Practice Assurance, which exceeds what is required by regulation.


    Contact Us
    David Chitty - Audit
    London, United Kingdom
    +44 20.7842.7292


    Additional Contacts: