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LEGISLATIVE ASSEMBLY-REPUBLIC OF EL SALVADOR
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DECREE NO 828.-
THE LEGISLATIVE ASSEMBLY OF THE REPUBLIC OF EL SALVADOR,
WHEREAS:
I.-That according to the Code of Commerce, a special law will regulate the functioning of the Council of Surveillance of the Public Accountancy and Audit and the exercise of the profession
in the modernization of the functions of the State, there is the possibility that certain professionals will exercise certain public functions whose surveillance is duly supervised and to collaborate in this way with State ends in different areas;
III.-That there is no law regulating the functioning of the aforementioned Council, so it is imperative to issue this legal instrument, in order to establish the regulations and responsibilities of the public accountants, and the basic rules for the Accountants, as well as the surveillance procedures for those exercised by the Accounting Office;
FOR TANTO,
in use of its constitutional powers and on the initiative of the President of the Republic, through the Ministers of Economy and Finance, and Deputies Julio Antonio Gamero Quintanilla, Julio Eduardo Moreno Niños, Alejandro Dagoberto Marroquín, Jose Mauricio Quinteros, Jorge Alberto Villacorta, Lorena Guadalupe Peña, Alejandro Rivera, Gerson Martinez, Kirio Waldo Salgado Mina, Rene Aguiluz Carranza, Donal Ricardo Calderon Lam, Humberto Centeno, Mariela Peña Pinto and Gerardo Antonio Suvillaga,
DECRETA, the following:
ACCOUNTING LAW OF ACCOUNTING EXERCISE
TITLE I
CHAPTER I
OF THE PROFESSION OF PUBLIC ACCOUNTING AND AUDIT
OF THE PUBLIC ACCOUNTANTS AND AUDIT FUNCTION
Art.1.-This Law is intended to regulate the exercise of the profession of Public Accountancy, the role of the Audit Office, and the rights and obligations of natural persons or
For the purposes of this Law, it should be understood as:
a) PUBLIC ACCOUNTING: a specialized profession of accounting, on financial aspects of the business activity that includes inspections and reviews on them. The
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natural or legal persons who exercise it, give full faith on certain acts established by the Law.
b) EXTERNAL AUDIT: a public function, which aims to authorize merchants and others persons who are required by law to carry out formal accounting, an appropriate and convenient accounting system in accordance with its business and other related acts; monitor that its acts, operations, accounting and financial aspects are recorded in accordance with the approved accounting and audit principles by the Council and to ensure compliance with other obligations under the Law of the auditors. The external audit will be referred to as only "audit".
c) INDEPENDENT AUDIT OF FINANCIAL STATEMENTS: It is the review of the financial statements of an economic entity, carried out in accordance with auditing standards generally accepted and whose aim is to express an independent opinion on the reasonableness of these financial statements. As a result, the external audit must guarantee the different users, that the financial statements do not contain any major errors or omissions.
It is recognized that the independent audit must be carried out on selective bases of the evidence supporting the administration's assertions. Consequently, it is not directed to give full faith about all the mercantile acts performed by the merchants.
PERSONS WHO CAN EXERCISE PUBLIC ACCOUNTING
Art.2.-They May Exercise Public Accounting:
a) have a degree of Bachelor's degree in Public Accounting conferred by one of the universities authorized in El Salvador;
b) Those who have the quality of Certified Public Accountants;
c) Those who have obtained in Universities foreign, title similar to that expressed in literal a) and have been authorized according to the the procedure provided by the Ministry of Education for the corresponding incorporation;
d) Natural and legal persons, who according to international treaties can exercise such profession in El Salvador; for having granted in such instruments are the same right for Salvadorans in their country of origin;
e) Legal persons under the provisions of this Law.
Those who meet the quality before expressed must comply with the requirements of this Law. set to be authorized to exercise public accounting.
REQUIREMENTS TO BE AUTHORIZED AS A PUBLIC ACCOUNTANT
Art.3.-For the exercise of public accounting it will be necessary, in addition to gathering the quality expressed in the previous article, to observe the following requirements:
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a) In the case of natural persons:
1/Being of Salvadoran nationality;
2/Being of notorious honesty and sufficient competence;
3/Not having been declared bankrupt or in suspension of payments;
4/ Be in full use of your citizen's rights;
5/Be authorized by the Council in accordance with this Law;
b) In the case of legal persons:
1/May be constituted in accordance with the rules of the Code of Commerce. In the case of capital companies, their shares will always be nominative;
2/That the sole purpose is the exercise of the public accounting and related matters;
3/That the nationality of the latter, as well as that of its main partners, shareholders or associates is Salvadoran;
4/That one of the partners, shareholders, associates and administrators, at least, is authorized to exercise public accounting as a natural person;
5/That its partners, shareholders, associates and administrators are notorious honradez;
6/That the legal representation of the as well as the signature of documents related to the public accounting or audit, exercise only those who are authorised as natural persons to exercise public accounting;
7/Be authorized by the Council of Conformity to this Act.
CHAPTER II
OF THE AUDIT FUNCTION
Art.4.-Only those authorized to exercise the public accounting will be able to exercise the public audit function.
In order to be authorized for the exercise of specialised external audits, the auditors shall also comply the requirements set out in other Laws and be entered in the relevant records.
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CHAPTER III
AUTHORIZATION OF PUBLIC ACCOUNTANTS
Art.5.-The authorization of the public accountants will be in charge of the Supervisory Board of the Public Accounting and Audit Profession, which in hereinafter referred to as 'the Council'.
For the purposes of this Law, if a public accountant once authorized, I will cease to meet the requirements of Article 3, you will not be able to continue exercising its function. The Council shall, of its own motion, or at the request of any person, suspend it in accordance with this Law.
REGISTRATION OF PUBLIC ACCOUNTANTS
Art.6.-The Council shall keep a Register of the Professional Accountants, as well as the legal persons exercising the public accounting office. This Register shall be public.
It shall also take the files and other records that are suitable for the proper and effective surveillance of the public accountants, as well as to resolve the accounting and financial aspects of their competence.
Copies or reproductions resulting from them shall have the same evidentiary value as the originals provided that such copies or reproductions are certified by the President and the Secretary of the Council, after confrontation with the originals.
LOGS contents
Art.7.-Records contain the following information:
a) The registration number that corresponds to you;
b) Full name and last name, if natural person; or name or social reason if you are a legal person;
c) Number and date of the act of the Advice on which registration was authorized;
d) Place and date of birth of the person when it is natural;
e) Quality or professional title of the holder;
f) Institution that issued the title and date of issue;
g) If it is a legal person, date of granting of the Constitution, number and date of registration in the respective registry and current credential of the administrators;
h) Name of the legal representative of the legal person and of its members, shareholders or associates, and registration number in the Register of professionals in its case;
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i) Address of your main office;
j) Any other information, either of suspensions, revokes, or changes, in such a way as to obtain efficient control of the professional.
The address must be updated each year for which to report in the first thirty days of the year to the Council, or within thirty days of the change of the same. Likewise, legal persons must update their administrators ' credentials, as well as the payroll of their partners, shareholders or associates and any modification to their social pact.
PUBLIC METER FILE
Art.8.-In addition to the registration of the professionals of the public accounting office, a file will be carried out of each one, in which all the information regarding their professional exercise will be archived.
This file will not be public; it will be consulted by the Council when the professional or prior judicial authorisation is investigated or reported.
AUTHORIZATION REQUEST
Art.9.-All interested will ask the Council for authorization. In the application you will express the information referred to in this Law and will accompany the documents necessary to prove that it meets the requirements to exercise the public accounting.
APPLICATION PROCEDURE
Art.10.-The application for Registration shall be lodged at the seat of the Council. This must resolve within a maximum of sixty business days of the application.
REQUEST DENIAL
Art. 11.-Denied the application for registration, the person concerned may institute the appeal and shall be dealt with in accordance with the provisions of art. 55 of this Act.
CREDENTIAL AND IDENTIFICATION CARD
Art.12.-Enrollment will be given to the person concerned a literal certification of the Council resolution to serve as a credential.
will deliver an identification card that will contain:
a) Full name;
b) Number and date of registration in the Register;
c) Signature of the President and the Secretary.
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Legal persons shall only receive their credentials and on the back of the testimony of the Constitution or the following sheet of the Constitution, the date and the registration number shall be recorded in the Register of Professional registration, with the signature of the President and the Secretary.
LISTING OF PUBLIC ACCOUNTANTS
Art.13.-The Council once a year, within the first twenty working days of it, will publish the full listing of those authorized to exercise public accounting.
appear on the list for having been authorized after publication, may be carried out at your expense.
STAMP OF PUBLIC ACCOUNTANTS
Art.14.-Public Accountants must have a circular seal, which will carry the upper part of the name and full name of the professional, preceded by the term ' Accountant Public "; if it is legal persons, it will carry the words" Public Accountants ", and at the bottom the legend" Republic of El Salvador ". In both cases, the registration number must appear to the center.
The Regulation shall establish the provisions necessary for the authorization of seals, as well as for their replacement in the event of loss or damage.
duplicate of the stamp.
The holders of these stamps will be responsible for their use and will be considered officers for the criminal purposes.
CHAPTER IV
REPRESENTATION OF FOREIGN FIRMS
Art.15.-Who are authorized to exercise public accounting, may conclude contracts of correspondent, associate, member or other, with foreign firms engaged in public accounting or auditing. These contracts must be entered in the Council, as well as the documents which legitimize the legal existence of the foreign firm under the law under which it has been established; only the legalisation of the contracts will suffice for registration.
In any case, the responsibility in El Salvador will be that of the public accountant who appears as a correspondent or another quality, in the Council records.
ILLEGAL EXERCISE
Art.16.- illegally exercise the profession, persons who perform functions exclusively reserved for the public accountant, without having the authorization provided for in this Law for the professional exercise. Similarly, it will be considered illegal to carry out the audit without having been authorised as a public accountant.
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Any person may report to the Council whom they exercise without proper authorization.
It is also considered illegal exercise, when foreign, natural or legal persons perform reserved functions. to public accountants, without the authorizations
TITLE II
TITLE II
TITLE II
TITLE II
TITLE II PUBLIC
CHAPTER I
PUBLIC COUNTER ATTRIBUTIONS
Art.17.-Public counters will be required in the following cases:
a) Authorize Systems Descriptions Accountants, the Accounts and Manuals of Instructions to be carried by the merchants, who are required by the Law to keep accounting and to those who want an accounting system. This authorization shall be carried out in all cases where special laws do not establish that certain government oversight authorities authorize the accounting systems of their respective audited entities;
b) Legalize the requirements or books to be carried by all traders, in accordance with the laws of the matter, upon request of the person concerned in writing and authenticated;
c) Dictate on the fulfilment of the professional obligations to be observed by the merchants, in accordance with relevant laws;
d) Dictate, based on in internationally accepted standards and principles of audit approved by the Council; on the basic financial statements of companies or companies of any kind, cooperative associations, autonomous institutions, trade unions and foundations; or associations of any nature;
e) Certifying the accounting balance sheets of the businesses of the merchants that are required under the Trade Code and special laws;
f) Certifying the valuos and inventories when it is required;
g) Perform asset and liability revaluation studies companies, and adjust their book value;
h) Certificate accountability in the administration of goods;
i) Certificate and reason all class of accounting entries;
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j) Perform the compaction of books and documents in the elucidation of accounting matters, related to all manner of judgments, at the request of the judge of the cause or the parties to the conflict;
k) Dictate or certify the settlements for the payment of royalties, commissions, profits or return of capital;
Communicate timely in writing to the audited person those violations of the Law that I will encounter in the course of the review;
l) In other cases that the laws require.
The counter may not issue the authorizations referred to in (a), (b) and (e) of this Article, without having previously been satisfied with the professional obligations of the traders required under Titles I and II of the Second Book of the Commerce Code.
NON-MANDATORY PUBLIC COUNTER INTERVENTION CASES
Art.18.-The public accountants may also provide their professional services in the performance of other acts permitted by the Law, which have direct relation to the profession and which do not require special authorization or which are not exclusive exercise of other people. It will not be valid, for the purposes of this Law, for acts that do not have a direct relationship with their profession.
COLLABORATION OF THE AUDITED
Art.19.-The audited will have to lend all their collaboration to the public accountant for that it can perform its functions in the best way. If the requested information or documentation is not provided to the public accountant, the accountant may resign.
SIGNATURE AND STAMP OF OPINIONS, REPORTS OR STUDIES
Art.20.-Opinions, reports, studies, opinions or Consultations relating to the functions described above shall bear the signature and stamp of the responsible public accountant. Otherwise, they will be valid.
FEES
Art. 21. The fees payable by the public accountants in their actions shall be freely agreed with the contracting party. The public accountants must comply with the agreement and observe the ethical rules.
PROHIBITION
Art.22. Public accountants are expressly prohibited:
a) Issue opinions, reports or opinions on accounting records, financial statements
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or any other accounting or legal document, which has no backing in books or documents or which is not in accordance with reality;
b) Issues opinions, reports or opinions that affirm, confirm or endorse acts, non-existent or non-existent operations or records which were carried out in a different manner reported in such opinions, reports or opinions;
c) Issue opinions, reports or opinions on acts, operations or records that have not been directly or directly examined or verified by personnel under their responsibility;
d) Issue opinions, reports or opinions on matters entrusted to them by law or by the will of the persons concerned, in false, malicious, inaccurate or in a way that promotes confusion;
e) companies where he, his spouse or his relatives within the fourth degree of consanguinity or second of affinity, whether they are administrators, managers, executives or to provide any services; or where they have any particular interest, or there may be a conflict of interest therein;
f) Issue opinions, reports or opinions to persons or to persons companies, companies, institutions or associations in which he, his members or shareholders, or employees, is also responsible for accounting directly;
g) omitting in his actions the methodology or procedures used as well as the level of statistical reliability of them, where the nature of the work so requires;
h) Make use of names other than those listed in the Council Registry;
The others that the Act points to.
FILE AND DOCUMENTS TIME
Art. 23.-The work files, on which opinions and reports are based, as well as the opinions themselves, shall be kept for at least five years.
Public accountants may make use of microfilm, of discs optical or any other means of archiving documents and information, in order to save in a more efficient manner the records, documents and reports that correspond to it. The same will have the same evidentiary value as the originals, provided that such copies or reproductions are certified by Notary or Judge of the Mercantile.
The Council will have access to the opinions and work papers of the public accountant, where there is cause against the same for transgression of the provisions related to the professional exercise.
Access will be limited to documents related to the cause.
The above is without prejudice to the powers that have specialized audit entities on
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the external auditors of societies that these entities regulate or fiscalize.
TITLE III
OF THE COUNCIL
CHAPTER I
NATURE, ADDRESS AND PURPOSE
COUNCIL NATURE
Art. 24.-The Council is a technical, autonomous administrative body attached to the Ministry of Economy.
The Council will prepare its own annual budget, which will present to the Minister of Economy who will manage the approval of the necessary resources for the proper fulfillment of their privileges.
DOMICILE
Art.25.-The Council will have its address in the city of San Salvador and will be able to establish offices in different locations of the national territory, where it considers it appropriate, for the best performance of its purposes.
PURPOSE OF THE COUNCIL
Art.26.-The purpose of the Council shall be to monitor the exercise of the profession of public accounting; the role of the audit; to regulate the ethical and technical aspects of such a profession, according to the provisions of this Law; and ensure that the audit function, as well as others, authorised to legal professionals and persons engaged in it, is exercised in accordance with the legal rules. Also ensure compliance with regulations and other applicable rules and resolutions issued by the Council.
CHAPTER II
COUNCIL ORGANIZATION
ORGANIZATION
Art.27.-The Council shall be composed of six Owners with their respective alternates, and the internal units, commissions and auxiliary persons it deems appropriate, for the good performance of their functions and attributions.
INTEGRATION
Art.28.-The Council will be integrated as follows:
a) A Director appointed by the Minister of Economy, who will be the President of the Council;
b) A Director appointed by the Minister of Finance;
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c) A Director appointed by agreement of the Superintendence of the Financial System, and of the Superintendency of Securities;
d) A Director appointed by the National Association of Private Enterprise (ANEP), as Maximum representativeness of the private sector;
e) Two Directors appointed by the trade associations of accountants, who are duly registered with the Ministry of the Interior; not being able to be both representatives of the same guild.
Each Director will have their respective alternate, which will be appointed in the same way as the owner and replace it in their absence.
Alternate members of the Council may attend sessions with a voice but no vote, and shall not be allowed to leave, except where they replace an owner, in which case they will have the same rights and obligations as this one.
The Directors will last three years in their duties and may not be appointed for more than two consecutive periods.
DISTRIBUTION OF CHARGES
Art.29.-In the first session of the Council, the owners shall proceed to the election of the Secretary.
REQUIREMENTS TO BE A BOARD MEMBER
Art.30.-To be a member or alternate member of the Board is required:
a) Be Salvadoran;
b) Be a public accountant authorized by the Council;
c) Be a recognized morality;
d) Having at least ten years of exercise of the profession;
e) Being in the exercise of the rights of the citizen and have been in the five years prior to his appointment.
They may not be members of the Council, the spouses or the relatives of each other, within the second degree of consanguinity or second of affinity, nor those who are relatives in the expressed degrees, of the President or Vice President of the Republic, or of any of the Ministers of State.
IMPEDIMENT AND EXCUSE
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Art.31.-The Directors of the Board shall be excused from knowing and deciding on matters in which they are of interest, or of which they may obtain a direct or indirect benefit. It is understood that there is an interest in a particular case, where he has intervened or participated:
a) In his professional capacity the Director, his spouse or his relatives within the second degree of consanguinity or second degree of affinity;
b) By means of companies authorized to exercise the accounting or audit, where he, his or her spouse or relatives within the second degree of consanguinity or second degree of affinity are either administrators or shareholders.
be excused when there is a complaint or investigation, or the imposition of a penalty, for failure to comply with the law for the exercise of the profession.
Failure to comply with this provision even if the director's vote has not been decisive; it shall be the cause of dismissal; The Council shall inform the Minister of Economy, the Gremial or Institution, as the case may be, that he has appointed him, to proceed in accordance with the Law to his replacement.
REPLACEMENT
Art.32.-In case of temporary absence or an impediment to a member of the Council, shall be replaced by his alternate for the entire time of the Council.
In cases of definitive absence or resignation of the Directors, each institution represented by them will have to appoint the new Director for the time that will be missing to terminate the period; if within 15 working days after the known in such a situation do not do so, the Council shall request the Ministry of Economy to make such appointments, who shall appoint them within ten working days of receipt of the request.
COUNCIL SESSIONS
Art.33.-The Council will meet ordinarily twice every thirty days and extraordinarily every (a) to be convened by the President or at the written request of any of its members; in the latter case, the call must express the agenda to be dealt with.
In order for the Council to be validly sessionable, the assistance of the the half plus one of its members and the resolutions shall be taken by a majority of their votes. In the event of a tie, the President shall have a vote of quality.
The members of the Council shall be entitled to a daily allowance for the sessions they attend, at a maximum of two per month.
DISSENTING VOTES
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Art.34.-When one of the members of the Council does not agree with the resolution taken in a session, he/she may reason to vote and request that it be recorded in the respective minutes; the Registrar shall be obliged to to record it.
No member shall disclose to third parties the matters dealt with in the sessions, under penalty of incurring liability in case of contravention.
VALUE OF RESOLUTIONS
Art.35.-Resolutions taken in Council session will have value, even if the quorum has been diminished by the withdrawal from any of its members.
A record will be lifted from each session to be settled in the respective book and signed by the members attending the session.
CHAPTER III
COUNCIL AND OF DIRECTORS
OF THE COUNCIL
Art.36.-They are Council attributions:
a) Authorize those who comply with the legal requirements to exercise the profession of public accountant, as well as sanctioning them for the faults committed in their exercise;
b) To carry the Professional Register of public accountants in which they will be entered all those who fill the requirements required by this Law;
c) Authorize rehabilitation applications;
d) Monitor the exercise of the profession, and ensure that it is not exercised by persons who lack the authorization respective;
e) Formulate the foreprojects of the Laws and Regulations that are necessary for the exercise of the profession, as well as their respective reforms, upon the opinion of the Professional Associations of Accountants, submitting them to the Minister of Economy for approval by the corresponding Authority;
f) Establish the minimum audit requirements to be met by the auditors in respect of the audits they carry out; having the Council powers to verify the true compliance of the auditors;
g) Set the general rules for the audit preparation and presentation of the financial statements and supplementary information of the audited entities;
h) Determine the principles under which traders must keep their accounts and establish criteria for valuation of assets, liabilities and constitution of
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provisions and reserves;
i) Approve internationally accepted accounting principles and auditing standards, including financial, where the Act has not expressly provided for them;
j) Issue or authorize the standards of professional ethics and any other a technical or ethical provision, which must be complied with in the exercise of the profession and made public; for these purposes the Council may request the associations of the legal entities of the legally constituted accounting office, the collaboration in the and any other technical or ethical provision;
k) To know and to resolve any complaints that are received or to be initiated on their own initiative, due to non-compliance with legal norms or faults in the professional exercise. In any event, the name and signature of the complainant shall be required;
l) Name the staff under his or her duties and the members of the various Commissions to be organized for the best performance of their purpose;
m) Propose their Rules of Procedure Internal and its reforms to the Executive Body in the Economy Ramo;
n) Know and resolve the financial aspects;
o) Develop the project of your budget;
p) Approve the emoluments that in the concept of diets perceive Council members;
q) Promote the continued education of the Public Accountants, being able to to conclude the corresponding service contracts for that purpose;
r) Other laws to be entrusted to it by other laws.
For the purposes of literals (g), (h), (i), and (j) the Council shall proceed to such approval on a proposal from the Commission. received from the associations of legally constituted accountants, followed by the respective consultation with these associations. Once approved, they will be published, which will be mandatory sixty days after the date of the publication.
This article is without prejudice to other laws on the subject.
OF THE PRESIDENT
Art.37.-They are the privileges of the President:
a) Chair Council sessions and direct discussions;
b) Call directly or through the Secretary to ordinary and extraordinary sessions;
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c) Preparing jointly with the Secretary, the agenda for each session;
d) Judicial and extrajudicial refiling to the Council;
e) Distributing the work of the Council among its members, when these are not determined by the Act or its regulations;
f) Order, jointly with the Secretary, the publication of the list of authorized public accountants and registered in the Council Registry;
g) Take the protest or oath of the professionals upon being registered;
h) Resolve all questions urgent, giving the account to the Council in the next session that I realized;
i) Any other attribution inherent in his office.
OF THE SECRETARY
Art.38.-They are the privileges of the Secretary:
a) Elaborate the minutes of the Council sessions and settle them in the respective book;
b) Take the Register of the Accountants Public;
c) Be responsible for the files, books and records of the Board;
d) Call by delegation of the President, to ordinary and extraordinary sessions;
e) Extend and sign the certifications and credentials of registration and rehabilitation of professionals;
f) Order jointly with the President, the publication of the list of authorized public accountants and registered in the Council Registry;
g) Any other attribution inherent in his position.
OF OWNER DIRECTORS
Art.39.-Son Owners ' privileges:
a) Attend the sessions for which they are called;
b) Comply with the commissions entrusted to it by the Council;
c) Convocation to ordinary sessions when circumstances warrant it.
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OF ALTERNATE DIRECTORS
Art.40.-They are the privileges of the Substitute Directors:
a) Replace the owners under the conditions indicated in this Law, when they are called for this effect;
b) Comply with the commissions entrusted to you by the Tip.
CHAPTER IV
OF THE COUNCIL STAFF AND ASSISTANTS
OF THE STAFF
Art.41.-The Council must have the organizational structure necessary to efficiently exercise its functions, for the purposes of which, prior to the authorization of the Minister of Economy, will organize such a structure and proceed to appoint the necessary personnel.
COMMISSIONS OR AUXILIARY PERSONS
Art.42.-For the best performance of its purpose, the Council may appoint commissions or auxiliary persons in specialised aspects of their duties; such as:
a) Professional ethics rules;
b) Accounting principles;
c) Audit rules;
d) Quality control;
e) Continuing education.
The Council will formulate the Regulation or Regulations on the basis of which each commission will function.
COLLABORATION AND TECHNICAL ASSISTANCE
Art.43.-The Council may request collaboration and technical assistance in cases it deems necessary for public or private entities, on matters related to it.
CHAPTER V
HERITAGE
COUNCIL RESOURCES
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Art.44.-The Council's assets will consist of the following resources:
a) The subsidies granted by the State;
b) The income it receives from the services provided, such as: registration rights in the professional register, extension of certificates, and constances;
c) The products of seminars, congresses and other professional events, as well as the sale of their publications;
d) Revenue derived from donations, inheritances, legacies or any other title granted by individuals;
e) Any other income or assets that you receive in accordance with the Law.
For the purposes of literals (b) and (c) of this Article, the Council shall define the corresponding rights in accordance with the Law.
TITLE IV
OF VIOLATIONS, SANCTIONS, PROCEDURES, AND RESOURCES
CHAPTER I
OF VIOLATIONS AND PENALTIES
VIOLATIONS
Art. 45.-For the purposes of this Law, it will be understood as violations committed by the public accountants, failure to comply with the obligations set forth in this Law.
APPLICATION OF SANTIONS
Art.46.-The Council will be the charged with applying sanctions to public accountants, whether natural or legal persons, who fail to comply with legal provisions, as well as resolutions validly issued by it.
TYPES OF SANCTIONS
Art.47.-The imposition of the sanctions by the Council will be done as follows:
(a) Verbal Admonition, when by negligence or neglect in the exercise of the profession, for the first time and without causing damages to third parties, an infringement is committed;
b) Written admonition, for reiteration of the infractions to which refers to the previous literal;
c) Multa from one to fifteen higher urban minimum wages in force, in the cases of reiteration of the infractions referred to in the previous literal; by negligence or carelessness
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inexcusable in the exercise of the profession causing damages to third parties; for ethical misconduct in the exercise of the profession without causing damages to third parties;
d) Temporary suspension for up to five years in the exercise of public accounting, for the continued reiteration of the infringements The suspension shall be
prejudice to the imposition of a fine in accordance with the provisions of the law of the Member States of the European Parliament and of the Council
the European Union. amount set out in the literal (c) of this article.The infringer will have an obligation to return the authorized stamps to the Council within eight days of the notification of the final decision.
imposition of the sanctions will be done without prejudice to the criminal actions to which there is, if the infringement is a criminal offence. In the latter case, the Council will have an obligation to notify the Office of the Prosecutor General of the Republic immediately and to forward the respective certifications.
In cases of the illegal exercise of the profession, the Council will immediately proceed to give notice to the Office of the Prosecutor General of the Republic and forward the respective certifications.
CASE OF COUNCIL DIRECTORS
Art.48.-When a Director of the Council is sanctioned in accordance with this Law, the Council shall inform the Minister of Economy and the Institution that he represents to proceed with his removal and substitution.
CASE OF LEGAL PERSONS
Art.49.-When the offenders are legal persons authorized to provide the services of public accounting, the sanction will be jointly and severally inclusive of the professional responsible; and in the case, that the latter is a member of the Council will proceed in accordance with the previous article.
REHABILITATION
Art.50.-Enforced suspension, the offender may request in writing to the Council his/her rehabilitation, which shall be authorised within a period of not more than 60 days provided that there is no no observation.
CHAPTER II
OF THE PROCEDURES AND RESOURCES
FACULTY OF COMPLAINT
Art.51.-Everyone has the right to report any infringement related to the profession it regulates this Act, with the Code of Commerce, as well as any other respective Law and Regulations.
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The complaint must be made in writing to the Council, the Council will receive it and sign it as a sign of receipt, if the complainant cannot do so in writing. The complaint must be accompanied by any evidence or evidence that is available, as well as any information that will help investigate the facts.
Complainants will be responsible for the legal consequences for them when they act as bad.
the Council has knowledge of any infringement of this Law, it may initiate the investigation, without prejudice to the provisions of this Articlewithout prejudice to the provisions of this Article. relevant.
OF THE PROCESS
Art.52.-Then the complaint or the reports on the conduct of the public accountant, the Council shall hear it within eight working days from the date of the notification, in order to exercise its rights. The person concerned may request within the term already expressed, an additional five working days to present the evidence of discharge.
Within eight days of the expiry of the probationary period, or the expiration of the period of time of the hearing, if the test term has not been requested, the Council shall issue the respective resolution.
The infringer shall comply with and comply with the terms of the resolution issued.
FORMALITY OF CITATIONS AND NOTIFICATIONS
Art.53.-Citations and notifications must be made personally in the the address shown in the respective file, with the delivery of a corner containing the order that orders it and a brief relationship of the fact that motivates it; such providences must be carried out in an agile and safe manner, without undermine the right of hearing and defense of the alleged infringer.
For the purposes of the foregoing paragraph, if it is a natural person, and I will not be found, you will be left with an older person. If it is a legal person, it will be made to its legal representative, and not to be found, an older member of the administrative staff will be left, the same will be done if it is a manager or employee of the same. If the above mentioned persons refuse to receive the corner, it will be fixed at the door of the place.
The person to whom the corner is delivered will sign their receipt if they want or could. The person in charge of practicing the diligence shall issue a record stating the manner in which the notification was carried out, under penalty of nullity.
RESOLUTIONS
Art.54.-Any decision or sanction of the Council shall be made written record. The material content of the resolutions shall be reasoned and substantiated in the evidence obtained.
The Council shall express in the resolution establishing the sanctions, the grounds that
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justify.
If recourse is not made to the resolution imposing the fine, the Council will declare it final or final, and the certification that it will extend will have executive force, for the purposes of its compliance.
RESOURCE OF APPEAL
Art.55.-The interested party to whom a decision is unfavourable may bring the appeal to the Minister of Economy within the period of eight working days from the date of the notification to be made of the resolution to be used.
The resource must be presented to the Council within the established deadline, who will forward the proceedings to the Minister of Economy, after notification to the interested party.
PENDING APPEAL
Art.56.-Received the proceedings by the Minister of Economy, will give an audience for eight working days to the appellant, and whether or not evacuated, may be opened for eight working days if deemed necessary. In any event, the Minister for Economic Affairs within the following eight working days shall deliver the decision which is applicable and shall return the file to the Council with the certification of the judgment given. The certification of this resolution will have executive force.
EXECUTIVE FORCE
Art.57.-The fines to be established by the Council must be made effective in the institutions that are enabled for this purpose, within a period of time. more than 20 working days, counted from the date following the notification of the final decision. If they are not cancelled within the time limit expressed, the Council shall transmit the certification of the resolution to the Attorney General of the Republic to make it effective judicially.
PRESCRIPTION
Art.58.-The power to impose the Penalties referred to in this Law shall be prescribed in two years from the date on which the offence was committed. If more than three years have elapsed since the date of the start of the procedure to hear about a possible infringement, without having definitively resolved it, the action shall also be prescribed by the person concerned. Those responsible for the delay in the resolution should assume the legal consequences of their negligence.
TITLE V
FINAL AND TRANSIENT PROVISIONS
CHAPTER I
PUBLICATIONS
Art.59.-Any publication to be carried out by the Council shall be made only once in the Official Journal.
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and in a national circulation journal.
PREFERENCE FOR THESE RULES
Art.60.-The provisions of this Law will prevail over other legal provisions that would be contrary to the law.
PROVIDED
Art.61.-In all cases not foreseen in the present Law, the Council will resolve in accordance with internationally recognized accounting and auditing principles.
CHAPTER II
TRANSIENT
DEADLINE TO COMPLY WITH THE LAW
Art.62. companies that are exercising the profession of public accounting and do not meet the requirements set forth in this Law, will have a period of twelve months, counted from the validity of this Law, in order to adapt to it.
natural persons who are authorized to exercise the accounting and who do not meet the requirements laid down in This Law shall, within the period referred to above, present to the Council a request for authorization accompanied by the documentation certifying them as accountants, or which may entitle them to the exercise of the accounting.
OF THE FIRST TIP
Art. 63-The Council shall be satisfied within the period of sixty working days from the time of this Law.
For the integration of the First Council, its members shall be required to meet the requirements laid down in Article 3. 30 of this Law, except the authorization referred to in the literal b) of it.
VALIDITY
Art.64.-This Decree shall enter into force on the day one of April of the year two thousand.
GIVEN IN THE BLUE HALL OF THE PALACE LEGISLATIVE: San Salvador, at the twenty-sixth day of the month of January of the year two thousand.
JUAN MARTINEZ MARTINEZ, PRESIDENT.
GERSON MARTÍNEZ, CIRO CRUZ ZEPEDA PEÑA, FIRST VICE PRESIDENT. SECOND VICE-PRESIDENT.
RONAL UMANA, NORMA FIDELIA GUEVARA DE RAMÍRIOS,
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THIRD VICE-PRESIDENT. FOURTH VICE-PRESIDENT.
JULIO ANTONIO GAMERO QUINTANILLA, JOSE RAFAEL MACHUCA ZELAYA, FIRST SECRETARY. SECOND SECRETARY.
ALFONSO ARISTIDES ALVARENGA, GERARDO ANTONIO SUVILLAGA GARCÍA, THIRD SECRETARY. FOURTH SECRETARY.
ELVIA VIOLETA MENJÍVAR, JORGE ALBERTO VILLACORTA MUÑOZ, FIFTH SECRETARY. SIXTH SECRETARY.
CASA PRESIDENTIAL: San Salvador, three days into the month of February of the year two thousand.
PUBESQUIESE,
FRANCISCO GUILLERMO FLORES PÉREZ, President of the Republic.
Miguel E. Lacayo, Minister of Economy.
Luis Enrique Cordova Macias, Deputy Minister of Finance, Charge of the Dispatch.
D. O. N/ 42 Took N/ 346 Date: February 29, 2000.
NOTE: THIS LAW TACITLY REPEALS THE LAW OF THE EXERCISE OF THE FUNCTIONS OF PUBLIC ACCOUNTANT, D. L. N/ 57, SEPTEMBER 21, 1940, D. O. N/ 222, T. 129, OCTOBER 1, 1940.
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