Key takeaways: The ethics of the chartered accountant in Morocco rest on five fundamental principles: integrity, objectivity, professional competence, confidentiality and professional behaviour. Governed by the code of ethics of the Order of Chartered Accountants (OEC) and Law 15-89, the framework provides for sanctions ranging from a warning to removal from the register in case of breach.
Why Ethics Are Essential for the Chartered Accountant
The chartered accountant holds a position of trust within the Moroccan economic fabric. Whether involved in bookkeeping, statutory audit or strategic advisory, the professional has access to sensitive financial information. Adherence to a strict ethical framework guarantees the reliability of the work performed and protects the interests of all stakeholders: businesses, partners, banks, tax authorities and third parties.
The code of ethics of Morocco’s Order of Chartered Accountants (OEC) draws heavily on the international standards of IFAC (International Federation of Accountants) while taking into account the specificities of Moroccan law, notably Law 15-89 governing the profession.
The 5 Fundamental Principles of Ethics
1. Integrity
The chartered accountant must be honest and straightforward in all professional and business relationships. This principle prohibits any association with information the professional knows to be false, misleading or incomplete. Integrity also implies not receiving undisclosed fees or benefits that could compromise independence.
2. Objectivity
Objectivity requires that the chartered accountant not allow any bias, conflict of interest or undue influence to impair professional judgement. This principle is particularly critical during statutory audit engagements, where the opinion issued must reflect only the reality of the accounts, without regard to the client’s wishes.
3. Professional Competence and Due Care
The chartered accountant has an obligation to maintain knowledge and skills at the level required to provide quality services. This involves mandatory continuing education, regulatory monitoring (particularly regarding changes to the General Tax Code) and the application of current technical standards. The professional must only accept engagements for which the necessary competence is held.
4. Confidentiality
Professional secrecy is one of the most important pillars of the profession. Article 19 of Law 15-89 establishes absolute professional secrecy: the chartered accountant may not disclose any information obtained in the course of engagements, except in two cases strictly regulated by law:
- Anti-money laundering obligations: Law 43-05 on combating money laundering, as amended by Law 12-18, requires suspicious transaction reporting to the ANRF (National Financial Intelligence Authority).
- Report to the public prosecutor: in the event of criminal offences discovered during a statutory audit engagement (Article 169 of Law 17-95 for public limited companies).
Outside these legal exceptions, breach of professional secrecy exposes the chartered accountant to criminal and disciplinary proceedings.
5. Professional Behaviour
The chartered accountant must comply with applicable laws and regulations and avoid any act that could discredit the profession. This principle notably prohibits aggressive canvassing, comparative advertising and any unfair practice towards fellow professionals.
Incompatibilities Under Article 15 of Law 15-89
The law establishes a strict regime of incompatibilities to preserve the chartered accountant’s independence:
- Salaried employment: practice of the profession is incompatible with any salaried employment, with the exception of teaching and literary or scientific activities.
- Commercial activity: the chartered accountant may not carry out any commercial activity, directly or through an intermediary.
- Corporate offices: the professional may not hold management positions (manager, director, CEO) in a commercial company, except in a chartered accountancy firm.
These incompatibilities ensure that the chartered accountant’s professional judgement is never influenced by personal commercial interests.
Fees and Engagement Letters
Freely Determined Fees
The chartered accountant’s fees are freely determined by agreement with the client. However, this freedom is governed by several rules:
- The engagement letter is mandatory for every assignment. It defines the nature of the engagement, the reciprocal obligations, the timetable and the fee arrangements.
- Fees must reflect the complexity of the work, the time spent and the qualifications required.
- Systematic undercutting (offering abnormally low fees to attract clients) is considered a breach of professional ethics.
Prohibition of Contingency Fees for Statutory Audit
For statutory audit engagements, fees may under no circumstances be calculated on the basis of the audited company’s results. This rule preserves the absolute independence of the statutory auditor in forming an opinion.
Liability of the Chartered Accountant
Civil Liability
The chartered accountant is bound by an obligation of means (not of result). The professional must exercise all normal due diligence in carrying out the engagement. In the event of a fault, the injured party must demonstrate the fault, the damage and the causal link. Professional liability insurance is mandatory.
Criminal Liability
The chartered accountant may be prosecuted for complicity in tax fraud, forgery, failure to disclose criminal offences (as statutory auditor) or breach of professional secrecy.
Disciplinary Liability
The Council of the Order of Chartered Accountants has disciplinary powers and may impose the following sanctions, in increasing order of severity:
- Warning: the lightest sanction for a minor breach.
- Reprimand: a more serious fault, recorded in the professional’s file.
- Temporary suspension: prohibition from practising for a maximum period of 1 year.
- Removal from the register: permanent exclusion from the Order, imposed for the most serious offences.
OEC Quality Control
The Order of Chartered Accountants has established a quality control programme to verify that firms comply with professional and ethical standards. The control covers:
- The firm’s internal organisation (procedures, supervision, documentation).
- The quality of working papers.
- Compliance with mandatory continuing education.
- The conformity of engagement letters and reports issued.
Control findings may result in improvement recommendations or, in the case of serious breaches, disciplinary proceedings.
Frequently Asked Questions
Can the chartered accountant refuse an engagement for ethical reasons?
Yes. The chartered accountant has not only the right but the obligation to refuse an engagement if it would compromise independence, if the required competence is lacking, or if fraudulent practices are known to exist at the prospective client.
Can a chartered accountant who has been removed from the register practise again?
Removal is in principle permanent. However, the removed person may, after a period set by the Council of the Order, submit a request for re-registration. Each request is examined on a case-by-case basis and depends on the nature of the offence committed.
How can I verify that a chartered accountant adheres to ethical standards?
You can first check registration with the OEC on the website oecmaroc.com. Then, require a detailed engagement letter, request a certificate of professional liability insurance and ask for references from other businesses regarding the firm’s reputation.
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