Doing Business

Doing Business in Mexico 2015

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95 Doing Business in Mexico 2015 Chapter 11 Audit requirements and practices Investor considerations • Statutory audits are required for all private Mexican corporations. In public listed companies, this function is performed by the Audit Committee. • Larger companies are required to file tax compliance audit reports electronically with the tax authorities. • Accounting profession is mature and well organized. • International Standards on Auditing are mandatory as of January 1, 2013, leaving the Generally Accepted Auditing Standards (GAAS) in Mexico without effect. • Stringent electronic reporting requirements apply in Mexico. Statutory requirements Books and records Loose-leaf or any other type of auxiliary records may be maintained. Such principal and auxiliary records as may be necessary to record clearly the transactions of the company must be written up in pesos and in the Spanish language and must be kept at the official domicile of the company, but there is no prohibition against records also being expressed in another currency or language. These requirements apply to all businesses described in Chapter 9. By law, all fiscal years must coincide with the calendar year. Electronic Reporting Requirements The Mexican Tax Law contains rules concerning the delivery of accounting records (e.g., trial balance, etc.) via electronic media on a monthly basis when law takes full effect. However, it will include information as from July 2014. There are specified deadlines for the delivery of trial balances and the catalog/charts of accounts using the XML file format. The authorities may also request information on the accounting journal entries and other records. The provision applicable to the financial sector, has it is own set of rules. In addition, invoices issued and received, and individual payroll receipts must generally be on officially authorized printed forms. Moreover, the issuer of the invoice is generally required to provide a digital tax invoice to the tax authority and the customer as well as employees via electronic means using the XML file format (Comprobante Fiscal Digital através de Internet – CFDI). 11

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