Colegio de Contadores Publicos Autorizados de Panama

The Law 280 of 2021 empowers the Technical Board of Accounting (JTC), an agency under the Ministry of Commerce and Industries, to establish and implement quality assurance (QA) reviews for all audits of financial statements. However, as reported by the CCPAP, the QA review system has not been implemented by JTC even though legally the JTC was to address this by June 2022.

In the absence of national legislation requiring mandatory quality assurance reviews, the CCPAP, alongside the Association of Women Authorized Public Accountants, created the Alliance for Quality (ALCAPA) initiative, which in turn signed a contract with the Colegio de Contadores Publicos Autorizados de Puerto Rico to provide technical assistance and expertise in the development of the QA system. The project began in 2013 and included three phases, all of which were successfully implemented such that since 2016, the CCPAP is now conducting voluntary QA reviews for its member firms. As of 2025, nine firms have been inspected. The QA system partially aligns with the SMO 1 best practices. Gaps include missing the link between the investigation and disciplinary system of the JTC and cooperation with the JTC which has not officially endorsed the QA review system. CCPAP continues its advocacy efforts to promote a legislative reform for the accountancy profession to address major regulatory gaps and adopt international best practices in this area.

An ALCAPA Regulatory Committee was formed to operationalize the QA system, and the CCPAP independently formed its own Professional Practice Commission. The CCPAP’s Professional Practice Commission participates in the meetings and activities of the Regulatory Committee, which is ultimately responsible for evaluating and approving the QA reviews. To support the implementation of the reviews, the CCPAP disseminates information on relevant standards to its members and stakeholders on an ongoing basis through the ALCAPA’s website and its newsletter, in addition to providing training activities.

The CCPAP states that incorporating more members and firms to participate in the voluntary QA review system is the main challenge to progress further with the implementation of the QA review system. In addition, the CCPAP reports that it has been working with the regulators of the profession to obtain an official endorsement and require mandatory participation in the program.

CCPAP has undertaken several commendable actions to drive the adoption and implementation of a QA system for all auditors that aligns with the SMO 1 requirements in the jurisdiction. The CCPAP should continue using its best efforts to collaborate with the JTC and relevant stakeholders to successfully adopt and implement the SMO 1 best practices.

Current Status: Sustain

In Panama, the Ministry of Education, universities, and the Technical Board of Accounting (JTC) are responsible for setting and implementing initial professional development (IPD) requirements for professional accountants. Individuals wishing to qualify as a Panamanian Certified Public Accountant and thereby be authorized to practice as a public accountant or auditor must be registered with the JTC after completing a bachelor’s degree in accounting and showing proof of no criminal record.

As an entity established by general consensus with voluntary membership, the CCPAP has successfully established CPD requirements for its members but otherwise lacks the authority to adopt IES requirements. Therefore, its activities primarily include actions to promote adopting and implementing IES requirements to the accountancy regulator and education providers. For example, the CCPAP has consistently advocated for establishing practical experience requirements and an assessment; however, there is significant resistance to implementing these requirements. To further consider how IES requirements might be incorporated into accountancy education, the CCPAP has benchmarked Panama against other professional accountancy organizations in the region and has participated in governmental consultations. After its regional benchmark analysis, the CCPAP has decided to follow the Puerto Rican IPD and continuing professional development (CPD) model and has contacted the regulators to promote this model and address gaps in educational requirements.

The CCPAP has also promoted the IES to the universities and outlined plans to review and assess the various accountancy curricula against the IES requirements to identify gaps and better align with the IES.

The institute also continues its overall advocacy efforts to promote a legislative reform for the accountancy profession to address major regulatory gaps and adopt international best practices.

The CCPAP is encouraged to continue collaborating with the JTC and universities to promote and support adopting and implementing the IES requirements. The CCPAP can refer to examples in the region for best practices and learnings, including a voluntary certification aligned with the IES, and a university accreditation scheme. The Accountancy Education E-Tool and the IES Checklist developed by IFAC may help identify implementation support materials.

Current Status: Execute

The Technical Board of Accounting (JTC) and the financial sector regulators— Superintendency of Banks (SBP), Superintendency of Insurance and Reinsurance (SSRP), and the Superintendency of Securities Market (SMV)—are responsible for setting auditing standards in Panama. The JTC, SMV, and SSRP have adopted ISA while the SBP requires ISA or U.S. Generally Accepted Auditing Standards issued by the Auditing Standards Board of the American Institute of Certified Public Accountants for audits of financial institutions.

The CCPAP plays an important role in the standard-setting process through its representation and participation in the Commission of Financial Accounting Standards (NOCOFIN)—the commission responsible for recommending regulation related to the auditing standards to the JTC. The CCPAP also maintains constant communication with the financial sector regulators.

To support members’ implementation of the standards, the CCPAP has established a Professional Practice Commission responsible for working with NOCOFIN, monitoring changes and modifications to the standards, providing comments on IAASB exposure drafts, and including ISA in its continuing professional development activities and seminars. Additionally, the CCPAP has communication channels to share information and international developments through its website, technical blogs, and newsletters. Lastly, the CCPAP reports it is collaborating with universities to incorporate ISA into their accountancy curricula.

The CCPAP has demonstrated an ongoing process to maintain its fulfillment of the SMO 3 obligations and is committed to continuous improvement.

Current Status: Sustain

In Panama, professional accountants are subject to ethical requirements set by the Technical Board of Accounting (JTC), which as reported by the CCPAP, are contained within a national Code of Ethics from 1984 that is not based on the IESBA Code of Ethics. However, the Superintendent of Banks and the Superintendence of Insurance and Reinsurance have adopted the IESBA Code of Ethics, as issued, for auditors that are registered as providing services to companies under their supervision.

The CCPAP was part of the successful advocacy that led to the legislative reform of Law 280 of 2021. That law stipulates that the JTC is to update the national code of ethics from 1984 or adopt the International Code of Ethics for Professional Accountants issued by the IESBA. Unfortunately, the JTC has not formally addressed this requirement. The CCPAP reports that in practice the IESBA Code of Ethics is generally applied in the country as permitted by the Law 280.

The CCPAP indicates that it has developed training activities on the IESBA Code of Ethics and plans to continue promoting the IESBA Code of Ethics to the JTC, other key regulators, universities, and other professional accountancy organizations operating in the country.

The CCPAP is encouraged to continue collaborating with the JTC and other stakeholders to promote and support adopting and implementing the International Code of Ethics for Professional Accountants for all professional accountants in the jurisdiction.

Current Status: Review & Improve

The CCPAP is not responsible for setting public sector accounting standards which are adopted by the National Comptroller Office (CGR) of Panama. The CGR has developed national standards that are on a partial-accrual basis and refer to IPSAS. The CCPAP actively supports the standard-setting process and promotes the adoption of IPSAS through its two representatives on the Commission of Financial Accounting Standards—the commission responsible for recommending regulation to the Technical Board of Accounting (JTC). The JTC, in turn, raised awareness and encouraged the adoption and implementation of IPSAS to the CGR.

Furthermore, the CCPAP supports the implementation of IPSAS and has established a Public Sector Committee, which is responsible for providing training on IPSAS. The institute has identified supporting the CGR in its training initiatives on IPSAS as a priority activity. In addition, the CCPAP monitors changes to the standards and pronouncements issued by the IPSASB and disseminates the information amongst its members and stakeholders.

The CCPAP has supported the international standard-setting process with an IPSASB Member, and Technical Advisor serving on the board from 2014–2019.

The CCPAP has demonstrated an ongoing process to maintain its fulfillment of the SMO 5 obligations and is committed to continuous improvement

Current Status: Sustain

In Panama, the Technical Board of Accounting (JTC) is responsible for investigating and disciplining (I&D) all professional accountants. As reported by the CCPAP, the JTC has implemented an I&D system but it is not in line with the SMO 6 best practices. Differences include information about the types of misconduct that may bring about investigative actions, and the results of the investigative and disciplinary proceedings are not publicly available. The CCPAP was part of the successful advocacy that led to the legislative reform of Law 280 of 2021. The Law 280 of 2021 requires the JTC to modernize the investigation and discipline system for the profession. Unfortunately, as of 2025, the JTC’s I&D system has not been further aligned with the SMO 6 requirements.

The CCPAP—which unites professionals on a voluntary basis—carries out I&D procedures for its respective members. The CCPAP has incorporated all SMO 6 requirements that it is authorized to adopt, other than the link between its system and that of the JTC and consequently, cooperation with the JTC.

The institute reports a minimal number of complaints handled by the JTC since 2018. These cases either received verbal warnings or a letter of reprimand.

The CCPAP has focused its activities on promoting the SMO 6 requirements to the JTC and raising awareness of the JTC’s investigative processes and possible disciplinary sanctions. To support the incorporation of the missing SMO 6 requirements, the CCPAP created a special commission on Research, Development & Innovation to promote the best practices to the JTC and support the implementation process. The commission developed specific research that will offer JTC the information, analysis, and tools required to strengthen its I&D mechanism for the profession.

The CCPAP is encouraged to continue collaborating with the JTC and other stakeholders to promote and support adopting and implementing the missing SMO 6 requirements into the JTC’s I&D system for all professional accountants in the jurisdiction.

Current Status: Execute

It is the responsibility of the Technical Board of Accounting (JTC) and the financial sector regulators— Superintendency of Banks (SBP), Superintendency of Insurance and Reinsurance (SSRP), and the Superintendency of Securities Market (SMV)—to set corporate accounting standards for the financial statements of the respective companies under each agency’s supervision. The JTC issued Law No. 6 of 2005 requiring the application of IFRS and IFRS for Small- and Medium-sized Entities (SMEs) since 2006 while listed companies and financial institutions are required to use IFRS in accordance with the SBP Agreement No. 4 of 1999 and SMV Agreement No. 8 of 2000, respectively. Finally, insurance companies are required to apply IFRS in accordance the SSRP Law No. 12 of 2012.

The CCPAP indicates that it actively participates and contributes to the JTC’s standard-setting process and pushed for the original adoption of IFRS and IFRS for SMEs by the JTC. It has two representatives on the Commission of Financial Accounting Standards (NOCOFIN)—the commission responsible for recommending standards to the JTC—and working closely with the regulators to support ongoing adoption and implementation the standards.

The CCPAP has supported its NOCOFIN representatives by monitoring changes to the standards and pronouncements issued by the IASB. Additionally, the NOCOFIN is a part of the Latin American Accounting Standard Setters Group. Through NOCOFIN, the CCPAP participates in the international standard-setting process by providing comments to exposure drafts via a regional level.

To support the implementation of the standards, the CCPAP has incorporated IFRS and IFRS for SMEs into its annual training program; recommended that the JTC and regulators establish means to oversee compliance with IFRS and is working the JTC to enhance the application of IFRS for SMEs; encouraged the Ministry of Education and universities to incorporate the standards into their curricula; and disseminated information to members and stakeholders on new and revised IASB pronouncements.

The CCPAP has demonstrated an ongoing process to maintain its fulfillment of the SMO 7 obligations and is committed to continuous improvement

Current Status: Sustain