Institute of Certified Public Accountants of Greece

In Greece, the Hellenic Accounting and Auditing Standards Oversight Board (ELTE), the audit oversight authority that operates under the oversight of the Ministry of Finance, is responsible for the establishment and implementation of a quality assurance (QA) review system for all audits. ELTE has established a QA review system for all public interest entities (PIEs) and delegated the non-PIE QA reviews to SOEL. Auditors of PIEs are inspected every three years, and non-PIEs every six years. SOEL reports that it has assessed the QA review systems against the best practices of SMO 1 and concluded that the systems fulfill the requirements.

To fulfill its responsibility as delegated by ELTE, SOEL has established a Quality Control Committee (QCC) responsible for conducting the review for auditors of non-PIEs. Five members comprise the QCC with the Supervisory Council of SOEL appointing the QCC Chairman and two members. Their deputies are appointed by a proposal of ELTE’s Board of Directors and the last two members by SOEL’s General Assembly. As reported by SOEL, all costs related to the QA reviews are included in the SOEL annual budget. SOEL indicates that it delivers continuing professional development programs to its members on subjects such as quality control standards and the inspection processes of ELTE and SOEL.

As part of the austerity measures imposed by the Greek Government, from 2010–2014 SOEL supported the ELTE’s Quality Control Committee to conduct QA reviews by providing staff without hindering the quality, independence and/or any other conflict with the inspections.

SOEL translated the IFAC Guide to Quality Control for Small and Medium Practices. ISQM 1 and 2 have been adopted and now SOEL is in the process of translating ISQM 1 & ISQM 2 into Greek to further support its members along with conducting training throughout 2024.

Current Status: Sustain

Law 4449/2017 establishes general initial and continuing professional development (IPD and CPD) requirements for Certified Public Accountant (CPA). The responsibility for implementation is shared among the Hellenic Accounting and Auditing Standards Oversight Board (ELTE), SOEL, and universities.

Candidates who wish to acquire the title of CPA and become a SOEL member are required to meet specific requirements such as: (i) have a university degree; (ii) pass a final professional accountancy examination; and (iii) have five years of practical experience. Two years of practical experience need to be completed after passing the final exam.

SOEL, under the oversight of ELTE, administers the professional examination of CPAs, establishes mandatory CPD requirements for members (120 hours over three years), and offers CPD and other educational courses in SOEL’s Institute of Education and Training. The institute also monitors the fulfillment of the CPD obligation.

Since 2009, there has been a Joint Examination Scheme under which candidates for the profession take the Association of Chartered Certified Accountants (ACCA) examinations in English, and a local Taxation and Law exam in Greek, to earn the CPA designation. In 2014, a similar arrangement was formalized between SOEL and the Institute of Chartered Accountants in England and Wales (ICAEW). SOEL collaborates with the University of Athens to offer a postgraduate course in Applied Accounting and Auditing and has plans to establish similar programs with other Greek universities.

SOEL publishes a quarterly magazine, Accountancy Greece, which it uses to inform members about a variety of standard-related topics, changes to taxation and regulatory legislation, as well as updates from international standard-setters.

SOEL monitors the IES to identify and address areas of improvement to enhance national requirements’ alignment with IES. In 2015 SOEL decided to form a team that would focus on comparing the educational requirements of IES to those applied in Greece and prepare a report on the degree of compliance with IES requirements. The committee completed the review of the requirements of the IESs in Q1 2018 and provided guidelines for necessary minor improvements to the Board of Directors, which were completed in Q4 2018.

In 2022, SOEL participated in a research project led by the International Panel of Accountancy Education (IPAE) and IFAC to determine potential underlying reasons for why many jurisdictions globally are assessed at Partially Adopted (PA) for International Education Standards. SOEL completed a questionnaire to determine extent of alignment with revised 2019 IES at the jurisdiction level, followed by an interview with IFAC to obtain a deeper understanding around the successes and challenges around IES adoption and implementation. Following the deep dive, it was confirmed that in Greece education requirements are fully aligned with the 2019 IES.

Subsequently, SOEL presented the success story for alignment with IES in Greece at the June 2022 webinar ‘Connecting the Accountancy Education Ecosystem” co-hosted by IFAC and the World Bank.

Current Status: Sustain

The auditing requirements are set in the Law 4449/2017, which was issued to transpose the Audit Directive and Regulation (EU) No 537/2014. The law directly adopts ISA without modifications, as translated, and incorporated into the official Gazette, in Greece. In accordance with the law, the Ministry of Finance and the Ministry of Development and Competitiveness are ultimately responsible for the adoption of applicable audit standards.

SOEL supports the adoption & implementation of ISA through its collaboration with the Hellenic Accounting and Auditing Standards Oversight Board (ELTE - the audit oversight body) to translate the standards into Greek. SOEL and ELTE collaborated to translate the 2015 version of ISA, as well as the 2011 version of ISAE 3000, the 2014 ISAE 3420 and the revised ISAs 805, 800, 720, 706, 705, 701, 700, 260, 570, 4400, 3000, all of which have been made publicly available and disseminated to members of SOEL via print and online.

As of the date of this assessment, SOEL completed the translation of ISA 600 which is under review by ELTE prior to publishing. SOEL is currently translating ISA 220 and ISA 250. SOEL also reports to be engaging in discussions with local regulators regarding the adoption of the ISA for Less Complex Entities (LCEs).

As reported by SOEL, there are plans to create a mechanism for ensuring that the SOEL and the ELTE are timely translating up-to-date versions of the IAASB pronouncements. In the meantime, it provides its members with the latest version of the Handbook as issued by IAASB in English as it works on providing Greek translations.

SOEL confirms that it: (i) monitors new and amended standards issued by the IAASB; (ii) disseminates information on updates to the standards and international developments in the area through printed materials and its website; (iii) develops implementation guidelines; and (iii) offers CPD and other educational courses in SOEL’s Institute of Education and Training.

Developing an ongoing process to reduce the time lag between translations of the standards to ensure that the latest international standards are available for application on or close to the IAASB effective date is important and SOEL’s collaboration with the ELTE in this regard can be furthered. In addition, SOEL is encouraged to participate, in collaboration with ELTE, in the international standard-setting process in this area by providing comments on IAASB Exposure Drafts and Discussion Papers.

Current Status: Review & Improve

The Law 3693/2008, as amended by the Law 4449/2017, introduced the application of the IESBA Code of Ethics to all Certified Public Accountant (CPA). Under the law, the Hellenic Accounting and Auditing Standards Oversight Board (ELTE - the audit oversight authority) is responsible for the enactment of a code of conduct for CPAs, taking into consideration the provisions of the IESBA Code of Ethics, following proposals made by SOEL.

SOEL reports that the 2015 IESBA Code of Ethics was translated into Greek, in cooperation with ELTE. The Code was approved by ELTE and published in the Greek Government Gazette (FEK A 3916/7.11.2017). SOEL has stated plans to translate the 2023 International Code of Ethics. In the meantime, it provides its members with the latest version of the Handbook as issued by IESBA in English as it works on providing Greek translations.

SOEL supports its members’ adherence to the Code of Ethics by including standard-related topics as a mandatory component of the examination syllabus and as part of the certification process for membership. SOEL also offers ethics courses in its annual continuing professional development training program and organizes seminars and other events. It also publishes information on new and revised IESBA pronouncements in its website and quarterly magazine, Accountancy Greece.

Developing an ongoing process to reduce the time lag between translations of the standards to ensure that the latest international standards are available for application on or close to the IESBA effective date is important and SOEL’s collaboration with the ELTE in this regard can be further strengthened. There have been a number of significant revisions since the 2015 IESBA Code.

Current Status: Execute

The Government of Greece is responsible for issuing public sector accounting and reporting standards in accordance with Law 3429/2005.

According to the CIPFA/IFAC 2020 International Public Sector Financial Accountability Index, Greece uses partial accrual basis standards that reference IPSAS.

SOEL indicates it actively promotes the adoption of IPSAS in discussions with government officials and the public oversight body, the Hellenic Accounting and Auditing Standards Oversight Board (ELTE), which is responsible for providing advice on standards to the Ministry of Finance. It advocates for the adoption of IPSAS in ongoing public debates around appropriate public sector accounting standards for Greece, especially considering the 2010 economic crisis. SOEL also raises awareness on the importance of IPSAS adoption through its provision of the IPSASB’s pronouncements and other IPSAS-related news to relevant government officials.

In 2012, SOEL reported an initiative to translate IPSAS into Greek, in collaboration with ELTE; however, by 2015 just a summary of IPSAS was translated. Subsequently, the project was canceled by ELTE management and to date, the SOEL is trying to re-engage the ELTE on pursuing the translation to support the future adoption of the standards. In addition, in 2015 as an outcome of a meeting with the Deputy Minister of Finance, SOEL reported the establishment of an advisory committee to assess IPSAS adoption; however, at this time, it seems the formal commencement of the committee is still pending.

Finally, SOEL also raises awareness amongst members about IPSAS its quarterly magazine, Accountancy Greece and by organizing IPSAS workshops and training events in its continuing professional development programs.

SOEL is using its best endeavors to fulfill its obligations under SMO 5, and it is encouraged to continue its advocacy and support toward accrual-basis IPSAS. Adoption and implementation of accrual IPSAS as issued by the IPSASB would ensure application of global best practice. SOEL may consider if it can translate the 2022 IPSASB Handbook. It may also find IFAC’s Train the Trainers: Introduction to IPSAS resource helpful for any advocacy and/or educational activities it offers, as well as the Pathways to Accruals.

Current Status: Sustain

In Greece, the Hellenic Accounting and Auditing Standards Oversight Board’s (ELTE — the audit oversight authority) is responsible for establishing investigative and disciplinary (I&D) systems for all Certified Public Accountant (CPAs). At present, the SOEL does not carry out any I&D procedures as legislation states this is the authority of the ELTE.

SOEL indicates that cases referred to ELTE’s investigative and disciplinary process either derive from third-party complaints (i.e., prosecutors, government authorities, individuals, media) or from the quality assurance review system. Penalties can range from a reprimand to revocation of license. In addition, ELTE can impose fines for auditors and firms.

To raise awareness on the I&D process in the jurisdiction, SOEL indicates that it monitors ELTE’s I&D system and publishes related articles online and in its magazine, Accountancy Greece. It is also updating its internal rules on an ongoing basis to ensure consistency with ELTE’s I&D mechanisms.

SOEL does note that it is reviewing how it might become authorized to carry out I&D within the context of the intended reform of the Presidential Decree 226/1992, which governs the institute’s operations. SOEL is proposing that the SOEL create two committees—one for investigation and one for disciplinary purpose—and that the ELTE serve as the appeals mechanism.

In 2024, SOEL updated the SMO 6 checklist which reflect further alignment with the requirements. According to SOEL, the I&D system operated by ELTE almost fully complies with the best practices of SMO 6 with the exception of there not being a process for the independent review of complaints.

SOEL is encouraged to provide an update on the legislative changes that would help to address the last remaining gap of I&D policies related to there being a process for the independent review of complaints.

Current Status: Review & Improve

Under Law 4308/2014, the Ministry of Finance and the Ministry of Development & Competitiveness are responsible for establishing accounting standards in Greece. The Hellenic Accounting and Auditing Standards Oversight Board (ELTE) provides advice on these standards. Under the law, public interest entities and other types of entities defined in Article 1.3 of the Law are required to use IFRS Standards as adopted by the EU. All other companies are required to apply the Greek General Accepted Accounting Principles (Greek GAAP), which do differ from the IFRS but may apply IFRS if they wish to do so. IFRS for Small-and Medium-Sized Entities has not been adopted and there are no plans to do so.

SOEL reports that it organizes IFRS training events and offers relevant continuing professional development courses, particularly on new and revised standards, to help members enhance their knowledge and understanding of IFRS. SOEL also assists with technical issues from members who submit requests and inquiries. As of 2022, SOEL reports that together with ACCA, both organizations jointly developed a bilingual version of ACCA's CertIFREL Certificate in Greek & English to support implementation.

SOEL also informs members about IASB updates and changes to IFRS on its website, in its newsletter, and in the quarterly magazine Accountancy Greece. It monitors the IASB work program to identify new drafts and final pronouncements, and reviews and provides comments on Exposure Drafts issued by the IASB via the European Financial Reports Advisory Group.

Current Status: Sustain