Instituto de Contadores Públicos Autorizados de la República Dominicana

In the absence of a fully unified and operational jurisdiction-wide quality assurance (QA) review system for audit work, the Instituto de Contadores Públicos Autorizados de la República Dominicana (ICPARD) has taken significant steps to support the establishment and implementation of a mandatory QA review system for its members, who are the only individuals permitted to carry out audits in the Dominican Republic.

ICPARD has established a dedicated committee to develop and implement the QA review system. The committee initially introduced a voluntary QA review framework with the support of the Inter-American Accounting Association and subsequently confirmed mandatory participation and inspections commencing in 2022.

To support implementation, ICPARD developed a Manual for the Implementation of a Quality Control System for Firms in the Dominican Republic and completed a national consultation process with relevant regulators regarding its applicability. The institute also organized training activities and awareness-raising sessions to facilitate implementation by firms and other stakeholders.

In addition, ICPARD has adopted International Standard on Auditing 220 and International Standard on Quality Control 1, and has indicated that the International Standard on Quality Management 1 (ISQM 1) and International Standard on Quality Management 2 (ISQM 2) became effective in 2022. These actions demonstrate ongoing efforts to align the national framework with the requirements of Statement of Membership Obligation 1 (SMO 1).

Given the progress made in operationalizing the QA review framework, supporting firms through guidance and training, and coordinating with regulators, the most supportable assessment is Execute.

ICPARD is encouraged to continue focusing on the full operationalization of the mandatory QA review system, demonstrate its alignment with all SMO 1 requirements, and promote a unified jurisdiction-wide QA framework covering all mandatory audits.

Current Status: Execute

In the Dominican Republic, the Ministry of Finance (MoF), universities, and the Instituto de Contadores Públicos Autorizados de la República Dominicana (ICPARD) all have a role in establishing initial professional development (IPD) and continuing professional development (CPD) requirements for professional accountants. However, ICPARD indicates that it has limited authority to incorporate the International Education Standards (IES) into national requirements and is primarily legally responsible for establishing CPD requirements for its members.

Accordingly, in 2014, the institute adopted CPD requirements for its members that are aligned with the requirements of IES 7. To support professional competencies, ICPARD also offers certifications in specialized technical areas, including International Financial Reporting Standards (IFRS Accounting Standards), the IFRS for Small and Medium-sized Entities (SMEs) Accounting Standard, and International Standards on Auditing (ISA).

Since 2014, ICPARD has focused on promoting IPD requirements that align with the IES. The institute has established a Continuing Education Committee that has entered into agreements with various universities to promote the IES and encourage incorporation of the standards into accounting curricula so that graduates enter the profession with a more consistent and adequate level of technical knowledge and competence.

In addition, ICPARD has proposed amendments to Law No. 633 of 1944 and Decree No. 2032 of 1984 that would grant it authority to establish IPD requirements in line with international standards.

These efforts demonstrate that ICPARD is actively executing measures to strengthen alignment with the IES framework.

ICPARD is encouraged to continue focusing on strengthening alignment with the latest IES requirements, including competency-based approaches, professional skepticism, and digital skills, and to continue engaging universities and relevant authorities to support broader jurisdiction-level adoption.

Current Status: Execute

The Instituto de Contadores Públicos Autorizados de la República Dominicana (ICPARD) reports that it has adopted by reference the International Standards on Auditing (ISA), as issued by the International Auditing and Assurance Standards Board (IAASB), for application by its members and for audits of non-regulated entities. These members are the only individuals authorized in the Dominican Republic to conduct audits.

To support implementation, ICPARD has established an Audit Standards and Procedures Committee to monitor new and revised pronouncements issued by the IAASB. In addition, the institute provides training activities, including workshops and train-the-trainer courses, and disseminates information on international developments in auditing and assurance standards. ICPARD also reports that it is collaborating with universities to encourage incorporation of ISA into accountancy curricula.

ICPARD has also supported members’ transition to new and revised standards, including International Standard on Auditing 315 (Revised), International Standard on Auditing 540 (Revised), International Standard on Quality Management 1 (ISQM 1), International Standard on Quality Management 2 (ISQM 2), and International Standard on Auditing 220 (Revised).

These actions demonstrate that ICPARD is actively executing measures to support adoption and implementation of ISA within the scope of its authority.

ICPARD is encouraged to continue focusing on engagement with sector regulators to promote jurisdiction-wide adoption of ISA for all mandatory audits and to strengthen participation in the international standard-setting process, including through responses to IAASB exposure drafts and consultations.

Current Status: Execute

The Instituto de Contadores Públicos Autorizados de la República Dominicana (ICPARD) is responsible for establishing ethical requirements for its members and currently applies a Code of Ethics based on the 2009 International Ethics Standards Board for Accountants (IESBA) Code of Ethics.

ICPARD has established a Qualifications and Ethics Committee responsible for maintaining and updating ethical requirements and monitoring compliance with the Code.

ICPARD reports that a dedicated committee has been established to significantly update the ethical framework. The committee is currently considering whether to adopt by reference the International Code of Ethics for Professional Accountants (including International Independence Standards) or to update the national Code to converge with the latest requirements issued by the IESBA. The process is expected to involve consultation with relevant stakeholders across the jurisdiction.

In addition, ICPARD indicates that it disseminates information on ethical requirements through seminars, continuing professional development activities, its website, and printed materials. These activities indicate that ICPARD has established a defined plan to strengthen alignment with international ethical requirements.

ICPARD is encouraged to focus on establishing a clear timeline for adoption or convergence with the latest International Code of Ethics and to support implementation through targeted guidance and training activities.

Current Status: Plan

In the Dominican Republic, the General Directorate of Government Accounting (DIGECOG) has adopted the 2017 suite of accrual-basis International Public Sector Accounting Standards (IPSAS) as the national public sector accounting standards. The Instituto de Contadores Públicos Autorizados de la República Dominicana (ICPARD) reports that its primary role is to support the implementation process.

As part of these efforts, ICPARD has entered into training agreements with government agencies, including DIGECOG, the General Directorate of Government Ethics and Integrity, and the Dominican Chamber of Accounts, and has delivered multiple IPSAS workshops and training activities for its members and relevant public sector stakeholders.

Under its agreement with DIGECOG, ICPARD continues to support the adoption and implementation of IPSAS, including through the establishment of an IPSAS committee to review standards, provide training activities, and disseminate information to the public and its members.

These ongoing and well-established support activities demonstrate that ICPARD maintains mature processes to fulfill its obligations under SMO 5.

ICPARD is encouraged to continue supporting transition toward the latest IPSAS suite and to maintain training and outreach activities in collaboration with public sector stakeholders.

Current Status: Sustain

The Instituto de Contadores Públicos Autorizados de la República Dominicana (ICPARD) is responsible for establishing and operating an investigative and disciplinary (I&D) system for professional accountants and, accordingly, has established an Investigation, Qualifications, and Ethics Committee together with a Disciplinary Tribunal as the core components of its I&D system.

The Disciplinary Tribunal hears cases referred by the Investigation, Qualifications, and Ethics Committee. The system is operational and active; however, it remains unclear whether ICPARD has formally reviewed and fully incorporated the requirements of Statement of Membership Obligation 6 (SMO 6) into its procedures.

ICPARD reports that it has proposed legislative changes as part of broader jurisdictional reform that would further strengthen the I&D framework.

In addition, ICPARD undertakes activities to raise awareness among its members regarding the Code of Ethics and the consequences of misconduct through its I&D procedures and disseminates relevant information through its website and social media channels.

These activities demonstrate that ICPARD is actively executing measures to strengthen and operate its I&D system.

ICPARD is encouraged to focus on conducting a formal gap assessment against SMO 6 requirements and to implement targeted procedural enhancements to strengthen investigation, disciplinary, and appeals processes in line with international best practices.

Current Status: Execute

The Instituto de Contadores Públicos Autorizados de la República Dominicana (ICPARD) has adopted International Financial Reporting Standards (IFRS Accounting Standards) and the IFRS for Small and Medium-sized Entities (SMEs) Accounting Standard as the applicable accounting standards for non-regulated entities.

ICPARD reports that it has established a Standards and Principles Committee responsible for advising the institute on the preparation and issuance of technical resolutions, continuously reviewing and updating those resolutions based on new and amended standards, developing implementation guidance, and organizing training activities for its members.

As part of its efforts to facilitate implementation and disseminate the standards, ICPARD has entered into agreements with professional and business institutions and other associations, including the Dominican Association of Engineers, Architects and Land Surveyors, the Dominican Bar Association, the Economists Association, and the National Confederation of Small and Medium Enterprises. In addition, the institute has agreements with universities to support the inclusion of IFRS in accounting curricula.

To further support members’ understanding and implementation of the standards, ICPARD has entered into an agreement with the Inter-American Accounting Association to offer an online certification in the IFRS for SMEs Accounting Standard and has collaborated with international CPA firms to develop train-the-trainer programs to expand training activities throughout the country. The ICPARD Higher Studies Center also offers courses on IFRS Accounting Standards and the IFRS for SMEs Accounting Standard.

ICPARD additionally supports implementation by disseminating information on new and amended International Accounting Standards Board pronouncements and participates in the international standard-setting process through its membership in the Group of Latin American Accounting Standard Setters.

These activities demonstrate that ICPARD has established ongoing processes to support implementation and continues to review and improve its support framework.

ICPARD is encouraged to continue focusing on advocacy with sector regulators to promote broader adoption of IFRS Accounting Standards for regulated entities across the jurisdiction.

Current Status: Review & Improve