The International Arab Society of Certified Accountants

IASCA is not vested with responsibility for conducting quality assurance (QA) reviews of statutory audits. At present, members of IASCA in Jordan are subject to the Jordanian Association of Certified Public Accountants’ (JACPA) QA review system. While JACPA’s QA review system is in-line with the requirements of SMO 1, in practice, there are still some areas of divergence. At present, the system is operated voluntarily (members can volunteer to participate in the system); however, amendments to the law are necessary to provide JACPA with the authority to undertake a compulsory system for its membership. Presently, draft amendments to the Accountancy Profession Law No. 73 of 2003 have been made to provide this authority to JACPA and these are pending approval by the parliament.

To support JACPA’s system of QA, IASCA reports that it signed a Memorandum of Understanding with the institute in 2017. As part of the MoU, IASCA jointly conducts QA review training for JACPA practitioners and collaborates in monitoring and enforcing compliance with standards.

IASCA’s efforts have also focused on supporting JACPA in promoting draft changes to Accountancy Profession Law No. 73 of 2003 to make the QA review system a mandatory process. It also has been focusing efforts on preparing its members for the future implementation of a mandatory QA review system. For example, between 2017–2020, IASCA provided members with online tools and resources, such as a training guide, to assist them with understanding the quality assurance process. A representative from IASCA participated in a train-the-trainers workshop with the Lebanese Association of Certified Public Accountants (LACPA), the American Institute of Certified Public Accountants (AICPA), and the Arab Federation of Accountants and Auditors (AFAA) to enhance audit quality assurance review skills in 2016.

In 2022, IASCA continued to work with JACPA to support expanding the scope of the QA review system and provide voluntary additional QA services to the members. IASCA also focuses on supports members through development of formal communication and education programs—five were conducted online in 2020 and 2021 — providing its members with an Arabic translation of ISQC 1, and now ISQM 1 & 2. IASCA reports to closely follow the developments and publication of implementation support materials, raises awareness of its members about the changes, and updates its educational programming to ensure that its members are sufficiently prepared for the application of the standards once they become effective. IASCA reports to be supporting member firms to adopt systems of quality management and integrate a quality management approach to their operations and strategy.

IASCA’s contribution to the development of a QA review system in the jurisdiction and its willingness to work with JACPA are commendable. As IASCA waits for the amendments to the law to pass in parliament allowing JACPA to operate a mandatory QA system, it is encouraged to keep collaborating with JACPA in engaging with legislators and regulators as necessary. Lastly, IASCA is encouraged to demonstrate how it is supporting the effective implementation of the new IAASB Quality Management standards and support training to QA reviewers how to assess firms’ context & approach to risk management.

Current Status: Review & Improve

While IASCA is not involved in setting initial professional development (IPD) and continuing professional development (CPD) requirements at the jurisdiction level for CPAs/auditors, it offers the following voluntary professional designations—the International Arab Certified Public Accountant, the International Arab Certified Management Accountant, and the IFRS Expert—all of which are aligned with IES (2019). IASCA maintains an ongoing process to update its professional certification programs, education curriculum and examinations in line with 2019 IES.

It continues to raise awareness of the importance of incorporating IES into the IPD programs of educational institutes and universities. For example, it conducted a seminar for university chairmen in Jordan in April 2018; an awareness-raising session for IASCA trainers and education consultants in May 2018; and an IASCA conference on the future of the profession in November 2018.

In 2022, IASCA participated in the Middle East North Africa (MENA) IES Project led by IFAC/IPAE during which it completed a gap analysis questionnaire of national education requirements against revised 2019 IES; completed an interview with IFAC/IPAE to further clarify alignment and support needed; and presented at the MENA IES Webinar: Connecting the Accountancy Education Ecosystem which took place on June 21, 2022. The major need identified pertains to lack of awareness and understanding at the university level of IES requirements. During the interviews, it was suggested that IASCA consider available implementation support materials to build awareness and guide implementation. IASCA reports that it will continue its outreach and engagement with university accounting departments to ensure awareness and understanding of the revised IES on an annual basis through discussions with JACPA and leading professors.

IASCA establishes CPD requirements for its members that join voluntarily and provides CPD learning opportunities. Since 2013, IASCA requires members to complete 30 CPD hours annually and updated its program in 2019 to align with the 2019 IES requirements. Non-compliance with CPD requirements, which is monitored by IASCA’s Membership Department, can result in expulsion from IASCA membership. IASCA also intends to explore options for expanding its CPD course offerings by reviewing possible third-party providers. IASCA cooperates with several entities to support its members—Talal Abu Ghazaleh Firm; Arab Institute for Accountants (UAE); Berkeley SVP Center (UAE); Jordanian Ministry of Finance; Al-Zarqaa University (Jordan); MH&P Consulting Firm (Egypt); Lebanese Association of Certified Public Accountants; Bait Al Hekma Training Center (Iraq); and Libyan Stock Market (Libya).

IASCA reports to provide its members with the latest version of IES on an ongoing basis for informational purposes. The association also translated the 2019 version of the Handbook of International Education Standards into Arabic, in line with IFAC translation policy.

Current Status: Sustain

In accordance with Companies Law No. 22 dated 1997 (as amended 2006) and Accountancy Profession Law No. 73 of 2003, JACPA recommends auditing standards for the Higher Council for the Accountancy Profession (HCAP) to adopt. HCAP has adopted all ISA as issued by the IAASB for current and future audits. Revised and new ISA are applicable in Jordan with the effective date as issued by the IAASB.

Since IASCA does not have responsibility for adoption of auditing standards in Jordan, it focuses its efforts on enhancing awareness of new and revised standards and pronouncements through its newsletters and training. It also supports the implementation of ISA by ensuring that the latest version of the standards is translated into Arabic in a timely manner and available to its members and other professionals in the region.

IASCA has a translation agreement with IFAC and has translated the 2018 Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements. It also disseminates Arabic translations of ISA 315, ISA 200 (revised), ISA 220 (revised), ISQM 1 & 2, and ISA 600 (revised) which are included within the 2021 IAASB Handbook. It further supports the implementation process by translating guidance material prepared by IFAC such as the Guide to using ISA in the Audits of Small- and Medium-Sized Entities (3rd Edition).

IASCA monitors revisions to ISA and other pronouncements promulgated by the IAASB and provides periodic updates. In addition, the society facilitates the incorporation of new and revised standards into certification, education, examination, and continuing professional development material and programs on an annual basis.

Current Status: Sustain

In accordance with Accountancy Profession Law No. 73 of 2003, JACPA is responsible for recommending ethical standards for the Higher Council for the Accountancy Profession (HCAP) to adopt. In 1992, HCAP adopted the IESBA Code of Ethics for Professional Accountants. All revised and new requirements of the IESBA Code are applicable in Jordan with the effective date issued by the IESBA. IASCA and JACPA collaborate in their meetings with various universities to ensure that they cover the latest ethical requirements as part of their curricula.

IASCA requires its members to comply with the IESBA Code of Ethics as issued by IESBA. IASCA reports that it communicates ethical requirements by including the Code of Ethics in training and holding awareness sessions to enhance the knowledge and implementation of the requirements.

IASCA monitors revisions to the IESBA Code of Ethics in an ongoing manner and translates revisions in a timely manner. As of the date of this assessment, the 2018 version of the IESBA Code of Ethics has been translated into Arabic and is disseminated to members to support implementation. It also indicates that it integrates the requirements of the latest Code into training programs for its members. IASCA has created an online depository with ethics related content for its members.

IASCA also engages with government representatives regarding national legal requirements and the IESBA Code of Ethics where any conflicts may arise. IASCA compared national ethical requirements contained in various laws and regulations with the IESBA Code to identify differences and bring them to the attention of key stakeholders.

Lastly, IASCA included in its SMO Action Plan that it intends to disseminate Exposure Drafts and other IESBA pronouncements to its members.

Current Status: Sustain

The Ministry of Finance is responsible for the adoption of public sector accounting standards in Jordan which are cash-basis and, in 2015, officially endorsed the adoption and implementation of IPSAS. An IPSAS implementation road map is in place, with implementation assistance being provided by the United States Agency for International Development under Jordan’s Fiscal Reform Project. Significant progress has been made in supporting the Government of Jordan’s application of the cash-basis IPSAS. The project envisions a gradual transformation from cash basis to accrual basis of IPSAS accounting with completion of this project slated for 2025.

Over the past few years, the Jordanian Association of Certified Public Accountants (JACPA), as well as IASCA, have been involved in the project to provide the following support: (a) producing seminars/training courses on the subject; (b) giving advice in implementing each standard; (c) recommending the adoption of best accounting policies, if any, that will serve the Jordanian economy and governmental budget; and (d) providing other assistance to the project as needed.

IASCA signed a Memorandum of Understanding with JACPA in 2021 to support IPSAS implementation efforts. Both JACPA and IASCA have joined forces in engaging with the government and providing awareness raising activities and technical assistance.

IASCA shares the latest Handbooks as issued by IPSASB. It also disseminates the latest available Arabic translations— IASCA completed the Arabic translation of the 2022 Handbook of International Public Sector Accounting Pronouncements for its members and professionals in the Middle East region. IASCA also collaborates with JACPA to offer courses and host conferences and lectures on IPSAS in Jordan. Additionally, IASCA offers courses and hosts conferences and lectures on IPSAS throughout the Arab world. In 2018, IASCA launched its IPSAS certification program, IPSAS Expert.

IASCA also engages with professional accountancy organizations in the region for knowledge sharing on IPSAS adoption and implementation. In 2022, both IASCA and JACPA participated in the Middle East North Africa: Moving from Cash-basis to Accruals-basis Accounting webinar co-hosted by World Bank Group Middle East North Africa (MENA) Governance Global Practice and IFAC, in cooperation with the Arab Federation of Accountants and Auditors (AFAA).

Current Status: Sustain

The International Arab Society of Certified Accountants (IASCA) established its own I&D system for its members (Accountants and Management Accountants) that voluntarily join the institute. IASCA completed a self-assessment of its I&D system and confirmed that its system incorporates the main requirements of SMO 6 and is operational.

An I&D Committee has been established and operationalized to undertake investigation, disciplinary, and appeals processes. To support members’ understanding of the system, IASCA has circulated guidance on the investigative and disciplinary procedures via its newsletter (annually) and website.

Both IASCA and JACPA reported to have met with Parliament officials on several occasions to promote passage of necessary amendments to legislation that would enable JACPA’s enforcement mechanism for CPAs to align with the SMO 6 benchmark. The amendments are expected to be passed in 2023.

Effective and efficient I&D procedures that meet the SMO 6 best practices are foundational to maintaining public trust and confidence in the profession. IASCA is encouraged to continue to collaborate with JACPA and HCAP to raise awareness of the SMO 6 requirements and their importance to the parliament.

Current Status: Sustain

In line with the Jordanian Companies Law No. 22 of 1997 (as amended 2006), IFRS have been adopted and are currently effective for all public interest entities. With no direct authority for adoption, JACPA’s focus is primarily on implementation support, particularly because it reports that implementation of IFRS remains a challenge in Jordan. It does this by making available Arabic translations of IFRS and IFRS for SMEs, and by offering relevant training.

IASCA monitors changes to the standards and provides updates through courses and workshops. It offers an IFRS certification program (IFRS Expert) and examinations on IFRS and collaborates with the IFRS Foundation to raise awareness and understanding of IFRS for SMEs in Arab countries. Furthermore, IASCA cooperates with university professors to incorporate IFRS, including any new or revised standards, in university curricula.

Lastly, IASCA reports that it participates in standard-setting events such as the annual conference of World Standard-Setters held by the International Financial Reporting Standards Foundation. It also encourages its members to provide comments on Exposure Drafts and other pronouncements.

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

Current Status: Sustain