Lao Chamber of Professional Accountants and Auditors

Under the Law on Independent Audit No. 51/NA dated 22 July 2014, the Ministry of Finance (MoF) is responsible for establishing and operating the mandatory quality assurance (QA) review system in the Lao People’s Democratic Republic.

The Laos Chamber of Professional Accountants and Auditors (LCPAA), while having no direct legal authority for the QA review system, maintains well-established processes to support the MoF in implementing the Laos Audit Quality Assurance System (LAQAS). LCPAA provides technical and administrative support for inspections and has worked jointly with the MoF to strengthen the framework following the issuance of Decree No. 0974/MoF on Audit Quality Assurance in 2019.

Recent publicly available information confirms that LCPAA continues to support members through training programs, seminars, and technical awareness sessions on the QA review process. In addition, the organization is collaborating with the MoF on coaching initiatives to prepare practitioners for inspections and to strengthen understanding of compliance requirements and potential sanctions. LCPAA is also developing implementation guidance materials and continues to work with technical advisors and regional experts to strengthen the framework.

Following the transition from quality control to quality management standards, LCPAA is also supporting members in preparing for the implementation of the International Standards on Quality Management (ISQM 1 and ISQM 2), including awareness raising and dissemination of relevant guidance and training resources.

Given its ongoing and well-established support activities, while further improvements remain necessary as the QA framework and ISQM implementation continue to evolve, LCPAA is assessed as Review & Improve in fulfilling SMO 1.

LCPAA is encouraged to continue working with the MoF to support the full operationalization of the QA review cycle and to prioritize member readiness for the implementation and inspection of systems of quality management in line with ISQM 1 and ISQM 2.

Current Status: Review & Improve

Under the Law on Independent Audit No. 51/NA dated 22 July 2014, the Laos Chamber of Professional Accountants and Auditors (LCPAA), under the oversight of the Ministry of Finance (MoF), is responsible for implementing the initial professional development (IPD) and continuing professional development (CPD) requirements in the Lao People’s Democratic Republic.

LCPAA offers the Lao Certified Public Accountant (Lao CPA) designation and is responsible for arranging and delivering the CPD program for all practitioners, which requires 120 hours over a three-year period with a minimum of 20 hours in any one year, as well as managing and conducting professional examinations for CPA certification.

To support members and strengthen the education framework, LCPAA has established memorandums of understanding with universities and professional accountancy organizations, including the Malaysian Institute of Accountants, CPA Australia, academic institutions in Thailand, and professional services firms. These partnerships support the development and delivery of CPD programs and technical training. LCPAA continues to conduct annual CPD training and courses for its members.

LCPAA has undertaken several initiatives to maintain alignment with the International Education Standards (IES). These include the adoption of regulations aligned with IES 7, the continued alignment of its syllabus and examinations with the latest Association of Chartered Certified Accountants syllabus to support alignment with IES 2, 3, 4, and 6, and the updating of training materials and assessment frameworks.

In 2020, LCPAA introduced Practical Training Regulations No. 059/LCPAA to align with IES 5. These regulations require supervisors to monitor and document trainees’ practical experience and progress in demonstrating professional competencies. Supporting documentation forms and implementation materials have also been developed. As of June 2023, LCPAA reports that 603 trainees were undertaking the CPA certification program.

LCPAA maintains well-established and ongoing processes to implement and continuously improve the education and training framework for professional accountants. Accordingly, LCPAA is assessed as Sustain in fulfilling SMO 2.

Current Status: Sustain

Under the Law on Independent Audit No. 51/NA dated 22 July 2014, the Ministry of Finance (MoF) is responsible for establishing auditing standards in the Lao People’s Democratic Republic. The MoF adopts the International Standards on Auditing (ISA) as issued by the International Auditing and Assurance Standards Board in English, and these standards are effective for all mandatory audits.

As the Laos Chamber of Professional Accountants and Auditors (LCPAA) has no direct legal responsibility for the adoption of auditing standards, it focuses on supporting members with implementation. LCPAA incorporates ISA into its continuing professional development course offerings and disseminates technical training materials and implementation guidance to members.

LCPAA has maintained ongoing professional development activities in this area, including a series of courses and seminars on ISA covering topics such as the auditor’s report and professional skepticism. More recently, LCPAA has partnered with Big 4 audit firms to provide technical training on ISA 315 (Revised) and other updated auditing standards. In addition, members who are partners and employees of Big 4 audit firms are required to report ISA-related training on an annual basis.

LCPAA also supports members by disseminating updates and announcements issued by the MoF relating to auditing standards and pronouncements. In addition, the organization has undertaken translation and accessibility initiatives for selected ISA and other International Auditing and Assurance Standards Board pronouncements, taking into account the significant financial and human resources required for Lao-language translations.

Through these ongoing and well-established support processes, LCPAA maintains an active role in supporting the implementation and continued application of ISA by its members. Accordingly, LCPAA is assessed as Sustain in fulfilling SMO 3.

Current Status: Sustain

Under the Law on Independent Audit No. 51/NA dated 22 July 2014, the Ministry of Finance (MoF) is responsible for establishing ethical requirements for all professional accountants in the Lao People’s Democratic Republic.

The Laos Chamber of Professional Accountants and Auditors (LCPAA), while having no direct legal authority for adoption, supports the MoF in advancing the ethical framework in the jurisdiction and supports members with implementation. The most recently confirmed Lao Code of Ethics remains aligned with the principles of the 2015 International Code of Ethics for Professional Accountants. LCPAA continues to work with the MoF toward adoption of the updated International Code of Ethics.

From 2019 to 2022, LCPAA collaborated with the MoF to deliver ethics training sessions to members. In addition, LCPAA has established ongoing processes to disseminate relevant ethical guidance and updates through lectures, seminars, technical training sessions, and its website. Ethical requirements and recent developments are also incorporated into the Lao Certified Public Accountant training program and ethics module examinations through its partnership with the Banking Institute. LCPAA has further developed guidance and training materials to support members in applying the Code.

Given its established support activities and continued focus on improving jurisdictional alignment with the latest ethical requirements, LCPAA is assessed as Review & Improve in fulfilling SMO 4.

LCPAA is encouraged to continue its technical support and advocacy efforts with the MoF to facilitate adoption of the latest International Code of Ethics for Professional Accountants. Given the significant revisions to the Code since the 2015 version, priority should be given to supporting the adoption and implementation of the most recent requirements and continuing to keep members informed of forthcoming changes.

Current Status: Review & Improve

Under the Accounting Law, the Ministry of Finance (MoF) is responsible for establishing public sector accounting standards in the Lao People’s Democratic Republic. Government entities currently apply cash-basis International Public Sector Accounting Standards (IPSAS), while the transition to accrual-basis IPSAS remains a longer-term objective that will require significant time and resources.

The Laos Chamber of Professional Accountants and Auditors (LCPAA), while having no direct legal authority for the adoption of public sector accounting standards, maintains well-established processes to support implementation efforts in collaboration with the MoF and international partners. LCPAA reports that it is working with the International Monetary Fund and the MoF, through the Accounting Regulatory Department, to revise the chart of accounts and develop technical guidance to support members and public sector practitioners in implementing cash-basis IPSAS.

LCPAA members also serve as representatives on technical committees of the Accounting Regulatory Department that are supporting revisions to the chart of accounts and related public sector accounting reforms. In addition, LCPAA collaborates with the MoF to incorporate relevant technical guidance and the principles of cash-basis IPSAS into continuing professional development training programs.

From 2019 to 2021, LCPAA led training sessions focused on cash-basis IPSAS, including specialized training for the state inspection department within the Prime Minister’s Office. From 2022 to 2023, the organization actively participated in consultative meetings, advocacy-oriented workshops, and technical discussions with the MoF to support the continued implementation of public sector accounting reforms.

Through these ongoing support and capacity-building activities, LCPAA maintains well-established processes to fulfill its obligations in this area. Accordingly, LCPAA is assessed as Sustain in fulfilling SMO 5.

Current Status: Sustain

Under the Law on Independent Audit No. 51/NA dated 22 July 2014, the Laos Chamber of Professional Accountants and Auditors (LCPAA) and the Ministry of Finance (MoF) share responsibility for establishing and operating the investigative and disciplinary (I&D) system in the Lao People’s Democratic Republic. To avoid overlaps in responsibilities, LCPAA and the MoF have agreed that primary responsibility for administration and case management will be undertaken by LCPAA, while the MoF retains responsibility for imposing sanctions. Information on firms subject to sanctions is publicly disclosed by the MoF through official communication channels.

LCPAA reports that the I&D procedures continue to be reviewed by the Accounting Regulatory Department within the MoF as part of the broader legislative reform process linked to revisions of the accounting and independent audit laws. The proposed system is intended to comprise an Investigations Committee, a Disciplinary Committee, and an independent Appeals Board.

LCPAA has completed a self-assessment of the proposed system against the requirements of SMO 6 and concluded that, once fully operational, it will be aligned with international best practices. Members of the Disciplinary Committee have already been identified and appointed, and this was formally communicated to members at the 2022 Annual General Assembly. In addition, LCPAA has undertaken awareness-raising activities to educate members on the forthcoming enforcement mechanism and the consequences of non-compliance.

Given the significant progress made in implementing the framework and moving toward full operationalization, LCPAA is assessed as Execute in fulfilling SMO 6.

LCPAA is encouraged to continue working with the MoF to fully operationalize the I&D system, including the appointment of all remaining committees and implementation of procedures, and to continue reviewing the framework against the SMO 6 benchmark as it becomes operational.

Current Status: Execute

Under the Accounting Law, the Ministry of Finance (MoF) is responsible for establishing corporate accounting standards in the Lao People’s Democratic Republic. The MoF requires the application of International Financial Reporting Standards (IFRS) for public interest entities and the Lao Financial Reporting Standards for Non-Public Interest Enterprises (LFRS for Non-PIEs) for other entities.

As the Laos Chamber of Professional Accountants and Auditors (LCPAA) does not have legal responsibility for the adoption of corporate accounting standards, it maintains well-established processes to support both the national standard-setting process and implementation by members. LCPAA participates in the national accounting advisory board and provides technical input and feedback during the standard-setting and adoption process.

To support implementation, LCPAA has established ongoing processes to disseminate IFRS-related information through lectures, seminars, and continuing professional development programs. Since 2018, the organization has conducted training on LFRS for Non-Public Interest Enterprises and has continued to expand its technical offerings through training on the Fundamentals of IFRS and individual standards, including IFRS 16, IFRS 13, IFRS 9, IFRS 2, IFRS 10, IFRS 11, and IFRS 12.

LCPAA has also collaborated with the Federation of Accounting Professions of Thailand to design a train-the-trainers program on IFRS and has co-hosted international reporting training initiatives in collaboration with the Association of Chartered Certified Accountants. In addition, LCPAA has established partnerships with national regulators, professional firms, and regional professional accountancy organizations to strengthen IFRS implementation capacity across the jurisdiction. LCPAA also continues to develop additional member support initiatives, including an IFRS certificate program tailored to its membership.

Through these ongoing and well-established implementation support activities, LCPAA is assessed as Sustain in fulfilling SMO 7.

Current Status: Sustain