Lebanese Association of Certified Public Accountants

In 2013, the Lebanese Association of Certified Public Accountants (LACPA) amended its bylaws to establish a mandatory peer-review quality assurance (QA) system for all CPAs, who are legally required to be LACPA members. As of this assessment, ISQM 1, ISQM 2, and ISA 220 (revised) have been adopted. In 2024, LACPA conducted a self-assessment of its QA review system against SMO 1 requirements, finding it fully aligned with the SMO 1 benchmark.

LACPA reports that it will conduct reviews for a sampling of 10 firms in 2025 aimed at assessing firms’ adherence to newly adopted standards. LACPA indicates that these audits will serve as a foundation for peer reviews.

To support the QA review system’s implementation, LACPA launched awareness campaigns to educate members and stakeholders, publishing articles and updates in its professional e-magazine and other media outlets to facilitate understanding of ISQM 1 and ISQM 2. It also engaged with key stakeholders, including government bodies, to promote and secure support for the system. Additionally, LACPA organized seminars and workshops to help members apply ISQM 1 and ISQM 2 effectively.

As of January 2025, LACPA is updating its guidance materials, including comprehensive manuals and templates in English and Arabic, to further support members. It is also providing extensive training programs to ensure proficiency in applying ISQM 1 and ISQM 2, with specialized workshops for small and medium-sized practices and sole practitioners.

To enhance QA oversight, LACPA is developing a secure electronic platform for auditor data collection while ensuring confidentiality. QA reviews will follow a risk-based, cycle-based approach: firms auditing Public Interest Entities (PIEs) will be reviewed every three years, while others will be reviewed every six years. LACPA is committed to transparency, publishing annual QA reports, anonymized case studies, and feedback mechanisms to improve the system.

It is a positive development, given the operational circumstances, that LACPA plans to carry out a sample of QA reviews in 2025 and that application of quality management standards will be reviewed. This will require significant implementation support for its membership. LACPA will be asked to provide updates on its ongoing efforts to regarding the actual implementation of the QA review system over the next year.

Current Status: Execute

According to the Accountancy Profession Act No. 364 of 1994, all Certified Public Accountants (CPAs) are required to be registered and licensed members of the LACPA, and the association has the authority to establish continuing professional development (CPD) requirements for its members. The act itself defines initial professional development (IPD) requirements for aspiring CPAs, including a university degree, work experience, and examinations. LACPA requires CPAs to attend a minimum of 40 hours of CPD annually. The association monitors the fulfillment of CPD requirements by requiring members to submit evidence. In 2024 LACPA conducted a gap analysis of educational requirements at the jurisdiction level and identified gaps (please refer to LACPA’s 2024 SMO Action Plan).

In 2025, LACPA reports to be actively advocating for alignment with the 2019 IES at the jurisdiction level with universities through its University Liaison Committee (ULC) to update curricula, conduct gap analyses, and strengthen academic partnerships through MOUs. It raises awareness of Initial Professional Development (IPD) and Continuing Professional Development (CPD) through seminars, marketing campaigns, and faculty development programs. Internationally, LACPA leverages its Secretary General’s role in the IPAE, participates in global forums, and hosts international congresses to promote best practices.

To support its members, LACPA updates its professional examinations to align with international standards, transitions to computer-based testing, and expands CPD offerings by partnering with organizations such as Becker Professional Development, Institute of Management Accountants (IMA), Institute of Internal Auditors (IIA), and ISACA Lebanon. It also enhances access to global certifications through MOUs with Morgan International Lebanon and Association of Certified Fraud Examiners (ACFE). Ethics education is integrated into CPD programs, requiring at least three hours annually, while monitoring mechanisms ensure compliance with CPD requirements. LACPA also continuously reviews curricula, evaluates CPD program effectiveness, and fosters engagement through platforms for member collaboration and knowledge-sharing.

Alignment with the IES requirements is an important foundation for a competent and capable accountancy profession at all levels and having a gap analysis of national education requirements in comparison to the IES is an important first step. While CPD requirements seem to be aligned with IES, it is therefore the IPD requirements that should be a focus for enhanced adoption and implementation. LACPA’s plans to engage with universities is positive; it may also need to consider engagement with employers regarding practical experience.

Current Status: Execute

According to the Accountancy Profession Act No. 364 of 1994, the LACPA proposes auditing standards to the Ministry of Finance (MoF), which adopts the applicable auditing standards through ministerial decrees and orders. As the MoF has adopted ISA as issued by the IAASB without modifications based on proposals by the LACPA, the association primarily focuses its activities on providing implementation support for its members.

The LACPA reports that it continuously informs members of new and revised pronouncements issued by the IAASB through articles in its professional magazine, website, and email alerts. Furthermore, the association has incorporated new and revised standards into its continuous professional development program as well as the seminars and specialized workshops organized for members and regulators.

If deemed feasible, LACPA is encouraged to participate in the international-standard setting process by providing comments and response to exposure drafts and other consultation issued by the IAASB.

Current Status: Sustain

The Accountancy Profession Act No. 364 of 1994 grants authority to the Lebanese Association of Certified Public Accountants (LACPA) to set ethical requirements for Certified Professional Accountants, subject to the approval of the Ministry of Finance (MoF).

LACPA’s Code was last approved in 2006, and it has undertaken significant advocacy efforts over many years to have a new Code approved. Throughout 2024, LACPA worked closely with the IESBA in its advocacy. In February 2025, Ministerial Decree #152/1 was signed and approved, successfully adopting the International Code of Ethics as issued by IESBA in the jurisdiction.

LACPA reports that it has disseminated the latest available Arabic translations of the Handbook to its members to support implementation, which is the 2022 Handbook of the International Code of Ethics for Professional Accountants. The 2024 version of the Handbook is in the process of being translated into Arabic by another professional accountancy organization in the region, which LACPA reports will be shared with its members once published in 2025.

To further support its members, LACPA has launched an awareness-raising campaign to ensure that its members are aware of the regulatory changes and will proceed with delivering training to its members on the new and revised standards of the code in 2025.

LACPA has achieved a significant milestone in the adoption of the latest International Code of Ethics for Professional Accountants in the jurisdiction. Given that there are major revisions from 2006 to the latest Code, implementation support for professional accountants is essential and should continue to be a key focus for the PAO.

Current Status: Review & Improve

Despite not having any direct legal authority for adoption of public sector accounting standards, LACPA actively engages with the Ministry of Finance to advocate for adoption of IPSAS.

In 2025, LACPA reports that it will continue advocating for the adoption of IPSAS by organizing awareness campaigns, including technical congresses and seminars, to educate government officials and LACPA members on the significance of IPSAS. It is also developing and distributing educational materials such as brochures, newsletters, and online resources to ensure widespread understanding of IPSAS benefits. To strengthen its advocacy, LACPA has formed a dedicated committee with representatives from regulatory bodies and government entities with a focus on IPSAS 41 adoption. Regular meetings and consultations with key stakeholders, including government departments, are being held to reinforce the importance of IPSAS adoption.

LACPA is collaborating with international bodies such as IPSASB to align Lebanon’s public sector accounting practices with global standards. It participates in international conferences and workshops to share insights and best practices. A phased approach is intended – e.g., adopting cash-basis IPSAS followed by a structured roadmap towards accrual-basis IPSAS. Capacity building is a key focus, with training programs and workshops tailored for senior government officials and LACPA members, along with online courses and certification programs. LACPA is also providing technical assistance through a helpdesk for government departments. LACPA is also supporting IPSAS training within government programs, updating implementation plans based on feedback, and encouraging transparent financial reporting by promoting IPSAS-compliant financial statements with supporting guidelines and templates.

LACPA has indicated several plans that would support IPSAS adoption in the jurisdiction, which are positive. Transition to IPSAS (both cash-basis and accrual) are significant undertakings that often require a long timeline. In the first instance, LACPA should provide updates on adoption of cash-basis IPSAS and how it is supporting the government.

Current Status: Sustain

The Accountancy Profession Act No. 364 of 1994 and the bylaws of the LACPA establish the rules and procedures for investigative and disciplinary (I&D) system of the association, which are subject to the approval of the Ministry of Finance. All CPAs must be licensed and registered members of the LACPA; therefore, its system applies to all professional accountants

In 2024 and 2025, LACPA is reinforcing compliance with professional standards by launching awareness campaigns, specialized seminars, and compliance training. These initiatives include targeted sessions on Chapter III of the LACPA Law and a compliance seminar on SMO 6, emphasizing LACPA’s commitment to the SMO 6 benchmark. Additionally, LACPA is conducting public awareness campaigns to educate members and the broader community on the investigation and disciplinary processes. To enhance transparency and accessibility, LACPA is maintaining open communication channels for submitting complaints and inquiries, regularly updating its website with relevant disciplinary system information and procedural updates.

To support its members, LACPA is implementing continuous training programs to ensure understanding of professional conduct obligations and disciplinary procedures. It is developing comprehensive resources, including a handbook titled "Rights and Duties of the Auditor," to guide members on the disciplinary process. Operationally, LACPA continues to provide technical, administrative, and financial support to the Disciplinary Board, ensuring its independence and effectiveness. Measures such as a confidential case register, a complaints box, and systematic monitoring of compliance with professional conduct standards are being implemented. LACPA is also ensuring ongoing review and refinement of disciplinary policies to align with international best practices. To promote accountability, it will publish an annual report on complaints, investigations, and disciplinary actions, alongside anonymized case studies for educational purposes.

The progress that LACPA made to amend its bylaws to be in line with SMO 6 requirements over several years is positive and overseeing the implementation of those changes is important. LACPA seems to have robust plans to achieve this and should provide updates on the implementation of these initiatives. Gaps pertaining the composition of the committees and several administrative processes, such as tracking mechanisms, record-keeping, and public interest initiatives, that remain outstanding due to legislative amendments should continue to be monitored and addressed as feasible.

Current Status: Review & Improve

According to Ministerial Decisions 6258 of 1996 and 673/1 of 2001, financial reporting standards are adopted by the Ministry of Finance (MoF). Most companies are required to prepare annual financial statements using the International Financial Reporting Standards (IFRS) with the list of all applicable IFRS published in the Official Gazette. Where differing interpretations exist, the official English version of IFRS should be referred to.

LACPA’s focus has been on supporting its members with the implementation of the standards. The association has had ongoing plans in place since 2014 to raises awareness on the importance of the implementation of IFRS by providing information on new and revised standards to its members in LACPA’s magazines and publications. Despite operating in a volatile jurisdiction that is facing a financial crisis and hyperinflation, LACPA held more than 10 workshops between June – October 2023 dedicated to IFRS as part of the continuing professional development program.

Banks and other financial institutions (except insurance companies) comply with accounting requirements set forth by the Banking Control Commission (BCC), in addition to complying with decrees issued by the MoF. According to the 2003 World Bank Report on the Observance of Standards and Codes, the requirements of the BCC were largely consistent with IAS but with some significant deviations. It is unclear how these requirements currently compare with IFRS. As publicly accountable entities, it would be beneficial to understand the current applicable financial reporting standards for these institutions. If LACPA can provide additional information, it would potentially help reassess the jurisdiction as “Adopted”.

Current Status: Review & Improve