Brunei

Member Organizations

  Member Organization   Associate

  The Brunei Darussalam Institute of Certified Public Accountants (BICPA)

 

Legal and Regulatory Environment

  • Overview of Statutory Framework for Accounting and Auditing

    In Brunei Darussalam, financial reporting requirements are stipulated for public interest entities (PIEs).

    Under the Accounting Standards Order 2010, PIEs such as banks, financial institutions, insurance companies, and takaful companies are required to apply IFRS in the preparation of financial statements. Brunei does not have a stock exchange. International Financial Reporting Standards (IFRS) have been adopted by the Brunei Darussalam Accounting Standard Council (BDASC).

    In October 2016, the BDASC issued an exposure draft on the Brunei Darussalam Accounting Framework and Standards (BDAS) for Non-Public Interest Entities (non-PIEs). The existing framework required non-PIEs to prepare financial statements in accordance with the Generally Accepted Accounting Principle in Brunei Darussalam (GAAP in Brunei Darussalam). The BDASC announced the adoption of the BDAS for non-PIEs with an effective date of January 1, 2018.

    The Companies Act requires all PIEs to be audited. The Public Accountants Oversight Committee (PAOC) is responsible for setting auditing standards in Brunei Darussalam.

    In 2020, the PAOC announced the adoption of ISA and ISQM standards as issued by the IAASB. Subsequently, in 2022, the PAOC adopted the ISQM 1, 2, and ISA 220 (revised) standards.

  • Regulation of Accountancy Profession

    In accordance with the Accountants Order 2010, the Public Accountants Oversight Committee (PAOC) is responsible for regulating public accountants in Brunei Darussalam, under the oversight of the Ministry of Finance.

    In Brunei, there is no national certification or qualification program. To be a public accountant, individuals must be a member of one of the following international professional accountancy organizations recognized by the Brunei Darussalam Companies Act and the Accountants Order 2010: CPA Australia, the Association of Chartered Certified Accountants (ACCA), the Chartered Accountants of Australia and New Zealand, CPA Canada, the Institute of Chartered Accountants of England and Wales (ICAEW), the Institute of Chartered Accountants of Ireland, and the Institute of Chartered Accountants of Scotland (ICAS).

    Members of these foreign institutes are required to fulfill the initial professional development and continuing professional development (CPD) requirements of their respective institutes. In order to offer auditing services, public accountants must be a member of the Brunei Institute of Certified Public Accountants (BICPA) and receive a license from the Ministry of Finance’s Revenue Division. BICPA’s role is to provide advice and consultation to the PAOC. In accordance with its by-laws, BICPA is responsible for setting ethical requirements for its members and may investigate and discipline its non-practicing members.

    Under the Accountants Order 2010, the PAOC is responsible to (i) keep and maintain a register of the public accountants, public accounting corporations, public accounting firms, public accounting limited liability partnerships and such other registers; (ii) consider and, as appropriate, grant or reject all applications for registrations of the above; (iii) inquire into any complaint or any information relating to any professional misconduct on the part of the above and if necessary institute disciplinary proceedings; (iv) conduct or arrange for the conduct of such examinations as it thinks necessary for the purposes of registering public accountants; (v) administer CPD programs for public accountants; and (vi) consult BICPA or such other entity as deemed fit. In addition, the PAOC has also established ethical requirements for all professional accountants in the jurisdiction and is also responsible for establishing quality assurance and investigative and disciplinary mechanisms.

  • Audit Oversight Arrangements

    There are no independent audit oversight arrangements in Brunei Darussalam.

    In accordance with the Accountants Order 2010, the Public Accountants Oversight Committee (PAOC) is responsible for regulating public accountants in Brunei Darussalam, under the oversight of the Ministry of Finance. The PAOC is not a member of the International Forum of Independent Audit Regulators. In order to offer auditing services, public accountants must be a member of the Brunei Institute of Certified Public Accountants (BICPA) and receive a license from the Ministry of Finance’s Revenue Division. The roles and responsibilities of the PAOC and BICPA are described in the Regulation section.

  • Professional Accountancy Organizations

    The Brunei Darussalam Institute of Certified Public Accountants (BICPA)

    BICPA, established in 1987, is a non-profit organization. Membership of the institute is mandatory in order to practice as Public Accountant (which includes auditors) in Brunei Darussalam, in accordance with the Brunei Accountants Order, 2010. BICPA’s objective includes, among others, to provide an organization for accountants to support and advance the status and interests of the accountancy profession; means for considering questions affecting the interests of the accountancy profession; to initiate, watch over, petition, and take whatever action may seem desirable in relation to promoting recognition of the accountancy profession; to encourage the training and education of persons studying accountancy; and to provide a forum for accountants in Brunei Darussalam to join together and discuss mutual problems.

    In addition to being an Associate of IFAC, BICPA is a member of the ASEAN Federation of Accountants.

 

Adoption of International Standards

  • Quality Assurance

    The PAOC has enforced for the public accountant and accounting entities registered under the Accountants Order, 2010 to adopt the International Standards on Auditing (ISA) and the International Standards on Quality Management (ISQM) with effect from 1st January 2022. BIPCA reports that ISQM 1 and ISQM 2 have been adopted and implemented by under the Accountants Order, 2010, as per notice dated 15th August 2022 by the PAOC.

    Under the Accountants Order 2010, the Public Accountants Oversight Committee (PAOC) is responsible for administering the Quality Assurance Review System (QARS). As of September 2017, the QARS has not been established in Brunei Darussalam. However, in January 2022, the PAOC did adopt ISQM 1, 2, and ISA 220 (revised) for application by all public accountants and accounting entities registered with PAOC.

    Once the QARS is established by the PAOC, all public accountants are expected to be subject to practice monitoring visits conducted by PAOC or a PAOC appointed body. No information on the expected timeframe for the launch of the QARS.

    Current Status: Not Adopted

  • International Education Standards

    There is no national qualification framework. The Brunei Darussalam Companies Act and the Accountants Order 2010 sets out a list of accountancy organizations—and consequently the educational requirements for the jurisdiction—whose members can be a public accountant and apply for BICPA membership: CPA Australia, the Association of Chartered Certified Accountants (ACCA), the Chartered Accountants of Australia and New Zealand, CPA Canada, the Institute of Chartered Accountants of England and Wales (ICAEW), the Institute of Chartered Accountants of Ireland, and the Institute of Chartered Accountants of Scotland (ICAS).

    Members of these foreign institutes are required to fulfill the initial professional development and continuing professional development (CPD) requirements of their respective institutes.

    The Brunei Darussalam National Accreditation Council is responsible for assessing and evaluating the status and quality of the professional qualifications awarded by local and overseas institutions, including those of professional accountants. BICPA reports that the PAOC also requires licensed public accountants to undergo 40 hours of CPD on a yearly basis from recognized professional bodies and PAOs.

    Current Status: Partially Adopted

  • International Standards on Auditing

    The Public Accountants Oversight Committee (PAOC) is responsible for setting auditing standards in Brunei Darussalam.

    In 2020, the PAOC announced the adoption of ISA and ISQM standards as issued by the IAASB. Subsequently, in 2022, the PAOC adopted the ISQM 1, 2, and ISA 220 (revised) standards.

    Current Status: Partially Adopted

  • Code of Ethics for Professional Accountants

    Under the Accountants Order of 2010, the Public Accountants Oversight Committee (PAOC) is responsible for establishing ethical requirements for accountants in Brunei. BICPA reports that the latest version of the Code of Ethics is being applied.

    Current Status: Partially Adopted

  • International Public Sector Accounting Standards

    The Accountant General’s Office of the Brunei Darussalam Government is responsible for setting public sector accounting standards.

    Information on the nature of the existing public-sector accounting standards and extent/alignment and/or a timeframe for the adoption of IPSAS have not been provided.

    Current Status: Not Adopted

  • Investigation and Discipline

    Under the Accountants Order 2010, the Public Accountants Oversight Committee (PAOC) is to assist the Ministry of Finance with investigating any complaint or any information relating to professional misconduct on the part of any practicing public accountant, accounting corporation, accounting firms or accounting limited liability partnership and if necessary institute disciplinary proceedings. However, it is not clear if the PAOC has established or operationalized these investigative and disciplinary (I&D) procedures.

    Under the Brunei Darussalam Institute of Certified Public Accountants’ (BICPA) Constitution, BICPA is empowered to investigate and discipline any non-practicing members and has established procedures on a complaints-basis. It appears that procedures have not ever been utilized and do not fully align with the SMO 6 benchmark.

    Current Status: Not Adopted

  • International Financial Reporting Standards

    Under the Accounting Standards Order 2010, public interest entities (PIEs) such as banks, financial institutions, insurance companies, and takaful companies are required to apply IFRS in the preparation of financial statements. Brunei does not have a stock exchange. International Financial Reporting Standards (IFRS) have been adopted by the Brunei Darussalam Accounting Standard Council (BDASC).

    In October 2016, the BDASC issued an exposure draft on the Brunei Darussalam Accounting Framework and Standards (BDAS) for Non-Public Interest Entities (non-PIEs). The existing framework required non-PIEs to prepare financial statements in accordance with the Generally Accepted Accounting Principle in Brunei Darussalam (GAAP in Brunei Darussalam). The BDASC announced the adoption of the BDAS for non-PIEs with an effective date of January 1, 2018

    Current Status: Adopted

 

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Methodology

Methodology
Last updated: 10/2024
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