Dominican Republic

The financial reporting framework in the Dominican Republic is established by the Company Law and its amendments (Law 479 of 2008) and the Code of Commerce, last amended in 1953. The Code of Commerce establishes the obligation for companies to keep books of accounts and provides the basic legal framework for accounting and auditing. The Company Law sets requirements for companies with capital in excess of 100 times the monthly minimum wage to present audited financial statements. In addition, the Company Law stipulates external audit obligations for any business entity that is a party to a contract of any nature with the Dominican State for an amount in excess of RD$50,000. These audits must be in accordance the auditing standards issued by the Instituto de Contadores Públicos Autorizados de la República Dominicana (ICPARD).

Under Laws 479 of 2008, 633 of 1944, and Decree 2032 of 1984, accounting and auditing standard-setting for non-regulated entities falls under the purview of the ICPARD. The ICPARD has adopted IFRS and ISA since 1999 and IFRS for Small- and Medium-sized Entities (SMEs) since 2014 through ICPARD’s technical resolutions. The ICPARD technical resolution that established IFRS for SMEs also defined the criteria of SMEs as companies that do not have an obligation to present public financial statements, companies that do not trade debt or equity in a public market or in the process of issuing this instrument in the public market, and companies that do not hold assets in different lines of businesses.

The financial reporting requirements for banks, listed companies, insurance companies, and pension funds are established by the respective regulators as follows:

The Superintendence of Securities (SIV) regulates and supervises the capital market. Through Decree 729 of 2004 and Circular C-SIV-2011-12-MV, the SIV has stipulated that listed companies must apply IFRS as issued by the ICPARD. Similarly, the SIV requires all listed companies to submit their annual audited financial statements in accordance with ISA as adopted by the ICPARD.

The Superintendence of Banks (SB) supervises banks and similar financial institutions, which under the Monetary and Financial Law include commercial banks, savings and credit banks, and credit corporations, while the Superintendence of Pensions (SIPEN) and Superintendence of Insurance (SIS) regulate pension funds and insurance companies, respectively. The SB, SIPEN, and SIS require entities under their supervision to annually submit audited financial statements but do not require the use of IFRS and have issued other resolutions establishing reporting requirements and rules.

These rules can override ICPARD-endorsed standards in cases of conflict. However, several of the country’s banks are listed companies and therefore are required to prepare financial statements under IFRS. It is unclear which auditing standards the SB, SIPEN, and SIS require or if they refer to ICPARD-issued auditing standards.

In the Dominican Republic the accountancy profession is regulated at the state level by the Ministry of Finance (MoF) and at the professional level by the Instituto de Contadores Públicos Autorizados de la República Dominicana (ICPARD). Under the Dominican Republic law, the MoF is responsible for issuing a license to professional accountants who are then permitted to use the title of Certified Public Accountants (CPA). A university accounting degree is the only entry requirement established by the MoF in order to practice accountancy, although the MoF will only issue a license to individuals who are members of ICPARD in good standing.

Under the Law 633 of 1944 and the Decree 2032 of 1984, the ICPARD is authorized to carry out certain regulatory responsibilities for CPAs and audit firms such as: (i) establishing accounting, auditing, ethical, and other professional standards for application; (ii) monitoring its members’ compliance with the Code of Ethics; (iii) maintaining registers of CPAs and firms; (iv) investigating and disciplining its members; and (v) promoting the advancement of the profession by establishing continuing professional development requirements for its members. As mentioned above, membership in ICPARD is mandatory for all practicing accountants, and only ICPARD members are authorized to issue audit reports.

In addition, audit firms who provide services to entities under the supervision of the Superintendences of securities, banks, pensions, and insurance are subject to the regulation of the respective regulator. Each Superintendence maintains registries of audit firms authorized to audit companies under their control, requires all CPAs and audit firms to be members of the ICPARD, establishes accounting and auditing standards for regulated companies, and conducts inspections of audit firms.

There are no independent audit oversight arrangements in the Dominican Republic and auditors in the country are regulated at the state level by the Ministry of Finance (MoF) and at the professional level by the Instituto de Contadores Públicos Autorizados de la República Dominicana (ICPARD). Please see the

The Instituto de Contadores Públicos Autorizados de la República Dominicana (ICPARD)

Under the Law 633 of 1944 and the Decree 2032 of 1984, the ICPARD was established as an organization uniting Certified Public Accountants (CPAs). It is authorized to carry out specific regulatory responsibilities for CPAs and audit firms such as: (i) establishing accounting, auditing, ethical, and other professional standards for application; (ii) monitoring its members’ compliance with the Code of Ethics; (iii) maintaining registers of CPAs and firms; (iv) investigating and disciplining its members; and (v) promoting the advancement of the profession by establishing continuing professional development requirements for its members. CPAs and audit firms must be a member of the institute in order to practice accountancy in the jurisdiction.

In addition to being a member of IFAC, the ICPARD is a member of the Inter-American Accounting Association (AIC) and the Group of Latin American Accounting Standards Setters (GLENIF).

The ICPARD has been promoting a legislative reform for the accountancy profession, specifically on Law 633 of 1944 and the Decree 2032 of 1984, and holding discussions with key stakeholders. The proposed law seeks to address regulatory gaps and adopt international best practices. Under the draft legislative proposal, the Colegio de Contadores Públicos Autorizados de la República Dominicana (COCPARD) is established as a new professional accountancy organization (PAO), and the Instituto de Contadores Públicos Autorizados de la República Dominicana (ICPARD) ceases to exist.

A mandatory quality assurance review system in line with SMO 1 requirements does not exist in the Dominican Republic. Limited quality control reviews of auditors providing services to regulated entities are conducted separately by the regulators.

The Superintendence of Banks has created the Audit Control Unit, which is in charge of reviewing applications for the auditor registry and conducting inspections of audit firms. The Superintendence of Insurance created the Inspection Direction, under Article No 250 of Law 146 of 2002, which is in charge of making all checks, inspections, and investigations of its regulated entities. However, it is unclear if these systems are operational and if so, the extent of fulfillment of each regulators’ QA review system with the practices of the SMO 1. In addition, no further information on the QA systems of the Superintendence of Securities and the Superintendence of Pensions is available.

The Instituto de Contadores Públicos Autorizados de la República Dominicana (ICPARD) has adopted ISQC 1 and ISA 220 through Resolutions 23-08-2019 and 07-10-2021 for application by its members, which are the only individuals authorized to issue audit reports, and is in the process of developing a mandatory quality assurance system in line with the SMO 1 requirement for its members by 2022. The resolutions confirmed that the new suite of IAASB Quality Management standards would become effective in December 2022.

Current Status: Not Adopted

In the Dominican Republic, the Ministry of Finance, universities, and the Instituto de Contadores Públicos Autorizados de la República Dominicana (ICPARD) have a role in setting initial professional development (IPD) and continuing professional development (CPD) requirements for professional accountants. A university accounting degree and membership in ICPARD are the only entry requirement established by the MoF in order to practice accountancy. Universities have authority over the accounting curriculum and issuing professional degrees.

The ICPARD has limited authority to incorporate the requirements of IES into national requirements and may only stipulate CPD requirements for members. The ICPARD members are required to annually complete CPD requirements which the institute indicates are in line with the IES 7 requirements.

Only a selection of the IES requirements appear to have been adopted as part of national accountancy education requirements. Further clarification on how these address the most recent version of the IES (the 2019 Handbook accompanied by revisions to IES 2, 3, 4, and 8 effective in 2021) is also necessary.

Current Status: Partially Adopted

The Law 479 of 2008, the Law 633 of 1944 and the Decree 2032 of 1984, authorize the Instituto de Contadores Públicos Autorizados de la República Dominicana (ICPARD) to set auditing standards to be applied by its members in the audits of non-regulated companies. The ICPARD has adopted by reference ISA as issued by the IAASB for application in the jurisdiction through ICPARD’s technical resolutions.

Auditing standards for banks, listed companies, insurance companies, and pension funds are established by the respective regulators. In accordance with the Circular C-SIV-2016-07-MV, the Superintendence of Securities has adopted the most recent version of ISA. However, it is unclear what auditing standards may be required by the other regulators and whether the Superintendence of Banks, the Superintendence of Pensions, and/or the Superintendence of Insurance has plans to mandate the application of ISA for audits of entities under their supervision.

Current Status: Partially Adopted

Under the Law 633 of 1944 and the Decree 2032 of 1984, the Instituto de Contadores Públicos Autorizados de la República Dominicana (ICPARD) is responsible for setting ethical requirements.

The ICPARD has adopted a Code of Ethics based on the 2009 IESBA Code of Ethics. There is no reported timeline for converging with the 2021 International Code of Ethics—the currently effective Handbook as of the date of the assessment.

Current Status: Partially Adopted

In accordance the Decree No. 526 of 2009, the General Agency of Government Accounting (DIGECOG) has adopted the 2017 suite of accrual-basis IPSAS as the national public sector accounting standards (IFAC/CIPFA International Public Sector Financial Accountability Index 2020).

Current Status: Partially Adopted

In accordance with the Law 633 of 1944 and the Decree 2032 of 1984, the Instituto de Contadores Públicos Autorizados de la República Dominicana (ICPARD) is responsible for investigating and disciplining (I&D) professional accountants in the jurisdiction.

The ICPARD has created an Investigation, Qualifications and Ethics Committee and a Disciplinary Tribune to carry out the I&D functions; however, it is unclear if ICPARD’s I&D system incorporates the SMO 6 requirements.

Current Status: Partially Adopted

Under the Law 479 of 2008, the Law 633 of 1944 and the Decree 2032 of 1984, the Instituto de Contadores Públicos Autorizados de la República Dominicana (ICPARD) is authorized to set accounting standards for non-regulated companies. The ICPARD has adopted the Spanish translations of IFRS since 1999 and IFRS for SMEs since 2014 without modifications through ICPARD’s technical resolutions.

Accounting standards for regulated companies are established by the respective regulators. The Superintendence of Securities (SIV) is the accounting standard-setter for listed companies and has adopted IFRS as issued by ICPARD through the SIV Circular C-SIV-2011-12-MV.

Companies supervised by the Superintendence of Banks (SB), the Superintendence of Pensions (SIPEN), and the Superintendence of Insurance (SIS) do not require IFRS. These regulators set their own specific rules that override ICPARD-endorsed standards in cases of conflict. However, several of the country’s banks are listed companies and therefore are required to prepare financial statements under IFRS. It is unclear whether the SB, SISPEN, and/or SIS, have plans to adopt IFRS as issued by the ICPARD.

Current Status: Partially Adopted

Relevant Organizations

• Central Bank of the Dominican Republic
• Instituto de Contadores Públicos Autorizados de la República Dominicana (ICPARD)
• Superintendence of Banks (SB)
• Superintendence of Securities (SIV)
• Superintendence of Pensions (SIPEN)
• Superintendence of Insurance (SIS)

Relevant Legislation

• Law on Chartered Accountants No. 633, 1944
• Law on Insurance and Sureties of the Dominican Republic No. 146, 2002
• Law on the Securities Market No. 19, 2000
• SIV Resolution No. 1 “Norma para Auditores Externos que establece los Requisitos de Inscripción en el Registro del Mercado de Valores y Productos,” 2005
• SIV Circular C-SIV-2016-07-MV “Implementación del Nuevo Informe del Auditor Independiente” 2016
• SIB Resolution No. 1 “Reglamento De Auditores Externos,” 2004
• SISPEN Resolution No 8, “Sobre Registro de Auditores Externos,” 2002

Relevant Publications

• ICPARD, SMO Action Plan, April 2022.
• IFRS Foundation, “IFRS Application Around the World, Jurisdictional Profile: Dominican Republic,” June 2016.
• World Bank, Update of the Report on the Observance of Standards and Codes, Accounting and Auditing: Dominican Republic, August 2009.
• World Bank, Report on the Observance of Standards and Codes, Accounting and Auditing: Dominican Republic, December 2004.