Qatar

The financial accounting and auditing reporting framework in Qatar is established under the Audit Law No. 8 of 2020, Law No. 8 of 2012 regarding Qatar Financial Markets Authority (QFMA) as amended by Decree Law No. 22 of 2018, and Commercial Companies Law No. 11 of 2015 (as amended by Law No. 8 of 2021)

Accounting Framework

Law No. 8 of 2012 regarding Qatar Financial Markets Authority (QFMA) as amended by Decree Law No. 22 of 2018 gives the QFMA authority to supervise and regulate the financial market in Qatar. This includes authority to establish financial reporting requirements.

In accordance with Commercial Companies Law No. 11 of 2015 (as amended by Law No. 8 of 2021), all listed companies are required to prepare consolidated and separate company financial statements “in accordance with the accounting principles approved internationally”. Regulations of the QFMA have defined this to mean IFRS Standards as issued by the IFRS Foundation.

The QFMA Offering and Listing Rulebook of Securities requires all listed companies to prepare their financial statements in line with IFRS Standards. Similarly, the QFMA Offering and Listing Rulebook of Securities “Second Market” requires companies whose securities trade in that market prepare their financial statements in line with IFRS Standards. Both these Rulebooks are available from the QFMA’s ‘Initial Public Offerings (IPOS)’ page (English). Furthermore, in accordance with Qatar Financial Markets Authority Board Resolution No. (5) of 2016 Regarding the Governance Regulations for Companies and Legal Entities Listed on the Main Market, the Qatar Central Bank requires all banks in the jurisdiction to prepare their financial statements in accordance with IFRS Standards as issued by IASB.

In accordance with Qatar Financial Markets Authority Board Resolution No. (5) of 2016 Regarding the Governance Regulations for Companies and Legal Entities Listed on the Main Market, the Qatar Central Bank also requires all banks in the jurisdiction to prepare their financial statements in accordance with IFRS Standards as issued by the IFRS Foundation.

Furthermore, all entities that meet the definition of a small- and medium-sized entities (SMEs) are permitted to use the IFRS for SMEs Standard. According to Ministerial Decision No. 250 of 2018 on the Unified Definition of SMEs, SMEs are defined as companies established under Qatari Law, with no more than 250 employees and annual revenues not exceeding QAR100 mn. The three categories that fall under SMEs are (i) micro-sized entities that have no more than 10 employees with an annual turnover under QAR1 mn; (ii) small-sized companies with a no more than 50 employees with an annual turnover of more than QAR1 mn but less than QAR 20 mn; and (iii) medium-sized enterprises with no more than 250 employees and a turnover of more than QAR20 mn but less than QAR 100mn.

The Qatar Exchange (stock exchange) has permitted some Islamic financial Institutions to use accounting standards by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI), with IFRS Standards required if AAOIFI does not address an issue.

Auditing Framework

In accordance with Law No. (11) of 2015 the Commercial Companies Law, all companies with an income higher than QAR 5 million are subject to mandatory audits. Audit Law No. 8 of 2020 further requires the application of ISA as adopted by the Ministry of Commerce and Industry (MOCI) in Qatar, which are ISA as issued by the IAASB for audits of all types of companies.

Auditors and Accounting Experts are the only segments that are regulated at the state level as per Qatar Financial Markets Authority Law No 8 of 2012 by the Qatar Financial Markets Authority (QFMA); the Audit Law No. 8 of 2020 by the Ministry of Commerce and Industry (MOCI), and Law No. 16 of 2017 on Regulating the Work of Experts by the Ministry of Justice. Other accountants, such as bookkeepers may be regulated by a professional accountancy organization.

Regulation of Auditors

The Qatar Financial Markets Authority (QFMA) was established under Law No. 33 of 2005 (as amend by the Amiri Decree of Law No. 14 of 2007 and Law No. 10 of 2009) as an independent supervisory and regulatory authority of financial markets in Qatar. Law No. 8 of 2012 regarding Qatar Financial Markets Authority, as amended by Decree-Law No. 22 of 2018, confirms the QFMA’s independence and having all the powers required for conducting its regulatory, supervisory and control functions more effectively in compliance with the provisions of Law No. 33 of 2005, as amended. QFMA is responsible for (i) conducting regulatory, supervisory and control functions and establishing financial reporting standards; (ii) quality assurance reviews for listed entities; and (iii) investigation and disciplining auditors of listed entities.

The Ministry of Commerce and Industry (MOCI), under Audit Law No. 8 of 2020, is responsible for (i) defining initial and continuing professional development (IPD and CPD, respectively) requirements for auditors; (ii) conducting audit examinations and issuing audit licenses; (iii) establishing auditing standards for all statutory audits; (iv) establishing ethical requirements; (v) conducting an investigation and disciplinary system for auditors of non-PIEs; and (vi) maintaining the registry for auditors and audit firms.

To practice audit, candidates must (i) complete a bachelor’s degree in accounting from an accredited university in Qatar (or equivalent as deemed appropriate by MOCI); (ii) complete three (3) years of practical experience after graduating from university and provide a certificate of training in an accounting office; (iii) pass the Qatari CPA Exam prior to registration; and (iv) obtain a practicing license from MOCI. Auditors are required to complete 60 continuing professional development (CPD) hours annually via MOCI-approved trainers. The Qatari Association of Certified Public Accountants (QCPA), subject to oversight by the MOCI, is responsible for delivering the CPD program for auditors.

Regulation of Accounting Experts

In accordance with Law No. 16 of 2017 on Regulating the Work of Experts, the Ministry of Justice is responsible for (i) defining initial and continuing professional development (IPD and CPD, respectively) requirements for Accounting Experts; (ii) establishing ethical requirements for Accounting Experts; (iv) establishing an investigation and disciplinary system for Accounting Experts; and (v) monitoring performance of Accounting Experts.

To become an Accounting Expert, candidates must (i) complete a bachelor’s degree in accounting from an accredited university in Qatar (or equivalent as deemed appropriate by MOCI); (ii) complete ten (10) years’ experience after graduating from university (provide a certificate of training in an accounting office); (iii) complete the training and testing program organized by the Ministry of Justice to obtain registration in the Register of Accounting Experts. Registered Accounting Experts are not required to complete a CPD requirement.

Regulation of non-Accounting Experts

Graduates from universities in Qatar or equivalent foreign universities recognized by the MOCI who do not wish to seek registration as ‘Accounting Experts’ may practice accounting immediately upon graduating since there is no requirement to obtain an accounting license or pass an examination.

While only auditors are required to join QCPA, all others who are not registered in the Ministry of Commerce and Industry (including non-Qatari practitioners), may voluntarily choose to join QCPA as Associate members and be subject to its rules and regulations. Subject to oversight by the Ministry of Commerce and Industry, QCPA’s responsibilities include: (i) delivering continuing professional development programs; and (ii) monitoring its members’ compliance with ethical requirements and communicating developments relevant to the profession.

To join QCPA, candidates must (i) hold a valid university degree in accounting or equivalent as duly recognized by MOCI; and (ii) work in the field of accounting and auditing. Accounting university students can also register with QCPA. All QCPA members are required to (i) adhere to QCPA’s code of conduct and professional ethics, (ii) complete annual CPD requirements (60 training hours); and (iii) pay annual membership fees to remain in good standing.

Lastly, since Qatar is a largely expat-based country, there are several accountancy professionals practicing in the jurisdiction with foreign qualifications that are recognized by MOCI. These accountancy professionals are subject to their respective membership organization’s education (and ethical) requirements—ACCA Global, Association of International Certified Professional Accountants (AICPA Global), Institute of Chartered Accountants in England and Wales (ICAEW), Institute of Chartered Accountants of Pakistan (ICAP), and Institute of Chartered Accountants of India (ICAI)—which are generally aligned with the 2019 IES requirements.

Qatar Association of Certified Public Accountants

The Qatar Association of Certified Public Accountants (QCPA) was established in 2007 as a mixed membership organization for professional accountants pursuant to Decision No. 6 of 2007 of the Minister of Civil Service Affairs and Housing, in accordance with Law No. 12 of 2004 Regarding Associations and Private Institutions and Law No. 30 of 2004 Regulating the Audit Profession.

Auditors licensed in Qatar are required to join QCPA, while other accounting professionals who are not registered with the Ministry of Commerce and Industry may voluntarily join as Associate members and be subject to its rules and regulations.

QCPA members provide services including accounting and bookkeeping, auditing, financial management, consultancy, banking services, internal audit, management accounting, digital transformation, and tax services.

Under the oversight of the Ministry of Commerce and Industry, QCPA’s responsibilities include delivering continuing professional development programs and monitoring its members’ compliance with ethical requirements and communicating developments relevant to the profession.

QCPA is an Associate member of IFAC and a member of the Arab Federation of Accountants and Auditors.

Quality assurance (QA) reviews of auditors in Qatar are conducted by the relevant regulatory authorities. The Qatar Financial Markets Authority (QFMA), under Law No. 8 of 2012 as amended, is responsible for conducting QA reviews of auditors of listed entities. The Ministry of Commerce and Industry (MOCI), under Audit Law No. 8 of 2020, has authority to regulate auditors of non-public interest entities and to establish monitoring and oversight requirements.

QA systems are therefore established for statutory audits; however, the framework is implemented by multiple regulatory authorities and does not fully incorporate all the requirements of SMO 1 across the jurisdiction.

Accordingly, while quality assurance mechanisms exist, the system does not fully align with SMO 1 requirements.

Current Status: Partially Adopted

Audit Law No. 8 of 2020 and Law No. 16 of 2017 on Regulating the Work of Experts establish initial professional development (IPD) and continuing professional development (CPD) requirements for Auditors and Accounting Experts, which are further defined by the Ministry of Commerce and Industry (MOCI) and the Ministry of Justice (MOJ), respectively. The framework incorporates some, but not all, of the revised 2019 International Education Standards in effect at the time of the assessment.

To practice audit, candidates must complete a bachelor’s degree in accounting (or equivalent as deemed appropriate by MOCI), complete three years of practical experience following graduation, pass the Qatari CPA examination, and obtain a practicing license from MOCI. Auditors are required to complete sixty hours of continuing professional development annually through MOCI-approved providers. QCPA delivers CPD programs for auditors under the oversight of MOCI.

To become an Accounting Expert, candidates must complete a bachelor’s degree in accounting (or equivalent), complete ten years of experience after graduation, and complete the training and testing program organized by the Ministry of Justice in order to obtain registration in the Register of Accounting Experts. Registered Accounting Experts are not subject to a CPD requirement.

Graduates from universities in Qatar, or equivalent foreign universities recognized by MOCI, who do not seek registration as Accounting Experts may practice accounting without a licensing requirement.

In addition, a number of accountancy professionals in Qatar hold foreign professional qualifications recognized by MOCI, including those from ACCA, AICPA, ICAEW, ICAP, and ICAI. These professionals remain subject to the education requirements of their respective membership organizations.

While education and licensing requirements are established for auditors and Accounting Experts, the International Education Standards are not formally adopted at the jurisdiction level, and full alignment with all IES requirements is not demonstrated.

Current Status: Partially Adopted

Under Audit Law No. 8 of 2020, the Ministry of Commerce and Industry (MOCI) has authority to establish auditing standards applicable to statutory audits in Qatar. The Qatar Financial Markets Authority (QFMA), under Law No. 8 of 2012 as amended, establishes regulatory requirements for auditors of listed entities. International Standards on Auditing (ISA) are adopted and required for statutory audits in the jurisdiction as issued by the International Auditing and Assurance Standards Board.

Current Status: Adopted

Under Audit Law No. 8 of 2020, the Ministry of Commerce and Industry (MOCI) has authority to establish ethical requirements for auditors in Qatar. The Qatar Financial Markets Authority (QFMA), under Law No. 8 of 2012 as amended, establishes regulatory requirements for auditors of listed entities.

Ethical requirements applicable to auditors are aligned with the International Code of Ethics for Professional Accountants (including International Independence Standards) as issued by the International Ethics Standards Board for Accountants.

Current Status: Adopted

Public sector accounting standards in Qatar are established by the Ministry of Finance. Public financial management reforms have incorporated elements aligned with International Public Sector Accounting Standards (IPSAS); however, IPSAS have not been formally adopted in their entirety for application by all public sector entities.

While aspects of the public sector reporting framework reflect IPSAS principles, full adoption of accrual-based IPSAS across the jurisdiction is not demonstrated.

Current Status: Partially Adopted

Investigative and disciplinary (I&D) mechanisms applicable to auditors and Accounting Experts in Qatar are established under Audit Law No. 8 of 2020 and Law No. 16 of 2017 on Regulating the Work of Experts. The Qatar Financial Markets Authority (QFMA) operates an I&D system for auditors of listed entities, while the Ministry of Commerce and Industry (MOCI) is responsible for I&D procedures for auditors of non-public interest entities. The Ministry of Justice oversees disciplinary matters for Accounting Experts.

Although investigative and disciplinary systems are established for regulated segments of the profession, the frameworks are operated by multiple authorities and do not demonstrate full incorporation of all SMO 6 requirements. In particular, publicly available information regarding independence safeguards, standardized procedures, transparency of outcomes, linkage with quality assurance findings, and consistent application across all professional accountants is limited.

Accordingly, while I&D mechanisms exist within the jurisdiction, full alignment with SMO 6 requirements in effect at the time of the assessment is not demonstrated

Current Status: Partially Adopted

Financial reporting standards in Qatar are established by the Qatar Financial Markets Authority (QFMA) for listed entities and by the Ministry of Commerce and Industry (MOCI) under Audit Law No. 8 of 2020 for other statutory audits.

Listed entities are required to prepare their financial statements in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board. IFRS are applied without modification for these entities.

While IFRS are required for listed entities and widely applied in practice, IFRS for Small and Medium-sized Entities (IFRS for SMEs) are not formally adopted as a separate financial reporting framework at the jurisdiction level.

Current Status: Adopted

Relevant Organizations

• Gulf Cooperation Council Accounting & Auditing Organization.
• Qatar Association of Certified Public Accountants (QCPA)

Relevant Legislation

• Audit Law No. 8 of 2020
• Commercial Companies Law No. 11 of 2015 (as amended by Law No. 8 of 2021)
• Law No. 8 of 2012 regarding Qatar Financial Markets Authority (QFMA) as amended in 2018
• Ministerial Decision No. 250 of 2018 on the Unified Definition of SMEs

Relevant Publications

• Encylopedia Britannica, Zakat Islamic Tax, June 2019.
• IFRS Foundation, IFRS Application Around the World, Jurisdictional Profile: Qatar, June 2016.
• Palmer, Sarah, “Small and Medium Enterprises in Qatar”, 29 Aug 2019.
• QCPA, SMO Action Plan, 2024.