Iraq

Member Organizations

Member Organization Associate Other PAOs

  Iraqi Union of Accountants and Auditors

Legal and Regulatory Environment

  • Overview of Statuatory Framework for Accounting and Auditing

    The Iraqi Company Law No. 21 of 1997 establishes financial reporting requirements in Iraq. According to the Law, all companies must apply IFRS or IFRS for Small and Medium-sized Enterprises. Full IFRS are required to be used by companies whose securities are publicly traded, private banks, private shared companies; and consultancy companies.

    The Law of Iraqi Union of Accountants and Auditors No. 185 of 1969 requires auditors to apply international standards on auditing; however, the standards are not specified and the scope of mandatory audits is unclear.

  • Regulation of Accountancy Profession

    The Law of the Iraqi Union of Accountants and Auditors No. 185 of 1969 grants the Iraqi Union of Accountants and Auditors (IUAA), a professional association for accountants and auditors in Iraq, the authority to regulate the accountancy and audit profession. According to the Law, all accountants and auditors are required to be members of IUAA. The Law authorizes the IUAA to carry out the following functions: (i) implement initial professional development and continuing professional development requirements for professional accountants; (ii) recommend and translate auditing standards; (iii) set ethical requirements; (iv) establish and operate an investigative and disciplinary system; (v) oversee the associations that operate under its auspice. In addition, auditors are subject to quality assurance reviews that carried out by the formally independent Quality Assurance & Inspection Committee.

  • Audit Oversight Arrangements

    There are no independent audit oversight arrangements in Iraq.

    Auditors are regulated by the Iraqi Union of Accountants and Auditors (IUAA), a professional association for both accountants and auditors in Iraq, under the Law of the Iraqi Union of Accountants and Auditors No. 185 of 1969. According to the Law, auditors are required to be members of IUAA. The Law authorizes the IUAA to carry out the following functions: (i) implement initial professional development and continuing professional development requirements for professional accountants; (ii) recommend and translate auditing standards; (iii) set ethical requirements; (iv) establish and operate an investigative and disciplinary system; (v) oversee the associations that operate under its auspice.

  • Professional Accountancy Organizations

    The Law of the Iraqi Union of Accountants and Auditors No. 185 of 1969 grants the Iraqi Union of Accountants and Auditors (IUAA), a professional association for accountants and auditors in Iraq, the authority to regulate the accountancy and audit profession. According to the Law, all accountants and auditors are required to be members of IUAA. The Law authorizes the IUAA to carry out the following functions: (i) implement initial professional development and continuing professional development requirements for professional accountants; (ii) recommend and translate auditing standards; (iii) set ethical requirements; (iv) establish and operate an investigative and disciplinary system; (v) oversee the associations that operate under its auspice.

    The associations the IUAA reports to administer include:

  • Projects or Other Information

Adoption of International Standards

  • Quality Assurance

    The Law of the Iraqi Union of Accountants and Auditors No. 185, 1969 establishes the requirement for a quality assurance (QA) review system for all audits of financial statements. The Iraqi Union of Accountants and Auditors (IUAA) reports that ISQC 1 was adopted and the QA review system is administered by the Quality Assurance & Inspection Committee (QAIC). Despite being formally independent, the QAIC’s development and functions are supported by the IUAA Board.

    The IUAA completed a self-assessment of the QA review system against the revised SMO 1 and reports that the QA review system is in line with the SMO 1 requirements.

    Current Status: Adopted

  • International Education Standards

    The Law of the Iraqi Union of Accountants and Auditors No. 185, 1969 sets initial professional development and continuing professional development (CPD) requirements for professional accountants in Iraq. Non-auditors are not required to fulfill CPD requirements.

    There are several bodies involved in the certification and education of professional accountants in the jurisdiction.

    The Ministry of Higher Education’s Accounting Sector Committee is responsible for developing the accountancy education curricula and supports universities in delivering undergraduate accountancy education. It is unclear if universities comply with the IES content requirements.

    The Iraqi Union of Accountants and Auditors (IUAA) reports that it implements CPD requirements established in law through its Training & Continuous Professional Development Committee, Consultancy Office and in coordination with the International Association of Certified Public Accountants. The IUAA reported in 2014 that adjustments to its CPD system need to be made to ensure alignment with IES. The extent of alignment with IES needs to be established.

    Current Status: Partially Adopted

  • International Standards on Auditing

    The Law of Iraqi Union of Accountants and Auditors No. 185 of 1969 requires auditors to apply international standards on auditing; however, the standards to be applied are not specified. The Law stipulates that the Accounting and Auditing Standards Iraq Board (AASIB) is responsible for setting auditing standards. However, AASIB has not been operational since 2001 and de facto ISA are being applied. The version of the international standards applicable in Iraq as of 2017 needs to be established.

    Current Status: Partially Adopted

  • Code of Ethics for Professional Accountants

    The Law of the Iraqi Union of Accountants and Auditors No. 185 of 1969 grants the Iraqi Union of Accountants and Auditors (IUAA) with the authority to set ethical requirements for professional accountants in Iraq. To this effect, in 1983 the IUAA adopted a Code of Ethics; however, the extent of its alignment with the IESBA Code of Ethics needs to be established.

    Current Status: Partially Adopted

  • International Public Sector Accounting Standards

    The Ministry of Finance is responsible for setting the public sector accounting standards. The Iraqi Union of Accountants and Auditors reports that in Iraq, public entities that are self-financed apply accrual-basis IPSAS, while governmental entities with central funding use cash-basis IPSAS under the Financial Management and Public Debt Law 95 of 2004 (Para 11).

    Current Status: Partially Adopted

  • Investigation and Discipline

    According to Article 28 of the Law of the Iraqi Union of Accountants and Auditors No. 185 of 1969, the Iraqi Union of Accountants and Auditors’ (IUAA) Discipline Committee (DC) has the authority to investigate and discipline (I&D) its members.

    According to the IUAA, the DC investigates infringements and complaints. Disciplinary cases are reportedly transferred to specialized courts to decide on and apply sanctions. The Justice Council, a part of the Ministry of Finance, may be involved if a serious crime has been committed. An appeals mechanism is reportedly in place.

    The IUAA completed a self-assessment of its I&D system against the revised SMO 6 and reports that the I&D system is in line with its requirements. The IUAA submitted amendments to the Law in order to make the procedures binding. However, the Parliament’s approval of the law is still pending.

    Current Status: Adopted

  • International Financial Reporting Standards

    The Iraqi Company Law No. 21 of 1997 establishes financial reporting requirements in Iraq. According to the Law, all companies must apply IFRS or IFRS for Small and Medium-sized Enterprises. Full IFRS are required to be used by companies whose securities are publicly traded, private banks, private shared companies; and consultancy companies.

    Current Status: Adopted

Disclaimer

IFAC bears no responsibility for the information provided in the SMO Action Plans prepared by IFAC member organizations. Please see our full Disclaimer for additional information.

Methodology

Methodology
Last updated: 03/2017
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