Chamber of Auditors and Expert Accountants of Armenia

Following the entry into force of the Law on Regulation and Public Oversight of Accounting and Audit Activity in January 2020, the Chamber of Auditors and Expert Accountants of Armenia became responsible for establishing and implementing a quality assurance review system for its members under the oversight of the Public Oversight Board. The Board approves annual review plans and oversees the operation of the quality assurance framework.

Since 2022, the Chamber has established and operationalized a formal quality assurance review system aligned with Statement of Membership Obligations 1 requirements, with technical support from World Bank specialists and the Centre for Financial Reporting Reform’s Strengthening Auditing and Reporting in the Countries of the Eastern Partnership program. External quality assessments have been conducted in practice during 2023 and 2024, including planned and risk-based reviews, and findings from these inspections are linked to the investigative and disciplinary framework.

The Chamber supports implementation through continuing professional development activities, technical sessions, and guidance for members on quality management and audit quality requirements. It has also continued to develop tools and procedures to support the review process and strengthen firms’ readiness for inspection. Given that the quality assurance review system is now operational and active reviews are being carried out, the Chamber is assessed as Review & Improve.

The Chamber is encouraged to continue focusing on strengthening implementation support for audit firms, particularly in relation to the practical application of International Standards on Quality Management, remediation of inspection findings, and continued alignment of the review framework with Statement of Membership Obligations 1 best practices.

Current Status: Review & Improve

The Law on Accounting of 2019 and the Law on Audit Activity of 2019, effective from 2020, establish the educational framework for professional accountants in the Republic of Armenia. The laws introduce initial professional development and continuing professional development requirements for the two regulated designations, auditors and expert accountants, and require that qualification and examination processes be aligned with International Education Standards. These requirements are implemented and enforced by accredited public organizations under the oversight of the Public Oversight Board.

As the only accredited public organization, the Chamber of Auditors and Expert Accountants of Armenia is responsible for certifying auditors and expert accountants, developing and administering qualification examinations, and enforcing continuing professional development requirements for its members. Candidates must hold a university degree, pass the relevant qualification examinations, and complete a minimum of three years of practical experience.

The Chamber operates an established qualification and continuing professional development framework and continues to support implementation through regular professional development activities, subsidized training, technical seminars, and collaboration with academic institutions. Through the Centre for Financial Reporting Reform’s Strengthening Auditing and Reporting in the Countries of the Eastern Partnership program, the Chamber has received support in updating accounting and audit educational materials and strengthening local qualification pathways. The Chamber has also worked with universities and other stakeholders to promote alignment of accountancy education with international standards.

Continuing professional development requirements are operational and require a minimum of 80 hours over two years, including no less than 20 hours annually. Compliance is monitored and linked to the maintenance of professional qualifications.

While significant progress has been made and the educational framework is well established, further work is still needed to strengthen full alignment with the competency-based requirements of the International Education Standards, particularly in relation to learning outcomes, practical experience assessment, and coordination with universities and employers. Accordingly, the Chamber is assessed as Review & Improve.

The Chamber is encouraged to continue focusing on completing a formal self-assessment against Statement of Membership Obligations 2 requirements and addressing any identified gaps in competency-based education and practical experience assessment.

Current Status: Review & Improve

Under the Law on Audit Activity of 2019, International Standards on Auditing are adopted by direct legal reference in the Republic of Armenia. Responsibility for oversight of audit activity resides with the Public Oversight Board, while the Chamber of Auditors and Expert Accountants of Armenia plays an important role in supporting implementation through qualification, continuing professional development, and technical guidance for its members.

The Chamber integrates International Standards on Auditing requirements into its qualification and examination framework and routinely updates its educational syllabus to reflect developments in the standards. It regularly issues technical bulletins and organizes continuing professional development sessions to support members in understanding and implementing new and revised standards. Recent activities have included training on revised International Standards on Auditing 315, 540, and 600, as well as updates related to quality management standards.

To further support audit firms in practical implementation, the Chamber has also developed audit software tools with support from the World Bank and has provided training to members on their use. Continuing professional development programming is regularly updated to reflect changes in international standards and related implementation issues.

Through these ongoing and well-established processes, the Chamber maintains effective support mechanisms to assist members in the implementation and continued application of International Standards on Auditing and is therefore assessed as Sustain.

Current Status: Sustain

Under the Law on Accounting of 2019 and the Law on Audit Activity of 2019, auditors and expert accountants in the Republic of Armenia are required to comply with the International Code of Ethics for Professional Accountants (including International Independence Standards), which is adopted by direct legal reference. While the establishment of ethical requirements is set at the jurisdictional level, the Chamber of Auditors and Expert Accountants of Armenia continues to play an important role in supporting implementation and awareness among its members.

The Chamber has historically promoted the introduction and application of ethical requirements in the Republic of Armenia and has long required its members to comply with the International Ethics Standards Board for Accountants Code. It continues to support implementation by incorporating ethics requirements into its qualification and continuing professional development programs, disseminating technical and educational materials, and raising awareness of professional ethics through its website, seminars, and other professional activities.

Ethics compliance is also supported through the Chamber’s governance and enforcement framework. The Membership Committee and other disciplinary bodies address violations of professional ethics and professional conduct requirements as part of the Chamber’s investigative and disciplinary processes.

Through these well-established and ongoing activities, the Chamber maintains effective processes to support the implementation and continued application of ethical requirements and is therefore assessed as Sustain.

Current Status: Sustain

The Chamber of Auditors and Expert Accountants of Armenia does not have direct responsibility for the adoption of public sector accounting standards, which is the mandate of the Ministry of Finance. Public sector accounting in Armenia is based on Armenian Public Sector Accounting Standards, which are accrual-based national standards developed with reference to International Public Sector Accounting Standards.

Within the scope of its authority, the Chamber supports the development and implementation of public sector accounting reforms. It has participated in discussions with government stakeholders on the adoption and implementation of public sector accounting standards and continues to use its best endeavors to contribute to ongoing reforms.

The Chamber, together with representatives of the Ministry of Finance and academic institutions, participates in the World Bank’s Public Sector Accounting and Reporting program, which supports the development of public sector accounting and financial reporting frameworks in the jurisdiction.

Through these ongoing activities and its continued engagement with stakeholders, the Chamber demonstrates a commitment to supporting the advancement of public sector accounting practices in Armenia and is therefore assessed as Sustain.

Current Status: Sustain

Under the Law on Regulation and Public Oversight of Accounting and Audit Activity of 2019, the Law on Audit Activity of 2019, and the Law on Accounting of 2019, accredited public organizations are responsible for establishing and implementing investigation and disciplinary systems for auditors and expert accountants under the oversight of the Public Oversight Board.

As the only accredited public organization, the Chamber of Auditors and Expert Accountants of Armenia operates a formal and documented investigation and disciplinary framework for its members. The system includes a range of sanctions, including warnings, fines, suspension, expulsion, and revocation of professional qualification where appropriate. Disciplinary measures have been applied in practice, including actions related to non-compliance with continuing professional development requirements and quality assurance review findings.

The Chamber has established dedicated committees responsible for professional ethics, membership, and disciplinary matters, including a committee that addresses disciplinary actions arising from quality assurance inspections. The linkage between quality assurance findings and disciplinary follow-up strengthens alignment with Statement of Membership Obligations 6 requirements.

Given that the investigation and disciplinary system is operational and enforcement actions are being carried out, the Chamber is assessed as Review & Improve.

The Chamber is encouraged to continue focusing on periodic review and enhancement of its procedures, including staffing capacity, public awareness of disciplinary recourse mechanisms, and continued alignment with Statement of Membership Obligations 6 best practices.

Current Status: Review & Improve

Under the Law on Accounting of 2019 and the Law on Regulation and Public Oversight of Accounting and Audit Activity of 2019, International Financial Reporting Standards (IFRS) Accounting Standards are required by law for public interest organizations and other relevant entities in the Republic of Armenia, while the IFRS for Small and Medium-sized Entities Accounting Standard is applicable to medium-sized and small entities, with the option to apply full IFRS Accounting Standards.

The Chamber of Auditors and Expert Accountants of Armenia does not have direct responsibility for the adoption of IFRS Accounting Standards, which is established at the jurisdictional level. However, the Chamber continues to play an important role in supporting implementation by its members.

The Chamber supports implementation through its qualification and certification framework, which incorporates IFRS Accounting Standards into the syllabus and examinations, and through ongoing continuing professional development programming, workshops, seminars, and technical training. It also monitors developments in IFRS Accounting Standards and updates its educational materials and professional development activities accordingly.

Through these well-established and ongoing processes, the Chamber continues to support members in the implementation and application of IFRS Accounting Standards and is therefore assessed as Sustain.

Current Status: Sustain