Colegio de Contadores Publicos de Costa Rica

In Costa Rica, the Colegio de Contadores Públicos de Costa Rica (CCPACR) is responsible for establishing and implementing a quality assurance (QA) review system for all statutory audits of financial statements. Accordingly, CCPACR established a mandatory QA review system in 2016 that is aligned with the requirements of SMO 1.

To fulfill its mandate, CCPACR has established a Quality Control Commission and a Quality Control Unit within its Oversight Department, responsible for operating and continuously enhancing the QA review system. Since July 1, 2016, all member firms and independent professionals performing audit engagements have been required to maintain a quality control system. As of 2022, CCPACR reported that it had completed reviews of 100 percent of registered audit firms and had also undertaken reviews of practicing independent professionals.

To support implementation, CCPACR has developed and published a comprehensive suite of guidance and implementation tools, including a guide for the implementation of quality control for public accounting firms and independent professionals, a quality control reviews handbook, a review checklist, and guidance on establishing quality control systems. In addition, CCPACR continues to organize workshops, training activities, and technical support initiatives for its members on an ongoing basis.

CCPACR also disseminates information on the results of QA reviews and works with universities to promote the incorporation of QA-related topics into professional accountancy education curricula. In addition, the Institute has engaged with financial sector regulators under the coordination of the National Council for Supervision of the Financial System (CONASSIF) to promote coordination and awareness regarding the QA framework.

As part of its commitment to continuous improvement, CCPACR has been assessing the transition from quality control standards to the International Standards on Quality Management, including ISQM 1 and ISQM 2, and has indicated plans to support the adoption and implementation of these standards across the profession.

Given the existence of oversight functions within the financial sector regulators for supervised entities, CCPACR continues to engage with the regulators to support coordination and reduce potential duplication of efforts in the review of audit quality.

Through these well-established and ongoing processes, CCPACR maintains a mature QA framework and continues to review and improve its systems in line with evolving international standards. Accordingly, SMO 1 is assessed as Sustain.

Current Status: Sustain

In Costa Rica, universities, the Colegio de Contadores Públicos de Costa Rica (CCPACR), and the Colegio de Contadores Privados de Costa Rica (CCPRCR) share responsibility for implementing initial professional development requirements for professional accountants under Law No. 1038 of 1947 and Law No. 1269 of 1951.

To be eligible to practice as contadores públicos autorizados, individuals are required to hold a university degree in accounting, demonstrate at least two years of professional experience, complete the Seminario de Deontología en Contaduría Pública, and successfully pass the related ethics assessment prior to becoming members of CCPACR.

CCPACR has undertaken a range of initiatives to strengthen alignment with the International Education Standards. These include efforts to address areas not yet fully incorporated at the jurisdiction level, particularly the introduction of a final professional competence assessment aligned with IES 6 and strengthening continuing professional development requirements aligned with IES 7 and IES 8. While a mandatory CPD framework has not been established at the national level, CCPACR continues to operate a voluntary CPD system and offers members topic-specific certification programs, including in IFRS, ISA, and IPSAS.

To support academic alignment, CCPACR has developed guidance materials including the Minimum Content Requirements Plan for the University Bachelor and Licentiate Degree Programs in Public Accounting and the Authorized Public Accountant Profile. The Institute also maintains established dissemination mechanisms to communicate developments relating to the IES.

In addition, CCPACR continues to maintain active engagement with the National Higher Education Accreditation System (SINAES), the National Council of Rectors (CONARE), and the National Council for Private Higher University Education (CONESUP) to support alignment of university curricula with professional qualification requirements. In 2022, CCPACR issued Circular 20-2022-R, developed using the 2019 International Education Standards, to further support curriculum alignment for contadores públicos autorizados.

CCPACR has made significant progress in strengthening alignment with the IES framework and continues to review and improve its approach in coordination with academic and regulatory stakeholders. Accordingly, SMO 2 is assessed as Review & Improve.

The PAO should continue to focus on addressing the remaining gaps in alignment with the International Education Standards, particularly the establishment of a formal final professional competence assessment and the strengthening of continuing professional development requirements in line with IES 6, IES 7, and IES 8.

Current Status: Review & Improve

The Colegio de Contadores Públicos de Costa Rica (CCPACR) is responsible for the adoption of auditing standards for non-regulated entities and has adopted the Spanish translation of the International Standards on Auditing as issued by the International Auditing and Assurance Standards Board. For regulated entities, the National Council for Supervision of the Financial System (CONASSIF) requires the application of the currently effective ISA as approved by CCPACR.

CCPACR maintains well-established processes to monitor new and amended standards issued by the IAASB and to disseminate information on revisions and international developments through printed materials, technical publications, and its website.

To support effective implementation by its members, CCPACR incorporates the most recent amendments to auditing standards into its ongoing training programs, hosts an annual International Congress that regularly includes topics related to ISA, offers specialized certificates in auditing standards, develops technical guidance materials, and responds to member inquiries regarding the application of ISA through formal correspondence, electronic communications, and direct technical support.

These activities demonstrate an established and ongoing process to support adoption and implementation of auditing standards in the jurisdiction and to assist members in maintaining compliance with international requirements.

CCPACR continues to maintain and enhance its support framework in line with evolving IAASB standards and demonstrates an ongoing commitment to continuous improvement. Accordingly, SMO 3 is assessed as Sustain.

Current Status: Sustain

The Colegio de Contadores Públicos de Costa Rica (CCPACR) is responsible for establishing ethical requirements for its members and currently maintains a Code of Ethics based on the 2012 IESBA Code of Ethics.

CCPACR has established processes to monitor updates issued by the International Ethics Standards Board for Accountants and to review, approve, and issue amendments to its Code of Ethics where necessary. As of 2022, CCPACR reported that it was preparing a revised version of its Code to incorporate the requirements of the 2021 International Code of Ethics.

To support ethical competence within the profession, CCPACR has established an ethics-focused seminar for candidates seeking the contador público autorizado designation, together with a mandatory ethics examination that must be successfully completed prior to admission to practice. These processes help ensure that candidates demonstrate the ethical competencies required for public practice.

In addition, CCPACR continues to disseminate information on updates to the International Code of Ethics and includes ethics-related topics within its ongoing training and technical support programs.

These activities demonstrate that CCPACR is actively executing its plan to strengthen alignment with the International Code of Ethics and to support ethical competence across its membership. Accordingly, SMO 4 is assessed as Execute.

The PAO should continue to focus on addressing the full convergence of its Code of Ethics with the latest International Code of Ethics and on promoting adoption of the international ethical framework across all segments of the profession, including contadores privados.

Current Status: Execute

The Colegio de Contadores Públicos de Costa Rica (CCPACR) is not directly responsible for the adoption of public sector accounting standards in Costa Rica. Public sector accounting standards are established by the National Accounting Office under the authority of the Ministry of Finance, which has adopted the 2018 accrual-basis International Public Sector Accounting Standards, with mandatory implementation effective from 2023.

Within the scope of its mandate, CCPACR has demonstrated an active and ongoing role in supporting the adoption and implementation of IPSAS in the jurisdiction. The Institute has collaborated with the Ministry of Finance through the provision of courses, seminars, and continuing professional development activities focused on IPSAS, and has disseminated information on recent developments and pronouncements issued by the International Public Sector Accounting Standards Board.

In addition, CCPACR has organized and participated in meetings with government stakeholders to provide follow-up support for IPSAS implementation across the public sector.

To further support implementation, CCPACR issued Circular 27-2022 to encourage members working in the public sector to apply IPSAS and to provide guidance and recommendations for contadores públicos autorizados providing audit and assurance services to entities reporting under IPSAS.

Through these ongoing support activities and continued engagement with relevant public sector authorities, CCPACR maintains well-established processes to fulfill its obligations under SMO 5 and demonstrates an ongoing commitment to continuous improvement. Accordingly, SMO 5 is assessed as Sustain.

Current Status: Sustain

The Colegio de Contadores Públicos de Costa Rica (CCPACR) is authorized under Law No. 1038 of 1947 to carry out investigative and disciplinary (I&D) processes for its members, who are contadores públicos autorizados.

To fulfill this responsibility, CCPACR maintains an Oversight Commission, an Oversight Department, and a Tribunal de Honor with authority to investigate complaints and impose sanctions for legal and professional breaches. CCPACR reports that it periodically reviews its I&D system against the requirements of SMO 6 to support continued alignment with international best practices and national legal procedures.

Between 2019 and 2021, CCPACR resolved approximately 103 cases initiated through reports, complaints, and other sources of information, demonstrating that the system is active and operational.

To strengthen the effectiveness of the framework, CCPACR issued procedural guidance in 2020 to support the investigation and discipline process and to clarify documentation requirements for the filing of complaints.

CCPACR also actively communicates information on its I&D procedures through its website, social media channels, and electronic newsletters to ensure that members and the public are aware of how complaints may be initiated. In addition, the Institute has provided training and capacity-building sessions to other regulatory stakeholders and has shared its experience regionally regarding the establishment and operation of effective enforcement mechanisms.

CCPACR maintains an established and operational I&D system and continues to review and improve its processes in line with SMO 6 requirements. Accordingly, SMO 6 is assessed as Review & Improve.

The PAO should continue to focus on addressing the remaining gaps identified at the jurisdiction level, particularly clarifying overlaps in investigative and disciplinary responsibilities with the financial sector regulators under CONASSIF and promoting stronger demonstrable alignment of the broader jurisdictional I&D framework with all SMO 6 requirements.

Current Status: Review & Improve

In Costa Rica, the Colegio de Contadores Públicos de Costa Rica (CCPACR) is responsible for establishing accounting standards for non-regulated entities in accordance with Law No. 1038 of 1947. CCPACR has adopted IFRS Accounting Standards since 2005 and IFRS for SMEs since 2009 by reference and without modification.

For regulated entities, the National Council for Supervision of the Financial System (CONASSIF) requires the application of IFRS as approved by CCPACR through its regulatory framework, including Regulation No. 34-2002.

CCPACR maintains established processes to monitor new and amended standards issued by the International Accounting Standards Board and to disseminate information on revisions and international developments through technical publications, printed materials, and its website.

To support effective implementation by its members, CCPACR incorporates the most recent amendments to IFRS into its training programs, hosts an annual International Congress that regularly includes topics related to IFRS, offers specialized certificates in IFRS, develops technical guidance materials, and responds to member inquiries regarding the application of IFRS through formal correspondence, electronic communications, and direct technical support. In addition, CCPACR provides access to the Spanish-language version of IFRS through its website.

CCPACR is also a member of the Group of Latin American Standard Setters and participates in the international standard-setting process through regional consultation and the submission of comments on exposure drafts.

Through these well-established and ongoing processes, CCPACR maintains a strong framework to support the adoption and implementation of IFRS and demonstrates an ongoing commitment to continuous improvement. Accordingly, SMO 7 is assessed as Sustain.

Current Status: Sustain