Consiglio Nazionale dei Dottori Commercialisti e Degli Esperti Contabili

The Consiglio Nazionale dei Dottori Commercialisti e degli Esperti Contabili (CNDCEC) has no direct responsibility for establishing the quality assurance (QA) review system in Italy. Under Legislative Decree No. 39/2010, QA reviews are carried out by the Ministry of Economy and Finance (MEF) for statutory auditors and audit firms that do not audit public interest entities and by the Commissione Nazionale per le Società e la Borsa (CONSOB) for statutory auditors and audit firms that audit public interest entities.

The CNDCEC uses its best endeavors by supporting the development and implementation of the QA framework, including through its participation in the development of ISA Italia and the Italian quality management standards. The CNDCEC provides members with technical resources and continuing professional development on statutory audit, quality management, and QA reviews. Recent activities include publishing ISQM Italia 1 and ISQM Italia 2 resources and supporting professional development programs covering quality management standards and audit oversight requirements.

The adoption of ISQM Italia 1 and ISQM Italia 2, effective from 2025, represents an important regulatory development relevant to QA implementation. However, the QA review system for audits of non-public interest entities does not appear to be fully operationalized for all mandatory audits.

The CNDCEC is encouraged to continue supporting the MEF in operationalizing QA reviews for non-public interest entity audits, including by providing technical input, implementation guidance, and capacity building to further align the jurisdiction with SMO 1 requirements.

Current Status: Sustain

The Consiglio Nazionale dei Dottori Commercialisti e degli Esperti Contabili (CNDCEC) has shared responsibility for professional education requirements in Italy. Initial professional development (IPD) requirements for Dottori Commercialisti and Esperti Contabili are established under Legislative Decree No. 139/2005 and related regulations, including university education, supervised practical experience, and a state examination. Continuing professional development (CPD) requirements are established and monitored by the CNDCEC.

The CNDCEC supports implementation of International Education Standards (IES) requirements by engaging with universities, territorial orders, and relevant ministries on education pathways, practical experience, and access to the profession. It maintains guidance for traineeship requirements and supports framework arrangements that allow practical experience to begin during university studies and provide exemptions from parts of the state examination where relevant educational requirements are met.

The CNDCEC provides members with continuing professional development through its territorial orders, technical resources, and specialized training initiatives, including professional education programs on audit, sustainability reporting, ethics, tax, corporate reporting, and other areas relevant to professional competence. Recent developments include additional training requirements linked to sustainability reporting assurance, reflecting the evolving competence needs of the profession.

Current Status: Sustain

The Consiglio Nazionale dei Dottori Commercialisti e degli Esperti Contabili (CNDCEC) has shared responsibility for the adoption and implementation of auditing and assurance standards in Italy. The Ministry of Economy and Finance (MEF) formally adopts ISA Italia, while the CNDCEC participates in the national standard-setting process together with the Associazione Italiana Revisori Contabili, Istituto Nazionale Revisori Legali, and the Commissione Nazionale per le Società e la Borsa.

The CNDCEC supports implementation by contributing to the development and translation of ISA Italia and related quality management standards, issuing technical guidance, and providing continuing professional development for members. Recent activities include support for ISQM Italia 1, ISQM Italia 2, and ISA Italia 220, which are effective for audits of financial statements for periods beginning on or after January 1, 2025. The CNDCEC also provides practical resources and training on statutory audit, quality management, and audit methodology.

However, ISA Italia currently reflects the 2022 International Auditing and Assurance Standards Board Handbook, while the 2025 Handbook is the latest edition and includes more recent pronouncements, including the ISA for Less Complex Entities and International Standard on Sustainability Assurance 5000. As a result, there is a time lag in incorporating the latest international pronouncements into national requirements.

The CNDCEC is encouraged to continue working with the MEF and other stakeholders to reduce the time lag in adopting and translating new and revised International Auditing and Assurance Standards Board pronouncements and to support timely implementation by members.

Current Status: Review & Improve

The Consiglio Nazionale dei Dottori Commercialisti e degli Esperti Contabili (CNDCEC) is responsible for setting ethical requirements for its members under Legislative Decree No. 139/2005. The CNDCEC approved an updated Code of Ethics on March 21, 2024, effective April 1, 2024, and continues to provide members with guidance and training to support implementation.

The CNDCEC also participates in the development of ethical requirements for statutory auditors. The Italian Code of Ethics and Independence for statutory auditors was adopted by determination of the Ministry of Economy and Finance on March 23, 2023 and applies to statutory audits of financial statements for periods beginning on or after January 1, 2023. The Code is based on the 2018 International Ethics Standards Board for Accountants Code, with adaptations for the Italian and European legal frameworks.

The CNDCEC supports implementation through technical guidance, professional development, and participation in national and international standard-setting activities. However, the statutory auditor Code remains based on the 2018 Code and does not yet incorporate the latest International Ethics Standards Board for Accountants revisions reflected in the 2025 Handbook.

The CNDCEC is encouraged to continue working with the Ministry of Economy and Finance and other stakeholders to reduce the time lag in updating national ethical requirements and to raise awareness of the latest changes.

Current Status: Review & Improve

The Consiglio Nazionale dei Dottori Commercialisti e degli Esperti Contabili (CNDCEC) has no direct responsibility for adopting public sector accounting standards in Italy. Public sector accounting reform is led by the Ministry of Economy and Finance through the Ragioneria Generale dello Stato, with Italy implementing an accrual-based accounting reform for public administrations under the National Recovery and Resilience Plan. The reform is intended to introduce standards developed with reference to International Public Sector Accounting Standards (IPSAS) and European Public Sector Accounting Standards.

The CNDCEC uses its best endeavors by contributing to advocacy, consultation, research, and training activities related to public sector accounting. It maintains a public sector working group, disseminates developments related to IPSAS, and has previously translated IPSAS materials and organized continuing professional development activities to support members and stakeholders.

The CNDCEC is encouraged to continue supporting the public sector accrual reform by providing technical input, practical guidance, and training for members involved in public sector accounting and reporting, including on the application of IPSAS-based requirements as they are progressively implemented.

Current Status: Sustain

The Consiglio Nazionale dei Dottori Commercialisti e degli Esperti Contabili (CNDCEC) has shared responsibility for investigation and discipline (I&D) arrangements for its members. Disciplinary authority is exercised by the territorial disciplinary councils, while appeals may be brought before the CNDCEC and the ordinary courts. The CNDCEC maintains national disciplinary regulations and provides guidance to support consistency across territorial orders.

For statutory auditors, Legislative Decree No. 39/2010 establishes separate I&D arrangements. The Ministry of Economy and Finance (MEF) is responsible for statutory auditors and audit firms that do not audit public interest entities, while the Commissione Nazionale per le Società e la Borsa (CONSOB) is responsible for statutory auditors and audit firms that audit public interest entities.

The CNDCEC supports SMO 6 implementation by maintaining and updating disciplinary regulations, issuing guidance to territorial orders, and coordinating with the MEF and CONSOB where members are also registered as statutory auditors. It has taken steps to strengthen the framework and promote alignment with SMO 6 best practices across the profession.

However, given the decentralized structure, continued efforts are needed to ensure consistent implementation of I&D procedures across all territorial orders, including strengthening links with quality assurance review outcomes and ensuring clear separation of investigative and disciplinary functions.

The CNDCEC is encouraged to continue harmonizing territorial I&D procedures and to further strengthen coordination with the MEF and CONSOB to enhance consistency and alignment with SMO 6 requirements.

Current Status: Execute

The Consiglio Nazionale dei Dottori Commercialisti e degli Esperti Contabili (CNDCEC) has no direct responsibility for adopting IFRS Accounting Standards in Italy. IFRS as adopted by the European Union (EU) are required for the consolidated financial statements of companies whose securities are admitted to trading on an EU regulated market, while other entities generally apply Italian accounting standards issued by the Organismo Italiano di Contabilità (OIC).

The CNDCEC uses its best endeavors by contributing to the OIC standard-setting process, monitoring changes to EU and international reporting requirements, and supporting members through technical guidance and continuing professional development on corporate reporting and IFRS-related matters. The CNDCEC also engages in consultation activities and monitors developments issued by the International Accounting Standards Board.

The sustainability reporting framework has evolved with Italy’s transposition of the Corporate Sustainability Reporting Directive through Legislative Decree No. 125/2024. Companies within scope are required to report in accordance with European Sustainability Reporting Standards, with phased application beginning from financial years starting in 2024.

The CNDCEC is encouraged to continue supporting members with implementation of evolving IFRS and sustainability reporting requirements, including practical guidance and training on European Sustainability Reporting Standards and connectivity between financial and sustainability reporting.

Current Status: Sustain