Georgian Federation of Professional Accountants and Auditors

Since responsibility for the mandatory quality assurance review system was transferred to the Service for Accounting, Reporting and Auditing Supervision (SARAS), the Georgian Federation of Professional Accountants and Auditors (GFPAA) has focused on supporting implementation for its members through training, guidance, and pre-inspection support. GFPAA’s recent action plan indicates that it continues to provide training on International Standard on Quality Management 1, International Standard on Quality Management 2, and preparation for SARAS quality assurance reviews, including preliminary reviews of member firms’ quality management systems and recommendations for improvement.

Regulatory developments have also strengthened the framework since the previous assessment. SARAS adopted the 2022 and 2023–2024 international auditing and quality management standards for use in the jurisdiction and continues to operate a cycle- and risk-based monitoring system, with reviews at least every three years for auditors of public interest entities and first-category entities and every six years for other audit firms and auditors.

GFPAA therefore continues to meet its obligations under Statement of Membership Obligations 1 by supporting implementation of the jurisdiction’s quality assurance framework, promoting the new quality management standards, and helping members prepare for external reviews. However, as previously noted, the jurisdiction-level system has not yet been shown to fully meet all SMO 1 requirements, particularly with respect to the expertise of review teams. Accordingly, the rating remains Sustain.

Current Status: Sustain

The Georgian Federation of Professional Accountants and Auditors (GFPAA) continues to play a central role in implementing education requirements in Georgia. GFPAA remains recognized by the Service for Accounting, Reporting and Auditing Supervision (SARAS) to administer certification, examinations, and continuing professional development, and its certification program was updated and re-recognized by SARAS on May 31, 2023. The program is based on the Association of Chartered Certified Accountants (ACCA) qualification and holds ACCA accreditation for 2024-2028.

GFPAA supports implementation through its certification program, continuing professional development monitoring, and collaboration with universities and stakeholders. Ongoing initiatives include strengthening alignment between academic programs and professional requirements and supporting lecturer development.

At the jurisdiction level, recent World Bank assessments continue to note progress in aligning education requirements with the International Education Standards, while identifying remaining gaps in university curricula and in monitoring and assessment of practical experience.

Accordingly, while GFPAA is actively supporting implementation and alignment with SMO 2 requirements, jurisdiction-level gaps remain. The fulfillment level is therefore assessed as Review & Improve.

GFPAA is encouraged to continue working with SARAS, universities, and other stakeholders to strengthen alignment of academic programs with the latest IES and to enhance the monitoring and assessment of practical experience in line with international best practices.

Current Status: Review & Improve

Since responsibility for adoption of auditing standards was transferred to the Service for Accounting, Reporting and Auditing Supervision (SARAS), the Georgian Federation of Professional Accountants and Auditors (GFPAA) has focused on supporting implementation of International Standards on Auditing and related pronouncements for its members.

GFPAA provides ongoing support through updates to its initial and continuing professional development programs, incorporating new and revised auditing and quality management standards, including International Standard on Quality Management 1 and International Standard on Quality Management 2. It delivers regular training, practical workshops, and targeted guidance, including materials and tools tailored to small and medium practices. GFPAA also maintains and updates practical implementation resources, including audit methodologies and manuals, and continues to provide consultations and pre-engagement support to members.

In addition, GFPAA collaborates with international organizations, including the World Bank and other development partners, to enhance audit quality, update training materials, and strengthen capacity-building initiatives. It has established dedicated support for small and medium practices through a specialized committee focused on identifying challenges and developing targeted responses.

At the jurisdiction level, SARAS has continued to adopt the latest auditing and quality management standards and to strengthen the regulatory framework, further supporting implementation.

GFPAA has therefore demonstrated an ongoing and structured approach to supporting implementation of ISA and related standards within the scope of its authority. Accordingly, the fulfillment level is assessed as Sustain.

Current Status: Sustain

Since responsibility for adoption of ethical requirements was transferred to the Service for Accounting, Reporting and Auditing Supervision (SARAS), the Georgian Federation of Professional Accountants and Auditors (GFPAA) has focused on supporting implementation of the International Code of Ethics for Professional Accountants (including International Independence Standards).

GFPAA provides ongoing implementation support through regular ethics-focused seminars and trainings, incorporation of the Code into both initial and continuing professional development programs, and continuous updates of its education materials to reflect new and revised ethical requirements. It also disseminates guidance and updates through its website and its monthly publication Accounting Journal, ensuring members are informed of developments and practical implications of the Code.

In addition, GFPAA operates dedicated governance structures, including an Ethics and Disciplinary Committee, and integrates ethical requirements into its membership policies, certification framework, and CPD monitoring processes. It collaborates with SARAS on translation, implementation, and awareness activities related to updates of the Code and provides ongoing support to members through consultations and targeted training initiatives.

Recent regulatory developments, including SARAS’s continued adoption of updated versions of the Code, further support GFPAA’s implementation activities.

GFPAA has therefore demonstrated an ongoing and structured approach to supporting implementation of the Code within the scope of its authority through training, publications, governance mechanisms, and cooperation with the regulator. Accordingly, the fulfillment level is assessed as Sustain.

Current Status: Sustain

The Georgian Federation of Professional Accountants and Auditors (GFPAA) continues to support implementation of International Public Sector Accounting Standards (IPSAS) in Georgia through cooperation with the Ministry of Finance and participation in public sector reform initiatives. IFAC’s member information indicates that GFPAA has a representative on the Georgian Public Sector Accounting Standards Board and continues to collaborate with the Ministry of Finance on IPSAS implementation matters. GFPAA also participates in regional knowledge-sharing on public sector accounting reforms through the World Bank’s Public Sector Accounting and Reporting Program (PULSAR).

Recent jurisdictional developments show continued progress in the public sector framework. The Treasury’s reform materials state that the objective remains full compliance with IPSAS and full accrual accounting, while the World Bank’s 2025 Public Sector Accounting Assessment (PULSE) Report of Georgia confirms that Georgia has implemented 24 accrual-based IPSAS, adopted additional standards including IPSAS 38 and IPSAS 40 from 2024, and continues reform efforts across central and local government entities. These developments provide an active platform for GFPAA’s support, outreach, and technical engagement.

Within the scope of its authority, GFPAA continues to engage with key public sector stakeholders, support awareness of IPSAS developments, and contribute to implementation dialogue as reforms progress. Accordingly, the fulfillment level is assessed as Sustain.

Current Status: Sustain

Since the adoption of the Law of Georgia on Accounting, Reporting and Audit, responsibility for the investigative and disciplinary (I&D) system has been shared between the Service for Accounting, Reporting and Auditing Supervision (SARAS) and professional organizations. The Georgian Federation of Professional Accountants and Auditors (GFPAA) remains responsible for investigating and disciplining its members under rules approved by SARAS, while SARAS oversees the system and is responsible for auditors and audit firms. (Law on Accounting, Reporting and Audit)

GFPAA has established an Ethics and Disciplinary Committee and has continued to enhance its procedures in line with Statement of Membership Obligations 6. Its framework includes both complaint-based and information-based approaches, an independent disciplinary process, and an appeals mechanism. GFPAA reports that it conducts ongoing monitoring of cases and maintains procedures for sanctions, timelines, and due process. Recent SMO Action Plan updates indicate that GFPAA continues to review and refine its I&D processes and raise awareness among members through guidance and professional education. GFPAA integrates I&D considerations into ethics training and disseminates guidance on professional conduct and enforcement processes. It also maintains transparency by publishing disciplinary outcomes and ensuring that members are informed of enforcement mechanisms and expectations.

At the jurisdiction level, the I&D system incorporates key SMO 6 elements, including investigation, discipline, sanctions, and oversight. However, responsibilities are shared across institutions, and publicly available information does not fully demonstrate consistent alignment with SMO 6 best practices across all professional organizations.

Accordingly, while GFPAA has strengthened its own I&D framework and continues to support implementation, the overall system requires further alignment at the jurisdiction level. The fulfillment level is therefore assessed as Review & Improve.

GFPAA is encouraged to continue working with SARAS and other professional organizations to promote consistent application of SMO 6 requirements across the profession and to support further alignment of the jurisdiction-level I&D system with international best practices.

Current Status: Review & Improve

Since responsibility for adoption of financial reporting standards was transferred to the Service for Accounting, Reporting and Auditing Supervision (SARAS), the Georgian Federation of Professional Accountants and Auditors (GFPAA) has focused on supporting implementation of International Financial Reporting Standards (IFRS Accounting Standards) and the IFRS for SMEs Accounting Standard for its members. GFPAA reports that both full IFRS and IFRS for SMEs are incorporated into its initial and continuing professional development programs, and that it provides technical support, practical guidance, and targeted training based on member needs, including support for members in the regions. GFPAA has also worked with the regulator on standards for micro entities and non-entrepreneurial legal entities.

Recent jurisdictional developments have strengthened this support framework. SARAS adopted the 2025 edition of the IFRS Blue Book in May 2025 and continues to make updated reporting standards available in Georgian. SARAS has also expanded implementation support on IFRS for SMEs, including regional outreach and a support program launched with the World Bank for the updated IFRS for SMEs Standard.

GFPAA therefore demonstrates an ongoing and structured approach to supporting implementation of IFRS and IFRS for SMEs through education, technical assistance, and cooperation with the regulator. Accordingly, the fulfillment level is assessed as Sustain.

Current Status: Sustain