Institut der Wirtschaftsprüfer

The quality assurance review system in Germany is established at the jurisdiction level and is operated by the Abschlussprüferaufsichtsstelle for statutory audits of public interest entities and by the Wirtschaftsprüferkammer for other statutory audits under public oversight. Within this framework, the Institut der Wirtschaftsprüfer in Deutschland e.V. (IDW) does not administer the external review system directly, but it continues to support implementation through standard-setting, implementation tools, and technical guidance for audit firms.

Since the previous assessment, IDW has continued supporting firms with the implementation of the quality management framework through IDW QMS 1 (09.2022), IDW QMS 2 (09.2022), and ISA [DE] 220 (Revised), together with its IDW Quality Management Handbook and additional implementation material for less complex practices. IDW has also continued updating its framework, including revised draft standards IDW EQMS 1 (02.2026) and IDW EQMS 2 (02.2026) to reflect subsequent IAASB amendments.

Recent jurisdictional developments also affect fulfillment. The Wirtschaftsprüferkammer continues to publish quality assurance guidance, frequently asked questions, and practice-oriented materials for smaller firms, while the 2025 work program notes that the expected Corporate Sustainability Reporting Directive implementation will extend the quality control system to sustainability assurance engagements, requiring further adaptation of review processes and reviewer expertise.

Overall, IDW continues to play an active and appropriate supporting role in Germany’s quality assurance framework by issuing and updating relevant standards, providing implementation tools and technical guidance, and helping members apply the quality management requirements in practice. SMO 1 fulfillment is therefore assessed as Sustain.

Current Status: Sustain

Initial and continuing professional development requirements for the statutory audit profession in Germany continue to be established at the jurisdiction level under the Public Accountant Act, the Public Accountant Examination Regulation, and the professional bylaws of the Wirtschaftsprüferkammer (WPK). Within this framework, the Institut der Wirtschaftsprüfer in Deutschland e.V. (IDW) continues to play an active supporting role through professional education, exam preparation, and continuing professional development offerings for both aspiring and qualified professionals.

Since the previous assessment, IDW has continued to expand its education and implementation support through the IDW Akademie, including a broad program of seminars, webinars, podcasts, and technical training. Recent activities include the continued rollout of the Sustainability Auditor IDW qualification and related training offers, as well as a dedicated 40-hour course to support registration as a sustainability assurance practitioner under the proposed national Corporate Sustainability Reporting Directive implementation framework. These activities demonstrate continued support to members and firms in responding to evolving competency requirements.

IDW also continues to support members through its own continuing professional development requirements and technical communications. Its statutes require members in active professional practice to complete continuing professional development averaging at least 40 hours per year, while WPK bylaws require at least 40 hours annually, including 20 hours of structured learning. Recent WPK materials also show that these requirements continue to be embedded in implementation guidance and practice support.

At the jurisdiction level, WPK continues to maintain and publish the legal and examination framework, including the Public Accountant Examination Regulation, the reference framework for recognized study programs, and detailed examination guidance. Joint IDW and WPK work also continues to support consistency in examination content and competency expectations for entry to the profession.

Overall, IDW continues to undertake appropriate and sustained activities to support implementation of the jurisdiction’s education and continuing professional development framework and to help members respond to new competency demands, including in sustainability reporting and assurance. SMO 2 fulfillment is therefore assessed as Sustain.

Current Status: Sustain

The jurisdiction-level auditing framework in Germany continues to be based on standards issued by the Institut der Wirtschaftsprüfer in Deutschland e.V. (IDW), including ISA [DE] and related pronouncements. Within this framework, IDW has continued to play an active standard-setting and implementation support role through the issuance, updating, and maintenance of national auditing standards aligned with International Standards on Auditing and other International Auditing and Assurance Standards Board pronouncements.

Since the previous assessment, IDW has continued implementation support for members through technical guidance, training, and practice tools. Recent activities include guidance and frequently asked questions on ISA [DE] 600 (Revised), follow-on amendments to affected IDW auditing standards, and dedicated seminars through the IDW Akademie on group audits and new ISA [DE] developments.

IDW has also continued supporting members through practical tools tailored to smaller and less complex engagements. Its 2024/2025 activity report confirms the continued availability of IDW PS KMU for less complex entity audits, together with implementation aids and supporting materials. The same report also reflects IDW’s broader ongoing work to update standards and related guidance in response to new and revised IAASB pronouncements.

A key recent jurisdictional development is the issuance of ISA [DE] 600 (Revised) and related consequential amendments, applicable for audits of financial statements for periods beginning on or after 15 December 2024, with voluntary early application permitted from 15 December 2023. This demonstrates continued maintenance of the national framework in line with international developments.

Overall, IDW continues to fulfill an active and sustained role in translating, issuing, updating, and supporting implementation of auditing standards in Germany through standard-setting, technical publications, training, and practice support. SMO 3 fulfillment is therefore assessed as Sustain.

Current Status: Sustain

Ethical requirements for the statutory audit profession in Germany continue to be established at the jurisdiction level under the Public Accountant Act, the German Commercial Code, the Berufssatzung für Wirtschaftsprüfer/vereidigte Buchprüfer, and applicable European Union independence requirements. Within this framework, the Wirtschaftsprüferkammer (WPK) remains the primary body responsible for maintaining and updating the national ethical framework, while the Institut der Wirtschaftsprüfer in Deutschland e.V. (IDW) supports implementation through professional guidance, publications, and continuing professional development.

Since the previous assessment, the WPK has continued updating the national ethics framework. Its 2024 annual report notes the third amendment to the Berufssatzung für Wirtschaftsprüfer/vereidigte Buchprüfer, and WPK publications in late 2024 and early 2025 confirm a fourth amendment and continued work to reflect international developments, including revisions related to quality management, professional skepticism, and other ethics-related requirements.

Recent jurisdictional developments also show continued monitoring and implementation support for new international ethics developments. WPK has published updates on the 2024 and 2025 IESBA Handbooks, sustainability-related independence and ethics standards, and IAASB/IESBA implementation materials linked to sustainability reporting and assurance. These activities help keep the profession informed of evolving requirements and support practical application in Germany.

In addition, WPK continues to engage in international consultation processes on ethics matters, including consultations on the changed public interest entity definition and other IESBA projects, while IDW continues to support members through technical communications and professional development activities. Taken together, these activities indicate that the PAO continues to play an active and sustained role in maintaining awareness of ethics developments and supporting implementation in practice.

Overall, Germany’s PAO activity in relation to ethics remains strong and ongoing, with recent amendments to the national code and continuing implementation support for new international developments. SMO 4 fulfillment is therefore assessed as Sustain.

To further support movement of the jurisdiction-level adoption status toward Adopted, the WPK and IDW are encouraged to continue advocating for and facilitating full convergence of the national ethical framework with the 2025 IESBA Handbook, including timely incorporation of the latest sustainability and public interest entity-related revisions.

Current Status: Sustain

Public sector accounting in Germany continues to be determined by separate legal and regulatory frameworks at the federal, state, and local levels, and International Public Sector Accounting Standards (IPSAS) have not been adopted in the jurisdiction. Within this environment, the Institut der Wirtschaftsprüfer in Deutschland e.V. (IDW) continues to play a best-endeavours role by promoting accrual-based public sector reporting and contributing to national and European discussions on IPSAS and European Public Sector Accounting Standards (EPSAS).

Since the previous assessment, IDW has continued its outreach and thought leadership through public sector publications and position papers. Its factsheet IPSAS as a reference framework for EPSAS? remains part of its advocacy for stronger accrual-based public sector accounting and explicitly presents IPSAS as the main international reference point for future EPSAS development.

Recent jurisdictional developments reinforce the continued relevance of these activities. Eurostat and the European Commission have continued advancing the EPSAS agenda, confirming that public sector accrual reporting remains an active policy area within the European Union. Against this backdrop, IDW’s continued participation in discussions on IPSAS and EPSAS remains relevant to Germany’s public sector accounting environment.

Overall, IDW continues to undertake appropriate best-endeavours activities through advocacy, publications, and participation in European public sector accounting discussions, despite not having authority to adopt public sector accounting standards in Germany. SMO 5 fulfillment is therefore assessed as Sustain.

Current Status: Sustain

Germany’s investigation and discipline framework continues to operate at the jurisdiction level under the Public Accountant Act, with the Wirtschaftsprüferkammer (WPK) responsible for professional oversight for the broader profession and the Abschlussprüferaufsichtsstelle (APAS) responsible for the public interest entity audit segment. Within this framework, WPK continues to play an active and sustained role through case handling, publication of final disciplinary measures, and transparency reporting on its professional oversight activities.

Since the previous assessment, WPK has continued to strengthen transparency and monitoring of the system. Its 2024 report on professional oversight notes that completed oversight proceedings increased to 150 in 2024, up from 105 in the previous year, while newly initiated proceedings totaled 137. WPK also continues to publish final disciplinary measures on its website pursuant to section 69 WPO, which supports public awareness of the system and its outcomes.

WPK also continues to support implementation through preventive and supervisory activities linked to professional conduct and reporting quality. Its published 2025 priorities for Abschlussdurchsicht show continued risk-based monitoring of financial statements and audit reporting, which helps identify issues that may feed into oversight activity and supports awareness among practitioners of recurring areas of concern.

Recent jurisdictional developments also remain relevant. WPK has informed members of APAS’s 2025 work program, which confirms the continuing public oversight focus on enforcement and inspection activity in the jurisdiction. Taken together, these developments indicate that the investigation and discipline framework remains active, transparent, and operational, with WPK continuing to fulfill an important role in its implementation.

Overall, WPK continues to undertake appropriate and sustained activities in support of the jurisdiction’s investigation and discipline system. SMO 6 fulfillment is therefore assessed as Sustain.

Current Status: Sustain

Financial reporting requirements in Germany continue to be established at the jurisdiction level through the German Commercial Code and directly applicable European Union legislation, with International Financial Reporting Standards (IFRS) required for consolidated financial statements of listed entities. Within this framework, the Institut der Wirtschaftsprüfer in Deutschland e.V. (IDW) continues to play an active supporting role by providing implementation guidance, training, publications, and technical input on IFRS developments relevant to members and firms.

Since the previous assessment, IDW has continued to support implementation of new and revised IFRS through its technical communications and education activities. The IDW Akademie’s recent program includes dedicated IFRS training on developments such as IFRS 18 and current International Accounting Standards Board and European Union endorsement developments, while IDW has also published practical questions and answers on the interpretation and application of IFRS 18.

Recent jurisdictional and regional developments also affect fulfillment. The Deutsches Rechnungslegungs Standards Committee (DRSC) has continued to participate actively in the European endorsement process, including support for endorsement of IFRS 18 and consultation on IFRS 19, while also conducting a recent evaluation of the application of IFRS in Germany. These developments reinforce the ongoing need for implementation support and stakeholder engagement in the jurisdiction.

IDW’s 2024/2025 activity report also confirms continued work on corporate reporting, including guidance and comments relating to financial and non-financial reporting developments. Taken together, these activities indicate that IDW continues to undertake sustained and appropriate actions to support awareness, implementation, and application of IFRS in Germany, despite not being the body that formally adopts accounting standards. SMO 7 fulfillment is therefore assessed as Sustain.

Current Status: Sustain