Institute of Certified Public Accountants of Cyprus

The Cyprus Public Audit Oversight Board (CyPAOB) is responsible for the quality assurance (QA) review system for the audits of financial statements in accordance with the Auditors Law of 2017. Following the enactment of a formal agreement initially signed on 12 September 2017 and subsequently revised on 10 July 2020, ICPAC has been officially delegated the responsibility of conducting a QA review system for firms that audit non-public interest (PIEs) entities while CyPAOB conducts QA reviews of audit firms that audit PIEs.

ICPAC operates its QA review system in collaboration with the Association of Chartered Certified Accountants (ACCA), which acts as a subcontractor, conducting monitoring visits and ensuring compliance with ISA, IFRS Accounting Standards, and the IESBA Code of Ethics. The QA system follows a combination of cycle-based and risk-based approaches to monitor firms’ compliance. ICPAC reports in its 2025 SMO Action Plan that its system is fully aligned with SMO 1 requirements and incorporates supervision for anti-money laundering purposes as well. The Prevention and Suppression of Money Laundering Activities Law stipulates ICPAC as the Supervisory Authority for auditors and trust and company service providers for anti-money laundering purposes. ICPAC has issued binding AML/CFT and Sanctions Directives and conducts on-site and off-site monitoring reviews using a risk-based supervision tool.

To ensure continued alignment with SMO 1, ICPAC regularly reviews and enhances its QA review system. The QA review team is trained and qualified, and its findings inform ICPAC’s ongoing regulatory improvements. Furthermore ICPAC presents on an annual basis significant findings of the QA reviews, aiming to promote transparency and support auditors in learning from these insights.

ICPAC incorporates ISQM 1 & 2 in its educational programming, provides its members with implementation support materials, and continue to raise awareness of its members about the changes. ICPAC also provides up-to-date, relevant information in its monthly technical alert, quarterly magazine, Accountancy Cyprus and facilitates access to IFAC Global Knowledge Gateway. ICPAC offers a number of educational seminars for its members in order to strengthen their knowledge and compliance.

Current Status: Sustain

With initial professional development (IPD) requirements established in the law, ICPAC is responsible for their implementation as well as for administering, training and monitoring of the continuing professional development (CPD) program.

ICPAC reports in its SMO Action Plan that it established an ongoing process to review the requirements of the IES and determine whether its IPD and CPD requirements comply with those of the revised IES. ICPAC reports that the revision of the requirements of its CPD scheme to align with IES 8 were completed by December 2016.

In 2022, ICPAC completed a comprehensive review of the existing educational requirements for professional accountants in the jurisdiction against those of revised 2019 IES and re-confirmed alignment.

ICPAC reports that it communicates to members and other stakeholders about any updated or revised standards. ICPAC collaborates with the Association of Chartered Certified Accountants (ACCA), its partner in the joint examination scheme, to ensure that the examination and CPD syllabi incorporate new and revised international accounting, auditing, internal control, and ethical standards. ICPAC members are subject to a mandatory CPD program which entails 40 hours of relevant CPD annually. Members are required to make an annual declaration of their CPD fulfillment. In 2023, ICPAC established a separate checklist on IES 8 for audit practitioners for specific areas of training required and has been working on educating members on the importance of quality of the CPD courses (i.e., relevance to their position) and not just quantity. The annual CPD Declaration was also revised in 2022 and further in 2023 to incorporate relevant declaration options for ICPAC Members who are practitioners and/or appointed compliance officers in an ICPAC regulated entity. ICPAC delivers a wide range of courses and training opportunities to its members.

Current Status: Sustain

Until the European Commission adopts ISA, the national legislation requires application of ISA as issued by IAASB in Cyprus.

A number of duties were delegated to the Institute of Certified Public Accountants (ICPAC) via a formal agreement initially signed on 12 September 2017 and subsequently revised on 10 July 2020. ICPAC, as a Recognised Body of Auditors (RBA), was delegated the duty to enforce audit procedures or requirements for members, which as of the date of the assessment is ISA as issued by IAASB. ICPAC enforces ISA compliance through its quality assurance (QA) review system, ensuring that members adhere to the latest auditing standards and quality management standards (ISQM 1 and ISQM 2).

ICPAC focuses on ensuring that members have access to the necessary education and training for implementing new and revised standards and translations of the standards in Greek (the Greek audit oversight body – the Hellenic Accounting and Auditing Standards Oversight Board – is officially responsible for the translation of IAASB pronouncements into Greek). ICPAC provides ongoing CPD courses on key ISA topics, including audit methodologies, group audits, compliance activities, and evolving audit challenges. These training sessions help members maintain audit quality and compliance with IAASB pronouncements.

Whenever new ISA pronouncements are issued, ICPAC provides practical guidance via technical circulars to its members. ICPAC circulates the update to its members and offers educational presentations for all its members to familiarize themselves with the new standards.

The Institute reports to monitor the IAASB work program, review exposure drafts, and disseminate information on changes to members and other stakeholders via email, its monthly technical alert, its quarterly magazine, Accountancy Cyprus and its website.

Current Status: Sustain

ICPAC shares responsibility for the adoption of ethical standards for the accountancy profession with Cyprus Public Audit Oversight Board (CyPAOB). Under the Auditors Law of 2017, until the European Commission (EC) adopts principle-based ethical measures, the International Code of Ethics (including independence standards) as issued by IESBA applies in Cyprus. ICPAC enforces compliance with the latest version of the IESBA Code among its members, both auditors and non-auditors. Compliance with the IESBA Code of Ethics is monitored as part of ICPAC’s quality assurance (QA) review system, ensuring that members adhere to the latest ethical standards.

ICPAC reports that it supports the ongoing adoption and implementation of the Code of Ethics by monitoring IESBA’s work programs and circulating all new and revised pronouncements to its members and the public. ICPAC reports to have adopted the 2024 version in its entirety and distributed printed versions of the Handbooks to its members. A link to the electronic version of the 2024 Handbook is also available on the ICPAC website.

New information, as well as clarifications and practical guidance, is disseminated via email, the monthly technical alert, quarterly magazine, and the IESBA Code of Ethics for Professional Accountants Handbook is made available on an annual basis. ICPAC has provided dedicated alerts on the upcoming revisions in the 2024 Handbook, such as revisions on NAS and fee-related provisions. Additionally, ICPAC provides a variety of courses in the initial professional development and continuing professional development programs on IESBA pronouncements to raise awareness, improve understanding, and enhance compliance with the requirements.

Finally, ICPAC contributes to the IESBA standard-setting process by reviewing exposure drafts and participating in discussions through Accountancy Europe and IFAC’s Small and Medium Practices Advisory Group (SMPAG).

Current Status: Sustain

Although ICPAC has no direct responsibility for the adoption of public sector accounting standards in Cyprus, it indicates in its SMO Action Plan that it promotes the adoption of IPSAS to the Accountant General—the authority responsible for setting public sector accounting standards.

ICPAC has established a Public Sector Committee, and the committee members participate as observers in a Government Steering Committee that was established to explore the adoption and implementation of accrual IPSAS. ICPAC reports that the Government’s Steering Committee has issued an action plan outlining a timeline to convert from the currently applicable cash-basis accounting standards to the accrual-basis standards. The action plan was launched in April 2016 by the Treasury Department and is expected to be completed in 2026.

ICPAC’s Public Sector Committee also monitors the IPSASB’s work program and provides updates to members via email and the institute’s quarterly magazine, Accountancy Cyprus. The institute intends to disseminate information on IPSAS on the ICPAC website.

The Institute reports that it collaborates with the Ministry of Finance and the Public Administration and Finance Committee for the training of ICPAC members who work in the public sector. On average, ICPAC organizes two education seminars annually available only for public sector members of the Institute.

ICPAC is encouraged to participate in the international standard-setting process by providing comments on IPSASB Exposure Drafts, if deemed relevant.

Current Status: Sustain

The Auditors Law of 2017 (the Law) establishes an investigation and disciplinary procedure (I&D) for statutory auditors and/or audit firms in the jurisdiction, under the direct responsibility of the Cyprus Public Audit Oversight Board (CyPAOB).

Initially, the responsibility to deal with complaints and therefore to enforce an I&D system for statutory auditors and/or audit firms, was delegated to the Institute of Certified Public Accountants of Cyprus (ICPAC). However, in 2020 this was amended and ICPAC is transfer all disciplinary cases and other complaints received pertaining to statutory auditors or audit firms to CyPAOB for processing.

Currently, ICPAC remains responsible for the investigation and discipline of its other members, including accountants, accounting firms, and students. This includes ethical misconduct, regulatory non-compliance, and quality assurance matters identified through ICPAC’s QA system.

ICPAC in 2021 launched the Regulatory/Administrative Committee and raised awareness to the public and its members through circulars for the new ‘Regulation for the Administrative Procedures and the Process of Imposing Administrative Sanctions’ and for the new Disciplinary Regulation that came in force.

Both the Regulatory/Administrative Committee and the Disciplinary Committee are independent of the management and Council of ICPAC and can impose any conditions or penalties they consider appropriate, evaluating the merits of each case. Appeal against the decisions of the Regulatory/Administrative Committee and/or the Disciplinary Committee may be exercised by the affected person to the District Court.

Wherever appropriate, ICPAC coordinates with relevant national authorities and professional organizations, including CyPAOB, the Cyprus FIU, and other regulatory bodies, on cases involving serious misconduct, financial crime, or breaches of AML regulations.. National judicial system investigations and rulings take precedence over the ICPAC I&D process. The results of disciplinary proceedings are published on ICPAC’s website, in accordance with GDPR regulations. If the Disciplinary Committee convicts a member, the decision will be publicly disclosed.

ICPAC reports that the system was last reviewed in 2021 during the revision of ICPAC’s I&D Regulations to ensure that they continue to comply with the requirements of revised SMO 6.

Current Status: Sustain

ICPAC has no direct responsibility for the adoption of corporate sector accounting standards but has a well-established process for supporting adoption and implementation of EU-endorsed IFRS. Compliance with IFRS Accounting Standards is monitored as part of ICPAC’s quality assurance (QA) review process, ensuring that members adhere to the latest financial reporting requirements.

The Institute monitors the IASB work programs, and reviews exposure drafts and other pronouncements released by the IASB through the European Financial Reporting Advisory Group. ICPAC also disseminates updates on IASB information to its members and key stakeholders via email, its monthly technical alert, its quarterly magazine, its website, and makes copies of the IFRS bound volumes available.

Furthermore, the Institute ensures that initial professional development and continuing professional development programs include educational resources and courses on standard-related topics and provides technical support to members on the implementation of the standards. ICPAC offers IFRS Accounting standards-focused CPD courses, covering recent amendments and key standards such as IFRS 9, IFRS 15, IFRS 16, IFRS 17, and IFRS 18. Training sessions include practical applications and common implementation challenges.

ICPAC is in the process of signing an agreement with an external organization for the provision of technical advice on international financial reporting and auditing.

Current Status: Sustain