Institute of Certified Public Accountants of Cyprus

The Cyprus Public Audit Oversight Board (CyPAOB) has ultimate responsibility for the quality assurance (QA) review system for statutory audits in Cyprus under the Auditors Law of 2017. The Institute of Certified Public Accountants of Cyprus (ICPAC), as the sole Recognised Body of Auditors, conducts QA reviews of statutory auditors and audit firms that audit non-public interest entities under the delegation agreement with CyPAOB, while CyPAOB conducts inspections of audit firms auditing public interest entities and oversees ICPAC’s delegated activities.

ICPAC continues to support implementation through audit monitoring visits, publication of common findings, and targeted training on International Standard on Quality Management 1, International Standard on Quality Management 2, and the International Code of Ethics for Professional Accountants. ICPAC also provides practical implementation tools, including an International Standard on Quality Management 1 manual for practicing members, and maintains technical updates, seminars, and guidance to support firms in addressing QA findings and strengthening audit quality.

ICPAC also performs risk-based anti-money laundering, counter-terrorist financing, and sanctions supervision for members and firms under its authority, supported by binding directives, guidance, compliance templates, and on-site and off-site monitoring procedures.

ICPAC’s activities demonstrate sustained implementation, monitoring, and member support in line with SMO 1 requirements.

Current Status: Sustain

Initial professional development requirements for statutory auditors are established under the Auditors Law of 2017, while the Institute of Certified Public Accountants of Cyprus (ICPAC) is responsible for implementation and for administering and monitoring continuing professional development (CPD) requirements for its members. ICPAC operates the Cyprus Joint Examination Scheme with the Association of Chartered Certified Accountants, which enables local students to satisfy the examination criteria for membership of both organizations and incorporates Cyprus-specific requirements.

ICPAC requires all members to complete relevant CPD annually, with 40 units required each year, including at least 21 verifiable units. Members must submit an annual CPD declaration, and ICPAC provides guidance, evidence submission procedures, waiver arrangements, and an International Education Standard 8 checklist for audit practitioners.

ICPAC continues to support members through a broad learning and development program, including technical seminars and webinars on auditing, International Standards on Auditing, International Standards on Quality Management, financial reporting, sustainability reporting, anti-money laundering, technology, and other emerging areas relevant to professional competence.

ICPAC’s ongoing review of education requirements, annual CPD monitoring, and member support activities demonstrate sustained implementation and alignment with SMO 2 requirements.

Current Status: Sustain

The Auditors Law of 2017 requires statutory audits in Cyprus to be conducted in accordance with International Standards on Auditing (ISA) as issued by the International Auditing and Assurance Standards Board until ISA are adopted at the European Union level. The Institute of Certified Public Accountants of Cyprus (ICPAC), as the sole Recognised Body of Auditors, supports implementation of ISA through its delegated regulatory activities, audit monitoring, and member support under the oversight of the Cyprus Public Audit Oversight Board.

ICPAC monitors compliance with ISA and International Standards on Quality Management through its quality assurance review system for non-public interest entity audit firms. It also supports implementation through technical circulars, seminars, webinars, and practical updates on audit quality, common audit monitoring findings, revised standards, and emerging audit issues. Recent activities include training on ISQM 1, ISQM 2, ISA 220 (Revised), audit opinion standards, going concern, and common findings identified through audit monitoring visits.

ICPAC continues to monitor the work program of the IAASB, disseminate new and revised pronouncements to members through technical alerts and publications, and provide continuing professional development to support consistent implementation. These activities demonstrate sustained implementation and alignment with SMO 3 requirements.

Current Status: Sustain

The Auditors Law of 2017 requires statutory auditors and audit firms in Cyprus to comply with the International Code of Ethics for Professional Accountants issued by the International Ethics Standards Board for Accountants (IESBA) until ethical standards are adopted at the European Union level. The Institute of Certified Public Accountants of Cyprus (ICPAC), under the oversight of the Cyprus Public Audit Oversight Board, supports implementation and monitors compliance with the Code for its members, including auditors and non-auditors. Compliance with ethical requirements is monitored through the quality assurance review system and disciplinary framework.

ICPAC continues to support implementation through technical alerts, ethics guidance, continuing professional development courses, webinars, and dissemination of new and revised pronouncements. Recent member support activities have included awareness and implementation support relating to revisions on non-assurance services, fee-related provisions, technology, tax planning and related services, and sustainability-related ethics and independence requirements. ICPAC also maintains access to the International Code of Ethics and related guidance materials through its website and member communications.

ICPAC monitors the work program of the IESBA, communicates exposure drafts and revisions to members, and contributes to the international standard-setting process through participation in Accountancy Europe, IFAC forums, and consultations. These activities demonstrate sustained implementation and member support in line with SMO 4 requirements.

Current Status: Sustain

The Institute of Certified Public Accountants of Cyprus (ICPAC) has no direct responsibility for the adoption of public sector accounting standards in Cyprus. The Treasury of the Republic of Cyprus is responsible for leading the public sector transition to accrual-basis International Public Sector Accounting Standards (IPSAS), and has published IPSAS-based accounting policy papers as part of the ongoing reform.

ICPAC supports the reform through its Public Sector Committee, which monitors IPSASB developments, promotes awareness of IPSAS implementation, and participates as an observer in relevant government-led discussions on the transition to accrual accounting. ICPAC also disseminates public sector accounting updates through member communications and its publication Accountancy Cyprus, including recent IFAC and IPSASB resources to support IPSAS implementation.

ICPAC continues to support members working in the public sector through targeted training and collaboration with relevant public authorities. These activities demonstrate sustained best-endeavors support for the adoption and implementation of IPSAS in line with SMO 5 requirements.

Current Status: Sustain

The investigation and discipline (I&D) system for statutory auditors and audit firms in Cyprus is established under the Auditors Law of 2017 and is administered by the Cyprus Public Audit Oversight Board (CyPAOB). CyPAOB is responsible for disciplinary referrals, complaints, and procedures involving statutory auditors and audit firms, including matters arising from non-compliance with applicable legislation, audit quality findings, or complaints submitted to CyPAOB.

The Institute of Certified Public Accountants of Cyprus (ICPAC) refers complaints and disciplinary matters involving statutory auditors and audit firms to CyPAOB, while retaining responsibility for I&D procedures for its members, accounting firms, graduate accountants, and students outside the statutory audit framework. ICPAC’s disciplinary and administrative sanctions framework sets out procedures for investigating misconduct, imposing sanctions, and publishing outcomes, with disciplinary and administrative committee decisions made publicly available on its website.

ICPAC continues to support implementation through public complaints procedures, disciplinary regulations, administrative sanctions procedures, and coordination with relevant authorities, including CyPAOB and anti-money laundering, counter-terrorist financing, and sanctions enforcement bodies where misconduct involves regulatory breaches. These activities demonstrate sustained implementation and alignment with SMO 6 requirements.

Current Status: Sustain

The Institute of Certified Public Accountants of Cyprus (ICPAC) has no direct responsibility for the adoption of corporate reporting standards in Cyprus, where International Financial Reporting Standards (IFRS) as adopted by the European Union are required under the Companies Law, Cap. 113. ICPAC supports implementation through technical guidance, continuing professional development, technical circulars, and monitoring of compliance with IFRS through its quality assurance review activities.

ICPAC continues to monitor International Accounting Standards Board developments and disseminate updates to members through technical alerts, circulars, publications, and training. Recent activities include member support on new and amended standards, including IFRS 18, IFRS 19, amendments to IAS 8, and financial reporting implications arising from Cyprus tax reform under IFRS as adopted by the European Union.

ICPAC also supports members on sustainability reporting developments, including Corporate Sustainability Reporting Directive implementation and European Sustainability Reporting Standards requirements, through frequently asked questions, technical alerts, and training.

ICPAC’s ongoing monitoring, technical support, training, and implementation guidance demonstrate sustained best-endeavors support for corporate reporting standards in line with SMO 7 requirements.

Current Status: Sustain