Instituto de Contadores Públicos Autorizados de la República Dominicana
Member | Established: 1944 | Member since 1978
Under the Law 633 of 1944 and the Decree 2032 of 1984, the ICPARD was established as an organization uniting Certified Public Accountants (CPA). It is authorized to carry out certain regulatory responsibilities for CPAs and audit firms such as: (i) establishing accounting, auditing, ethical, and other professional standards for application; (ii) monitoring its members’ compliance with the code of ethics; (iii) maintaining registers of CPAs and firms; (iv) investigating and disciplining its members; and (v) promoting the advancement of the profession by establishing continuing professional development requirements for its members. CPAs and audit firms must be a member of the institute in order to practice accountancy in the jurisdiction.
In addition to being a member of IFAC, the ICPARD is a member of the Inter-American Accounting Association and the Group of Latin American Accounting Standards Setters.
Statements of Membership Obligation (SMO)
The Statements of Membership Obligations form the basis of the IFAC Member Compliance Program. They serve as a framework for credible and high-quality professional accountancy organizations focused on serving the public interest by adopting, or otherwise incorporating, and supporting implementation of international standards and maintaining adequate enforcement mechanisms to ensure the professional behavior of their individual members.
SMO 1: Quality Assurance
In the absence of a legally required and operational quality assurance (QA) review system for audit work, the ICPARD is pursuing plans to support the establishment and implementation of a mandatory QA review system and adoption of relevant standards. The institute reports that it has adopted ISA 220 and ISQC 1 for application by its members, which are the only individuals permitted to carry out audits in the Dominican Republic, through a Technical Resolution of June 30, 2000, and has created a Special Committee to promote the establishment of a mandatory QA review system at the jurisdiction level.
At present, the Special Committee of ICPARD is in the process of first establishing a voluntary QA system for its members. This process began in 2013 when the ICPARD signed an agreement with Inter-American Accounting Association; however, the program has yet to be implemented and has been postponed. The institute states that a lack of funding and costs for the local firms are the primary challenges hindering the development and implementation of a QA review system.
Nonetheless, the ICPARD states that it will support members’ implementation of the quality control standards by providing training activities, disseminating information on relevant standards, and preparing implementation guidelines.
The ICPARD is encouraged to conduct a self-assessment of its proposed QA review system regulation against the requirements of SMO 1 and develop specific actions to close the existing gaps, if any. During the next round of its Action Plan update, the ICPARD is encouraged to provide an update on the establishment and implementation of the QA review system for its members.
In addition, the ICPARD encouraged to establish plans in its SMO Action Plan to promote and support the development of a unified, mandatory QA review system at the jurisdiction level for all audits, working with the regulators and other relevant organizations to introduce a QA system, and to promote such a systems’ compliance with the revised SMO 1 requirements.
SMO 2: International Education Standards
In the Dominican Republic, the Ministry of Finance, universities, and the ICPARD all have a role in setting initial professional development (IPD) and continuing professional development (CPD) requirements for professional accountants; however, ICPARD indicates that it has limited authority to incorporate the requirements of IES into national requirements and is only legally capable and responsible for establishing CPD requirements for its members.
Accordingly, in 2014 the institute adopted CPD requirements for its members that are in line with IES requirements and has now turned its focus toward promoting IPD requirements that are more aligned with the IES. ICPARD indicates that it has established a Continuing Education Committee which has signed agreements with various universities aimed at promoting the IES and encouraging the universities to incorporate the requirements into their accounting curricula so that graduates have a uniform and adequate level of accounting education and knowledge prior to practicing. In addition, it has proposed legal changes to the Law 633 of 1944 and the Decree 2032 of 1984 in order to give ICPARD the authority to set IPD and CPD requirements that would be in line with international standards. The project was scheduled for 2015; however it was postponed due to the Conferencia Interamericana de Contabilidad (CIC) 2015, which took place in the Dominican Republic, and it is unclear what the current status of the project may be.
Lastly, the ICPARD also began a separate project in 2013 to consider an entry exam for Certified Public Accountants which would be implemented upon passage of the amendments to the abovementioned laws. This initiative has also been postponed due to the CIC 2015.
The ICPARD is encouraged to indicate the specific actions it undertakes to promote changes to the legal framework to introduce IPD and CPD requirements for professional accountants to the government.
The ICPARD is encouraged to establish plans in its SMO Action Plan to promote and support the adoption of the revised IES requirements to the regulators and government with a defined timeline and following guidance by IFAC staff and indicate which actions have been completed.
SMO 3: International Standards on Auditing
ICPARD reports that it has adopted the Spanish translations of ISA since 1999 through ICPARD’s technical resolutions without modifications for non-regulated companies and its members—who are the only authorized individuals in the Dominican Republic to conduct audits. However, the version of ISA and the translation being used is unclear. The institute has established an Audit Standards and Procedures Committee to monitor new and revised pronouncements issued by the IAASB.
To support its members with the implementation of ISA, the ICPARD provides training activities such as workshops and train the trainers’ courses, and disseminates information on the international developments in the area. In addition, the ICPARD has stated plans to develop voluntary certification exams on ISA for Certified Public Accountants in order to promote further specialization and knowledge of the professionals conducting audits in the country.
The ICPARD is encouraged to update its SMO Action Plan to indicate the current legal and regulatory requirements for conducting audit activities for regulated companies. The ICPARD should update the SMO Action Plan following staff guidance and indicate specific ways it is engaging with regulators to promote the adoption of ISA. If deemed feasible, it would be beneficial for the ICPARD to participate in the international standard-setting process by providing comments on exposure drafts and other IAASB pronouncements.
The ICPARD is encouraged to ensure reference to the standards is available through its website and proper policy agreements are in place with IFAC. Please see the policies here.
SMO 4: Code of Ethics for Professional Accountants
The ICPARD is responsible for setting ethical requirements for its members and has adopted a Code of Ethics based on the 2009 IESBA Code of Ethics. The ICPARD has created a Qualifications and Ethics Committee that is responsible for setting and updating the ethical requirements, and ensuring compliance with the Code.
The ICPARD indicates that it has processes in place to disseminate information about the Code through lectures, seminars, its website, and printed materials, and has also included the Code in training programs. However, no further activities have been reported since 2013.
The ICPARD is encouraged indicate in its SMO Action Plan the alignment of its Code of Ethics with the IESBA Code of Ethics requirements. The ICPARD is encouraged to include specific plans to consider the full adoption of the IESBA Code of Ethics or consider a convergence process to eliminate differences, if any, with the IESBA Code of Ethics. In addition, the ICPARD is encouraged to update its SMO Action Plan to indicate the actions it undertakes to raise awareness amongst its members, regulators, and the general public about the IESBA Code of Ethics.
SMO 5: International Public Sector Accounting Standards
In the Dominican Republic, the General Agency of Government Accounting (DIGECOG)—the governmental organization responsible for adopting the standards—has adopted the 2011 IPSAS with phased implementation dates beginning in 2016. ICPARD reports that its primary role in this area is to support the implementation process.
As part of these efforts, the ICPARD has signed training agreements with government agencies, such as, the DIGECOG, General Bureau of Governmental Ethics and Integrity, Dominican Chamber of Accounts, and has provided multiple IPSAS workshops and training activities for its members. In addition, the IPCARD invited the DIGECOG’s general director to provide an update on IPSAS adoption and implementation as part of the Inter-American Accounting Association Conference held in 2015 in the Dominican Republic.
The ICPARD is encouraged to update its SMO Action Plan with more recent, specific activities being carried out to notify members and stakeholders of all new, proposed, and revised IPSAS and other pronouncements. In addition, the ICPARD is also encouraged to ensure the DIGECOG has the proper policy agreements in place with IFAC to reproduce the IPSAS. Please see the policies here.
SMO 6: Investigation and Discipline
The ICPARD is responsible for establishing and operating an investigative and disciplinary (I&D) system for professional accountants and, accordingly, has created an Investigation, Qualifications, and Ethics Committee and a Disciplinary Tribune to comprise its I&D system. The Disciplinary Tribune will hear the cases reported by the Investigation, Qualifications, and Ethics Committee. The system is apparently operational and active. In 2015 five cases were reported to the Committee with one resulting in sanctions.
The ICPARD reports that it has prepared regulations and rules related to its I&D system; however, it is not clear if the institute has reviewed and incorporated the SMO 6 requirements into its procedures. However, this action seems to have been delayed in the past years and further details on any progress in this area have been requested.
The ICPARD is strongly encouraged to carry out a self-assessment of its I&D policies and processes against the requirements of SMO 6. If gaps in compliance exist, the ICPARD should prioritize the development of plans to adopt any missing requirements and update its SMO Action Plan accordingly. The ICPARD is also encouraged to update its the SMO 6 section of its Action Plan with specific activities being carried out to distribute information to members regarding recent developments and revisions of the I&D system. Additionally, the ICPARD should ensure that the public also has access to information about the I&D system and how people may register complaints about members’ misconduct.
SMO 7: International Financial Reporting Standards
The ICPARD has adopted IFRS and IFRS for Small- and Medium-sized Entities (SMEs) as the applicable accounting standards for non-regulated companies. The ICPARD reports that it has established a Standards and Principles Committee which is responsible for advising the institute in the preparation and issuance of technical resolutions (in which it has defined SMEs to clarify appropriate standards for companies), continuously reviewing and updating technical resolutions based on new and amended standards, developing implementation guidance, and developing training activities for its members.
As part of its efforts to facilitate IFRS implementation and disseminate the accounting standards, ICPARD has signed agreements with professional and business institutions and other associations, such as, the Dominican Association of Engineers, Architects and Land Surveyors, the Dominican Association of Lawyers of Dominican Republic, the Economists Association, and the National Confederation of Small and Medium Enterprise. Additionally, the institute has agreements with universities to ensure training on the standards by including IFRS in the accounting curricula.
In order to assist its members with understanding the requirements and implementation of the accounting standards, the institute has signed an agreement with the Inter-American Accounting Association to offer an online certification in IFRS for SMEs, and collaborated with international Certified Public Accountant firms to develop train the trainers’ courses with the objective of having the participants be able to replicate their training activities throughout the country. Finally, the ICPARD Higher Studies Center offers courses on IFRS and IFRS for SMEs to further increase members’ knowledge on the standards.
The ICPARD is encouraged to update its SMO Action Plan with more recent activities being carried out to engage stakeholders and notify both regulators and its members of all new, proposed, and revised IFRS and other pronouncements. In addition, the ICPARD is encouraged to work with the regulators to promote the adoption of IFRS as the applicable accounting standards in the jurisdiction. Lastly, if deemed feasible and relevant, it would be beneficial for the ICPARD to participate in the international standard-setting process by providing comments on exposure drafts and other IASB pronouncements.
IFAC bears no responsibility for the information provided in the SMO Action Plans prepared by IFAC member organizations. Please see our full Disclaimer for additional information.