Instituto Nacional de Contadores Públicos de Colombia

In Colombia, the Central Board of Accountancy (JCC) under the Ministry of Commerce, Industry and Tourism (MCIT) is responsible for establishing a quality assurance (QA) review system for all mandatory audits. Although the INCP has no legal authority or responsibility in the area, since 2010, the INCP has been facilitating the adoption of relevant standards. The INCP reports that the peer review system mostly aligns with the SMO 1 requirements, having only one difference which is that policies and procedures related to inspection cycles may vary among firms (i.e. they may not take place at least every six years (and every three years for audits of public interest entities)).

The INCP signed an agreement with IFAC allowing for the use, publication, and dissemination of IAASB standards, and in turn, the INCP signed an agreement with the MCIT so that these standards could become legally binding in Colombia. The regulators have adopted ISQC 1 and ISA 220 for application in all audits and are in the process of adopting ISQM 1, ISQM 2, and the revised ISA 220.

To support the implementation of the standards, the INCP developed ISA specialization courses. The INCP has now included the IAASB Quality Management standards into its training. The INCP has also supported regulators to develop training on implementation of relevant standards and carried out a workshop with the JCC staff on oversight skills.

Additionally, the INCP undertakes other activities in this area, such as including articles on QA in its institutional publications; and encouraging public accountants and accounting firms to implement quality management standards. Also, the INCP collaborated with regulators to publish a guide for statutory audits in accordance with ISA for Small- and Medium-sized Practices, which includes a section on quality management standards.

As JCC is responsible for operating the QA review system in the jurisdiction, the INCP should continue using its best efforts to collaborate with JCC and relevant stakeholders to promote the best practices of SMO 1, especially as related to cyclical approaches to reviews.

Current Status: Review & Improve

In Colombia, the Ministry of Education, universities and the Central Board of Accountancy (JCC) have a role in implementing initial professional development requirements for professional accountants, which are established in Law No. 43 of 1990. Given INCP's lack of authority to adopt IES requirements, its activities primarily include actions to promote the adoption and implementation of IES requirements to the regulators.

The INCP reports it has met with the Ministry of Education and participated in its accounting regulation roundtable to promote amendments to the legislation. In addition, the INCP maintains a permanent dialogue with the universities to encourage the incorporation of IES requirements.

A proposal prepared by the National Education Committee, which operates under the Technical Council of Public Accountancy (CTCP), has been published for public comment. The proposal outlines the recommended content for accounting education programs, aligned with international education frameworks, including the IES. A member of the INCP Board of Directors is actively involved in this committee.

As part of its engagement strategy, since 2013, the INCP has supported the Colombian Forum of Firms with international speakers for the event at which there is always an opportunity for dialogue amongst audit firms and academia on enhancing the education of professional accountants. Lastly, the institute also disseminates information on the standards and international developments through printed materials and its website to highlight and share the importance of IES.

The INCP is encouraged to continue collaborating with the regulators and universities to promote and support adopting and implementing the IES requirements. The INCP can refer to examples in the region for best practices and learnings, including a voluntary certification aligned with the IES, and a university accreditation scheme. The Accountancy Education E-Tool and the IES Checklist developed by IFAC may help identify implementation support materials.

Current Status: Review & Improve

The INCP is not legally responsible for the adoption of auditing standards in Colombia, but it does play an important role by supporting the standard-setting process with the respective regulators in Colombia. The INCP has an agreement with IFAC allowing for the use, publication, and dissemination of IAASB issued standards, and in turn, the INCP signed an agreement with the Ministry of Commerce, Industry and Tourism—one of the jurisdiction's auditing standard-setters—in order to make the standards legally binding. The regulators have adopted ISA for application in all audits. The 2018 ISAs are currently effective and the 2023-2024 ISA are being evaluated for adoption.

As part of its efforts to support ongoing ISA adoption, the INCP indicates that it regularly nominates representatives to be part of the Technical Council of the Public Accountancy—the entity responsible for proposing new standards on accounting and auditing to the regulators.

The INCP reports that it participated in an Assurance Committee, operating under the CTCP, which was delegated responsibility for evaluating the impacts of the application of IAASB standards on the profession and on the Colombian legislation and had encouraged the adoption of ISA. Two members of the INCP Board of Directors lead the presidency and technical secretariat of this Assurance Committee.

The INCP is also supporting the regulators in identifying all necessary amendments to local laws to make them compatible with the provisions of international standards. In addition, the committee assisted in the preparation of a guide for statutory audits for Small- and Medium-sized Practices.

To assist its members, the INCP has undertaken a range of support activities. It provides trainings on ISA on an ongoing basis through conferences, seminars, and specialization courses; developed a project to foster discussions between the universities and the profession on accounting and auditing issues; co-organizes conferences with regulators to facilitate ISA implementation; offers ISA certifications; and disseminates information on the standards and international developments in this area through printed materials and its website. Additionally, the INCP has signed an agreement with the Association of Chartered Certified Accountants (ACCA) in order to offer its course and exam on International Audit.

Finally, the INCP contributes to the translation of IAASB articles and pronouncements into Spanish to be used by IFAC members in Spanish-speaking countries.

The INCP has demonstrated an ongoing process to maintain its fulfillment of the SMO 3 obligations and is committed to continuous improvement.

Current Status: Sustain

In Colombia, professional accountants are subject to ethical requirements set in Law No. 43 of 1990 and Decree No. 2132 of 2016, which mandate adherence to the 2018 IESBA Code of Ethics. Currently, a decree for the adoption of the 2021 IESBA Code is pending signature by the regulators.

Although the INCP cannot legally adopt ethical requirements for its members, the INCP does play an important role in the standard-setting process by enabling the Ministry of Commerce, Industry and Tourism (MCIT) to publish the IESBA Code of Ethics in the Official Gazette through an agreement the institute has with IFAC permitting the use, publication, and dissemination of the IESBA Code of Ethics.

As part of its efforts to support the ongoing adoption of the IESBA Code of Ethics, the INCP indicates that it regularly nominates representatives to be part of the Technical Council of Public Accountancy—the entity responsible for proposing new standards on accounting and auditing to the regulators.

The INCP reports that it has participated in an Assurance Committee, which was delegated responsibility to evaluate the impacts of applying the IESBA Code of Ethics on the profession and the Colombian legislation. Based on this committee's recommendation, the MCIT adopted the 2018 IESBA Code for all professional accountants.

The INCP indicates that it has a Technical and Professional Development Committee responsible for monitoring amendments to the IESBA Code on an ongoing basis and ensuring dissemination of the standards and international developments through printed materials and the institute's website.

To further support implementation, the INCP has included the IESBA Code of Ethics in its training programs, established adherence to ethical requirements as one of its membership requirements, developed specialization courses for professional accountants on the IESBA Code of Ethics, and signed a cooperation agreement with the MCIT to disseminate the IESBA Code of Ethics within universities.

Finally, the INCP is represented within the Central Board of Accountancy—the entity responsible for investigating and disciplining professional accountants—to ensure professional accountants comply with the adopted Code of Ethics.

The INCP has demonstrated an ongoing process to maintain its fulfillment of the SMO 4 obligations and is committed to continuous improvement.

Current Status: Sustain

The INCP is not responsible for setting public sector accounting standards, and it reports that its primary role in this area is to support the consultative process. The General Accounting Office—the governmental organization responsible for adopting the standards—has adopted accrual IPSAS since 2015 and currently requires the application of 2021 IPSAS.

To assist its members, the INCP has undertaken a range of support activities. It provides trainings on IPSAS on an ongoing basis through conferences, seminars, and specialization courses; and offers IPSAS certifications. The INCP indicates that it has established dissemination mechanisms to distribute information through printed materials and its website, regarding recent developments and updates issued by the IPSASB. In addition, INCP's Technical and Professional Development Committee monitors new, proposed, and revised IPSAS on an ongoing basis and ensures their distribution to relevant stakeholders.

The INCP has demonstrated an ongoing process to maintain its fulfillment of the SMO 5 obligations and is committed to continuous improvement.

Current Status: Sustain

Although legally the INCP cannot judge or impose any disciplinary sanction on its members for professional misconduct, the INCP's bylaws establish a requirement to follow a Code of Ethics, and in cases of non-compliance, the institute may suspend membership rights. However, this is the only form of action the institute can take and therefore, its primary role in this area is to collaborate with the Central Board of Accountancy (JCC)—the entity responsible for investigating and disciplining professional accountants—by participating on the Board's Disciplinary Court with an INCP representative.

The INCP conducted an assessment of the JCC's I&D processes against the requirements of SMO 6 and the procedures mostly align apart from a connection between the results of QA reviews and I&D initiations. In addition, the INCP reports that it monitors the Disciplinary Court's decisions, given that its internal policies state that INCP must expel a member if the Disciplinary Court has imposed a sanction on that individual.

The INCP included news and articles on the JCC and Board's Disciplinary Court in its institutional publications.

I&D procedures that meet the SMO 6 benchmark are an essential part of maintaining public trust and confidence in the profession. The INCP should continue using its best efforts to collaborate with JCC and relevant stakeholders to promote the best practices of SMO 6, particularly around the ability of any deficient QA results to lead to an investigation and disciplinary proceeding as may be necessary.

Current Status: Review & Improve

Although the Ministry of Commerce, Industry and Tourism (MCIT) and the Ministry of Finance and Public Credit (MoF) are jointly responsible for setting corporate accounting standards, the INCP actively participates and contributes to the standard-setting process. For example, in 2012, it pushed for the adoption of IFRS, which are now the applicable standards in the jurisdiction. To facilitate the adoption, it signed and has maintained an agreement with the IFRS Foundation, allowing for the use, publication, and dissemination of IASB standards. In turn, the INCP signed an agreement with the Ministry of Commerce, Industry and Tourism so that the government could publish the standards in the Official Gazette making them legally binding.

As part of its efforts to support ongoing IFRS adoption, the INCP indicates that it regularly nominates representatives to be part of the Technical Council of Public Accountancy—the entity responsible for proposing new standards on accounting and auditing to the MCIT and the MoF. The INCP president serves as Technical Secretary of the IFRS Expert Committee of the CTCP, where analyses and recommendations are carried out

To support its members with the implementation of the standards, the INCP reports that it has undertaken several activities such as: providing specialization courses on IFRS and IFRS for Small- and Medium-sized Entities (SMEs), carrying out workshops focusing on specific standards and revisions, and hosting congresses and workshops with regulators covering the standards. Additionally, the INCP has signed an agreement with the Association of Chartered Certified Accountants (ACCA) to offer its course and exam on International Financial Reporting.

Furthermore, the INCP promotes the application and understanding of the standards by disseminating IFRS and IFRS for SME-related materials to universities to encourage its incorporation in the accounting curricula and disseminating information to members and stakeholders on new and revised IASB pronouncements.

The INCP has demonstrated an ongoing process to maintain its fulfillment of the SMO 7 obligations and is committed to continuous improvement.

Current Status: Sustain