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 Instituto Nacional de Contadores Públicos de Colombia (INCP) has no legal authority or direct responsibility in this area, since 2010, the INCP has been facilitating the adoption and implementation of relevant standards.

The INCP reports that the peer review system mostly aligns with the Statement of Membership Obligations (SMO) 1 requirements, with one notable difference: policies and procedures related to inspection cycles may vary among firms (i.e., reviews 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 the International Federation of Accountants (IFAC) allowing for the use, publication, and dissemination of International Auditing and Assurance Standards Board (IAASB) standards, and in turn, signed an agreement with the Ministry of Commerce, Industry and Tourism so that these standards could become legally binding in Colombia. The regulators have adopted International Standard on Quality Control (ISQC) 1 and International Standard on Auditing (ISA) 220 for application in all audits and are currently in the process of adopting International Standard on Quality Management (ISQM) 1, ISQM 2, and revised ISA 220 through the proposed Annex 4-2025 update.

To support implementation of the standards, the INCP has developed ISA specialization courses and has incorporated the IAASB quality management standards into its training activities. The INCP has also supported regulators in developing training on the implementation of relevant standards and carried out workshops with JCC staff on oversight skills.

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

As the JCC is responsible for operating the QA review system in the jurisdiction, the INCP should continue using its best efforts to collaborate with the JCC and relevant stakeholders to promote the best practices of SMO 1, particularly in relation 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 the Instituto Nacional de Contadores Públicos de Colombia (INCP)’s lack of authority to adopt International Education Standards (IES) requirements directly, its activities primarily focus on promoting the adoption and implementation of the IES with regulators, universities, and other stakeholders.

The INCP reports that it has engaged with the Ministry of Education and participated in its accounting regulation roundtable to promote amendments to the legislative framework. In addition, the INCP maintains an ongoing dialogue with universities to encourage the incorporation of IES requirements into accounting education programs.

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 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, creating regular opportunities for dialogue among audit firms and academia on enhancing the education of professional accountants. In addition, the Institute disseminates information on international standards and developments through printed materials and its website to highlight and promote the importance of the IES.

The INCP should continue collaborating with regulators and universities to promote and support the adoption and implementation of the IES requirements. The Accountancy Education E-Tool and the IES Checklist developed by the International Federation of Accountants (IFAC) may help identify implementation support materials and regional good practices.

Current Status: Review & Improve

The Instituto Nacional de Contadores Públicos de Colombia (INCP) is not legally responsible for the adoption of auditing standards in Colombia; however, it continues to play an important role in supporting the standard-setting process with the relevant regulators.

The INCP has an agreement with the International Federation of Accountants (IFAC) allowing for the use, publication, and dissemination of International Auditing and Assurance Standards Board (IAASB) 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—to facilitate the legal incorporation of these standards in Colombia. International Standards on Auditing (ISA) have been adopted for application in all audits. The 2018 ISA are currently effective, and the 2023–2024 ISA Handbook is currently under evaluation for adoption through the proposed Annex 4-2025 update.

As part of its efforts to support the ongoing adoption of ISA, the INCP regularly nominates representatives to participate in the Technical Council of Public Accountancy (CTCP), the body responsible for proposing new standards on accounting and auditing to the regulators.

The INCP also reports that it has participated in an Assurance Committee operating under the CTCP, which was delegated responsibility for evaluating the impact of International Auditing and Assurance Standards Board standards on the profession and Colombian legislation and for encouraging the adoption of ISA. Two members of the INCP Board of Directors currently lead the presidency and technical secretariat of this committee.

The INCP continues to support regulators in identifying necessary amendments to local laws to ensure compatibility with international standards. In addition, the committee assisted in preparing a guide for statutory audits for Small and Medium Practices.

To assist its members, the INCP undertakes a broad range of support activities. It provides ongoing training on ISA through conferences, seminars, and specialization courses; fosters dialogue between universities and the profession on accounting and auditing issues; co-organizes conferences with regulators to facilitate implementation; offers ISA certifications; and disseminates technical updates through printed materials and its website. Additionally, the INCP has signed an agreement with the Association of Chartered Certified Accountants (ACCA) to offer its course and examination on International Audit.

Finally, the INCP contributes to the translation of International Auditing and Assurance Standards Board articles and pronouncements into Spanish for use by International Federation of Accountants members in Spanish-speaking countries.

The INCP maintains well-established ongoing processes to fulfill its SMO 3 obligations and demonstrates a continued commitment to supporting the adoption and implementation of auditing standards in the jurisdiction.

Current Status: Sustain

In Colombia, professional accountants are subject to ethical requirements set out in Law No. 43 of 1990 and subsequent decrees issued under Law No. 1314 of 2009, which currently require adherence to the 2018 International Code of Ethics for Professional Accountants (including International Independence Standards). The updated 2021 International Code of Ethics for Professional Accountants (including International Independence Standards) is currently pending adoption through the proposed Annex 4-2025 update.

Although the Instituto Nacional de Contadores Públicos de Colombia (INCP) cannot legally adopt ethical requirements for its members, it continues to play an important role in the standard-setting process by enabling the Ministry of Commerce, Industry and Tourism (MCIT) to publish the Code in the Official Gazette through its agreement with the International Federation of Accountants (IFAC), which permits the use, publication, and dissemination of the Code.

As part of its efforts to support the ongoing adoption of ethical requirements, the INCP regularly nominates representatives to participate in the Technical Council of Public Accountancy (CTCP), the body responsible for proposing new standards on accounting and auditing to the regulators.

The INCP also reports that it has participated in an Assurance Committee, which was delegated responsibility to evaluate the impact of applying the Code on the profession and Colombian legislation. Based on this committee’s recommendation, the Ministry of Commerce, Industry and Tourism adopted the 2018 Code for all professional accountants.

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

To further support implementation, the INCP has incorporated the Code into its training programs, established adherence to ethical requirements as one of its membership requirements, developed specialization courses for professional accountants on ethics requirements, and signed a cooperation agreement with the Ministry of Commerce, Industry and Tourism to disseminate the Code within universities.

Finally, the INCP is represented within the Central Board of Accountancy (JCC), the body responsible for investigating and disciplining professional accountants, to help support compliance with the adopted Code.

The INCP maintains well-established ongoing processes to fulfill its SMO 4 obligations and demonstrates a continued commitment to supporting the adoption and implementation of ethical requirements in the jurisdiction.

Current Status: Sustain

The Instituto Nacional de Contadores Públicos de Colombia (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 (CGN)—the governmental body responsible for adopting public sector accounting standards—has applied accrual-basis International Public Sector Accounting Standards (IPSAS) since 2015 and currently requires the application of the 2021 International Public Sector Accounting Standards.

To assist its members, the INCP undertakes a range of support activities. It provides ongoing training on IPSAS through conferences, seminars, and specialization courses and offers IPSAS certifications.

The INCP also indicates that it has established dissemination mechanisms to distribute information on recent developments and updates issued by the International Public Sector Accounting Standards Board (IPSASB) through printed materials and its website.

In addition, the INCP’s Technical and Professional Development Committee monitors new, proposed, and revised IPSAS on an ongoing basis and ensures their dissemination to relevant stakeholders.

The INCP maintains well-established ongoing processes to fulfill its SMO 5 obligations and demonstrates a continued commitment to supporting the implementation of public sector accounting standards in the jurisdiction.

Current Status: Sustain

Although legally the Instituto Nacional de Contadores Públicos de Colombia (INCP) cannot adjudicate or impose disciplinary sanctions on its members for professional misconduct, the INCP’s bylaws establish a requirement to comply with the International Code of Ethics for Professional Accountants (including International Independence Standards), 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 body responsible for investigating and disciplining professional accountants—through participation in the JCC’s Disciplinary Court with an INCP representative.

The INCP has conducted an assessment of the JCC’s investigative and disciplinary (I&D) processes against the requirements of the Statement of Membership Obligations (SMO) 6. The procedures mostly align, except that a formal connection between the results of quality assurance (QA) reviews and the initiation of investigative and disciplinary proceedings has not yet been established.

In addition, the INCP reports that it monitors the Disciplinary Court’s decisions, given that its internal policies require the expulsion of a member if the Court has imposed a sanction on that individual.

The INCP also includes news and articles on the JCC and its Disciplinary Court in its institutional publications to promote awareness of professional accountability and enforcement actions.

Investigative and disciplinary 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 the JCC and relevant stakeholders to promote the best practices of SMO 6, particularly in relation to ensuring that deficient QA results may lead to investigative and disciplinary proceedings where 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 Instituto Nacional de Contadores Públicos de Colombia (INCP) actively participates in and contributes to the standard-setting process.

For example, in 2012, the INCP supported the adoption of International Financial Reporting Standards (IFRS), which are now the applicable standards in the jurisdiction for relevant entities. To facilitate adoption, the INCP signed and has maintained an agreement with the IFRS Foundation, allowing for the use, publication, and dissemination of International Accounting Standards Board (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 the ongoing adoption of IFRS, the INCP indicates that it regularly nominates representatives to participate in the Technical Council of Public Accountancy (CTCP), the body 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 technical analyses and recommendations are developed.

To support its members with implementation of the standards, the INCP reports that it has undertaken several activities, including providing specialization courses on IFRS and the International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs), carrying out workshops focused 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 examination on International Financial Reporting.

Furthermore, the INCP promotes the application and understanding of the standards by disseminating IFRS- and IFRS for SMEs-related materials to universities to encourage their incorporation into accounting curricula, and by disseminating information to members and stakeholders on new and revised International Accounting Standards Board (IASB) pronouncements.

The INCP maintains well-established ongoing processes to fulfill its SMO 7 obligations and demonstrates a continued commitment to supporting the adoption and implementation of corporate reporting standards in the jurisdiction.

Current Status: Sustain