Iraqi Union of Accountants and Auditors

The Iraqi Union of Accountants and Auditors (IUAA) is responsible for establishing and implementing the quality assurance (QA) review system in Iraq under the Law of the Iraqi Union of Accountants and Auditors No. 185 of 1969, as amended in 1973. The IUAA operates a QA system through an independent Quality Assurance and Inspection Committee, established in 2003, which conducts cycle-based peer reviews of audit firms. The IUAA reports that approximately 200 firms are reviewed annually and that the system is operational for its members.

The IUAA has undertaken activities to strengthen implementation, including conducting training programs and workshops to raise awareness of SMO 1 requirements and providing guidance materials to auditors. It has also coordinated with the Arab Institute of Certified Public Accountants and the Ministry of Higher Education and Scientific Research to update professional training programs and support readiness for the application of international standards. The IUAA reports that it continues to monitor and review the QA system to enhance its effectiveness and alignment with international best practices.

However, jurisdiction-level alignment with SMO 1 remains incomplete. The Iraqi Board of Accounting and Auditing Standards has not formally adopted International Standard on Quality Management (ISQM) 1, International Standard on Quality Management (ISQM) 2, or International Standard on Auditing (ISA) 220 (Revised), and national standards continue to be applied. SMO 1 fulfillment is therefore assessed as Review & Improve.

To further align with SMO 1, the IUAA is encouraged to continue advocating for the adoption and implementation of ISQM 1, ISQM 2, and ISA 220 (Revised), and to support their effective implementation across all audit firms in the jurisdiction.

Current Status: Review & Improve

The Iraqi Union of Accountants and Auditors (IUAA) shares responsibility for initial and continuing professional development in Iraq with the Ministry of Higher Education and Scientific Research, the Accounting Sector Committee, and the Arab Institute of Certified Public Accountants (ARICPA). The IUAA reports that it participates in the Accounting Sector Committee to support alignment of university accountancy curricula with the International Education Standards (IES), while ARICPA delivers the professional qualification pathway for auditors, including structured theoretical study, practical training, and final examinations.

To support implementation, the IUAA reports that it develops an annual continuing professional development calendar and provides training through online and in-person activities covering audit and assurance, financial reporting, tax, ethics, integrity, and leadership. It also publishes educational and examination requirements in its quarterly magazine to support candidates and members, and its 2021 cooperation agreement with the Institute of Chartered Accountants in England and Wales included review of the certified public accountant syllabus and development of a roadmap for education reform.

However, jurisdiction-level alignment with SMO 2 remains incomplete. The current framework has not been demonstrated to align fully with the revised 2019 IES, including the revisions to IES 2, IES 3, and IES 4 effective from 2021, and continuing professional development requirements remain limited to auditors, with 20 to 40 hours required every three years, while non-auditors are not subject to mandatory continuing professional development requirements.

Accordingly, while the IUAA is actively supporting implementation through curriculum coordination, training, and qualification reform, further work is needed to close jurisdiction-level gaps in continuing professional development and full alignment with the current IES. SMO 2 fulfillment is therefore assessed as Execute.

To further align with SMO 2, the IUAA is encouraged to assess the national framework against the revised 2019 IES and advocate for mandatory continuing professional development requirements for all professional accountants

Current Status: Execute

The Iraqi Union of Accountants and Auditors (IUAA) does not have direct responsibility for adopting auditing standards at the jurisdiction level, which remains the role of the Iraqi Board of Accounting and Auditing Standards. Nevertheless, the IUAA continues to play an active implementation role by requiring its members to apply International Standards on Auditing (ISA) through available Arabic translations and by supporting awareness and implementation across the profession. IUAA notes that access to translations remains an important implementation tool, and the IFAC translations database now shows that the Arabic translation of the 2025 Handbook of International Quality Management, Auditing, Review, Other Assurance, and Related Services Pronouncements is available.

The IUAA reports that it supports implementation through training and continuing professional development activities, dissemination of standards and updates through its publications and communication channels, and engagement with universities and other stakeholders to reflect new and revised requirements in professional education. It also indicates that it monitors revisions issued by the International Auditing and Assurance Standards Board and participates in the international standard-setting process through review of exposure drafts.

SMO 3 fulfillment is therefore assessed as Sustain.

Current Status: Sustain

The Iraqi Union of Accountants and Auditors (IUAA) has authority under the Law of the Iraqi Union of Accountants and Auditors No. 185 of 1969, as amended in 1973, to establish ethical requirements for professional accountants in Iraq. The IUAA reports that it regularly updates its ethical requirements to converge with the International Code of Ethics for Professional Accountants (including International Independence Standards) issued by the International Ethics Standards Board for Accountants (IESBA) and requires members to apply the latest available Arabic version of the Code. IFAC’s translations database shows that the Arabic translation of the 2024 Handbook of the International Code of Ethics for Professional Accountants is completed and available.

To support implementation, the IUAA reports that it incorporates the Code, including new and revised requirements, into continuing professional development activities and case-study based training. It also communicates ethical developments and updates to members and the public through its publications, email communications, and website, and monitors developments issued by the IESBA.

Accordingly, the IUAA has an established and ongoing process to support implementation of the Code and to keep members informed of revisions. SMO 4 fulfillment is therefore assessed as Sustain.

Current Status: Review & Improve

Public sector accounting standards in Iraq are established by the Ministry of Finance, with self-financing public entities applying the Iraqi Unified Accounting System on an accrual basis and government-funded entities applying the Governmental Accounting System on a cash basis. International Public Sector Accounting Standards (IPSAS) are not adopted at the jurisdiction level.

Although public sector accounting falls outside its direct mandate, the Iraqi Union of Accountants and Auditors (IUAA) continues to play an active advocacy and capacity-building role. The IUAA, including through its Association of Internal Auditors, organizes workshops and training sessions to raise awareness of IPSAS among members, particularly those working in the public sector. It also promotes the adoption of accrual-based IPSAS to key stakeholders, including the Ministry of Finance and the Ministry of Planning.

To support implementation, the IUAA reports that it disseminates information on public sector accounting developments through its publications and distributes the Arabic translation of the IPSASB Handbook (latest available version: 2022) to members and relevant authorities. These activities are complemented by ongoing engagement with stakeholders to strengthen public financial management practices in the jurisdiction.

Accordingly, while IPSAS are not adopted at the jurisdiction level, the IUAA demonstrates sustained and proactive efforts to promote awareness, build capacity, and support future adoption. SMO 5 fulfillment is therefore assessed as Sustain.

Current Status: Sustain

The Iraqi Union of Accountants and Auditors (IUAA) is responsible for the investigation and discipline (I&D) of professional accountants in Iraq under Article 28 of the Law of the Iraqi Union of Accountants and Auditors No. 185 of 1969, as amended in 1973. The IUAA has established a disciplinary framework, including a Discipline Committee responsible for monitoring compliance with applicable rules, regulations, and professional standards and for adjudicating cases of misconduct. Disciplinary decisions are enforceable under the legal framework, with sanctions supported by the judicial system where required.

The IUAA reports that it has conducted periodic self-assessments, including in 2019 and 2024, indicating that the I&D system is aligned with the requirements of Statement of Membership Obligations (SMO) 6. The IUAA continues to support implementation by incorporating I&D requirements and procedures into continuing professional development programs, providing guidance to members on complaint mechanisms, and raising awareness through workshops, publications, and communication channels, including its website and newsletters. It also reports that it publishes information on disciplinary cases and outcomes to promote transparency and reinforce professional standards.

The IUAA indicates that it regularly reviews and updates the I&D system to maintain alignment with SMO 6 and to strengthen its effectiveness. These ongoing activities demonstrate an established and operational system that incorporates key elements of SMO 6, including investigation, disciplinary processes, and enforcement mechanisms.

Accordingly, the IUAA continues to demonstrate sustained implementation and monitoring of its I&D system. SMO 6 fulfillment is therefore assessed as Sustain.

Current Status: Sustain

International Financial Reporting Standards (IFRS) are not adopted at the jurisdiction level for all domestic publicly accountable entities in Iraq. The IFRS Foundation reports that the Central Bank of Iraq requires banks to apply IFRS, while other entities are generally permitted, but not required, to apply IFRS, and many companies continue to use national standards issued by the Iraqi Board of Accounting and Auditing Standards.

Although it does not have direct authority to establish the jurisdiction’s financial reporting framework, the Iraqi Union of Accountants and Auditors (IUAA) continues to support implementation of IFRS through training, awareness-raising, and outreach. IFAC reports that the IUAA provides annual IFRS training programs and workshops for members and other stakeholders, disseminates IFRS-related materials to universities to support incorporation into accounting curricula, offers an IFRS specialization certification, supports Arabic translation efforts, publishes technical articles in The Accountant Magazine, and participates in the international standard-setting process through comments on exposure drafts. IFAC also reports that, in 2023, the IUAA signed a memorandum of understanding with the Association of Chartered Certified Accountants to provide IFRS training, including complimentary training delivered in January 2024 and a broader training plan through 2025.

Accordingly, while jurisdiction-level adoption remains partial, the IUAA continues to demonstrate sustained and proactive efforts to promote IFRS awareness, build implementation capacity, and support broader use of international standards in the jurisdiction. SMO 7 fulfillment is therefore assessed as Sustain.

Current Status: Sustain