Member | Established: 1988 | Member since 1992
The Audit Profession Law No. 32 of 1985 established the Jordanian Association of Certified Public Accountants (JACPA). It is a mandatory membership organization for Certified Public Accountants. Under Accountancy Profession Law No. 73 of 2003, JACPA is mainly responsible for (i) administering professional certification examinations and verifying fulfillment of practical experience / continuing professional development requirements; (ii) enforcing and monitoring members’ compliance with ethical requirements, rules, and accountancy standards through an investigative & disciplinary system; and (iii) recommending ethical requirements and accounting and auditing standards to the Higher Council for the Accountancy Profession—the oversight entity in the jurisdiction. In addition to being a member of IFAC, JACPA is a member of the Arab Federation of Accountants and Auditors (AFAA).
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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.
Last updated: 05/2023
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Status of Fulfillment by SMO
SMO 1: Quality Assurance
The Jordanian Association of Certified Public Accountants (JACPA) created a voluntary QA review system. It is pursuing amendments to legislation that would provide JACPA with the authority to undertake a compulsory system for its membership. Presently, draft amendments are pending approval by the Jordanian Parliament.
To support its system of voluntary QA, JACPA reports that it established 10 sub-committees under its Quality Assurance Committee to undertake the inspections of members’ working papers on a risk-basis. The sub-committees’ review reports are discussed at JACPA Board Meetings and can lead to sanctions when violations are found. JACPA has conducted a self-assessment of the voluntary inspection process and identified areas that require improvements in order to better align with the SMO 1 requirements, particularly the scope of its system, the review cycle, and disciplinary actions.
JACPA’s efforts have primarily focused on promoting changes to Accountancy Profession Law No. 73 of 2003 to make participation in the QA review system mandatory – the changes are expected to pass in 2023. It has also been focusing efforts on preparing its members for the implementation of a mandatory QA review system. For example, between 2012-2013, JACPA worked with the World Bank to develop online tools and resources to assist them with understanding the quality assurance review process. JACPA reports that in 2016 it participated in a train-the-trainers workshop with the Lebanese Association of Certified Public Accountants (LACPA), the American Institute of Certified Public Accountants (AICPA), and the Arab Federation of Accountants and Auditors (AFAA) to enhance audit quality assurance review skills. Between 2020-2021, JACPA built upon its 10 sub-committees to continue to expand the scope of its program and provide voluntary additional QA services to members who request this service. JACPA reports that it will continue to provide its annual training course on quality audits. JACPA will again seek to provide its members with an updated quality control review checklist for reference and to support the development of strong systems of quality control within its member firms. Lastly, JACPA reports to be supporting member firms to adopt systems of quality management and integrate a quality management approach to their operations and strategy.
In 2022, JACPA continued to work with IASCA to support expanding the scope of the QA review system. Furthermore, IASCA and JACPA have initiated discussions to conduct joint training and awareness-raising sessions on QA processes for JACPA practitioner members.
As JACPA waits for the amendments to legislation to pass in Parliament allowing it to operate a mandatory QA system, it is encouraged to provide an update on its activities to promote legislative passage and to reach out to request IFAC support and assistance in engaging with legislators and regulators as necessary. Lastly, JACPA is encouraged to demonstrate how it is supporting the effective implementation of the new IAASB Quality Management standards and providing more training to QA reviewers how to assess firms’ context & approach to risk management.
SMO 2: International Education Standards
Accountancy Profession Law No. 73 of 2003 defines the requirements for Initial Professional Development (IPD) and Continuing Professional Development (CPD) requirements. In regards to IPD, the country’s universities and the Ministry of Higher Education and Scientific Research develop the degree curricula and program structure, while entrance to the profession, examination, licensure, practical experience and CPD are the shared responsibilities of the Higher Council for the Accountancy Profession (HCAP) and JACPA.
JACPA maintains mandatory membership and is responsible for (i) administering professional certification examinations (in line with IES 6); (ii) verifying the fulfillment of practical experience of three years (in line with IES 5); and (iii) establishing CPD requirements which is currently 20 hours per year (in line with 7). JACPA monitors CPD fulfillment and conducts periodic audits to ensure compliance by its members. The HCAP maintains authority for approval of granting and revocation of licenses. JACPA disseminates the Arabic translation of the 2019 version of the Handbook of International Education Standards.
JACPA reports that the education requirements are mostly aligned with the revised IES (2019). In 2022, JACPA participated in the Middle East North Africa (MENA) IES Project led by IFAC during which it completed a gap analysis questionnaire of national education requirements against the revised 2019 IES; completed an interview with IFAC to further clarify alignment and support needed; and presented at the MENA IES Webinar: Connecting the Accountancy Education Ecosystem which took place on June 21, 2022. which took place on June 21, 2022. The major need identified pertains to lack of awareness and understanding at the university level of IES requirements. During the interviews, it was suggested that together with IASCA, JACPA consider available implementation support materials to build awareness and guide implementation.
JACPA notes that its IPD and CPD program curricula are reviewed annually and that improvements and additions to the programs are undertaken on a regular basis to ensure relevance to the market. Furthermore, JACPA discusses with members and draws from the knowledge of its leadership and connections to universities to ensure both IPD and CPD are addressing emerging issues and concepts needed to maintain the skills and competence of its members. Finally, JACPA will continue its outreach and engagement with university accounting departments to ensure awareness and understanding of the 2019 revised IES on an annual basis through discussions with leading professors who are members of JACPA.
SMO 3: International Standards on Auditing
In accordance with Companies Law No. 22 dated 1997 (as amended 2006) and Accountancy Profession Law No. 73 of 2003, JACPA recommends auditing standards for the Higher Council for the Accountancy Profession (HCAP) to adopt. In 1992, HCAP adopted all ISA as issued by the IAASB for current and future audits. As such, although JACPA retains the ability to recommend standards for adoption to the HCAP, in practice revised and new ISA are applicable in Jordan with the effective date as issued by the IAASB.
JACPA focuses its efforts on providing implementation support to its members through trainings, conferences and events. For example, in September 2016 JACPA designed and delivered training on the new audit report for 200 members; and in November 2016 it designed and delivered training on new and revised ISA for 160 members. It supports members by providing them with guidance issued by IFAC, such as the IFAC SMP Committee Guide to Using International Standards on Auditing in the Audits of Small- and Medium-Sized Entities. JACPA reports that it has been building upon these efforts and supporting SMP practitioners with access to resources and support in fulfilling their audit obligations, adapting to technology, and applying international standards during times of uncertainty.
JACPA monitors revisions of ISA and other pronouncements promulgated by the IAASB on an ongoing basis to provide its members with the latest Handbooks as issued by IAASB. It also provides members with the latest available Arabic translations of the Handbook and standards, which, as of 2023, is the 2018 Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements as well as revisions applicable in the 2021 Handbook.
SMO 4: Code of Ethics for Professional Accountants
In accordance with Accountancy Profession Law No. 73 of 2003, JACPA is responsible for recommending ethical standards for the Higher Council for the Accountancy Profession (HCAP) to adopt. In 1992, HCAP adopted the IESBA Code of Ethics for Professional Accountants. All revised and new requirements of the IESBA Code are applicable in Jordan with the effective date issued by the IESBA. IASCA and JACPA collaborate in their meetings with various universities to ensure that they cover the latest ethical requirements as part of their curricula.
JACPA focuses on providing updates and training to its members to support implementation. For example, JACPA reports to hold annual training course on the IESBA Code of Ethics and publishes any updates in the official magazine. Cases of non-compliance with the Code are subject to JACPA’s investigation & disciplinary (I&D) committee for deliberation.
JACPA monitors revisions to the IESBA Code of Ethics in an ongoing manner and focuses its activities on raising awareness by disseminating the latest Handbooks as issued by IESBA. It also provides members with the latest available Arabic translations of the Handbook—the 2018 Handbook of the International Code of Ethics for Professional Accountants.
JACPA, in cooperation with IASCA, is encouraged to maintain its timely translations of the most recent IESBA pronouncements. The 2022 International Code is now available (2022 edition of the Handbook of the International Code of Ethics for Professional Accountants (including International Independence Standards). It namely differs from the 2021 HB with revisions to: non-assurance services, fees, objectivity of an engagement quality reviewer (EQR), and quality management-related conforming amendments to the Code - these revisions came into effect in December 2022.
SMO 5: International Public Sector Accounting Standards
The Ministry of Finance is responsible for the adoption of public sector accounting standards in Jordan which are cash-basis IPSAS. An IPSAS implementation road map is in place, with implementation assistance being provided by the United States Agency for International Development under Jordan’s Fiscal Reform Project. Significant progress has been made in supporting the application of the cash-basis IPSAS. The project envisions a gradual transformation from cash basis to accrual basis of IPSAS accounting with completion of this project slated for 2025.
Over the past few years, the JACPA as well as the IASCA have been involved in the project to provide the following support: (a) producing seminars/training courses on the subject; (b) giving consultancy and advice in implementing each standard; (c) recommending the adoption of best accounting policies, if any, that will serve the Jordanian economy and governmental budget; and (d) providing any other assistance to the project as needed. Prior to the adoption decision by the Ministry of Finance, JACPA was active in raising awareness of IPSAS and promoting their adoption through meetings with the government officials.
JACPA signed a Memorandum of Understanding with the MoF and IASCA in 2021 to support IPSAS implementation efforts. Both JACPA and IASCA have joined forces in engaging with the government and providing awareness raising activities and technical assistance. JACPA also collaborates with IASCA to offer courses and host conferences and lectures on IPSAS.
JACPA promotes and raises awareness by sharing the latest Handbooks as issued by IPSASB. It also provides the latest available Arabic translations of the standards.
In 2022, both IASCA and JACPA participated in the Middle East North Africa: Moving from Cash-basis to Accruals-basis Accounting webinar co-hosted by World Bank Group Middle East North Africa (MENA) Governance Global Practice and IFAC, in cooperation with the Arab Federation of Accountants and Auditors (AFAA) to position themselves for success in a transition to accrual-basis IPSAS.
JACPA has demonstrated an ongoing process to maintain its fulfillment of the SMO 5 obligations and is committed to continuous improvement.
SMO 6: Investigation and Discipline
The Jordanian Association of Certified Public Accountants (JACPA) and the Higher Council for the Accountancy Profession (HCAP) have the authority to operate an investigative and disciplinary (I&D) system for CPAs in accordance with Accountancy Profession Law No. 73 of 2003.
Overall, the JACPA system is largely aligned with the requirements of SMO 6; however, there are a few areas where further enhancement is needed but requires legislative amendments. For example, until amendments pass, JACPA cannot broaden the I&D committee composition to include non-accountants. In practice, the JACPA I&D system operates effectively, and it provides the public with information on its processes, and how to file complaints. The JACPA system has brought forward ten cases between 2018-2020 with six cases being appealed and four cases resulting in the expulsion of JACPA members.
JACPA reports that its I&D system is expected to be fully aligned with SMO 6 requirements once the proposed reform of Accountancy Profession Law No. 73 of 2003 passes in 2023.
Effective and efficient I&D procedures that meet the SMO 6 best practices are foundational to supporting public trust and confidence in the profession. JACPA is encouraged to continue to collaborate with IASCA and HCAP to raise awareness of the SMO 6 requirements and their importance.
SMO 7: International Financial Reporting Standards
In line with the Jordanian Companies Law No. 22 of 1997 (as amended 2006), IFRS have been adopted and are currently effective for all public interest entities. With no direct authority for adoption, JACPA’s focus is primarily on implementation support, particularly because it reports that implementation of IFRS remains a challenge in Jordan. It does this by providing members with the latest IFRS Standards and Arabic translations, as well as by offering relevant training. JACPA also publishes amendments to the IFRS in its quarterly magazine and encourages its members to participate in IASCA’s IFRS workshops.
JACPA monitors changes to the standards and also provides updates through its own courses and workshops. It also meets with university professors to incorporate IFRS, including any new or revised standards, in university curricula.
JACPA has demonstrated an ongoing process to maintain its fulfillment of the SMO 7 obligations and is committed to continuous improvement.
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.
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