Liberian Institute of Certified Public Accountants

Under the Liberian Institute of Certified Public Accountants Act of 2011, the Liberian Institute of Certified Public Accountants (LICPA) is responsible for establishing and implementing a Quality Assurance (QA) review system for audit practitioners. The Act requires periodic QA reviews and provides for the establishment of an Audit Quality Assurance Board to oversee the review process and ensure appropriate follow-up actions.

LICPA has operationalized QA reviews through collaboration with regional professional accountancy organizations, including the Institute of Chartered Accountants of Ghana and the Institute of Chartered Accountants of Nigeria, which conducted external QA reviews of audit firms. LICPA has also supported implementation through continuing professional development activities focused on audit quality and quality control requirements, including International Standard on Quality Control 1 and International Standard on Auditing 220.

While a QA review system is in place and has been implemented, available information indicates that elements of the system are not yet fully aligned with the latest SMO 1 requirements. In particular, full operationalization of an independent oversight mechanism, systematic follow-up of review findings, and transition to International Standards on Quality Management have not been fully demonstrated.

LICPA is encouraged to strengthen follow-up and remediation processes, and support members in implementing the current quality management standards to further align with SMO 1 requirements.

Current Status: Execute

Under the Liberian Institute of Certified Public Accountants Act of 2011, the Liberian Institute of Certified Public Accountants (LICPA) is responsible for establishing and monitoring initial professional development and continuing professional development requirements for professional accountants in the jurisdiction.

LICPA’s initial professional development framework requires completion of a university degree, a minimum of three years of practical experience, and successful completion of professional examinations. The professional qualification pathway is administered in collaboration with the Institute of Chartered Accountants, Ghana, and is supported by the Accounting Technician Scheme, West Africa for technician-level qualifications.

LICPA requires members to complete annual continuing professional development and has introduced requirements for reporting compliance as a condition of maintaining good standing. LICPA also provides continuing professional development activities and is working to strengthen oversight of external providers and enhance the practical experience framework.

LICPA is encouraged to further align its education framework with the latest International Education Standards, including strengthening learning outcomes, practical experience monitoring, and continuing professional development quality assurance.

Current Status: Execute

Under the Liberian Institute of Certified Public Accountants Act of 2011, the Liberian Institute of Certified Public Accountants (LICPA) is responsible for adopting and enforcing auditing and other assurance standards in Liberia. In July 2015, LICPA issued Regulation 1: Professional Standards and Related Practice Statements, which adopted International Standards on Auditing (ISA) as issued by the International Auditing and Assurance Standards Board (IAASB). Subsequent standards and revisions issued by the IAASB are automatically adopted for application.

LICPA supports implementation through continuing professional development activities and guidance to members on audit quality and the application of IAASB standards. LICPA has also used regional partnerships and external quality assurance reviews to support practitioners in applying ISA and related quality management requirements.

As LICPA has direct standard-setting authority, has adopted ISA as issued, and continues to support members in implementation, LICPA is assessed at Sustain for SMO 3 fulfillment.

Current Status: Sustain

Under the Liberian Institute of Certified Public Accountants Act of 2011, the Liberian Institute of Certified Public Accountants (LICPA) is responsible for establishing and enforcing ethical requirements for professional accountants. The Act requires LICPA to maintain a Code of Professional Ethics and to align its framework with the requirements of SMO 4.

LICPA has adopted and implemented a Code of Ethics aligned with the 2018 International Code of Ethics for Professional Accountants and has issued guidance to members through its Professional Code of Ethics and related materials. LICPA supports implementation through continuing professional development activities, including seminars and training sessions delivered in collaboration with regional professional accountancy organizations, to ensure members understand and apply ethical requirements in practice.

While LICPA has taken steps to adopt and implement the Code and raise awareness among members, available information does not demonstrate that subsequent revisions to the Code have been incorporated or that a formal process is in place for timely updates.

LICPA is encouraged to establish a formal mechanism to adopt and implement the latest revisions to the International Code of Ethics on a timely basis and continue strengthening guidance and monitoring of member compliance.

Current Status: Review & Improve

The Ministry of Finance and Development Planning is responsible for adopting public sector accounting standards in Liberia. The Liberian Institute of Certified Public Accountants (LICPA) has no direct standard-setting authority for the public sector but is mandated under the LICPA Act of 2011 to advise the government on public sector accounting matters.

Liberia applies Cash Basis International Public Sector Accounting Standards (IPSAS) for public sector financial reporting. In 2021, the government announced implementation of the November 8, 2017 updated Cash Basis IPSAS for all government agencies, with the Ministry of Finance and Development Planning responsible for implementation.

LICPA supports public sector professionalization through training and capacity-building activities. In 2023, LICPA signed a memorandum of understanding with the African Professionalisation Initiative to provide education and professional training for accountants and auditors working in the public sector and for students interested in pursuing professional accountancy qualifications. LICPA also incorporates IPSAS into its Accounting Technician Scheme, West Africa and professional accountancy training programs.

LICPA is assessed at Sustain for SMO 5 fulfillment, reflecting its ongoing engagement with government stakeholders and sustained efforts to support IPSAS implementation and public sector capacity building within the scope of its mandate.

Current Status: Sustain

Under the Liberian Institute of Certified Public Accountants Act of 2011, the Liberian Institute of Certified Public Accountants (LICPA) is responsible for establishing investigation and discipline mechanisms for professional accountants in Liberia. The Act authorizes LICPA to regulate professional conduct, institute disciplinary proceedings, and impose sanctions for breaches of applicable standards and rules.

LICPA has issued Sanction Regulations and established an Ethics and Discipline Committee to investigate complaints and allegations of professional misconduct. The regulations include procedures for complaints, investigations, sanctions, and appeals, and apply to members, member firms, and Registered Practicing Accountants. LICPA’s Code of Ethics also links non-compliance with ethical requirements to disciplinary action.

Available information indicates that LICPA has established and is implementing an I&D system. However, full alignment with SMO 6 has not been demonstrated, including the independence and composition of disciplinary decision-making bodies and publication of disciplinary outcomes.

LICPA is encouraged to continue strengthening the independence, transparency, and documentation of its I&D processes and demonstrate how disciplinary outcomes are monitored and used to support member compliance.

Current Status: Execute

Under the Liberian Institute of Certified Public Accountants Act of 2011, the Liberian Institute of Certified Public Accountants (LICPA) is responsible for adopting private sector accounting standards in Liberia. LICPA has adopted IFRS Accounting Standards as issued by the International Accounting Standards Board, effective December 2018, for public interest entities. Other entities may apply either IFRS Accounting Standards or the IFRS for SMEs Accounting Standard. Changes to IFRS Accounting Standards are automatically adopted, and LICPA communicates updates to members through training and other member communications.

LICPA supports implementation through continuing professional development and training activities on IFRS Accounting Standards and has integrated IFRS-related content into accountancy education programs. Available information also indicates that LICPA has provided IFRS training as part of broader professional development and capacity-building initiatives.

LICPA is assessed at Sustain for SMO 7 fulfillment, reflecting its direct standard-setting authority, adoption of IFRS Accounting Standards and the IFRS for SMEs Accounting Standard as issued, and ongoing support to members for implementation.

Current Status: Sustain