Palestinian Association of Certified Public Accountants

The Palestinian Association of Certified Public Accountants (PACPA) has direct responsibility for establishing and operating the quality assurance (QA) review system in Palestine under the Auditing Profession Law No. 9 of 2004. PACPA has operationalized a mandatory QA system for licensed auditors and audit firms through its QA Committee and reports that the system is reviewed periodically to maintain alignment with Statement of Membership Obligations 1.

PACPA continues to support implementation through member guidance, training, technical support, and updates to its QA manual. With support from the World Bank and international technical expertise, PACPA developed and translated QA guidance, trained reviewers, and conducted awareness activities to support implementation of the system.

Since the previous assessment, PACPA has continued implementation of quality management requirements. In January 2025, PACPA reported completing the third phase of its Quality Management Program, which included training workshops, guidance on required procedures, technical support to member firms, and review and evaluation of procedures applied by practitioners and audit firms to support compliance with updated quality management standards.

PACPA’s sustained operation of the QA review system, continued member support, and ongoing implementation of International Standard on Quality Management 1 and International Standard on Quality Management 2 demonstrate sustained fulfillment of the relevant SMO 1 requirements. Accordingly, PACPA’s fulfillment of SMO 1 is assessed as Sustain.

Current Status: Sustain

Initial professional development requirements for Certified Public Accountants (CPAs) are established under the Auditing Profession Law No. 9 of 2004 and administered by the Board of Professional Auditing. The Palestinian Association of Certified Public Accountants (PACPA) has direct responsibility for continuing professional development requirements for its members, including licensed auditors, and requires members to complete 90 hours of continuing professional development every three years.

PACPA continues to support implementation of the International Education Standards through its Continuing Education Committee, which monitors member compliance, supports license renewal processes, updates working procedures, and strengthens the continuing professional development program. PACPA also continues to provide member training, including recent specialized courses on ethics, audit quality, tax, digital transformation, and the use of artificial intelligence in audit planning, execution, and reporting.

PACPA previously participated in the Middle East and North Africa International Education Standards project, which included a gap analysis against the 2019 International Education Standards and confirmed jurisdiction-level alignment. PACPA also continues to promote the incorporation of international standards in university curricula and professional qualification requirements.

PACPA’s sustained continuing professional development requirements, monitoring processes, member training, and engagement with education stakeholders demonstrate continued fulfillment of the relevant SMO 2 requirements. Accordingly, PACPA’s fulfillment of SMO 2 is assessed as Sustain.

Current Status: Sustain

International Standards on Auditing (ISA) as issued by the International Auditing and Assurance Standards Board are adopted and required for application in Palestine. The Palestinian Association of Certified Public Accountants (PACPA) has no direct responsibility for adopting auditing standards and focuses on supporting members with implementation.

PACPA supports implementation through continuing professional development, technical guidance, and training on ISA-related topics. Since the previous assessment, PACPA has delivered specialized training on ISA 560, with participation from more than 100 auditors, and has also provided training on the use of artificial intelligence in audit planning, audit execution, and audit reporting.

PACPA also supports members’ access to Arabic translations of the standards. The IFAC translations database indicates that the Arabic translation of the 2023-2024 Handbook of International Quality Management, Auditing, Review, Other Assurance, and Related Services Pronouncements was completed in June 2025.

PACPA’s ongoing training, technical support, promotion of translated standards, and engagement with members on audit implementation matters demonstrate sustained fulfillment of the relevant SMO 3 requirements. Accordingly, PACPA’s fulfillment of SMO 3 is assessed as Sustain.

Current Status: Sustain

The International Code of Ethics for Professional Accountants, including International Independence Standards, is adopted in Palestine through requirements issued by the Board of Professional Auditing. The Palestinian Association of Certified Public Accountants (PACPA) requires members to comply with the Code through its bylaws and supports implementation through continuing professional development, guidance, and enforcement activities.

PACPA continues to provide ethics-related training to members, including mandatory training on the Code as part of practice permit renewal requirements. PACPA has delivered training programs on professional ethics across the West Bank and continues to emphasize the link between ethical compliance, professional conduct, and the association’s investigative and disciplinary processes.

PACPA also supports members’ access to translated materials. The IFAC translations database indicates that the Arabic translation of the 2024 Handbook of the International Code of Ethics for Professional Accountants, including International Independence Standards, was completed and published in March 2025.

PACPA’s ongoing training, dissemination of translated standards, and linkage between ethical requirements and investigation and discipline demonstrate sustained fulfillment of the relevant SMO 4 requirements. Accordingly, PACPA’s fulfillment of SMO 4 is assessed as Sustain.

Current Status: Sustain

The Ministry of Finance is responsible for issuing public sector accounting policies in Palestine. Public sector financial reporting remains on a cash-basis framework, with Palestine identified in the IFAC, Chartered Institute of Public Finance and Accountancy, and International Public Sector Accounting Standards Board International Public Sector Financial Accountability Index as transitioning toward accrual-basis International Public Sector Accounting Standards (IPSAS) by 2030.

The Palestinian Association of Certified Public Accountants (PACPA) has no direct responsibility for the adoption of public sector accounting standards and uses best endeavors to promote IPSAS adoption and implementation. PACPA continues to raise awareness with public sector stakeholders, including through engagement with the Ministry of Finance and the State Audit and Administrative Control Bureau, and through workshops, articles, and participation in regional public sector accounting discussions.

PACPA also supports access to translated IPSAS materials. The Arabic version of the 2024 IPSAS Handbook was published in 2026, supporting wider use of IPSAS resources by Arabic-speaking stakeholders.

PACPA’s continued advocacy, stakeholder engagement, awareness activities, and support for access to translated IPSAS resources demonstrate sustained fulfillment of the relevant SMO 5 requirements. Accordingly, PACPA’s fulfillment of SMO 5 is assessed as Sustain.

Current Status: Sustain

The Palestinian Association of Certified Public Accountants (PACPA) and the Board of Professional Auditing (BPA) share responsibility for the investigation and discipline (I&D) of auditors in Palestine. PACPA’s bylaws establish a Professional Conduct and Disciplinary Committee, which is responsible for monitoring compliance with professional conduct requirements, maintaining records and evidence related to alleged violations, reviewing complaints, and referring matters to PACPA’s Board and the BPA where regulatory action is required.

PACPA reports that its I&D system is operational and incorporates the requirements of Statement of Membership Obligations 6, including complaints-based and information-based processes, sanctions, appeals, case tracking, record keeping, public interest considerations, and a link with quality assurance review findings. PACPA may impose member-related sanctions and may recommend suspension or expulsion to the BPA, which retains authority over licensing and sanctions affecting the right to practice.

PACPA continues to raise awareness of the I&D system through its website and internal governance structures. Its executive office is responsible for following up on complaints and coordinating with the Professional Conduct Committee, while the association’s committee structure includes both a Professional Conduct Committee and a Disciplinary Committee.

PACPA’s operational I&D system, coordination with the BPA, linkage with the QA review process, and continued public-facing complaints follow-up demonstrate sustained fulfillment of the relevant SMO 6 requirements. Accordingly, PACPA’s fulfillment of SMO 6 is assessed as Sustain.

Current Status: Sustain

International Financial Reporting Standards (IFRS) and IFRS for Small and Medium-sized Entities are adopted in Palestine through legal and regulatory requirements. The Palestinian Association of Certified Public Accountants (PACPA) has no direct responsibility for the adoption of corporate reporting standards and focuses on supporting implementation by members. The IFRS Foundation confirms that IFRS are required for listed companies, insurance companies, banks, and other financial institutions, and that private registered companies may apply either IFRS or IFRS for Small and Medium-sized Entities.

PACPA supports implementation through continuing professional development, technical training, member communications on new and revised standards, and engagement with universities to encourage inclusion of IFRS in accounting curricula. PACPA also supports members’ access to Arabic translations of IFRS materials. The IFRS Foundation published new Arabic translations of IFRS Accounting Standards and related materials in 2026.

PACPA also reports engagement with regulators and universities to raise awareness of IFRS Sustainability Disclosure Standards, including IFRS S1 and IFRS S2. Arabic translations of IFRS Sustainability Standards and supporting materials were published by the IFRS Foundation in 2025.

PACPA’s ongoing training, member communications, support for translated materials, engagement with education stakeholders, and awareness-raising on sustainability reporting standards demonstrate sustained fulfillment of the relevant SMO 7 requirements. Accordingly, PACPA’s fulfillment of SMO 7 is assessed as Sustain.

Current Status: Sustain