Qatar Association of Certified Public Accountants

The Qatar Financial Markets Authority Law No 8 of 2012 requires mandatory quality assurance (QA) reviews for audits of listed entities by the Qatar Financial Markets Authority (QFMA). In 2021, the Qatar Association of Certified Public Accountants (QCPA) conducted an assessment of the QFMA’s QA review system and identified several gaps in terms of alignment with SMO 1 best practices.

QCPA, with no direct responsibility, focuses on supporting the QFMA and is reportedly collaborating with them to issue a decree that would improve the overall quality of audits in the country. QCPA’s Board decided in 2022 to prepare a quality assurance guide for non-listed entities and has engaged in discussions with the Ministry of Commerce and Industry (MOCI) on its potential role in conducting QA reviews of non-listed entities – currently these entities are not subject to QA reviews.

QCPA reports that as of the date of this assessment, an amendment on Law No. 8 is pending that would enable the establishment of a QA review system of non-listed entities. QCPA reports that it plans to ensure that any resulting system for non-listed entities is in line with SMO 1 requirements.

QCPA reports that in 2023 it shared a quality assurance manual, issued by the Qatar Development Bank (QDB), for small and medium-sized practices to design and document appropriate quality management policies and procedures that comply with the new Quality Management standards (ISQM 1 & ISQM 2). Furthermore, it continues to organize specialized workshop trainings in 2024, as it did in 2023 (which will be continued annually thereafter) highlighting the forthcoming changes to ensure that its members are prepared for the application of both ISQM 1 & ISQM 2.

QCPA should collaborate with QFMA to formulate actions steps to eliminate gaps in the existing QA review system for listed entities. Considering that the design and implementation of a QA review system for non-listed entities continues to be in the development stage, QCPA is encouraged to also work with stakeholders in the jurisdiction to launch the QA review system as soon as possible and to ensure that all mandatory audits are subject to an inspection process and that the resulting system is in line with the international best practices formulated in SMO 1. Experiences of other PAOs in this respect may be beneficial.

Current Status: Execute

Audit Law No. 8 of 2020 and Law No. 16 of 2017 on Regulating the Work of Experts establish some initial professional development (IPD) and general continuing professional development (CPD) requirements for Auditors and Accounting Experts, which are further defined by the Ministry of Commerce and Industry (MOCI) and Ministry of Justice (MOJ), respectively.

QCPA participated in a 1-hour interview with IFAC staff in 2022 after completing a comprehensive questionnaire relating to the existing educational requirements for professional accountants (especially IES 2, 3, 4, and 8) in Qatar against those of 2019 IES to determine any gaps and identify ways where the International Panel on Accountancy Education (IPAE) can provide implementation support. This project is ongoing and involves various stakeholders. In 2023, QCPA received approval from the Supreme Judicial Council to launch its own Chartered Accountant qualification under oversight of the MOCI. The Chairman of QCPA is conducting frequent meetings with the MOCI to ensure that this qualification is aligned with the revised 2019 IES and international best practices.

QCPA, subject to oversight by the MOCI, is responsible for delivering a CPD program for auditors—60 training hours per year. QCPA extends and facilitates continuing professional development and training activities in collaboration with ACCA and regional bodies, to upskill both members and non-members.

In addition, QCPA collaborates with training institutions and local universities around the importance and need to incorporate international accountancy standards and best practices in their curricula. QCPA has further established collaborations with international institutions based in Qatar for joint lectures, workshops, webinars and conferences. QCPA also collaborates, and has signed agreements and MOUs, with several organizations and national partners to deliver training, seminars, events and CPD.

QCPA is encouraged to provide an update on the comprehensive review of the existing educational requirements for professional accountants in Qatar against those of 2019 IES. For areas that need improvement, specific actions to close the gaps with a defined timeframe need to be outlined in the SMO Action Plan in collaboration with other stakeholders. QCPA can utilize the IFAC Accountancy Education E-Tool to review the current version of IESs and share these requirements with relevant stakeholders such as universities in Qatar. It is recommended that QCPA complete the IES Checklist developed by IFAC which may be useful in progressing with the adoption of the revised requirements of the IES, especially IES 2, 3, 4 and 8 that are effective as of January 2021.

Current Status: Execute

Under the Audit Law No. 8 of 2020, the Ministry of Commerce and Industry (MOCI) is responsible for the adoption of auditing standards to be applied in Qatar. The MOCI has adopted ISA as issued by the IAASB.

QCPA indicates that it is in the process of launching its own Chartered Accountant qualification under oversight of MOCI which will incorporate new and revised ISA (e.g., ISA 250 & 540) in the program syllabus and exam.

To support implementation, QCPA provides its members with the latest available Arabic translations of the Handbooks, which as of the date of the assessment is the 2023-2024 Handbook of International Quality Control, Auditing Review, Other Assurance, and Related Services Pronouncements. QCPA hosts conferences on technical audit-related topics throughout the year to raise awareness and enhance members’ knowledge and disseminates implementation guidance to members on a regular basis. In addition, it offers continuing professional development courses that cover technical audit issues and is collaborating with the Ministry of Commerce and Industry and/or ACCA Global on various training sessions for members. For example, trainings on ACCA Cert IA and other pronouncements issued by the IAASB were held for auditors, accountants and QCPA members in November 2020 and July 2021.

QCPA monitors new and amended standards, as well as other pronouncements issued by the IAASB, and aims to provide comments on Exposure Drafts. It updates members on an ongoing basis on new and revised audit regulations.

Current Status: Sustain

QCPA shares responsibility for adoption of ethical requirements and adopted the IESBA Code of Ethics as issued by IESBA. The Ministry of Commerce and Industry (MOCI) and Ministry of Justice (MOJ) also adopt the IESBA Code of Ethics as issued by IESBA via Audit Law No. 8 of 2020 and Law No. 16 of 2017 on Regulating the Work of Experts, for Auditors and Accounting Experts, respectively. As of the date of the assessment, the 2024 Handbook of the International Code of Ethics for Professional Accountants is in effect. QCPA reports that it provides its members with copies of the 2022 edition of the Handbook in English, in addition to the 2021 edition of the Handbook in Arabic.

To support implementation, QCPA provides training workshops to ensure that its members are prepared for the application of the changes available in the latest version of the IESBA Code of Ethics and arranges webinars, workshops and seminars in collaboration with global bodies such as ACCA. It also (i) raises awareness of the Code among regulators, universities, legislative powers, and government; (ii) disseminates information to relevant stakeholders about any new, proposed, and revised provisions to the IESBA Code of Ethics; and (iii) includes ethical requirements in its training programs in collaboration with MOCI.

Current Status: Sustain

The Qatar Association of Certified Public Accountants (QCPA) reports that some government entities, such as the Public Works Authority of Qatar, the Ministry of Foreign Affairs, and the Qatar Olympic Committee, require cash-basis IPSAS for entities under their scope.

QCPA reports that some public entities such as the Qatar University, one of the largest government universities, included IPSAS-based accounting in its educational programming.

QCPA focuses on promoting adoption of the IPSAS by participating in relevant campaigns to raise awareness. QCPA also arranges webinars, workshops, and seminars in collaboration with global bodies such as ACCA. For example, QCPA provided training on ACCA Cert IPSAS in Arabic for its members and public sector accountants in September 2021.

QCPA is encouraged to continue its advocacy and support toward accrual-basis IPSAS. Adoption and implementation of accrual IPSAS as issued by the IPSASB would ensure application of global best practices.

Current Status: Sustain

There are multiple stakeholders involved in the investigation and disciplinary (I&D) processes of Auditors and Accounting Experts in Qatar in accordance with various laws. The Ministry of Commerce and Industry (MOCI) is responsible for conducting an I&D system for auditors of non-public interest entities (PIEs), whereas the Qatari Financial Markets Authority (QFMA) is responsible for I&D of auditors of PIEs, and the Ministry of Justice is responsible for I&D of Accounting Experts. QCPA conducted an assessment of these I&D systems in the jurisdiction for Auditors and Accounting Experts against SMO 6 best practices and reported gaps.

QCPA also operates its own I&D system for members. QCPA may suspend or expel an individual when: (i) a member fails or delays membership fees for one year from the scheduled date of payment; (ii) harms or offends the reputation of the Association; and/or (iii) deviates from the principles or objectives declared by the Association. The QCPA General Assembly is reviewing amendments to its bylaws and will seek approval from the Minister of Administrative Development, Labor and Social Affairs to better align its I&D system with SMO 6 requirements. As of the date of this assessment, those amendments are pending approval from the Ministry.

QCPA informs its members of all provisions of the current I&D processes that are operational in Qatar via its website and trainings. QCPA reports to provide all members with access to continuing professional development (both online and in person) on current regulations and the I&D systems and processes.

As a matter of priority, QCPA should provide an update on activities it is undertaking to align its I&D system fully with SMO 6 requirements, as well activities to promote that other enforcement mechanism of auditors & Accounting Experts align with SMO 6 bet practices. QCPA may consider if advocating for a unified enforcement mechanism is appropriate for the jurisdiction to reduce duplication of efforts and ensure consistency and communication. QCPA is also encouraged to continue demonstrating how it is raising awareness of the public, business, private, and public sector stakeholders on the I&D processes while also ensuring its members are aware of the consequences of non-compliance and misconduct.

Current Status: Execute

Law No. 8 of 2012 regarding Qatar Financial Markets Authority (QFMA) as amended by Decree Law No. 22 of 2018 gives the QFMA authority to establish financial reporting requirements. Regulations of the QFMA have defined applicable standards to be IFRS Standards as issued by the IFRS Foundation. In accordance with Qatar Financial Markets Authority Board Resolution No. (5) of 2016 Regarding the Governance Regulations for Companies and Legal Entities Listed on the Main Market, the Qatar Central Bank also requires all banks in the jurisdiction to prepare their financial statements in accordance with IFRS Standards as issued by the IFRS Foundation.

QCPA focuses on supporting implementation of IFRS and IFRS for SMEs. QCPA monitors new and amended standards, as well as other pronouncements issued by the IFRS Foundation, and aims to provide comments on Exposure Drafts. It updates members on an ongoing basis on new and revised standards. Furthermore, it updates continuing professional development training courses.

QCPA indicates that it meets with Qatari universities to ensure incorporation of IFRS and IFRS for SMEs in their academic curricula / syllabi. To support its members, QCPA builds awareness of any new or revised standards by disseminating implementation guidance and disseminating Arabic translations of the standards to its members.

Current Status: Sustain