Brunei

In Brunei Darussalam, the legal and regulatory framework for corporate financial reporting is established under the Accounting Standards Order 2010. The Brunei Darussalam Accounting Standards Council (BDASC) is responsible for setting accounting standards in the jurisdiction.

Public interest entities, including banks, financial institutions, insurance companies, and takaful companies, are required to prepare financial statements in accordance with International Financial Reporting Standards (IFRS Accounting Standards) as issued. Brunei Darussalam does not have a domestic stock exchange. Other entities apply the Brunei Darussalam Accounting Standards (BDAS), which were introduced for non-public interest entities with effect from January 1, 2018, replacing the previous Generally Accepted Accounting Principles in Brunei Darussalam.

Statutory audit requirements are established under the Companies Act, which mandates audits for public interest entities and other entities as prescribed. The Public Accountants Oversight Committee (PAOC) is the authority responsible for establishing auditing standards in the jurisdiction.

Audits are required to be conducted in accordance with International Standards on Auditing (ISA) as issued by the International Auditing and Assurance Standards Board (IAASB). The PAOC announced the adoption of ISA and International Standards on Quality Management (ISQM) in 2020, with subsequent adoption of ISQM 1, ISQM 2, and International Standard on Auditing 220 (Revised) becoming effective from 2022.

The accountancy profession in Brunei Darussalam is regulated under the Accountants Order 2010 through a centralized regulatory model. The Public Accountants Oversight Committee (PAOC), operating under the authority of the Ministry of Finance and Economy, is the primary body responsible for the regulation, supervision, and oversight of public accountants, audit firms, and related entities in the jurisdiction.

The PAOC is responsible for maintaining registers of public accountants, public accounting firms, corporations, and limited liability partnerships; assessing and approving applications for registration; issuing and renewing practicing certificates; and enforcing compliance with applicable legal and professional requirements. The PAOC is also empowered to establish and administer continuing professional development requirements, conduct examinations where deemed necessary, and investigate complaints or information relating to professional misconduct. Where appropriate, the PAOC may initiate disciplinary proceedings and impose sanctions. In addition, the PAOC is responsible for establishing ethical requirements applicable to professional accountants and for developing quality assurance and investigative and disciplinary frameworks in the jurisdiction.

Brunei Darussalam does not operate a national professional accountancy qualification framework. Entry into the profession is based on recognition of qualifications obtained from a prescribed list of international professional accountancy organizations, including CPA Australia, the Association of Chartered Certified Accountants, Chartered Accountants Australia and New Zealand, CPA Canada, the Institute of Chartered Accountants in England and Wales, the Institute of Chartered Accountants of Ireland, and the Institute of Chartered Accountants of Scotland. Individuals seeking registration as public accountants are required to be members in good standing of one of these recognized bodies and to comply with the initial professional development and continuing professional development requirements established by those organizations.

In order to practice as a public accountant and offer audit services, individuals must also be members of the Brunei Institute of Certified Public Accountants (BICPA) and obtain a practicing license issued by the Ministry of Finance and Economy. BICPA operates as the national professional accountancy organization and plays a supporting role within the regulatory framework. Its responsibilities include providing advice to the PAOC on matters affecting the profession, establishing ethical requirements for its members, and administering investigation and disciplinary procedures for non-practicing members in accordance with its constitution and by-laws.

This framework reflects a state-led regulatory model in which the PAOC exercises primary authority over licensing, standard-setting, and enforcement, while BICPA supports professional development, ethics, and member engagement within the jurisdiction.

Brunei Darussalam does not have an independent public audit oversight authority. Oversight of the audit profession is exercised through a government-led framework established under the Accountants Order 2010.

The Public Accountants Oversight Committee (PAOC), operating under the authority of the Ministry of Finance and Economy, is responsible for the regulation, supervision, and oversight of public accountants, audit firms, and related entities in the jurisdiction. Its responsibilities include maintaining registers of practitioners and firms, approving and renewing licenses, establishing professional and ethical requirements, and investigating and disciplining professional misconduct. The PAOC is also responsible for developing quality assurance and inspection mechanisms for audit practitioners.

The PAOC is not a member of the International Forum of Independent Audit Regulators.

The Brunei Darussalam Institute of Certified Public Accountants (BICPA)

The Brunei Darussalam Institute of Certified Public Accountants (BICPA) was established in 1987 as a non-profit professional accountancy organization representing accountants and auditors in Brunei Darussalam. Membership in BICPA is mandatory for individuals seeking to practice as public accountants, including auditors, in accordance with the Accountants Order 2010.

BICPA operates within a regulatory framework in which primary oversight of the profession is exercised by the Public Accountants Oversight Committee (PAOC). Within this framework, BICPA plays a supporting role in the development and advancement of the profession. Its responsibilities include promoting the interests and recognition of the accountancy profession, supporting the development of accountancy education and training, and providing a platform for professional engagement among members.

BICPA is also responsible for establishing ethical requirements for its members and administering investigation and disciplinary procedures for non-practicing members in accordance with its constitution and by-laws. The organization contributes to the regulatory process through consultation with the PAOC on matters affecting the profession and supports continuing professional development activities for its members.

In addition to its national role, BICPA is an Associate of the International Federation of Accountants and a member of the ASEAN Federation of Accountants, reflecting its engagement with regional and international accountancy networks.

The quality assurance review system in Brunei Darussalam falls under the responsibility of the Public Accountants Oversight Committee (PAOC) under the Accountants Order 2010, which empowers the authority to regulate public accountants and related entities in the jurisdiction. However, no evidence was identified from current authoritative sources that a quality assurance review system has been established and is operational for mandatory audits. Recent compliance materials indicate that the Quality Assurance Review System has not yet been established in practice.

Accordingly, the jurisdiction-level framework is not aligned with the requirements of SMO 1, which requires an established and operational external quality assurance review system.

The PAOC has adopted the International Standard on Quality Management 1 (ISQM 1), International Standard on Quality Management 2 (ISQM 2), and International Standard on Auditing 220 (Revised), effective from December 2022, for application by all registered public accountants and accounting entities. While ISQM 1 and ISQM 2 are adopted, the absence of an operational quality assurance review system means this does not affect the overall adoption rating.

Current Status: Not Adopted

There is no national professional accountancy qualification framework in Brunei Darussalam. Under the Accountants Order 2010, individuals seeking registration as public accountants must be members of recognized foreign professional accountancy organizations listed in the legislation. Accordingly, initial professional development requirements, including education, practical experience, and assessment, are established by those recognized bodies rather than at the jurisdiction level.

Continuing professional development requirements are established by the Public Accountants Oversight Committee (PAOC), which requires licensed public accountants to complete ongoing training. The Brunei Darussalam National Accreditation Council is responsible for assessing and recognizing academic and professional qualifications in the jurisdiction.

No evidence was identified of jurisdiction-level adoption of the International Education Standards (IES) in effect as of the time of the assessment. The framework applies primarily to public accountants and is based on recognized foreign qualification pathways rather than a comprehensive national system.

Under the 2026 adoption definitions, the International Education Standards are assessed as Partially Adopted, as requirements aligned with IES are applied to a segment of the profession rather than across the jurisdiction.

Current Status: Partially Adopted

The Public Accountants Oversight Committee (PAOC) is responsible for setting auditing standards in Brunei Darussalam. In 2020, the PAOC announced the adoption of International Standards on Auditing (ISA) and International Standards on Quality Management (ISQM) as issued by the International Auditing and Assurance Standards Board (IAASB), with application required for all registered public accountants and accounting entities.

Subsequent updates confirm the adoption of International Standard on Quality Management 1 (ISQM 1), International Standard on Quality Management 2 (ISQM 2), and International Standard on Auditing 220 (Revised), effective December 2022, indicating an ongoing process to incorporate new and revised standards. Under the 2026 adoption definitions, ISA are assessed as Adopted.

The International Standard on Auditing for Audits of Financial Statements of Less Complex Entities (ISA for LCE) has also been adopted for application in the jurisdiction.

Current Status: Adopted

The Public Accountants Oversight Committee (PAOC) is responsible for establishing ethical requirements for professional accountants in Brunei Darussalam under the Accountants Order 2010. A Ministry of Finance and Economy notice confirms adoption of the International Code of Ethics for Professional Accountants issued by the International Ethics Standards Board for Accountants (IESBA), effective January 1, 2017.

The Brunei Darussalam Institute of Certified Public Accountants (BICPA) reports that the latest version of the Code is being applied in practice.

Current Status: Adopted

The Accountant General, through the Ministry of Finance and Economy’s Treasury framework, is responsible for maintaining the government’s accounts and preparing the annual accounts of Brunei Darussalam. The current public financial management framework is set out in the Financial Regulations 2022., which require government accounting records and annual accounts to be prepared on a receipts and payments basis.

No current authoritative evidence was identified that International Public Sector Accounting Standards (IPSAS) have been adopted, whether on an accrual, partial-accrual, or cash-basis IPSAS framework, nor was evidence identified of a formal timeline for IPSAS adoption. Instead, the available framework indicates the use of national public sector accounting arrangements under the Treasury system.

Current Status: Not Adopted

Under the Accountants Order 2010, the Public Accountants Oversight Committee (PAOC) has responsibility for investigating complaints and information relating to professional misconduct by public accountants, accounting corporations, accounting firms, and accounting limited liability partnerships, and for referring matters to disciplinary proceedings where appropriate. The legislation provides for disciplinary panels, formal inquiries, sanctions, and appeals.

Current Ministry of Finance and Economy materials indicate that this framework is operational in practice for registered public accountants and accounting entities. The Ministry has published Guidelines for Lodging Complaints under the Accountants Act as well as a complaints handling, decision, and appeal process flowchart setting out the inquiry and disciplinary process (Guidelines for Lodging Complaints under the Accountants Act and Complaint Handling, Decision and Appeal Process Flowchart).

However, the available public evidence supports operation of the investigative and disciplinary framework only for practicing public accountants and registered accounting entities. No current authoritative evidence was identified demonstrating a jurisdiction-level system incorporating the requirements of SMO 6 for all professional accountants in Brunei Darussalam. Under the 2026 adoption definitions, the investigative and disciplinary system is therefore assessed as Partially Adopted.

Current Status: Partially Adopted

Under the Accounting Standards Order 2010, the Brunei Darussalam Accounting Standards Council (BDASC) is responsible for establishing financial reporting standards in the jurisdiction. Public interest entities, including banks, financial institutions, insurance companies, and takaful companies, are required to prepare financial statements in accordance with International Financial Reporting Standards (IFRS Accounting Standards) as issued. Brunei Darussalam does not have a domestic stock exchange; however, the scope of application aligns with publicly accountable entities as defined by the IFRS Foundation.

Non-public interest entities are required to apply the Brunei Darussalam Accounting Standards (BDAS), which were introduced with effect from January 1, 2018, replacing the previous Generally Accepted Accounting Principles in Brunei Darussalam. BDAS constitutes a separate national framework and is not based on IFRS Accounting Standards.

Accordingly, IFRS Accounting Standards are required for all publicly accountable entities within the jurisdiction and are applied as issued. Under the 2026 adoption definitions, IFRS Accounting Standards are assessed as Adopted.

IFRS for Small and Medium-sized Entities (IFRS for SMEs) have not been adopted in the jurisdiction, as non-public interest entities apply BDAS.

Current Status: Adopted

Relevant Organizations

Accountant General’s Office, Ministry of Finance and EconomyBrunei Darussalam Accounting Standards CouncilBrunei Darussalam Institute of Certified Public Accountants Ministry of Finance and Economy (Public Accountants Oversight Committee)

Relevant Legislation

Accountants Order 2010Accounting Standards Order 2010Financial Regulations 2022

Relevant Publications

Adoption of Code of Ethics for Professional Accountants (Ministry of Finance and Economy) Complaint Handling, Decision and Appeal Process FlowchartGuidelines for Lodging Complaints under the Accountants Act