Cambodia

The 2005 Law on Commercial Enterprises requires companies operating in Cambodia to maintain accounting records and prepare financial statements. The legal framework for accounting and auditing is primarily established under the 2016 Law on Accounting and Auditing, which governs the adoption and application of accounting and auditing standards, licensing requirements, and oversight arrangements for the profession. In January 2021, the Law on Organizing and Functioning of Non-Banking Regulators established the Accounting and Auditing Regulator (ACAR), which replaced the National Accounting Council as the principal regulator of the accountancy profession in Cambodia.

Under the Law on Accounting and Auditing, ACAR is authorized to develop and propose accounting and auditing standards aligned with international standards issued by the International Accounting Standards Board and the International Auditing and Assurance Standards Board. The Ministry of Economy and Finance (MEF) approves these standards through ministerial proclamations (prakas). The standards apply to public institutions, enterprises, and not-for-profit entities.

Accounting

The Cambodian Accounting Standards Board operating under ACAR has adopted International Financial Reporting Standards (IFRS Accounting Standards) as Cambodian International Financial Reporting Standards (CIFRS) and IFRS for Small and Medium-sized Entities (IFRS for SMEs Accounting Standard) as CIFRS for SMEs. Public interest entities, including listed companies, banks, microfinance institutions, and insurance entities, are required to apply CIFRS. Large private entities are also required to apply CIFRS in preparing financial statements.

Small and medium-sized entities are generally permitted or required to apply CIFRS for SMEs depending on their size and statutory audit obligations. Other non-public interest entities may apply either CIFRS for SMEs or full CIFRS. Sector regulators, including the Securities and Exchange Regulator of Cambodia, the National Bank of Cambodia, and the Insurance Regulator of Cambodia under the MEF, may prescribe additional financial reporting requirements for entities under their supervision.

Auditing

The Law on Accounting and Auditing requires statutory audits to be conducted in accordance with auditing standards adopted by ACAR. The Cambodian Auditing and Assurance Standards Board under ACAR has adopted International Standards on Auditing and other International Auditing and Assurance Standards Board pronouncements as Cambodian Standards on Auditing and Assurance through MEF proclamations.

Statutory audits are required for listed companies, banks and financial institutions, insurance companies, and private entities meeting at least two of the following thresholds established by the MEF: annual turnover above KHR 4 billion, total assets above KHR 3 billion, or more than 100 employees. Not-for-profit entities are subject to statutory audit requirements where they meet thresholds established by the MEF relating to annual expenditures and employee numbers.

Only members of the Kampuchea Institute of Certified Public Accountants and Auditors (KICPAA) holding an appropriate license issued by ACAR are permitted to provide accounting and auditing services in Cambodia.

In Cambodia, the accountancy profession is regulated through a shared framework involving the Accounting and Auditing Regulator (ACAR), the Ministry of Economy and Finance (MEF), the Audit Quality Monitoring Committee (AQMC), sector regulators, and the Kampuchea Institute of Certified Public Accountants and Auditors (KICPAA).

The Law on Accounting and Auditing establishes the legal framework for regulating accounting and auditing, including professional licensing, technical standards, monitoring, enforcement, and disciplinary measures. The law originally assigned these functions to the National Accounting Council, which was subsequently replaced by ACAR following the establishment of the Non-Bank Financial Services Authority framework. ACAR operates under the MEF and is responsible for setting and updating accounting and auditing standards, issuing and withdrawing professional licenses, monitoring compliance with accounting and auditing laws and regulations, resolving disputes, imposing disciplinary or administrative sanctions, and supervising the activities of the professional accountancy body.

The AQMC carries out audit oversight functions on behalf of ACAR and the MEF. Its responsibilities include monitoring the quality of audits through inspection activities, reviewing compliance with auditing, ethical, and legal requirements, and supporting disciplinary processes where deficiencies or non-compliance are identified.

KICPAA is the only professional accountancy organization in Cambodia. It was established under the 2002 Law on Corporate Accounts, Their Audits and the Accounting Profession and is recognized under the 2016 Law on Accounting and Auditing. KICPAA is responsible for governing its members, supporting professional capacity development, enhancing compliance with standards, codes of ethics, rules and regulations, and developing and managing professional education and examination programs.

Individuals and firms wishing to provide accounting or auditing services in Cambodia must register with KICPAA and obtain the relevant license from ACAR. KICPAA membership is a prerequisite for applying for an accounting or auditing license from ACAR, and firms must also meet ownership, governance, professional indemnity, and licensing requirements established under the applicable membership and licensing rules.

Entry into KICPAA membership continues to rely significantly on recognized foreign professional qualifications. Individual membership categories include active member auditor, active member accountant, affiliate member, associate member, and student member. Active member auditors and accountants must hold a professional accounting qualification accredited by KICPAA, provide evidence of relevant professional experience, and, where applicable, submit a good-standing letter from their foreign professional accountancy organization.

Sector-specific regulators also play a role in approving or supervising auditors for regulated entities. The National Bank of Cambodia supervises auditors of banks and financial institutions, the Securities and Exchange Regulator of Cambodia supervises auditors of listed entities, and the Insurance Regulator of Cambodia supervises auditors of insurance entities. Audit firms operating in Cambodia may therefore be subject to licensing or approval requirements from ACAR and relevant sector regulators, depending on the entities they audit.

Cambodia does not have a fully independent audit oversight authority separate from the regulatory framework established under the Ministry of Economy and Finance (MEF). Audit oversight responsibilities are carried out through the Accounting and Auditing Regulator (ACAR) and the Audit Quality Monitoring Committee (AQMC) operating under the supervision of the MEF.

The legal framework for audit oversight is established under the 2016 Law on Accounting and Auditing and the Law on Organizing and Functioning of Non-Banking Regulators. Under this framework, ACAR is responsible for regulating and supervising the accountancy profession, including audit quality monitoring, licensing, enforcement, and disciplinary activities relating to auditors and audit firms.

The AQMC was established to support audit oversight and quality assurance activities on behalf of ACAR and the MEF. Its responsibilities include conducting audit inspections, monitoring compliance with applicable auditing and ethical standards, reviewing audit quality, and supporting investigation and disciplinary processes where non-compliance is identified.

The Kampuchea Institute of Certified Public Accountants and Auditors also plays a supporting role within the regulatory framework through member oversight, continuing professional development, and implementation support activities. However, primary authority for audit oversight, licensing, inspections, and enforcement rests with ACAR and the AQMC under the supervision of the MEF.

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

The Kampuchea Institute of Certified Public Accountants and Auditors (KICPAA)

KICPAA was established in 2003 under the Law on Corporate Accounts, Their Audits and the Accounting Profession and is recognized under the 2016 Law on Accounting and Auditing. KICPAA is the only independent, non-profit professional accountancy organization in Cambodia.

KICPAA’s mandate is to protect the public interest and the interests of the profession by governing its members, supporting professional capacity development, enhancing compliance with standards, codes of ethics, rules and regulations, and developing and managing professional education and examination programs.

Membership in KICPAA is mandatory for individuals and firms seeking to provide accounting or auditing services in Cambodia. KICPAA membership is also a prerequisite for applying for an accounting or auditing license from the Accounting and Auditing Regulator. Its membership categories include firm members, active members, affiliate members, associate members, and student members.

KICPAA supports members through continuing professional development, technical resources, updates on legislative and regulatory developments, and engagement with regulators and other stakeholders. It also maintains member directories for firms, individuals, and students.

In addition to being a member of the International Federation of Accountants, KICPAA is a member of the ASEAN Federation of Accountants.

The quality assurance (QA) review system in Cambodia is established under the Law on Accounting and Auditing and the Law on Organizing and Functioning of Non-Banking Regulators. The Accounting and Auditing Regulator (ACAR), operating under the Ministry of Economy and Finance, is responsible for monitoring compliance with applicable accounting and auditing requirements, including through off-site and on-site inspections. The Audit Quality Monitoring Committee (AQMC) carries out QA review activities on behalf of ACAR and the Ministry.

The QA system applies to statutory auditors and audit firms and includes monitoring audit quality, reviewing compliance with auditing and ethical requirements, and supporting enforcement where deficiencies are identified. Based on the available framework, the jurisdiction-level QA system is operational and aligned with the relevant requirements of SMO 1.

ACAR has published International Standard on Quality Management 1, International Standard on Quality Management 2, and International Standard on Auditing 220 (Revised), effective for systems of quality management and audits beginning on or after December 15, 2022.

Current Status: Adopted

Initial and continuing professional development requirements for professional accountants in Cambodia are established by the Kampuchea Institute of Certified Public Accountants and Auditors (KICPAA), under the regulatory oversight of the Accounting and Auditing Regulator. Individuals seeking active membership as auditors or accountants must hold a professional accounting qualification accredited by KICPAA and demonstrate at least three years of relevant practical experience. KICPAA also recognizes completion of the Cambodia Certified Public Accountant qualification, foreign professional qualifications accredited by KICPAA, and the Accounting Technician Qualification for relevant membership categories.

KICPAA has operationalized local education pathways through the Cambodia Certified Public Accountant qualification and the Accounting Technician Qualification. The ATQ is an examination-based technician-level qualification developed by KICPAA with technical support from the Institute of Chartered Accountants in England and Wales and funding support from the United Nations Development Programme and the Russian Federation.

KICPAA requires continuing professional development for professional accountants, including a minimum of 120 CPD hours over a three-year period, with evidence of compliance required.

Based on the available evidence, the jurisdiction-level education framework incorporates entry requirements, professional education, practical experience, assessment, and continuing professional development requirements for professional accountants and is aligned with the relevant requirements of SMO 2.

Current Status: Adopted

The Law on Accounting and Auditing requires all audits in Cambodia to be conducted in accordance with auditing standards approved by the Ministry of Economy and Finance (MEF) following proposal by the Accounting and Auditing Regulator (ACAR). The standards must be consistent with international standards issued by the International Auditing and Assurance Standards Board.

ACAR’s standards portal includes the Cambodian International Standards on Auditing and Assurance, including International Standard on Auditing 220 (Revised), and the quality management standards effective for audits beginning on or after December 15, 2022. ACAR also publishes the ministerial proclamation adopting standards related to auditing, issued on May 23, 2022.

Based on the automatic adoption approach and ACAR’s publication of current International Auditing and Assurance Standards Board pronouncements, ISA are adopted in their entirety for all mandatory audits.

ACAR has also published ISA for Audits of Financial Statements of Less Complex Entities and held public consultations on its adoption in Cambodia.

Current Status: Adopted

The Law on Accounting and Auditing authorizes the Accounting and Auditing Regulator (ACAR) to establish ethical requirements for professional accountants in Cambodia under the supervision of the Ministry of Economy and Finance. Ethical requirements are required to be consistent with international standards issued by the International Ethics Standards Board for Accountants (IESBA).

ACAR has adopted the International Code of Ethics for Professional Accountants (including International Independence Standards) through ministerial proclamations providing for automatic adoption of subsequent updates issued by IESBA. The code is published on ACAR’s standards portal together with related ethical and independence pronouncements.

Current Status: Adopted

The Law on Accounting and Auditing applies to public institutions and provides the legal basis for promulgating accounting standards in Cambodia. The Accounting and Auditing Regulator (ACAR), under the Ministry of Economy and Finance, is responsible for adopting Cambodian Public Sector Accounting Standards (CPSAS).

Cambodia has adopted an IPSAS-based cash-basis framework and is implementing a phased transition toward accrual-basis public sector accounting under the Strategy for Implementation of Cambodia Public Accounting Standards, Accrual Basis 2019–2031. The roadmap provides for Stage 1: IPSAS-based cash basis from 2019–2024; Stage 2: modified cash basis from 2025–2027; Stage 3: modified accrual basis from 2028–2030; and Stage 4: IPSAS-based accrual basis from 2031 onward.

The 2021 Public Expenditure and Financial Accountability assessment notes that Cambodia’s financial statements are prepared based on CPSAS and IPSAS, with variations disclosed in annual financial reports. A World Bank assessment also notes that the government adopted a roadmap for modified cash or modified accrual standards with a long-term vision of full accrual accounting by 2031.

Current Status: Partially Adopted

The investigation and discipline (I&D) system in Cambodia is established through the Law on Accounting and Auditing, related implementing regulations, and the Kampuchea Institute of Certified Public Accountants and Auditors (KICPAA) By-Law. The Accounting and Auditing Regulator (ACAR) has authority to suspend or withdraw professional licenses, monitor enforcement of accounting and auditing requirements, resolve complaints and disputes, and impose disciplinary measures or administrative penalties for breaches of accounting and auditing regulations.

The Law on Accounting and Auditing provides sanctions for accountants and auditors who breach the Code of Ethics, including oral reproach, written reproach, temporary prohibition from practice, and permanent prohibition from practice. It also requires individuals and firms providing accounting or auditing services to be registered with KICPAA and licensed by ACAR.

The Sub-Decree on Penalty for Non-Compliance with the Law on Accounting and Auditing establishes transactional fines for non-compliance by enterprises, not-for-profit organizations, accountants, and auditors, including breaches related to licensing, audit reports, audit evidence retention, and compliance with Cambodian International Standards on Auditing and Assurance. It also provides for suspension or revocation of licenses in cases of repeated violations.

KICPAA has established an investigation and disciplinary mechanism for its members under its By-Law, including sanctions such as reprimands, fines, suspension, removal from membership, and referral to relevant authorities. As KICPAA membership and ACAR licensing are required to practice accounting or auditing services in Cambodia, the system applies to professional accountants in public practice. However, available public information does not fully demonstrate that the system incorporates all SMO 6 requirements, including separate investigation, discipline, and appeal mechanisms and public reporting of outcomes. Accordingly, investigation and discipline is assessed as Partially Adopted.

Current Status: Partially Adopted

The Law on Accounting and Auditing authorizes the Accounting and Auditing Regulator (ACAR), under the Ministry of Economy and Finance, to establish accounting standards in Cambodia consistent with international standards issued by the International Accounting Standards Board.

ACAR has adopted IFRS Accounting Standards without modification as Cambodian International Financial Reporting Standards (CIFRS). The adoption framework is supported through ministerial proclamations providing for automatic adoption of new and revised IFRS Accounting Standards and IFRIC Interpretations without a separate national endorsement process. Publicly accountable entities, including listed entities, banks, microfinance institutions, and insurance companies, are required to apply CIFRS in the preparation of financial statements.

The IFRS Foundation jurisdiction profile notes that insurance entities are permitted to defer implementation of IFRS 9 Financial Instruments and IFRS 17 Insurance Contracts until periods beginning on or after January 1, 2028. Nevertheless, IFRS Accounting Standards in effect as of the time of the assessment are otherwise adopted and required for publicly accountable entities.

ACAR has also adopted the IFRS for SMEs Accounting Standard without modification as Cambodian International Financial Reporting Standards for SMEs for application by eligible entities.

Current Status: Adopted

Relevant Organizations

Accounting and Auditing Regulator (ACAR)

ASEAN Chartered Professional Accountant Coordinating Committee (ACPACC)

Kampuchea Institute of Certified Public Accountants and Auditors (KICPAA)

Relevant Legislation

Law on Accounting and Auditing (Cambodia)

Prakas on Adoption of International Standards on Auditing and Assurance and Related Standards

Sub-Decree on Penalty for Non-Compliance with the Law on Accounting and Auditing

Relevant Publications

Cambodia IFRS Foundation Jurisdiction Profile

Dissemination Workshop on the 2025–2030 Development Plan for the Cambodia CPA Qualification and Recognition Principles for Educational Institutions for the Cambodian CPA Qualification

ISQM 1 Publication by ACAR

KICPAA By-Law 2021

KICPAA Code of Ethics for Professional Accountants and Auditors

Membership Requirement of KICPAA

PEFA Cambodia Public Financial Management Reform Program Assessment Report 2021

Training of Trainer on Accounting Technician Qualification Program

Workshop on International Standards on Quality Management