Colombia

The financial reporting framework in Colombia is established under the Code of Commerce of 1971 and the Law No. 43 of 1990 the Code establishes the obligation for companies to keep books of accounts and provides the basic legal framework for accounting.

The Law establishes a general legal framework authorizing the government to issue accounting and auditing standards and to regulate the practice of professional accountants. The Law No. 1314 of 2009 authorizes the Ministry of Commerce, Industry and Tourism (MCIT) and the Ministry of Finance and Public Credit, acting jointly, to set accounting and auditing standards for all companies. The Technical Council of Public Accountancy (CTCP), an entity under the authority of MCIT, prepares proposals for the ministries relating to new standards on accounting and auditing. In 2015, the regulators adopted IFRS, IFRS for Small- and Medium-sized Entities; the IESBA Code of Ethics and ISA for all professional accountants. These standards are updated and amended on a regular basis, considering their availability in Spanish and the due process that the CTCP and regulatory ministries must complete to issue the corresponding updated decrees.

In Colombia, in accordance with the Code of Commerce of 1971 and the Law No. 43 of 1990, all companies with the following characteristics must appoint a statutory auditor: (i) companies with assets higher than 5,000 minimum legal wages; (ii) companies with income higher than 3,000 minimum legal wages; and (iii) international branches and stock companies. Colombian regulation requires companies to appoint a statutory auditor (revisor fiscal) with broad oversight responsibilities. The statutory auditor performs annual audits and is legally required to perform various activities that do not constitute auditing of financial statements.

The profession is regulated at the state level in Colombia by the Law No. 43 of 1990. This Law sets initial professional development and ethical requirements as well as investigative and disciplinary procedures. A university accounting degree and one year of practical experience are the only requirements to practice the profession in Colombia. No law or regulation exists defining continuing professional development requirements or stipulating that individuals must pass a qualification examination prior to practicing. The Law created a Central Board of Accountancy (JCC) under the Ministry of Commerce, Industry and Tourism to supervise the profession. The JCC’s responsibilities include: (i) maintaining a registry of professional accountants; (ii) establishing and operating a quality assurance review system for audits; and (iii) implementing an investigation and discipline system for the profession.

In addition, professionals may voluntarily join a professional accountancy organization (PAO) and be self-regulated through the membership requirements of the PAO. The Instituto Nacional de Contadores Públicos de Colombia (INCP) unites professional accountants through voluntary membership, and requires its candidates to hold a JCC-issued license and bachelor’s degree in accounting to be considered for membership. Although legally, the INCP cannot judge or impose any disciplinary sanction on its members' professional conduct, the INCP's bylaws establish a requirement to follow a Code of Ethics or face sanctions on membership rights. The INCP promotes the adoption and implementation of international standards, represents and promotes the accountancy profession, develops training activities, and promotes improvements to professional practices.

The Central Board of Accountancy (JCC) under the Ministry of Commerce, Industry and Tourism, as established under the Law No. 1314 of 2009, is responsible for supervising the audit profession in Colombia. The JCC’s responsibilities include: (i) maintaining a registry of professional accountants (including auditors); (ii) establishing and operating a quality assurance review system for audits; and (iii) implementing an investigation and discipline system for the profession. The JCC is not a member of the International Forum of Independent Audit Regulators.

The Instituto Nacional de Contadores Públicos de Colombia (INCP)

The INCP, established in 1951, unites professional accountants and firms on a voluntary basis. The INCP promotes the adoption and implementation of international standards, represents and promotes the accountancy profession, develops training activities, and promotes improvements to professional practices.

Others PAOs

In Colombia, there are eight other professional accountancy organizations. These associations, alongside the INCP, have established the National Committee of Professional Associations, aimed at building and strengthening the profession in Colombia. Its work is organized around three strategic pillars: education, training, and certification; profiling of the profession and its economic structure; and professional governance and stakeholder engagement.

In accordance with the Law No. 1314 of 2009, the Central Board of Accountancy (JCC) under the Ministry of Commerce, Industry and Tourism is responsible for establishing a quality assurance (QA) review system for all mandatory audits. Accordingly, since 2017, the JCC has established and operated a QA review system. The Instituto Nacional de Contadores Públicos de Colombia reports that the peer review system mostly aligns with the SMO 1 requirements, having only one difference which is that policies and procedures related to inspection cycles may vary among firms (i.e. they may not take place at least every six years (and every three years for audits of public interest entities)).

In addition, the Ministry of Commerce, Industry and Tourism, and the Ministry of Finance and Public Credit have adopted ISQC 1 and ISA 220 through Decree No. 2420 of 2015, which is updated annually and published in the Official Gazette for application in all audits. Currently, the regulators are in the process of adopting ISQM 1, ISQM 2, and the revised ISA 220.

Current Status: Partially Adopted

In accordance with the Law No. 43 of 1990 professional accountants are required to have a university accounting degree and one year of practical experience to practice. The Ministry of Education and universities control the curriculum and qualifications of professional accountants.

Due to the legal nature of university autonomy in Colombia, the International Education Standards (IES) are considered a reference framework for designing accounting education programs, but their adoption is not mandatory.

Under the Ministry of Commerce, Industry and Tourism, the Central Board of Accountancy has a role in monitoring practical experience and issuing a license to practice.

A limited number of IES requirements appear to have been incorporated into the national requirements, such as university accounting degree and practical experience requirements. It does not appear that any other national requirements exist – either IPD or CPD – that incorporate the IES.

Current Status: Partially Adopted

Law No. 1314 of 2009 empowers the Ministry of Commerce, Industry and Tourism and the Ministry of Finance and Public Credit, acting jointly, to set auditing standards for all companies. The regulators have adopted the ISA through Decree No. 2420 of 2015, updated regularly and published in the Official Gazette for application in all audits. The 2018 ISAs are currently effective.

Currently, the regulators are in the process of adopting the 2023-2024 ISA.

Current Status: Partially Adopted

In Colombia, Law No. 43 of 1990 sets ethical requirements for professional accountants in line with the IESBA Code of Ethics. Subsequently, the Ministry of Commerce, Industry and Tourism and the Ministry of Finance and Public Credit were authorized to update ethical requirements for all professional accountants in accordance with Law No. 1314 of 2009. The 2018 International Code of Ethics for Professional Accountants is currently effective.

Currently, a decree for the adoption of the 2021 IESBA Code is pending approval by the regulators.

Current Status: Partially Adopted

The Constitution of Colombia establishes the General Accounting Office (CGN) as the accounting standard-setter for the public sector. The CGN has adopted accrual-basis IPSAS (IFAC/CIPFA International Public Sector Financial Accountability Index 2020) since 2015, and currently requiring the application of 2021 IPSAS through Resolution 331 of 2022.

Current Status: Adopted

In accordance with Law No. 43 of 1990, the Disciplinary Court of the Central Board of Accountancy is responsible for investigating and disciplining (I&D) professional accountants. The Disciplinary Court has established an I&D system, which is complaints-based. As reported by the Instituto Nacional de Contadores Públicos de Colombia, the procedures mostly align with the SMO 6 requirements except that a connection with the results of QA reviews has not been established.

Current Status: Partially Adopted

In accordance with Law No. 1314 of 2009, the Ministry of Commerce, Industry and Tourism and the Ministry of Finance and Public Credit, acting jointly, are responsible for setting corporate accounting standards for all companies.

The regulators issued Decree No. 2784 of 2012, amended by Decree No. 2131 of 2016, adopting IFRS and IFRS for Small- and Medium-sized Entities (SMEs).

The current version of IFRS standards are not adopted, as the decree for the adoption by convergence of the IFRS issued since 2022 is pending regulatory approval.

Current Status: Partially Adopted

Relevant Organizations

• Central Board of Accountancy (JCC)
• General Accounting Office (CGN)
• Instituto Nacional de Contadores Públicos de Colombia (INCP)
• Ministry of Commerce, Industry and Tourism (MCIT)
• Ministry of Finance and Public Credit (MoF)

Relevant Legislation

• Central Board of Accountancy (JCC), Resolution 667 of 2017
• Code of Commerce of 1971
• Decree No. 2784 of 2012
• Decree No. 2420 of 2015
• Decree No. 302 of 2015
• General Accounting Office (CGN), Resolution No. 533 of 2015
• Law No. 43 of 1990
• Law No. 1314 of 2009

Relevant Publications

• INCP, SMO Action Plan, 2025.
• IFRS Foundation, "IFRS Application Around the World, Jurisdictional Profile: Colombia," June 2016.
• World Bank, Report on the Observance of Standards and Codes (ROSC), Accounting and Auditing: Colombia, November 2021.