Jordan

The Companies Law No. 22 of 1997, as amended, establishes the corporate financial reporting framework in Jordan and requires entities established under the law to prepare annual financial statements. The law requires public shareholding companies, limited liability companies, private shareholding companies, and foreign companies operating in Jordan to prepare audited financial statements in accordance with internationally recognized accounting and auditing principles.

Public shareholding companies regulated by the Jordan Securities Commission are required to apply International Financial Reporting Standards (IFRS Accounting Standards) as issued by the International Accounting Standards Board (IASB). Banks and other financial institutions regulated by the Central Bank of Jordan, as well as insurance entities supervised by the Insurance Directorate under the Ministry of Industry, Trade and Supply, are also required to apply IFRS Accounting Standards. Accordingly, IFRS Accounting Standards are adopted for public interest entities in the jurisdiction. Other entities may apply either IFRS Accounting Standards or the IFRS for Small and Medium-sized Entities (IFRS for SMEs).

The Accountancy Profession Law No. 73 of 2003 and the Companies Law authorize the Higher Council for the Accountancy Profession (HCAP) and the Jordanian Association of Certified Public Accountants (JACPA) to establish the auditing framework in Jordan. Under the law, JACPA is responsible for recommending auditing standards for approval by the HCAP. Jordan has adopted International Standards on Auditing (ISA) as issued by the International Auditing and Assurance Standards Board (IAASB), and ISA are required for application in all mandatory audits.

The Accountancy Profession Law No. 73 of 2003 establishes the legal framework for regulation of the accountancy profession in Jordan. The profession is regulated through a shared model involving the Higher Council for the Accountancy Profession (HCAP) and the Jordanian Association of Certified Public Accountants (JACPA). Only Certified Public Accountants (CPAs) are regulated at the national level.

The Accountancy Profession Law defines the requirements for initial professional development and continuing professional development for CPAs. Universities and the Ministry of Higher Education and Scientific Research are responsible for establishing university accounting curricula that form part of the initial professional development framework.

Candidates seeking the CPA designation are generally required to hold a university degree in accounting or another related specialization from a recognized university and successfully complete the JACPA professional examination. Foreign university degrees may also be recognized subject to fulfillment of additional legal and examination requirements. Candidates are additionally required to complete a minimum of two years of practical experience and satisfy legal conditions relating to citizenship, civil eligibility, and criminal background prior to obtaining a CPA license.

Membership in JACPA is mandatory for licensed CPAs. Under the Accountancy Profession Law, JACPA is responsible for administering professional examinations; verifying fulfillment of practical experience and continuing professional development requirements; monitoring members’ compliance with applicable ethical, auditing, and accounting requirements; and operating an investigation and disciplinary system for its members. JACPA also recommends accounting, auditing, and ethical standards for approval by the HCAP.

Although JACPA does not have statutory authority to establish and operate a mandatory quality assurance review system, the law permits the association to inspect members’ working papers and operate voluntary quality assurance review activities.

The HCAP, chaired by the Minister of Industry, Trade and Supply, is responsible for oversight of the profession and approval of applicable accounting, auditing, ethical, and disciplinary requirements. The HCAP also approves the granting and revocation of CPA licenses issued by JACPA.

Additional regulatory requirements apply to auditors performing engagements for regulated entities. The Jordan Securities Commission maintains a register of auditors authorized to audit public shareholding companies, while the Central Bank of Jordan maintains a separate list of auditors authorized to conduct audits of banks and other regulated financial institutions.

In addition to JACPA, the International Arab Society of Certified Accountants (IASCA) operates as a voluntary professional accountancy organization in Jordan. IASCA establishes initial and continuing professional development requirements for its professional certifications, including the International Arab Certified Public Accountant and International Arab Certified Management Accountant designations. Individuals who voluntarily join IASCA are subject to its membership requirements and investigation and disciplinary processes.

Jordan does not currently maintain an independent audit oversight authority separate from the profession and government regulatory structures. Oversight of the audit profession is primarily exercised through the Higher Council for the Accountancy Profession (HCAP) in accordance with the Accountancy Profession Law No. 73 of 2003.

The HCAP, chaired by the Minister of Industry, Trade and Supply, is responsible for oversight of the accountancy profession, including approval of auditing standards, ethical requirements, and disciplinary sanctions applicable in the jurisdiction. The HCAP also approves the granting and revocation of Certified Public Accountant (CPA) licenses issued by the Jordanian Association of Certified Public Accountants (JACPA).

Auditors in Jordan are subject to regulation by JACPA, membership in which is mandatory for licensed CPAs. Under the Accountancy Profession Law, JACPA is responsible for administering professional examinations; verifying fulfillment of practical experience and continuing professional development requirements; monitoring compliance with applicable ethical, accounting, and auditing requirements; and operating an investigation and disciplinary system for its members. JACPA also recommends auditing and ethical standards to the HCAP for approval and implementation in the jurisdiction.

Although JACPA does not have statutory authority to establish and operate a mandatory quality assurance review system, the law permits the association to inspect members’ working papers and undertake voluntary quality assurance review activities. JACPA has continued operating a voluntary quality assurance review program to support audit quality and strengthen awareness of quality management requirements within the profession.

Additional oversight arrangements apply to auditors of regulated entities. The Jordan Securities Commission maintains a register of auditors authorized to audit public shareholding companies, while the Central Bank of Jordan maintains a separate register for auditors authorized to conduct audits of banks and regulated financial institutions.

International Arab Society of Certified Accountants (IASCA)IASCA was established in 1984 in the United Kingdom as a non-profit professional accountancy organization and was formally registered in Jordan in 1994 by the Ministry of Industry, Trade and Supply. IASCA operates on a voluntary membership basis and seeks to enhance the professional and technical competence of accountants and auditors in the Arab region.

IASCA offers a range of professional qualifications and training programs, including the International Arab Certified Public Accountant and International Arab Certified Management Accountant designations. In addition to its educational and professional development activities, IASCA operates investigation and disciplinary mechanisms applicable to its members.

IASCA is a member of the International Federation of Accountants and maintains consultative status with the United Nations Economic and Social Council. It is also affiliated with regional and international organizations focused on accounting education and professional development.

Jordanian Association of Certified Public Accountants (JACPA)

JACPA was established under Audit Profession Law No. 32 of 1985 and operates as the mandatory professional accountancy organization for Certified Public Accountants in Jordan.

Under Accountancy Profession Law No. 73 of 2003, JACPA is responsible for administering professional certification examinations; verifying fulfillment of practical experience and continuing professional development requirements; monitoring compliance with applicable ethical, accounting, and auditing requirements; and operating an investigation and disciplinary system for its members. JACPA also recommends accounting, auditing, and ethical standards to the Higher Council for the Accountancy Profession for approval and implementation in the jurisdiction.

JACPA additionally supports the profession through professional development activities, technical guidance, and advocacy related to accounting and auditing standards and regulatory developments.

In addition to being a member of the International Federation of Accountants, JACPA is a member of the Arab Federation of Accountants and Auditors.

Under Accountancy Profession Law No. 73 of 2003, the Jordanian Association of Certified Public Accountants (JACPA) may inspect members’ working papers, but a mandatory quality assurance (QA) review system for all statutory audits has not yet been fully established and operationalized. The Higher Council for the Accountancy Profession (HCAP) is responsible for approving profession-wide requirements, and available information indicates that QA instructions have been approved by the HCAP. However, publicly available information does not confirm that a mandatory QA review system aligned with SMO 1 requirements is fully operational for all mandatory audits.

Accordingly, the jurisdiction-level QA framework is not yet fully aligned with the requirements of SMO 1, particularly with respect to mandatory scope and operational coverage.

Publicly available information does not clearly confirm the status of adoption of International Standard on Quality Management (ISQM) 1 and ISQM 2 in Jordan.

Current Status: Partially Adopted

Accountancy Profession Law No. 73 of 2003 and related regulations establish education, examination, practical experience, licensing, and continuing professional development requirements for Certified Public Accountants (CPAs) in Jordan. The Jordanian Association of Certified Public Accountants (JACPA) administers the professional examination and verifies practical experience and continuing professional development requirements, while the Higher Council for the Accountancy Profession (HCAP) approves the granting and revocation of CPA licenses. Membership in JACPA is mandatory for licensed CPAs.

Available information indicates that the jurisdiction-level education framework is aligned with the revised International Education Standards (IES) effective as of the time of the assessment, including the 2019 Handbook of International Education Standards. The IFAC translations database indicates that the Arabic translation of the 2019 Handbook was completed in 2020 by the International Arab Society of Certified Accountants.

Revisions to IES 2, 3, 4, and 6 approved in 2025 become effective on July 1, 2026, and therefore are not yet considered effective for purposes of this assessment. Accordingly, the jurisdiction-level framework continues to be aligned with the requirements of SMO 2 and IES are assessed as Adopted.

Current Status: Adopted

The Companies Law No. 22 of 1997, as amended, and Accountancy Profession Law No. 73 of 2003 authorize the Higher Council for the Accountancy Profession (HCAP) and the Jordanian Association of Certified Public Accountants (JACPA) to establish the auditing framework in Jordan. JACPA is responsible for recommending auditing standards for approval by the HCAP.

Available information indicates that International Standards on Auditing (ISA) as issued by the International Auditing and Assurance Standards Board (IAASB) are adopted and required for application in all mandatory audits in Jordan. Publicly available information further indicates that revised and new ISA become effective in line with the effective dates issued by the IAASB. Accordingly, ISA are assessed as Adopted.

Publicly available information indicates that awareness and professional discussions related to the International Standard on Auditing for Audits of Financial Statements of Less Complex Entities (ISA for LCE) are ongoing in Jordan. However, formal jurisdiction-level adoption could not be independently verified at the time of the assessment.

Current Status: Adopted

Accountancy Profession Law No. 73 of 2003 provides the legal basis for regulation of the accountancy profession in Jordan, including the role of the Higher Council for the Accountancy Profession (HCAP) and the Jordanian Association of Certified Public Accountants (JACPA). JACPA’s publicly available legal and regulatory page links to the Accountancy Profession Law and related implementing regulations.

In accordance with this framework, JACPA recommends applicable ethical requirements for approval by the HCAP. Available information indicates that the International Code of Ethics for Professional Accountants, including International Independence Standards, as issued by the International Ethics Standards Board for Accountants (IESBA), is applicable to professional accountants in Jordan. Accordingly, the IESBA Code is assessed as Adopted.

Current Status: Adopted

The Ministry of Finance is responsible for public sector accounting standards in Jordan. Publicly available information indicates that Jordan continues to report on a cash-basis framework while progressing reforms toward accrual-basis accounting based on International Public Sector Accounting Standards (IPSAS). The Ministry of Finance’s Public Financial Management Strategy 2022–2025 identifies accounting and reporting reforms, including the development of accrual-based financial policies, an accrual-based chart of accounts, and transition-related IPSAS capacity building.

As Jordan has not yet adopted accrual-basis IPSAS for all public sector entities, the jurisdiction-level framework is not fully aligned with SMO 5 requirements. Accordingly, IPSAS remains Partially Adopted.

Current Status: Partially Adopted

The Accountancy Profession Law No. 73 of 2003 establishes the investigation and disciplinary (I&D) framework for Certified Public Accountants (CPAs) in Jordan. The Jordanian Association of Certified Public Accountants (JACPA) maintains a disciplinary committee under Article 34 of the law, and its public disciplinary committee page states that the committee is formed annually and composed of three practicing CPAs with at least ten years of professional experience.

The law provides for referral of CPAs and trainees for violations of the law, regulations, instructions, professional duties, or rules of professional conduct. Available sanctions include warning, written reprimand, suspension of registration and practice rights for up to two years, cancellation of the practice license, and removal from the practicing register. Disciplinary decisions are subject to approval by JACPA’s Council, with license cancellation and removal decisions subject to approval by the Higher Council for the Accountancy Profession (HCAP) and appeal before the High Court of Justice.

The International Arab Society of Certified Accountants (IASCA) operates an I&D system for its voluntary members. Publicly available information indicates that IASCA has established an Investigation Committee, which supports its member-level enforcement framework.

The jurisdiction-level I&D framework is operational but is not fully aligned with SMO 6 requirements, particularly because publicly available information indicates that JACPA’s disciplinary committee is composed only of practicing CPAs and does not include non-accountants. Accordingly, I&D remains Partially Adopted.

Current Status: Partially Adopted

International Financial Reporting Standards (IFRS Accounting Standards) are adopted at the jurisdiction level in Jordan. The Companies Law No. 22 of 1997 requires public shareholding companies to keep accounts and records in accordance with recognized international accounting and auditing standards. Regulations issued by the Jordan Securities Commission, Central Bank of Jordan, and Jordanian Insurance Commission require IFRS Accounting Standards for entities regulated under their respective authority.

The IFRS Foundation jurisdiction profile indicates that IFRS Accounting Standards as issued by the International Accounting Standards Board (IASB) are required for all domestic and foreign companies whose securities trade in a public market, and for regulated financial institutions and insurance companies. The profile further states that Jordan has adopted the full version of IFRS Accounting Standards without amendments since 1997.

The IFRS for Small and Medium-sized Entities (IFRS for SMEs) Standard is permitted for other companies in Jordan, although it has not been formally adopted.

Current Status: Adopted

Relevant Organizations

• International Arab Society of Certified Accountants (IASCA)
• Jordan Association of Certified Public Accountants (JACPA)

Relevant Legislation

• Accountancy Profession Law No. 73 of 2003
• Banking Law No. 28 of 2000 (with subsequent amendments)
• Companies Law No. 22 of 1997 (with subsequent amendments)
• Jordan Securities Commission, “Instructions of Issuing Companies Disclosure, Accounting and Auditing Standards,” 2004

Relevant Publications

• ACE International Consultants, Jordan: Repeat Public Financial Management Assessment, September 2011.
• Deloitte & Touche, IPSAS in Your Pocket, 2015.
• Farrah, et al., The Accounting and Auditing Profession in Jordan: Its Origin and Development, 2015. School of Business- Al-Balqa Applied University. ISSN 2225-0565.
• IASCA, SMO Action Plan, March 2023.
• IFRS Foundation, IFRS Application Around the World—Jurisdictional Profile: Jordan, June 2016.
• JACPA, SMO Action Plan, October 2020.
• World Bank, Report on the Observance of Standards and Codes (ROSC): Hashemite Kingdom of Jordan (Jordan). Accounting and Auditing, June 2004.
• United States Agency for International Development, Adoption of New Accounting Standards Enhances Government of Jordan Financial Management, 2015.