Rwanda

The Companies Act, 2018 establishes the financial reporting requirements in Rwanda and mandates the preparation of financial statements in accordance with international accounting standards. The Law on the Institute of Certified Public Accountants (ICPAR) No. 11 of 2008 authorizes the Institute of Certified Public Accountants of Rwanda (ICPAR), under Article 3, to set accounting standards consistent with International Financial Reporting Standards (IFRS).

In line with this mandate, IFRS are required for companies with public accountability, including banks, other financial institutions, and insurance companies, while IFRS for Small and Medium-sized Entities (SMEs) are applied by other companies.

The Companies Act, 2018 further requires that the financial statements of all companies, except small private companies, be subject to an annual statutory audit conducted by a licensed member of ICPAR. Under Article 3 of the ICPAR Law 2008, ICPAR is designated as the auditing standard setter and is required to ensure that auditing standards applied in Rwanda are consistent with International Standards on Auditing (ISA) issued by the IAASB. Accordingly, ISA are adopted without modification for application in statutory audits.

In addition, sector-specific legislation provides regulatory oversight for certain entities. The Banking Act of 2002, as amended in 2017, empowers the National Bank of Rwanda (BNR) to regulate financial reporting by banks, other financial institutions, and insurance companies, including issuing accounting instructions for specific transactions. The Capital Markets Authority (CMA) establishes the regulatory framework governing the Rwanda Stock Exchange (RSE), whose Rulebook requires financial statements to be prepared in accordance with internationally acceptable accounting standards. In practice, listed entities apply IFRS and are audited in accordance with ISA as adopted by ICPAR.

The accountancy profession in Rwanda is regulated at the professional level by the Institute of Certified Public Accountants of Rwanda (ICPAR) under the Law on the Institute of Certified Public Accountants (ICPAR) No. 11 of 2008 (the ICPAR Law).

Under the ICPAR Law, the Institute is responsible for the regulation of professional accountants and confers two professional qualifications: Certified Public Accountant (CPA) and Certified Accounting Technician (CAT). Membership in ICPAR is mandatory for individuals seeking to practice as CPAs, and only CPAs holding a valid practicing certificate issued by ICPAR are authorized to perform audit and assurance engagements in Rwanda.

Entry to the CPA qualification requires candidates to meet prescribed academic entry criteria, successfully complete professional examinations administered by ICPAR, and demonstrate relevant practical experience. Upon completion of these requirements, candidates may apply for ICPAR membership and subsequently for a practicing certificate, which requires additional audit experience and supervisory endorsement.

The CAT qualification provides an alternative professional pathway and is subject to separate entry requirements, examinations, and monitored practical experience as established by ICPAR. CATs are permitted to provide accounting-related services that do not include statutory audit and assurance engagements.

In accordance with Article 7 of the ICPAR Law, ICPAR is responsible for: (i) establishing and administering professional education and examination requirements; (ii) setting and enforcing continuing professional development requirements; (iii) issuing and promoting accounting and auditing standards applicable in the public and private sectors; (iv) setting ethical requirements for members; (v) licensing qualified members to practice and withdrawing such licenses in cases of misconduct; (vi) operating a quality assurance review system for audits; and (vii) investigating and disciplining members in accordance with the law.

There is no independent audit oversight authority in Rwanda.

Statutory audits are regulated by the Institute of Certified Public Accountants of Rwanda (iCPAR) under the Law on the Institute of Certified Public Accountants (ICPAR) No. 11 of 2008. Audits must be performed by Certified Public Accountants (CPAs) who are members of iCPAR and hold a valid practicing certificate issued by the Institute.

In the absence of an independent audit oversight body, iCPAR is responsible for oversight of auditors through its licensing framework, quality assurance review system, ethical requirements, and investigation and disciplinary processes, as provided for under its establishing law.

Institute of Certified Public Accountants of Rwanda (iCPAR)

The Institute of Certified Public Accountants of Rwanda (iCPAR) was established under the Law on the Institute of Certified Public Accountants (ICPAR) No. 11 of 2008 as the statutory professional accountancy organization responsible for regulating the accountancy profession in Rwanda.

iCPAR confers two professional designations: Certified Public Accountant (CPA) and Certified Accounting Technician (CAT). Membership in iCPAR is mandatory for CPAs, and only CPAs holding a valid practicing certificate issued by the Institute are authorized to perform statutory audit engagements.

Under its establishing law, iCPAR is responsible for professional education and examinations, continuing professional development, the issuance and promotion of accounting and auditing standards, ethical requirements for members, licensing of practitioners, quality assurance reviews, and investigation and disciplinary processes.

iCPAR is a full Member of the International Federation of Accountants (IFAC) and is also a member of the Pan African Federation of Accountants (PAFA).

The Law on the Institute of Certified Public Accountants (ICPAR) No. 11 of 2008 establishes a mandatory quality assurance (QA) review system for all statutory audits in Rwanda and assigns responsibility for its operation to the Institute of Certified Public Accountants of Rwanda (ICPAR).

Under this legal framework, all audit firms and practitioners authorized to conduct statutory audits are subject to external QA reviews. The QA review system applies to all mandatory audits in the jurisdiction and is conducted using a risk-based approach.

QA reviews have been carried out for all licensed audit firms, including a review cycle covering the period from 2018 to 2021, during which 50 audit firms were reviewed. The system is operational and applies across the audit profession, with review outcomes linked to auditors’ continued authorization to practice.

Accordingly, the quality assurance review system in Rwanda is operational for all mandatory audits and incorporates the requirements of SMO 1.

Current Status: Adopted

The Law on the Institute of Certified Public Accountants (ICPAR) No. 11 of 2008 mandates the Institute of Certified Public Accountants of Rwanda (ICPAR) to establish professional education, examination, practical experience, and continuing professional development requirements for the designations of Certified Public Accountant (CPA) and Certified Accounting Technician (CAT).

Under this framework, ICPAR sets the requirements for professional examinations, practical experience, and continuing professional development for its members. However, academic degree programs that form part of the entry pathways to the profession, including university-level accounting education, fall under the authority of the Higher Education Council (HEC) and are not determined by ICPAR.

ICPAR reports that its CAT qualification has been aligned with the 2015 International Education Standards (IES). Continuing professional development requirements established by ICPAR are reported to be consistent with IES 7 and IES 8. However, the CPA qualification framework has not yet been fully updated to reflect the current IES requirements across all components of initial professional development.

Accordingly, the requirements for professional education in Rwanda incorporate elements of the IES, but do not yet meet the IES requirements in their entirety for all aspiring and professional accountants.

Current Status: Partially Adopted

The Companies Act, 2018 requires that the financial statements of all companies, except small private companies, be subject to an annual statutory audit conducted by a licensed auditor.

Article 3 of the Law on the Institute of Certified Public Accountants (ICPAR) No. 11 of 2008 designates ICPAR as the auditing standard setter in Rwanda and requires that auditing standards applied in the jurisdiction be consistent with the International Standards on Auditing (ISA) issued by the IAASB.

Under this legal framework, ISA are adopted without modification and are applicable to all statutory audits in Rwanda, including the effective dates issued by the IAASB.

Accordingly, ISA in their entirety and in effect at the time of assessment are adopted and applied in all mandatory audits in Rwanda.

Current Status: Adopted

The Law on the Institute of Certified Public Accountants (ICPAR) No. 11 of 2008 authorizes the Institute of Certified Public Accountants of Rwanda (ICPAR) to establish ethical requirements applicable to professional accountants in Rwanda.

Under this authority, the International Code of Ethics for Professional Accountants (including International Independence Standards) issued by the International Ethics Standards Board for Accountants (IESBA) is adopted as issued, without modification, and applies to all professional accountants subject to ICPAR regulation.

Current Status: Adopted

The East African Community (EAC) Protocol requires member states to move toward the adoption of accrual-basis International Public Sector Accounting Standards (IPSAS) for central and local government, non-trading state-owned enterprises, and regulatory bodies, while state-owned enterprises are required to apply International Financial Reporting Standards (IFRS).

At the national level, Article 3 of the Law on the Institute of Certified Public Accountants (ICPAR) No. 11 of 2008 stipulates that accounting standards applicable to public institutions shall be issued in a manner consistent with IPSAS and assigns ICPAR an advisory role to the government on public sector accounting matters.

In practice, public sector entities in Rwanda apply public sector accounting standards based on a modified cash basis while transitioning toward accrual-based accounting. General government financial statements consolidate central and local government entities prepared under this framework, while government business entities apply IFRS.

Accordingly, accrual-basis IPSAS have not yet been adopted in their entirety for all public sector entities in Rwanda, and IPSAS are therefore assessed as Partially Adopted, with shared regulatory responsibility.

Current Status: Partially Adopted

Article 40 of the Law on the Institute of Certified Public Accountants (ICPAR) No. 11 of 2008 establishes a statutory investigative and disciplinary (I&D) system applicable to professional accountants in Rwanda and assigns responsibility for its operation to the Institute of Certified Public Accountants of Rwanda (ICPAR).

Under this legal framework, ICPAR is authorized to investigate allegations of professional misconduct and to impose disciplinary measures on its members. The I&D system is structured through designated bodies within the Institute, including an Inspection Commission responsible for conducting investigations and a Disciplinary Commission responsible for reviewing cases and determining appropriate sanctions.

The legal framework provides for due process, including the right of individuals subject to disciplinary action to appeal decisions in accordance with established procedures. The I&D system applies to all professional accountants regulated by ICPAR.

Accordingly, an investigative and disciplinary system incorporating the requirements of SMO 6 is established and operational for all professional accountants in Rwanda.

Current Status: Adopted

The Law on the Institute of Certified Public Accountants (ICPAR) No. 11 of 2008 provides that accounting standards applicable in the private sector shall be issued in a manner consistent with International Financial Reporting Standards (IFRS).

Under this legal framework, IFRS are adopted without modification for application by companies with public accountability, including banks, other financial institutions, insurance companies, and listed entities.

All other companies are required to apply IFRS for Small and Medium-sized Entities (SMEs).

Accordingly, IFRS and IFRS for SMEs are adopted in their entirety and are applicable to all private sector entities in Rwanda.

Current Status: Adopted

Relevant Organizations

• Institute of Certified Public Accountants of Rwanda (ICPAR)
• East African Community (EAC)

Relevant Legislation

• Banking Act of 2002, as amended in 2017
• Companies Act, 2018
• ICPAR’s By-Laws
• Law on the Institute of Certified Public Accountants (ICPAR) No. 11, 2008 (ICPAR Law 2008)
• RSE Rulebook, 2013

Relevant Publications

• ICPAR, SMO Action Plan, November 2020.
• ICPAR, ICPAR Sign Partnership Agreement with University of Kibungo, February 2018.
• IFAC, IFAC Selects ACCA to Strategically Strengthen Accountancy Profession in Rwanda, January 2016.
• IFRS Foundation, IFRS Application Around the World—Jurisdictional Profile: Rwanda, February 2017.
• Ntirenganya, Emmanuel in The New Times “Rwanda to Bridge Shortage of Certified Accountants in Next 5 Years”, 10 Feb 2019.
• World Bank, Report on Observance of Standards and Codes—Accounting and Auditing: Rwanda, 2008.
• World Bank, Report on Observance of Standards and Codes—Accounting and Auditing: Rwanda, November 2015.