El Salvador

The financial reporting framework in El Salvador is established under the Commercial Code, Decree No. 671 of 1970, as amended, together with the Law Regulating the Practice of Public Accounting, Decree No. 828 of 2000, as amended. Under this framework, the Oversight Board of the Profession of Public Accounting and Auditing (CVPCPA) is recognized as the national standard setter for companies other than entities regulated by the financial sector supervisor.

In 2009, the CVPCPA adopted IFRS Accounting Standards for listed companies and the IFRS for SMEs Accounting Standard for other companies within its remit. The IFRS Foundation’s jurisdiction profile indicates that IFRS Accounting Standards are required for listed companies other than banks, insurance companies, and pension funds, while non-listed companies use the IFRS for SMEs Accounting Standard or may elect to apply full IFRS Accounting Standards. The profile also indicates that the IFRS for SMEs Accounting Standard has been adopted without modification.

A differential reporting framework applies to entities regulated by the Superintendencia del Sistema Financiero (SSF). The SSF establishes accounting requirements for banks, insurance companies, and pension funds, which are outside the scope of the CVPCPA’s 2009 resolution. These entities apply sector-specific regulatory accounting requirements rather than IFRS Accounting Standards and are required to disclose the principal differences between those requirements and IFRS Accounting Standards in their financial statements.

The auditing framework is shared between the CVPCPA and the SSF. The CVPCPA sets auditing standards for entities outside the financial sector, while the SSF maintains a register of external auditors for entities under its supervision pursuant to the Law on the Supervision and Regulation of the Financial System and the Technical Standards for the Registration of External Auditors of Members of the Financial System, NRP-16. These standards expressly refer to International Standards on Auditing (ISA) for audits of supervised entities.

In addition, El Salvador’s tax framework requires certain entities to obtain certifications and tax reports issued by independent auditors registered with the relevant authorities. A World Bank Report on the Observance of Standards and Codes also notes that external audit requirements apply in practice to larger companies, reflecting the broader legal role played by auditors in the corporate and tax reporting system.

The accountancy profession in El Salvador is regulated at the state level through a shared regulatory framework involving the Oversight Board of the Profession of Public Accounting and Auditing (CVPCPA) and the Superintendencia del Sistema Financiero (SSF).

The CVPCPA was established under the Law Regulating the Practice of Public Accounting, Legislative Decree No. 828 of 2000, as amended, as the primary regulatory authority for public accountants and auditors in the jurisdiction. The law authorizes the CVPCPA to register and supervise both natural persons and legal entities engaged in the practice of public accounting and auditing. The public register maintained by the CVPCPA is required to include licensing details, sanctions, suspensions, and changes in professional status.

To be authorized as a public accountant, individuals must be Salvadoran nationals, hold a university degree in public accounting or an equivalent recognized qualification, demonstrate integrity and professional competence, and obtain authorization from the CVPCPA. Only individuals authorized to practice public accounting may perform external audit functions. The legal framework also provides for the registration and authorization of legal entities whose sole purpose is the practice of public accounting and related services.

The CVPCPA’s responsibilities include maintaining the professional register; authorizing entry into the profession; overseeing compliance with professional and technical requirements; establishing and operating the quality assurance review system for audits outside the financial sector; setting accounting, auditing, and ethical requirements for entities under its remit; establishing continuing professional development requirements; and implementing the investigation and disciplinary system, including sanctions ranging from warnings and fines to temporary suspension of practicing rights.

The SSF separately regulates auditors and audit firms that provide services to entities under its supervision, including listed companies, banks, insurance companies, and pension funds. Under the Law on the Supervision and Regulation of the Financial System and the relevant technical standards for external auditors, the SSF is responsible for registering external auditors serving supervised entities, conducting oversight and quality assurance procedures, establishing audit requirements applicable to those entities, and taking disciplinary action, including fines, suspension, or revocation of registration where non-compliance is identified.

Accordingly, the profession operates under a shared regulatory model, with the CVPCPA serving as the principal professional regulator and the SSF exercising sector-specific oversight for financial institutions and other supervised entities.

Audit oversight in El Salvador operates under a shared regulatory framework involving the Oversight Board of the Profession of Public Accounting and Auditing (CVPCPA) and the Superintendencia del Sistema Financiero (SSF).

The CVPCPA, established under the Law Regulating the Practice of Public Accounting, Legislative Decree No. 828 of 2000, as amended, is the primary oversight authority for the audit profession in El Salvador. Its responsibilities include maintaining the register of public accountants and auditors, overseeing compliance with professional and technical requirements, establishing and operating the quality assurance review system for audits outside the financial sector, and administering investigation and disciplinary procedures for licensed practitioners. These responsibilities are further described in the Regulation section.

The SSF separately regulates auditors and audit firms that provide services to entities under its supervision, including listed companies, banks, insurance companies, and pension funds. In this capacity, the SSF maintains a public registry of authorized external auditors, conducts oversight and inspection activities, and may impose sanctions, including suspension or revocation of registration, in cases of non-compliance. Its responsibilities are also further described in the Regulation section.

Neither the CVPCPA nor the SSF is identified as a member of the International Forum of Independent Audit Regulators (IFIAR) based on the current IFIAR member directory.

The Instituto Salvadoreño de Contadores Públicos (ISCP)

The Instituto Salvadoreño de Contadores Públicos (ISCP) was established in 1997 through the merger of three professional associations. The ISCP is a voluntary professional accountancy organization comprising public accountants and auditors and operates as the principal professional body representing the accountancy profession in El Salvador.

The ISCP represents and promotes the accountancy profession, develops continuing professional development and technical training activities, and supports improvements in professional practice. The institute also contributes to the adoption and implementation of international standards and regulatory developments through its participation in the Oversight Board of the Profession of Public Accounting and Auditing (CVPCPA) and through ongoing engagement with the Superintendencia del Sistema Financiero (SSF) on matters affecting the profession.

In addition to being a member of the International Federation of Accountants (IFAC), the ISCP is a member of the Inter-American Accounting Association and participates in regional professional cooperation initiatives across Latin America.

Other PAOs

Apart from the ISCP, El Salvador has other voluntary professional accountancy organizations established by general consensus, including the Corporación de Contadores de El Salvador (CCES) and the Asociación de Auditores Independientes de El Salvador (AIDES). These organizations undertake professional development, technical training, and advocacy activities for their members and contribute to the broader development of the profession in the jurisdiction.

In accordance with the Law Regulating the Practice of Public Accounting, Legislative Decree No. 828 of 2000, as amended, the Oversight Board of the Profession of Public Accounting and Auditing (CVPCPA) is responsible for establishing and operating a quality assurance (QA) review system for all mandatory audits other than those of entities supervised by the Superintendencia del Sistema Financiero (SSF).

The CVPCPA has established and operated a QA review system since 2009. Through Resolution No. 129 of 2022, the CVPCPA 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 for audits of financial statements for periods beginning on or after January 1, 2023.

In addition, the SSF, as empowered by the Law on the Supervision and Regulation of the Financial System, has established a separate QA review system for audits of listed companies, banks, insurance companies, and pension funds. Accordingly, mandatory audits across the jurisdiction are subject to either the CVPCPA or SSF quality assurance framework.

Based on the information currently available from the CVPCPA and the Instituto Salvadoreño de Contadores Públicos (ISCP), both QA systems operating in the jurisdiction are reported to be aligned with the requirements of SMO 1, including the adoption of the quality management standards currently in effect.

Current Status: Adopted

In El Salvador, universities and the Oversight Board of the Profession of Public Accounting and Auditing (CVPCPA) have a role in establishing initial professional development and continuing professional development requirements for professional accountants pursuant to the Law Regulating the Practice of Public Accounting, Legislative Decree No. 828 of 2000, as amended.

To obtain a public accountant or auditor license, individuals must hold a bachelor’s degree in accounting and complete one year of practical experience for a public accountant license or two years for an auditor license. To maintain the license, individuals are required to fulfill annual continuing professional development requirements established by the CVPCPA. The CVPCPA’s continuing education standard remains in force and is supported by an active monitoring and exemption framework.

The Instituto Salvadoreño de Contadores Públicos (ISCP) reports that the CVPCPA adopted the International Education Standards in 2003 through Resolution R01/0603/2003 as educational requirements for the profession. However, because universities retain authority over academic curricula and degree programs, the IES requirements function in practice as guidance rather than mandatory curriculum standards for all university accounting programs.

No minimum national standard has been identified for the detailed content of university accounting curricula, no formal final professional competency examination is required at the jurisdiction level, and no comprehensive competency-based practical experience framework has been established that demonstrably aligns with all requirements of the 2019 International Education Standards.

Accordingly, only some requirements of the International Education Standards currently in effect, including entry requirements, continuing professional development, and practical experience requirements, have been incorporated into national conditions. Other requirements, including a learning outcomes-based education framework and final professional assessment, are not demonstrably adopted for all aspiring and professional accountants.

Current Status: Partially Adopted

The Law Regulating the Practice of Public Accounting, Legislative Decree No. 828 of 2000, as amended, empowers the Oversight Board of the Profession of Public Accounting and Auditing (CVPCPA) to establish auditing standards for audits of all entities other than those regulated by the Superintendencia del Sistema Financiero (SSF).

The CVPCPA has adopted International Standards on Auditing (ISA) by reference since 2006 and continues to apply ISA as issued by the International Auditing and Assurance Standards Board (IAASB). Based on the current adoption-by-reference framework and the absence of evidence of a time lag or jurisdiction-specific carve-outs, ISA in effect as of the time of the assessment, including the 2025 Handbook edition, are considered adopted for application in all mandatory audits within the CVPCPA’s remit.

The Law on the Supervision and Regulation of the Financial System authorizes the SSF to establish auditing requirements for audits of entities under its supervision, including listed companies, banks, insurance companies, and pension funds. The SSF’s external auditor framework requires the application of ISA for audits of supervised entities and applies the standards as adopted by the CVPCPA.

Accordingly, ISA as issued by the IAASB are applied across all mandatory audits in the jurisdiction, either through the CVPCPA or the SSF framework.

With respect to the International Standard on Auditing for Audits of Financial Statements of Less Complex Entities (ISA for LCE), the IAASB standard became effective for periods beginning on or after December 15, 2025. However, no evidence has been identified that the ISA for LCE has been separately adopted for use in El Salvador as of the date of this assessment.

Current Status: Adopted

The Public Accountant Law, Decree No. 828 of 2000, as amended in 2017, grants authority to the Oversight Board of the Profession of Public Accounting and Auditing (CVPCPA) to establish ethical requirements for the accountancy profession in El Salvador. Through Resolution No. 129 of 2022, the CVPCPA adopted the International Code of Ethics for Professional Accountants (including International Independence Standards) issued by the International Ethics Standards Board for Accountants (IESBA) by reference. As the Code is adopted by reference and continues to align with the pronouncements issued by IESBA, the jurisdiction is assessed as Adopted, with the 2025 IESBA Handbook considered in use.

Current Status: Adopted

In accordance with Legislative Decree No. 516 of 1995, the Directorate General of Government Accounting (GOES) within the Ministry of Finance is responsible for setting public sector accounting standards in El Salvador. The Directorate General of Government Accounting (GOES) has established national public sector accounting standards with reference to the International Public Sector Accounting Standards (IPSAS), as reflected in the International Federation of Accountants (IFAC) / Chartered Institute of Public Finance and Accountancy (CIPFA) International Public Sector Financial Accountability Index 2020. In 2022, IPSAS 1, 2, 12, 14, and 31 were adopted directly. However, the national standards continue to be applied on a partial accrual basis. Accordingly, public sector accounting standards are assessed as Partially Adopted.

Current Status: Partially Adopted

In accordance with the Public Accountant Law, Decree No. 828 of 2000, as amended in 2017, the Oversight Board of the Profession of Public Accounting and Auditing (CVPCPA) is responsible for implementing investigative and disciplinary procedures for the accountancy profession in El Salvador. The Instituto Salvadoreño de Contadores Públicos (ISCP) reports that the CVPCPA has implemented an investigation and discipline system that is not fully aligned with the requirements of Statement of Membership Obligation (SMO) 6, with gaps including, among others, no linkage with the results of quality assurance reviews and no non-accountants serving on the disciplinary committee.

The Superintendent of the Financial System (SSF) is also empowered under the Law on the Supervision and Regulation of the Financial System, Decree No. 592 of 2011, to investigate and discipline auditors providing services to entities under its supervision, including banks, insurers, pension entities, and securities market participants. The legal and regulatory framework confirms that external auditors of supervised financial entities are subject to SSF oversight and sanctioning powers for non-compliance with applicable obligations. Accordingly, the jurisdiction-level investigation and discipline system is assessed as Partially Adopted.

Current Status: Partially Adopted

The Oversight Board of the Profession of Public Accounting and Auditing (CVPCPA) is responsible for setting accounting standards for all companies, other than entities regulated by the Superintendent of the Financial System (SSF), in accordance with the Public Accountant Law, Decree No. 828 of 2000, as amended in 2017.

The CVPCPA issued Resolution No. 113 of 2009 requiring the adoption of International Financial Reporting Standards (IFRS) by reference and without modifications for listed companies and the International Financial Reporting Standard for Small and Medium-sized Entities (IFRS for SMEs) for all other companies. The IFRS Foundation jurisdiction profile for El Salvador confirms that the CVPCPA has adopted IFRS and the IFRS for SMEs Standard, with no modifications.

For listed companies, the SSF requires the application of accounting standards issued by the CVPCPA, which are IFRS as issued by the International Accounting Standards Board (IASB). However, for banks, insurance companies, and pension funds, the SSF has established regulatory accounting requirements that are not aligned with IFRS. These regulated entities are required to disclose the main differences between the applicable regulatory framework and IFRS.

Current Status: Partially Adopted

Relevant Organizations

• Consejo de Vigilancia de la Profesión de Contaduría Pública y Auditoria (CVPCPA)
• Instituto Salvadoreño de Contadores Públicos (ISCP)
• Ministry of Finance (Ministerio de Hacienda), El Salvador
• Superintendent of the Financial System (Superintendencia del Sistema Financiero (SSF))

Relevant Legislation

• Financial System Law, Decree No. 592 of 2011
• CVPCPA Resolutions and AgreementsIncluding Resolution No. 129 of 2022, Resolution No. 113 of 2009, and Resolution No. 82 of 2024
• SSF External Audit Standards for Banks and Insurance Companies(including NBP2-07 / NPR-16)

Relevant Publications

• IFRS Foundation, IFRS Application Around the World – Jurisdictional Profile: El Salvador (2016)
• IFRS Foundation, Jurisdictional Snapshot: El Salvador (updated 2025)
• Instituto Salvadoreño de Contadores Públicos (ISCP), SMO Action Plan, 2023