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Accounting Professionals in Iraq Face Growing Demand for IT Skills

The Growing Importance of ICT Skills

Baghdad, Iraq - The Iraqi Union of Accountants and Auditors (IUAA) has reported an increasing demand for accountants skilled in Information and Communications Technologies (ICT), as the profession continues to evolve in response to changing business needs.

  • According to IUAA officials, the growing importance of ICT skills is driven by the need for professional accountants to stay abreast of emerging technologies and innovations that are transforming the way businesses operate.
  • “As technology becomes more integral to every aspect of accounting practice, it’s essential that our members possess the necessary skills to navigate this rapidly changing landscape,” said an IUAA spokesperson.

The Importance of Professional Skepticism

In addition to ICT skills, professionals in the field must also demonstrate strong professional skepticism skills and behaviors. This includes being able to:

  • Critically evaluate information
  • Identify potential risks and biases
  • Make informed decisions based on thorough analysis

The demand for accountants with these skills is expected to continue growing, as businesses of all sizes seek to leverage technology to gain a competitive edge in the market.

Current Status of Professional Accounting Standards

Adoption of International Standards

Iraq is currently partially adopting several key international standards, including:

  • ISA (International Standards on Auditing)
  • ISAE (International Standards on Assurance Engagements)
  • IPSAS (International Public Sector Accounting Standards)
  • IFRS (International Financial Reporting Standards)

The Ministry of Finance is responsible for setting public sector accounting standards, but has not yet adopted IPSAS.

Continuous Professional Development

The IUAA has established a Training & Continuous Professional Development Committee to address CPD requirements, which are mandatory for auditors but optional for non-auditors. However, the current CPD requirements do not fully align with IES 7-8, and IUAA officials are working to further align these standards.

Investigation and Discipline

The Discipline Committee

IUAA is responsible for investigating and disciplining its members, and has established a Discipline Committee (DC) to monitor compliance with rules, regulations, and standards. Disciplinary decisions and sanctions are enforced by specialized courts, and in the case of serious crimes, by the Justice Council.

In a self-assessment against revised SMO 6, IUAA reported that its I&D system is in line with SMO 6 requirements.

International Financial Reporting Standards

The Financial Reporting Framework

The financial reporting framework in Iraq is established under the Iraqi Company Law No. 21 of 1997 (as amended in 2004), which contains basic requirements for financial reporting for all companies. While IFRS Standards are not specifically named in law, many Iraqi companies apply standards promulgated by the Iraqi Board of Accounting and Auditing Standards (IBAAS). However, there are significant differences between these national standards and IFRS Standards.

Note: For further information on SMO Action Plans prepared by IFAC member organizations, please see our full Disclaimer.