Iraqi Union of Accountants and Auditors Adheres to International Standards, but Room for Improvement
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The Iraqi Union of Accountants and Auditors (IUAA) has made significant strides in adopting international standards for auditing, ethics, public sector accounting, investigation and discipline, and financial reporting. However, a recent assessment by the International Federation of Accountants (IFAC) reveals areas where the organization can improve.
SMO 3: International Standards on Auditing
The IUAA requires its members to adhere to the most recent Arabic translations of ISA, including ISA 540 (revised), ISRS 4400 and ISA 315 (revised). The institute has been focusing efforts on disseminating these standards to its members and providing training opportunities. However, IFAC encourages the IUAA to provide more information on how it monitors compliance with these standards.
Key Points:
- IUAA requires members to adhere to Arabic translations of ISA
- Institute provides training opportunities for members
- More information needed on monitoring compliance
SMO 6: Investigation and Discipline
The IUAA has established a Discipline Committee to monitor compliance with rules, regulations, and standards. While the organization reports that its I&D system is in line with the revised SMO 6, IFAC suggests that the IUAA provide more recent examples of activities it undertakes to support its members, particularly non-auditors.
Key Points:
- IUAA has established a Discipline Committee
- Organization reports compliance with revised SMO 6
- More recent examples needed on supporting non-auditors
SMO 7: International Financial Reporting Standards
The Iraqi Company Law references international accounting standards, but IFRS Standards are not specifically named. The IUAA encourages its members to apply IFRS where appropriate and supports implementation through training and dissemination of materials. However, IFAC recommends that the organization continue engaging regulators and stakeholders to promote the adoption and implementation of IFRS and IFRS for SMEs as applicable accounting standards in Iraq.
Key Points:
- Iraqi Company Law references international accounting standards
- IUAA encourages members to apply IFRS where appropriate
- Organization should engage with regulators and stakeholders to promote IFRS
Conclusion
The Iraqi Union of Accountants and Auditors has made significant progress in adopting international standards, but there is room for improvement. The organization should focus on providing more information on compliance monitoring, increasing support for non-auditors, and promoting the adoption and implementation of IFRS Standards. By doing so, the IUAA can continue to enhance public financial management and reporting practices in Iraq.
Sources
- International Federation of Accountants (IFAC). (2022). SMO Action Plan: Iraqi Union of Accountants and Auditors.