AGENCY FOR PUBLIC OVERSIGHT OF AUDITING, SLOVENIA,

Transcription

1 AGENCY FOR PUBLIC OVERSIGHT OF AUDITING, SLOVENIA,

2 1. Establishment in Started operating in March Introduction 4. Structure 5. Role & mission 6. Financing 7. Activities 8. Sanctions and imposed measures 9. Achieved goals and results 10. Practice and experience

3 With the enforcement of new Auditing Act in July 2008 Started operating on March 1st 2009 New Auditing Act most important changes: Establishment of the Agency as a new supervisor, besides Slovenian Institute for Auditing 2 supervisors Agency representing the public interest, overall supervision

4 Agency s supervision over the Institute (public authorizations) The supervision in performed by both: the Agency and the Institute Agency as independent supervisor over the quality of auditors, audit companies and also certified valuators authorized by law to carry out international cooperation with other countries institutions that are performing supervision over auditors and audit companies, within the EU as well as with third countries (member of EGAOB)

5 Legal entity, established by the State of Slovenia, through the Auditing Act Bodies: Council of Experts Director Appointed and dismissed by the Government of RS Momentarily 4(5) employees, 10 planned in the future

6 The Council of Experts 8 members appointed for 6 years nominated by supervisory and finance institutions, Ministry of finance and Ministry of Economy, Stock Exchange Competences: deciding on approvals, surveillance measures in accordance with the law; adopting regulations, Agency s rules of procedure; general questions of audit quality Director Also the president of Council of Experts 6 years Managing and representing the Agency

7 10 positions planned, currently 4 employed certified auditor in Sept Departments: Supervision department Legal department General affairs department Council of Experts Director Executive secretary Legal Department Supervision Department

8 FUNDAMENTAL MISSIONS: MAIN TASK: Imposing supervision measures after supervisions done by the Institute (complete independence) Fundamental principle: in the representation of the public interest lies in the provision of efficient supervision over certified auditors and audit agencies as well as over the Slovenian Institute of Auditors, regarding the Institute s State authority. the Agency has the competence and responsibility over: the adoption of auditing rules (auditing standards, ethical professional standards, audit management standards) and determination the hierarchy of the auditing rules that are not regulations; the training to obtain the title certified auditor; the issue of licenses to perform the auditing activities and tasks of a certified auditor, and the registration of thirdcountry statutory auditors and audit companies; the permanent training of certified auditors; the provision of quality of the auditing work done by certified auditors and audit companies

9 The Agency also: makes decisions regarding procedures of supervision over the quality of work done by audit companies and certified auditors and imposes control measures. In cooperation with the Institute of Auditors and on the basis of good practice, it may form recommendations for the provision of quality in conducting audits of certain types of companies. carries out public supervision over the work of certified appraisers, when they are performing valuation tasks with subjects that are bound by statutory audit. The Agency may carry out supervision over auditing quality by itself with the same competences as the Institute. During the control procedure, the Institute must allow the Agency, at its request, access to all documents, or deliver all documents to the Agency and provide appropriate clarifications that are needed for the implementation of its competences

10 Methods of carrying out supervision over audit companies and certified auditors Systematic and on-going examination of the records which are to be delivered by audit companies takes place on the premises of the supervisory body The overview of audit companies business operations takes place on the premises of audit companies in order to supervise them (3 years, 6 years, any time )

11 Indirect budget user Revenues: the budgetary funds of RS (mainly) fees and allowances Fee schedule, issued by the Agency verified by the Government Other 2009: EUR planned for 2010: EUR ( EUR planned from fees and allowances)

12 In practice: 1. Regular supervisions are performed by the Institute: 1. Entire supervision documentation is from the Institute sent to the Agency, including the expert opinion of the council of the Institute 2. Agency examines the documentation determines the irregularities if expert council decides on irregularities starts the supervision procedure over certified auditor or audit company: 2. Special / exceptional supervisions are performed by the Agency increased risk, the Criteria (agreement between both supervisors)

13 1. CERTIFIED AUDITORS Order the elimination of violation Reprimand Conditional license withdrawal License withdrawal 2. AUDIT COMPANIES Order the elimination of violation The imposition of additional measures The withdrawal of the license

14 Adoption of the Criteria for drawing up the strategic and annual plan for supervisions (criteria, risk indicators..) Adoption of the Fee schedule of costs of procedures of the Agency 17 issued consents to the acts of the Institute 10 procedures started against certified auditors: measures 6 procedures started against audit companies

15 1. Audit profession in Slovenia (215 certified auditors, 52 audit companies, 2 supervisors) 2. Cooperation with the Institute 3. Financing GOAL: increased financing from its own activity revenue from other sources (audit companies; subjects, bound for statutory audit) 4. Duality of supervision Institute and Agency (public oversight) duplication of work 5. Future changes (ideas): Decision-making by panel of judges

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