CNCC AuditPolicyConference 2014 Booklet · EDITORIAL Welcome in Paris ! In choosing to organise in...

’AUDIT POLICYCONFERENCE

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PARIS, 17 OCTOBER 2014

EDITORIAL

Welcome in Paris !

In choosing to organise in Paris this European audit conference, the French profession wishes to demonstrate its interest in the harmonization of statutory audit in Europe.

The European reform, which ended last May with the publ icat ion of a Regulation and a Directive, has been the culmination of an initiative of almost four years having mobilized all the institutional representatives of the profession in Europe.

The purpose of this European audit conference is to enable us to provide an overview on a number of issues as part of this reform, opening up options for each Member State.

In order to organize the discussions at best, we deemed it useful to make, through this short document, a statistical summary of the state of the profession in the European countries.

It is not exhaustive to date and we keep on working further in order to make it comprehensive.

I would like to thank all the institutional representatives or representatives from the public authorities of some countries which have enabled us to carry out this study.

We stand of course at the disposal of all, with a view to complete or improve such resource which will provide every one with the opportunity to grasp and assess the issues at stake within the audit reform in Europe.

You will find all these elements, as well as a news feed on the work of this event, on our dedicated website :

https://www.cncc.fr/reforme-europeenne-audit/.

Wishing you a profitable day, meeting the expectations of each one of you.

Yves NicolasPresident of CNCC

AUDIT POLICY CONFERENCE • 17th october 2014 • 3

https://www.cncc.fr/reforme-europeenne-audit/




Didier-Yves Racapé, President of CRCC Paris

Patrick Rolland, President of CRCC Versailles

Dear colleagues,

We are very pleased to welcome you to Paris to this European audit conference.

The French profession is glad to have the opportunity to exchange views with its European colleagues on matters which will be crucial for the future of audit practitioners throughout Europe.

Our initiatives carried out at the regional and national levels, and more broadly in cooperation with the European professional bodies are driven by a common goal : to better meet the expectations of the economic environment and to adapt our profession appropriately, while at the same time defending our values and interests.

We wish you all a very fruitful conference.

.


Didier-Yves Racapé - CRCC ParisPatrick Rolland - CRCC Versailles

TABLE OF CONTENTSI. STRUCTURE OF THE PROFESSION

II. AUDIT THRESHOLDS & SCOPE

III. UPDATE BY COUNTRY

Warning : the technical and statistical data provided in this booklet come from e x c h a n g e s w i t h t h e E u r o p e a n professional bodies presented hereinafter or their governments.They are not exhaust ive and are submitted to the comments and add-ons on our dedicated website : www.cncc.fr/reforme-europeenne-audit/

NA : non available- : non applicable

I. STRUCTURE OF THE PROFESSION

NUMBER OF PROFESSIONALSNatural Persons & Corporate forms

Belgium

Bulgaria

Cyprus

Czech Republic

Denmark

Estonia

Finland

France

Germany

Greece

Hungary

Ireland

Italy

Latvia 160

21

2000

3014

24

3321

5715

80

162

1835

375

250

94

519

173

14000

5223

977

17321

13625

1400

351

4479

1374

450

636

1080

Pers.Corp.

NA


NA

Lituania

Luxembourg

Malta

Poland

Portugal

Romania

Slovakia

Slovenia

Spain

Sweden

United Kingdom6700

125

1400

52

232

369

230

1700

36

100

189

24300

4100

20000

219

820

4219

950

7200

967

421

397

Pers.Corp.

NUMBER OF PROFESSIONALSNatural Persons & Corporate forms


NUMBER OF PROFESSIONALBODIESPER COUNTRY


SUPERVISORY MINISTRIES

Ministry of Justice

Ministry of Economics

and FinanceOrganisations

withoutsupervisory

ministry

BelgiumEstoniaFinland

GermanyHungaryPolandSpain

FranceItaly

Czech RepublicPortugalRomania

United Kingdom


SUPERVISORY AUTHORITIES


Belgium

• Public Prosecutor• High Council for the Economic Professions (CSPE)• Chamber of Disciplinary Transfer and Indictment

(CRME) • Advisory and Supervisory Committee on the

independence of the statutory auditor (ACCOM) • Disciplinary authorities

Czech Republic • Public Audit Oversight Board (RVDA)

Estonia • Auditors Activities Oversight Council

Finland • Auditing Board of the Central Chamber of Commerce

France • Haut Conseil du commissariat aux comptes (H3C)

Germany • Auditor Oversight Commission (Abschlussprüferaufsichtskommission)

Hungary • The Auditors Public Oversight Authority (APOA)

Ireland • Irish Auditing & Accounting Supervisory Authority (IAASA)

Poland • The Audit Oversight Commission (AOC)

Portugal • Conselho Nacional de Supervisão de Auditoria (CNSA)

Romania • The Council for the Public Interest Oversight of the Accountancy Profession (CSIPPC)

Spain • Instituto de Contabilidad y Auditoria de Cuentas (ICAC)

United Kingdom • Financial Reporting Council (FRC)

II. AUDIT THRESHOLDS AND SCOPE

AUDIT THRESHOLDS (Bal. Sheet Total & Net Turnover in K€)

BelgiumBal. Sheet Total : 3650

Net Turnover : 7300Nbr. of employees : 50

CyprusBal. Sheet Total : 3417


Czech Republic Bal. Sheet Total : 1600


Denmark

see countries with multiple options

(following page)

Estonia


(following page)

Finland Bal. Sheet Total : 100


France


(following page)

Germany Bal. Sheet Total : 4840


Hungary Bal. Sheet Total : -


Ireland Bal. Sheet Total : 4400


Italy Bal. Sheet Total : 4400


Lituania Bal. Sheet Total : 1738


Netherlands Bal. Sheet Total : 4400


Poland Bal. Sheet Total : 2500


Portugal Bal. Sheet Total : 1500


Romania Bal. Sheet Total : 3650


Spain Bal. Sheet Total : 2850


United Kingdom Bal. Sheet Total : 4108



AUDIT THRESHOLDS (Bal. Sheet Total & Net Turnover in K€)


* SAS : « Société par Actions Simplifiées »** SARL : « Société à Responsabilité Limitée »

Countries with multiple optionsCountries with multiple optionsCountries with multiple optionsCountries with multiple optionsCountries with multiple optionsCountries with multiple optionsCountries with multiple optionsCountries with multiple optionsCountries with multiple optionsCountries with multiple optionsDenmarkDenmark EstoniaEstoniaEstoniaEstonia FranceFranceFrance

Statutory audit Review Statutory

audit Review Statutory audit Review Statutory audit Statutory audit Statutory audit

If 2 out of 3 thresholdsIf 2 out of 3 thresholds

If 1 out of 3 thresholdsIf 1 out of 3 thresholds

SAS* SARL**Other legal forms

Bal. Sheet Total 4800 533 1000 500 3000 1500 1000 1550 -

Net Turnover 9600 1067 2000 1000 6000 3000 2000 3100 -

Nbr. of employees 50 12 30 15 90 45 20 50 -

Examples of countries whose definition is limited to the 3 European categories :

•BELGIUM•GERMANY•IRELAND•NORWAY, ...

PIEs DEFINITIONPER COUNTRYArt. 2 p.13 Directive 2014/56/EU

+?ENTITIES WHOSE SECURITIES ARE

ADMITTED TO TRADING ON A REGULATED

MARKET

INSURANCEUNDERTAKINGS

CREDIT INSTITUTIONS

EU PIEs definition

Entities designated by member states as PIEs

???

Examples of other categories of entities added to the PIEs definition ...before implementation of the new EU Directive

(see following page for details)


??

??

?

?

PIEs DEFINITIONPER COUNTRYArt. 2 p.13 Directive 2014/56/EU

• POLANDOther categories of entities added to the PIEs definition:• Electronic money institutions • Open pension funds and general pension

societies • Open investment funds, specialist open

investment funds and closed-end investment funds

• Entities conducting brokerage activity (with some exceptions)

• PORTUGAL Other categories of entities added to the PIEs definition:• Securities investment funds envisaged in the

legal regime governing collective investment undertakings

• Real-estate investment funds envisaged in the legal regime governing real-estate investment funds

• Venture-capital companies and venture-capital funds

• Debt-securitisation companies and debt-securitisation funds

• Investment holding companies, where the investments held, directly or indirectly, confer upon these companies the majority of the voting rights in the credit institutions

• Pension funds• State-owned companies which, during two

consecutive years, report a turnover of more than M€ 50, or a net total assets of more than M€ 300

• ROMANIA Other categories of entities added to the PIEs definition:• Non-banking financial institutions• Payment institutions and electronic money

institutions • Licensed entities, regulated and supervised

by the Financial Supervisory Authority • Financial investment service companies,

investment management companies and collective investment undertakings, authorised/endorsed by the Financial Supervisory Authority

• National companies• Commercial companies with state integrally

or majority owned capital• Autonomous state owned companies• Legal persons belonging to a group of

companies, falling within the consolidation requirements of a Romania-based parent company, which must apply the International Financial Reporting Standards according to the legal requirements

• Non-profit organizations receiving public funds

• Sub-units having no legal personality in Romania, belonging to legal persons based abroad (with some exceptions)

• FRANCEOther categories of entities added to the PIEs definition:• Social security institutions • Mutual society, provident institutions or

employee benefits institutions • Not for profit organization raising funds from

the public at large )

Expectations of the French profession regarding the implementation of the new Directive:Stay close to the European definition


Examples of other categories of entities added to the PIEs definition

before implementation of the new EU Directive

III. UPDATEBY COUNTRY

Non exhaustive or definitive data.Online update overtime

BELGIUM

Organisation of statutory auditor professionOrganisation of statutory auditor professionProfessional body Institut des Réviseurs d’Entreprises (IRE)

Supervisory authority Ministry of Economics and Finance

Supervisory body

• Public Prosecutor• High Council for the Economic Professions (CSPE)• Chamber of Disciplinary Transfer and Indictment (CRME) • Advisory and Supervisory Committee on the independence

of the statutory auditor (ACCOM) • Disciplinary authorities

Number of professionals

Audit ThresholdsAudit Thresholds

Balance sheet total 3650 K€

Net turnover 7300 K€Number of employees 50

AssignmentsAssignmentsTotal number NA

PIEs assigments NA

519

!1080


CZECH REPUBLIC

Organisation of statutory auditor professionOrganisation of statutory auditor profession

Professional body Chamber of Auditors of the Czech Republic (KACR)

Supervisory authority -

Supervisory body Public Audit Oversight Board (RVDA)






PIEs assigments NA

375

!1374



Professional body Estonian Auditors'Association


Supervisory body Auditors Activities Oversight Council


Audit ThresholdsAudit ThresholdsAudit ThresholdsStatutory

Audit ReviewStatutory

Audit ReviewReview

If 2 out of 3 thresholdsIf 2 out of 3 thresholds If 1 out of 3 thresholdsIf 1 out of 3 thresholdsIf 1 out of 3 thresholds

Balance sheet total 1000 K€ 500 K€ 3000 K€3000 K€ 1500 K€

Net turnover 2000 K€ 1000 K€ 6000 K€6000 K€ 3000 K€Nbr. of employees 30 15 9090 45

AssignmentsAssignmentsTotal number 6700

PIEs assigments 149

162

!351


ESTONIA

Organisation of statutory auditor professionOrganisation of statutory auditor professionOrganisation of statutory auditor profession

Professional bodiesFinnish Institute of Authorised Public Accountants

Registered Association of Certified HTM-Auditors

Supervisory authority Ministry of Employment and EconomicsMinistry of Employment and Economics

Supervisory body Auditing Board of the Central Chamber of CommerceAuditing Board of the Central Chamber of Commerce






PIEs assigments 600

80

!1400


FINLAND


Professional bodyCompagnie nationale des commissaires aux comptes (CNCC)

Supervisory authority Ministry of Justice

Supervisory body Haut Conseil du commissariat aux comptes (H3C)


Audit ThresholdsAudit ThresholdsSAS* SARL** Other legal forms

Balance sheet total 1000 K€ 1550 K€ -Net turnover 2000 K€ 3100 K€ -Nbr. of employees 20 50 -

AssignmentsAssignmentsTotal number 229 951

PIEs assigments 2473

5715

!13625


FRANCE

* SAS : « Société par Actions Simplifiées »** SARL : « Société à Responsabilité Limitée »


Professional bodiesInstitut der Wirtschatsprüfer (IDW)

Wirtschaftsprüferkammer (WPK)

Supervisory authority Ministry of Economics and FinanceMinistry of Economics and Finance

Supervisory bodyAuditor Oversight Commission (Abschlussprüferaufsichtskommission)Auditor Oversight Commission (Abschlussprüferaufsichtskommission)







3321

!17321


GERMANY


Professional body Chamber of Hungarian Auditors (MKVK)


Supervisory body Auditors Public Oversight Authority (APOA)



Balance sheet total -



PIEs assigments NA

3014

!5223


HUNGARY


Professional bodies

• Institute of Chartered Accountants in Ireland (ICAI)• Institute of Certified Public Accountants• Institute of Incorporated Public Accountants• Institute of Chartered Accountants in England & Wales

(ICAEW)• Institute of Chartered Accountants of Scotland (ICAS)• Association of Chartered Certified Accountants (ACCA)


Supervisory bodyIrish Auditing & Accounting Supervisory Authority (IAASA)







2000

!NA


IRELAND

Organisation of statutory auditor professionOrganisation of statutory auditor professionProfessional bodies NA

Supervisory authority Ministry of Justice

Supervisory body NA






PIEs assigments NA

NA

!14000


ITALY


Professional body National Chamber of Statutory Auditors (KACR)


Supervisory body Audit Oversight Commission (AOC)






PIEs assigments 500

1700

!7200


POLAND


Professional body Ordem dos Revisores Oficiais de Contas (OROC)


Supervisory body Conselho Nacional de Supervisão de Auditoria (CNSA)







230

!950


PORTUGAL


Professional body Chamber of Financial Auditors of Romania


Supervisory body Council for the Public Interest Oversight of the Accountancy Profession (CSIPPC)






PIEs assigments 500

369

!4219


ROMANIA


Professional bodiesInstituto de Censores Jurados de Cuentas de España (ICJCE)

Consejo General de Economistas

Supervisory authority Ministry of Economy and CompetitivenessMinistry of Economy and Competitiveness

Supervisory bodyInstituto de Contabilidad y Auditoria de Cuentas (ICAC)Instituto de Contabilidad y Auditoria de Cuentas (ICAC)





AssignmentsAssignmentsTotal number 60200


1400

!20000


SPAIN


Professional bodies

• Association of Chartered Certified Accountants (ACCA)• Institute of Chartered Accountants in England & Wales

(ICAEW)• Institute of Chartered Accountants of Scotland (ICAS)• Institute of Chartered Accountants in Ireland• Association of Authorised Public Accountants


Supervisory body Financial Reporting Council (FRC)







6700

!24300


UNITED KINGDOM

NOTES

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AUDIT POLICY CONFERENCE • 17th october 2014 • 38ponpon

’16, avenue de Messine

75008 ParisTel. +33 1 44 77 82 82Fax +33 1 44 77 82 28

www.cncc.fr

In cooperation with

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