Auditors and statutory audits are now subject to new regulations.
One change affects all businesses whose annual or consolidated accounts are subject to a statutory audit. It requires the appointment of statutory auditors to be made by the supreme body (ie shareholders in general meeting for a.s. and s.r.o. companies). Currently, auditors are usually appointed by the directors.
The change applies to all accounts dated 1 January 2011 onwards (and any before that date for whom the auditors were not appointed when the regulations took effect on 14 April 2009).
Stricter statutory audit requirements will also apply to "public interest" bodies, the transparency and objectivity of whose audits are subject to increased public interest. They are required to:
- establish an internal audit committee to supervise the audit process
- change the statutory auditor or key audit partner at the firm of auditors at least every seven years
- not appoint the statutory auditor or key audit partner to a management position for at least two years after their audit appointment has ended
In addition, any auditor they appoint must publish detailed transparency reports every year.
The public interest audit regime applies to:
- issuers of listed securities
- health insurers
- pension funds
- investment firms
- collective investment schemes (UCITS)
- certain other capital market players
- electronic money institutions
- businesses or groups with more than 4,000 employees.
Finally, the regulations also contain new rules for the auditing profession, such as professional educational requirements and exams, professional standards, cross-border matters, quality assurance systems, professional self-governance and public oversight.
Law: Act no. 93/2009 Coll., Act on Auditors, in force since 14 April 2009, implementing Directive 2006/43/EC
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The original publication date for this article was 30/04/2009.