Views
3 months ago

Annual Report 2017

Annual Report 2017 - Federal Audit Oversight Authority FAOA

32 International | FAOA

32 International | FAOA 2017 CEAOB The Committee of European Audit Oversight Bodies (CEAOB) creates the framework for cooperation between EU national audit oversight bodies. Since 2016 the FAOA has had observer status in the ISG, the inspection sub-group. The ISG promotes cooperation between CEAOB members as regards inspection activities, as well as improved communication with audit firms and third parties. The FAOA took part in two ISG meetings in the reporting year: – Prague (Czech Republic) in June 2017: Amongst other matters, the meeting focused on talks with European representatives from Deloitte, BDO and Grant Thornton, as well as discussions about national inspection results and cooperation with the PCAOB 29 . – Dublin (Ireland) in October 2017: Amongst other matters, the meeting focused on talks with European representatives from EY on improving audit quality, and an exchange of ideas on various subjects with IAASB and IESBA representatives. In addition, the ISG agenda for 2018 and 2019, plans for the introduction of two additional task forces and the inspection system of the Greek oversight authority were presented in detail 30 . 29 For further information see: www.ec.europa.eu/info/sites/info/ files/170608-ceaob-subgroupsinspections-summary_en.pdf. 30 For further information see: www.ec.europa.eu/info/sites/info/ files/171013-ceaob-subgroupsinspections-summary_en.pdf.

Licensing | FAOA 2017 33 Licensing Introduction The number of individuals and audit firms applying for a licence for the first time was similar to last year, at 452 and 56 respectively. In contrast, the number of audit firm licence renewal applications fluctuates greatly each year. In the reporting year only around 70 audit firms applied for a licence renewal. Statistics Licences The number of licensed individuals is almost unchanged from last year. The FAOA took a number of measures that led to the waiver of individuals’ licences: Those without a link to audit firms and those over 85 (years of age) were contacted and professional association membership details were updated. These measures led to the deletion of around 250 individuals from the FAOA public register The number of licensed audit firms decreased. The reduction in licensed audit firms results particularly from the requirement on all audit firms to implement an internal quality assurance system. Numerous dormant or semi-dormant audit firms, hitherto without a quality assurance system, forewent the implementation of such a system and applied instead to be deleted from the FAOA public register. Figure 16 Licensed individuals and audit firms as at 31 December 2017 31 Type of licence Auditor Audit expert Total as at 31.12.2017 Total as at 31.12.2016 Individuals 2,539 6,667 9,206 9,192 Audit firms 884 1,720 2,604 2,915 State-regulated audit firms – 22 22 22 DSFI-only state-regulated audit firms – 7 7 8 Foreign state-regulated audit firms – 2 2 2 Total licences 3,423 8,418 11,841 12,139 Membership of professional associations Membership of one or more professional associations is not a licensing condition for either individuals or legal entities. Ordinary members of professional associations must, however, disclose an existing association membership in the FAOA public register. Extraordinary memberships, such as passive and junior memberships, have been incorrectly disclosed as ordinary memberships in the past. Various professional associations intervened in the reporting year and reported incorrect declarations. In cooperation with the professional associations, a large number of individuals and audit firms were requested to correct their professional association memberships in the FAOA public register. This led to a corresponding fall in registered memberships. 31 All numbers refer to legally binding completed proceedings. Pending appeals have not been included.