Annual Report 2017

Appendices | FAOA 2017 49
The Netherlands
Taiwan (Chinese
Taipei)
Dutch Authority for the Financial Markets
(AFM)
IFIAR MMoU (2017)
Financial Supervisory Commission (FSC) IFIAR MMoU (2017)
Czech Republic Public Audit Oversight Board (RVDA) IFIAR MMoU (2017)
Turkey
Public Oversight, Accounting and Auditing
Standards Authority (POA)
IFIAR MMoU (2017)
United Kingdom Financial Reporting Council (FRC) IFIAR MMoU (2017)
United States
Public Company Accounting Oversight
Board (PCAOB)
IFIAR MMoU (2017)
Court rulings 2017
Status: 31 December 2017
The following is a complete list of the
2017 rulings of the federal courts relating
to the FAOA. The rulings appear
in chronological order, with a short
note on the subject matter dealt with
and on the conclusion of the court.
– FAC Ruling No. B-4117/2015 of 16
January 2017: Breach of independence.
Close business relationship
with a director of eleven audited
companies. Economic dependency.
Audit expert licence withdrawal for
two years. Rejection of appeal. Ruling
legally binding.
– FSC Ruling No. 2C_167/2016 of 17
March 2017: Concept of an order.
Appeal cannot be made against
an FAOA letter communicating the
opening of proceedings due to the
lack of a contestable order. Rejection
of appeal.
– FAC Ruling No. B-3069/2016 of
29 March 2017: Insufficient guarantee
of proper audit services. Foreign
conviction for stock exchange
market manipulation. Audit expert
licence withdrawal for three years.
Appeal partially upheld in as much
as withdrawal period reduced from
three to two years. Ruling legally
binding.
– FAC Ruling No. B-4726/2016 of 10
April 2017: Concept of an order.
Appeal cannot be made against
an FAOA letter communicating the
right to a legal hearing due to the
lack of a contestable order. Appeal
not considered. Rejection of appeal
by the FSC (see below).
– FAC Ruling No. B-2780/2016 of 18
April 2017: Compliance with management
body quorums by an audit
firm with the legal form of a GmbH.
Breach of rule that the majority of
members of the highest management
or administrative body must
have the necessary licence during
two periods of 15, respectively 23
months. Issue of a reprimand. Rejection
of appeal. Ruling legally
binding.
– FAC Ruling No. B-456/2016 of 19
July 2017: Breach of independence.
Breach of independence requirements
over six years in four
different constellations and with
respect to a total of eight engagements
(1. Common management
of two companies given same registered
address, common office
infrastructure, same people in decision-making
bodies and shared
employees; 2. Close family relationship;
3. Operation of a website
shared with the audited company;
4. Collective signing authority of
the auditor-in-charge at the audited
company). Audit expert licence
withdrawal for a period of two
years. Rejection of appeal. Ruling
legally binding.
– FSC Ruling No. 2C_516/2017 of 14
September 2017: Concept of an order.
Appeal cannot be made against
an FAOA letter communicating the
right to a legal hearing due to the
lack of a contestable order. Appeal
not considered. Confirmation of
FAC Ruling No. B-4726/2016 of 10
April 2017.
– FAC Ruling No. B-6138/2016 of
28 December 2017: Breach of duty
to inform and provide information.
Withdrawal of audit expert licence
until the duty is met and first-instance
review of the documentation
made. Ruling not yet legally
binding.