Transcript Slide 1

CAFR and the Implementation of
International Standards on
Auditing (ISAs)
Chamber of Financial Auditors of Romania
ANA DINCĂ
CAFR First Vicepresident
Experience of Regulation based on ISAs and the Code of Ethics
1 July – 3 July 2014
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The Chamber of Financial Auditors of Romania
The CAFR was established by the Government Emergency
Ordinance no. 75/1999. The Chamber began functioning
effectively in 2000, as a self-financing body.
As of 31 December 2013, the CAFR registers approximately:
- 4.600 financial auditors (individuals);
- 1.000 audit firms (legal entities);
- 2.000 trainees in financial audit.
The head-office is in Bucharest, with three regional offices in
Iaşi, Braşov and Cluj.
CAFR has signed cooperation agreements with 11 professional
institutes and is a member of the following international bodies:
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CAFR - member of international professional
organizations
• CAFR is a full member of the International Federation of
Francophone Accountants (FIDEF) – since May 6, 2006
• CAFR is a full member of the International Federation of
Accountants (IFAC) – since November 13, 2008
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CAFR - member of international professional
organizations
• CAFR
is a full member of the European
Accountants (FEE) – since December 16, 2010
Federation
of
• CAFR is an institutional member of the International Association
for Accounting Education and Research (IAAER) – since April 17,
2010
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Experience and regulation based on ISAs and
the Code of Ethics
Starting with 2000, the year of its establishment, CAFR has
implemented the International Standards on Auditing (ISAs)
and the IFAC Code of Ethics.
In Romania, ISAs’ application is mandatory for all financial
audit engagements carried out by CAFR members.
ISAs implementation is also one of the 7 Statements of
Membership Obligations (SMOs) that the Chamber assumed to
observe, in its capacity of IFAC full member.
In the quality assurance reviews performed by the Chamber,
the ISAs practice is reviewed by the quality reviewers
(employees of the CAFR Monitoring and Professional
Competence Department).
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Experience and regulation based on ISAs and
the Code of Ethics
The Institute of Chartered Accountants of Scotland (ICAS)
supported
the
Chamber
in
the
process
of
ISAs
implementation, by experience sharing and providing us with
methodology and best practices.
ISAs are included in the examination curricula for obtaining
the financial auditor qualification, as well as in the continuous
professional development curricula.
The knowledge of the international standards’ implementation
is also promoted by articles published in the two professional
journals issued by the Chamber: “Financial Audit” and “Audit
Practices”.
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Experience and regulation based on ISAs and
the Code of Ethics
The ISAs were implemented in Romania as such, with no
changes or alterations.
The Chamber organizes yearly training courses for the
trainees in financial audit activity and for the financial
auditors, CAFR members.
Starting with 2010, CAFR has translated and published the
Guide on Quality Audit, developed by the Institute of
Chartered Accountants of Scotland (ICAS) and adapted to the
Romanian legal provisions. This Guide refers to the ISAs
application in audit engagements.
In 2012, the updated version of the Guide on Quality Audit
was published, reflecting the practical application of the
Clarified International Standards on Auditing.
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Experience and regulation based on ISAs and
the Code of Ethics
Ever since 2000, the Chamber of Financial Auditors of
Romania translated and published into Romanian language the
Handbook of International Standards & Pronouncements,
under IFAC copyright.
Until now, six editions of the IFAC Handbook were
published: 2000, 2003, 2006, 2008, 2009 and 2012.
It was only recently, in April 2013, that the Handbook of
International Quality Control, Auditing, Review, Other
Assurance, and Related Services Pronouncements was
published by the CAFR, in Romanian.
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Experience and regulation based on ISAs and
the Code of Ethics
Using a single set of audit standards will continue to increase
audit quality and the credibility, comparability and consistency
of financial statements in different jurisdictions.
ISAs implementation will improve auditors’ cross-border
mobility and will decrease costs and deficiencies registered in
the transnational audit engagements.
Recognizing ISAs implementation importance in strengthening
the confidence on the market, of the investors and other
interested parties, CAFR supports the adoption of the
International Standards on Auditing.
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Audit Policy
On 13 October 2010, the European Commission issued the
“Green Paper on Audit Policy: Lessons from the Crisis”.
The Green Paper depicted the role played by auditors in
offering an opinion on the truth and fairness of financial
statements of audited entities.
On 30 November 2011, the European Commission released its
Proposal review of the Statutory Audit Directive(SAD)
2006/43/EC applicable to all statutory audits within the EU and
the Regulation applicable only to statutory audit of P.I.ES.
After nearly three years of discussions, the final Directive and
Regulation became EU legislation and were published in the
Official Jurnal of the EU on 27 May 2014.
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Audit Policy
In 2 years, Member States need to transpose the new
provisions into national law.
The main objectives of this reform are to:
Clarify and define more precisely the role of the auditor;
Reinforce the independence and professional scepticism of the
auditor;
Make the top end of the market more dynamic;
Improve the supervision of auditors;
Facilitate the cross-border provision of statutory audit
services; and;
Reduce unnecessary borders for SMES;
CAFR will promote these regulations among auditors, being
concerned by their transposition into national law.
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CAFR position
 CAFR supports the existence of a tripartite communication:
regulatory authority – auditor – audited entity.
 CAFR favors the development of SMEs.
 CAFR suggests the implementation of the IFAC Code of
Ethics, comprising solutions to the issues of independence
and conflicts of interests.
 CAFR welcomes a better understanding of cultural differences
and a better institutional cooperation, by means of a
dialogue at all levels: standard-setters, oversight authorities,
business community, professional accountancy bodies,
governments, academia, small, medium and large firms.
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Chamber of Financial Auditors of
Romania
Thank you
for your attention!
ANA DINCĂ
CAFR First Vicepresident
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