R egulatory roles and relationships with oversight authorities in Slovakia

1. Regulatory roles andrelationships with oversight authorities in Slovakia

2. Professional bodies • Slovak Chamber of Auditors (SKAU) (auditors- membership obligatory) • Slovak Chamber of Certificated Accountans(SKCU ) (certified accountans – membership voluntary • Slovak Chamber of Tax advisory(SKDP) (tax advisors – membership obligatory)

3. Slovak Chamber of Auditors (SKAU) • Auditors and audit firms - membership mandatory auditors audit firms • 2000 - 770 184 • 2008 - 843 228 • 2012 - 825 237 • reduction of new admissions to the audit register • Age structure of auditors-ranging from 50 to 65 years is 520 auditors

4. Scope of the activities of the Chamber of Auditors • represent, protect and assert legitimate interest of its members • carry out an audit quality assurance review • ensure and control the continuing education of auditors and assistant auditors • make comments on draft legislation relating to auditors activities • cooperate with the Authority regarding oversight

5. Quality assurance review • Auditors and audit firms shall be subject to an audit quality assurance review carried out by the Chamber of Auditors through reviewers appointed by the Chamber of Auditors. • An audit quality assurance review must be carried out at least: • every three years with respect to an audit of a public-interest entity; • every six years with respect to an audit of other accounting entities. • The system of audit quality assurance reviews shall be subject to oversight performed by the Authority.

6. Constitution of Oversight • Has taken in place in 2008 based on the Act no. 540/2007 on Auditors, Audit and Oversight of the Audit Performance • Authority shall perform oversight through non-practitioners and auditors • the number of non-practitioners performing oversight must exceed the number of auditors

7. Scope of the activities of the Oversight Authority • The Authority shall: • organize auditor's examinations • issue licenses • register auditors and audit firms in the relevant registers and maintain the relevant registers; • The Authority shall perform oversight of the following: • compliance with International Auditing Standards; Code of Ethics; and with the provisions of Act on Auditors; • the system of audit quality assurance reviews conducted by the Chamber of Auditors; • continuing education; • disciplinary procedures conducted by the Chamber of Auditors. •  and other

8. Strategic planning • Expand the scope of the professional bodies and their members activities towards market stakeholders, public sector,goverment • The development of new services (advisor role, assurance) • Enhance communication with membership base (roundtable, FAQ-website) • Investment in the provisions of the technical and other services to members (use new technology,e-learning) • Enhance cross-border cooperation

9. Ways to fund professional body • The sources of income of the Chamber of Auditors consist of : • membership fees • registration fees, fees for entry tests • remuneration for services provided by the Chamber of Auditors • gifts • revenue from fines, and other income.

10. Ways to fund oversight authority • The sources of income of the Authority consist of: • a contribution from the state budget in accordance with the Act on the State Budget; • annual contributions; (PIE 0,01% from the BC) • revenue from fines • compensation of costs of a procedure • default interest • fees for examinations and tests - auditors • fees for acts performed by the Authority