Története [ szerkesztés ]

1. Története [szerkesztés]

2. CHAMBER OF HUNGARIAN AUDITORSDuality of public interest and authority functions1. History2. Organisation structure (committees, sections)3. Members (statistics)4. Place

3. History of the Chamber • Firstlawin 1930 • Society of Chartered Auditorsfoundedin 1932 • Dissolvedin 1950 • Society of HungarianAuditorsfoundedin 1987 • 1997: ParliamentpassedtheactontheChamber • 1997 December: ChamberregisteredbytheCourt • 2007: newactwaspassedbytheParliament • 2010: AmendmentstotheactwerepassedbytheParliament

4. Structure of the Chamber

5. Membership statistics Members Audit firms

6. Number of active auditors(publishing reports) Number of active auditors: 3 346

7. Distribution of members

8. Auditing is compulsory if • Annual net revenue was over 100 m Ft in average of 2 business years before business year • Number of average employees is over 50 in average of 2 business years before business year • Value correction is applied • Valuation on real value is chosen • Involved in consolidations • Mutual savings banks • Credit institution or financial firms • Insurance company with annual revenue of 300 mFt • County, regional, (capital district) local governments with last year’s expenditure over 300 mFt and have credits • Hungarian branches of foreign entrepreneurs • Does not meet requirements of Par. 4 (4) of Act on Accounting • Transforming • Switching to double-entry system from single entry system or from revenue records • Switching currency • Condominium • Company contract prescribes • Those for whom the law prescribes in order to protect public interest • + possibility in case of defining value of non-liquid assets

9. Number of published reports

10. Requirements of an auditor • College or university degree (professional qualification?) • Chartered accountant certificate • Examination in 7 subjects: law, tax, finance, organization, accountancy, IT, audit (participation at courses, exemptions – Bologna system) • Mentor system for 2 years +1 year experience • competency examination

11. Appointing, remuneration of auditorsActivities that can be carried out Fixed term, rotation, registration in a Court of Registry (association, natural person, substitute auditor) Fee minimum (lack) (Competition Authority ), publication in the supplementary appendix Services that can be provided (incompatibility) In case of unlawful activities Supervisory Committee, Board, General Meeting shall be convened Court of Registry, Customs and Finance Guard (money laundering), Financial supervisory authority (supplementary report) shall be notified Returning appointment, withdrawal of endorsement Request at the Court of Registry, if not deleted within 60 days

12. Secrecy • Civil Code: testimony can be refused by: a lawyer, a doctor, a cleric, and any other person, whois obliged to secrecy by profession, if through testimony he would breach his obligation of secrecy, except he has been exempted from this obligation. • Chamber Oath: „I do solemnly swear that …. I shall maintain confidentiality regarding all classified information of which I become aware during performing auditing activities.” • Code of Ethics: Exemptions from the obligation of secrecy– except as otherwise specified – can be made only by client and in writing. Auditor shall not disregard this in either civil, or administrative, or criminal cases.

13. Assurance, responsibility • Insurance limit: by loss or damage, lower limit of compensation amount shall be 5 mFt (low) • No umbrella insurance • It means a cover for the contractor also • Unlimited liability for damage • The part of damage shall not be compensated which originated from the injured party not complying with his obligations • Exempted from liability if he proves he acted in a way it is acceptable in the given situation • Material responsibility of natural person auditor versus audit firm

14. Breaching requirements, expectations Ethics default • Infringement of law • Breaching requirements of activities • Breaching attitude rules • Negligence, professional fault, purposefulness, conflict of interest Disciplinary default • Missing professional advanced education • Lack of responsibility insurance • Not (or wrong) meeting requirements of obligatory data service • Not preparing anti-money laundering rules and does not have it approved • Derogating goodwill of the Chamber and profession • Does not pay membership fee • False certification of apprenticeship • Got non-compliance twice during quality assurance review • Has not worked according to the standards

15. Requirements and services of the Chamber • Data service, client gate • Membership fee (Fix, subject to revenues, default interest) • 4-day advanced training courses a year • Quality control every 3/6 years • Delegates, presidency (regions-counties, for max. 2*4 yrs) • Seven committees (admission, education, experts, central election, quality control, supervisory, disciplinary) • Six sections (budget, money and capital markets, tax, justice, nature, accountancy) • Forums, conferences • Newsletter of the profession, Newsletter • Consultation service

16. Base of contribution fee

17. Public oversight • Public oversight system is operated by the Chamber and the Oversight body together • Aim: statutory auditor function will be transparent, controllable, accountable, and public interest is adequately represented • Public oversight body cannot act in cases in which criminal or administrative procedure has otherwise right to take place or in which the Chamber is authorized to act, but it can initiate extraordinary quality control • Auditor presenting the reason shall communicate to the Oversight body if his term of appointment is repealed or he resigned • Public oversight body can request auditor’s documents, data, information, statements, has access to their documents, data files

18. Auditing creates value • For the budget, as it inspires to voluntary compliance (cheap) + Strengthens knowledge of being controlled (correlation) • For creditors, as it increases reliability, credibility, transparency • For the trustee, as auditor can prevent defaults The auditor can • warn against actual, intended or accidental breaching of taxation/accounting rules, thus tax authorities’ sanctions can be avoided; • help and have ideas to find taxation optimum • Call attention to favourable funding opportunities Reliable island – professional pillar!

19. Thank you for your attention!