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Professiona l support and auditor’s control in case of different financial reports in Hungary - Chamber of Hungarian Auditors. Topics.

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  1. Professional support and auditor’scontrol in case of differentfinancialreports in Hungary- Chamber of HungarianAuditors

  2. Topics 1) Chamber in numbers2) Enterprises in Hungary3) Accounting rules4) Actonthe Chamber, services of the Chamber5) Advisoryservices – opportunities and restrictions

  3. Chamber in numbers

  4. Chamber in numbers

  5. Revenue

  6. Number and distribution of audit reports

  7. Enterprises in Hungary 1 • Relativelylargenumber of SEs –sizecategoriesaredifferentfromEU • Long-termsubmissiondeadline, accounting tasksconcentratingatthe end • EU environment – obligationtoadapttoEUregulations • Needtomanagetaxproblems

  8. Enterprises in Hungary 2 • Hungary is not a eurozonemember, alot of currencyexchangeproblems • Enterprisesnotalwaysemploypreparedfinancial-accountingexperts • A lot of (more and more) firmsarenotobligedto audit – lack of auditor’ssupport • Less taxcontrol – no control

  9. Accounting rules 1 • Regulationbylaws – continental accounting practice • Manyareexemptedfromdetailedreportingobligation • IFRS areneededonly in case of consolidatedaccountsofregisteredfirms • A lot of changesin regulation, a lot of consequences in accounting – hardtomanage

  10. Accounting rules 2 • Standard settingbodieshavebeenestablished, but no approved standard in effectyet • Singleinterpretation of accounting issues is notyetontrack – interpretive body doesnotoperate • Standard onmicroentities is ready, butnotindependent, it has notbeenincorporatedintothe accounting act

  11. Actonthe Chamber, servicesbytheChamber • Capacity of manyauditors is notused • Regulationallowsforbook-keepingservices (preparation of report) • Problem: rulesforconflicts of interests, ethicsissues • Difficulttocontrol and prove

  12. Advisoryservices – possibilities and restrictions1 • Biggerfirms: advisory service: separate business activity • Smaller audit entities – continuouspresence, pre-investigations, consultations • Consequences – compliancewithstandards – ethics, conflict of interests – controlbythe Chamber, qualitycontrol

  13. Advisoryservices – possibilitiesand restrictions 2 • Consolidatedreports – expectedtoremainthe market of thebigfirms • Individualannualreports – bigfirms in case of IFRS implementation, opencompetition in othercases • Simplified, microentitiesreports (without audit) – possibilityforsmallerentities, individualauditors

  14. Expected (hoped) changes • Enlargethegroup of expertspreparing IFRS reports – growingdemandforexperts, auditors • Increase of thenumberof IFRS trainings, exams, qualifications – more preparedexpertgroup • Supporttopreparereportsat a higherlevel

  15. Thankyouforyourattention

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