What is Act No. 299 / 2016 Coll.?

Act No. 299 / 2016 Coll., amending Act No. 93 / 2009 Coll., on Auditors and amending certain laws (Act on Auditors), as amended, and other related laws — Act amending Act No. 93 / 2009 Coll., on Auditors and amending certain laws (Act on Auditors), as amended, and other related laws.

When it became Act No. 299 / 2016 Coll. effectiveness?

Act No. 299 / 2016 Coll. became effective 01.10.2016.

Is Act No. 299 / 2016 Coll. still valid?

Yes, Act No. 299 / 2016 Coll. is still valid and effective.

How many times was it Act No. 299 / 2016 Coll. amended?

Act No. 299 / 2016 Coll. has 3 time versions of the text.

Act No. 299 / 2016 Coll. - Act amending Act No. 93 / 2009 Coll., on...

299

THE LAW

of 24 August 2016

amending Act No. 93 / 2009 Coll., on Auditors and amending certain laws (Act on Auditors), as amended, and other related laws

Parliament has decided on this law of the Czech Republic:

ČÁST PRVNÍ

Amendment of the Auditor Act

Čl. I

Act No. 93 / 2009 Coll., on Auditors and amending certain laws (Act on Auditors), as amended by Act No. 227 / 2009 Coll., Act No. 139 / 2011 Coll., Act No. 188 / 2011 Coll., Act No. 420 / 2011 Coll., Act No. 428 / 2011 Coll., Act No. 52 / 2012 Coll., Act No. 167 / 2012 Coll., Act No. 334 / 2014 Coll., Act No. 221 / 2015 Coll., Act No. 375 / 2015 Coll., and Act No. 377 / 2015 Coll., is amended as follows:

1. Paragraph 1, including the title and footnotes 1 and 24, reads as follows:

„§ 1

Subject matter

This law incorporates the relevant European Union1 regulations, following the directly applicable regulation of the European Union24) and regulates the performance of audit activities, the competence of the Chamber of Auditors of the Czech Republic ("the Chamber '), the competence of the Public Audit Supervisory Board (" the Council') and the rights and obligations of natural and legal persons associated therewith.

1) Directive 2006 / 43 / EC of the European Parliament and of the Council of 17 May 2006 on statutory audits of annual and consolidated accounts, amending Council Directives 78 / 660 / EEC and 83 / 349 / EEC and repealing Council Directive 84 / 253 / EEC, as amended by Directive 2008 / 30 / EC of the European Parliament and of the Council and Directive 2014 / 56 / EU of the European Parliament and of the Council. Directive 2013 / 34 / EU of the European Parliament and of the Council of 26 June 2013 on the annual accounts, consolidated accounts and related reports of certain types of undertakings, amending Directive 2006 / 43 / EC of the European Parliament and of the Council and repealing Council Directives 78 / 660 / EEC and 83 / 349 / EEC.

24) Regulation (EU) No 537 / 2014 of the European Parliament and of the Council of 16 April 2014 on specific requirements for statutory audits of bodies of public interest and repealing Commission Decision 2005 / 909 / EC. '.

2. In Section 2, at the end of the text in point (a), the words "or the European Union Regulation directly applicable 'are added.

3. In Article 2, at the end of the text of point (b), the words "the verification of the annual report or consolidated annual report shall not include the verification of the accounts or consolidated accounts and the audit reports on their verification 'are added.

4. In Section 2 (c), the word "Regulation 7) 'is replaced by the words" Regulation or Regulation directly applicable to the European Union';

footnote 7 is deleted.

5. In Paragraph 2 (l), the words "common controlling 'are replaced by" same controlling' and the words "internal system 'are inserted after the words" for'.

6. in Article 2 (m):

"(m) the linked entity of the audit firm of the person who:

1. has the same controlling person with the audit firm; or

2. is under the influence of the same person with an audit firm under the Accounting Act, '.

7. in Article 2, points (n) and (o) are deleted;

Points (p) to (s) shall be renumbered as points (n) to (q).

8. In Article 2, at the end of point (q), the dot is replaced by a comma and the following point (r) is added:

"(r) by the home Member State, the Member State in which the statutory auditor or auditor from another Member State has obtained professional qualifications for carrying out statutory audits in accordance with the procedure laid down in Article 4 or similar procedure laid down by another Member State, or the State in which the audit firm or audit person from another Member State has obtained audit approval in accordance with the procedure laid down in Article 5 or similar procedure laid down by another Member State.";

9. The heading above the designation of Section 4 is deleted.

10. The heading "Issue of an audit authorisation to a natural person 'is inserted under the heading of Section 4.

11. in Article 4 (1) (a), the words "foreign higher education, provided that such education is recognised in the Czech Republic as equivalent in the framework of an accredited Bachelor's or Master's degree programme under an international agreement which the Czech Republic is bound by, or where such education has been recognised under another legislature9) shall be inserted after the word" programme9. "

12. in Article 4 (1) (g):

"(g) does not have registered arrears with the authorities of the Financial Administration of the Czech Republic and the authorities of the Customs Administration of the Czech Republic, with the exception of the arrears for which it is permitted to wait his payment or the distribution of his payment in instalments, he does not have registered arrears on insurance and periodic penalty payments on social security and contribution to the state employment policy, except in respect of which repayment has been granted in instalments, and he is not late in payment of payments, '.

13. in Paragraph 4 (3) (a), the words "certificate of recognition of higher education in the Czech Republic" shall be inserted after the word "diploma."

14. in Article 4 (3) (b), the word "for example" shall be deleted; the comma after the word "contract" shall be replaced by "or" and the words "or an extract from the register of auditors (hereinafter referred to as" register ")" shall be deleted;

15. in the last sentence of Article 4 (6), the words "auditors (hereinafter referred to as the register)" shall be inserted after the words "register."

16. Under Article 5, the heading "Issue of an audit licence of a trading company 'is inserted.

17. in Article 5 (1) of the introductory part of the provision, the words "or to an auditor from another Member State" shall be deleted.

18. in Article 5 (1) (g):

"(g) does not have registered arrears with the authorities of the Financial Administration of the Czech Republic and the authorities of the Customs Administration of the Czech Republic, with the exception of the arrears, which are allowed to wait his payment or the distribution of his payment on repayments, he does not have registered arrears on insurance and periodic penalty payments on social security, and he is not late for repayments; This does not apply if there is a person who did not carry out his activities on the territory of the Czech Republic prior to the application for an audit authorisation, '.

19. in Article 5 (9), the words "for the issue of an audit authorisation pursuant to paragraph 1 and the conditions" shall be inserted after the words "conditions."

20. in Article 5 (10), the words "from another Member State and the audit person" shall be deleted; the words "by which" shall be replaced by the words "which" and the words "consider" shall be replaced by the words "consider."

21. in Article 6 (5) (b), the words "and in the Council Presidium" shall be deleted;

22. in Article 6 (5), at the end of the text of point (d), the words "and the directly applicable European Union provisions governing the specific requirements for statutory audit of bodies of public interest" shall be added.

23. in Article 7 (1) (a):

"(a) he has been ordered by a final decision to refrain from carrying out audit activities in accordance with Article 26 or Title XI;"

24. in Article 7 (2) (a):

"(a) it has been ordered by a final decision to prohibit the performance of audit activities in proceedings under Paragraph 26 or Title XI,"

Article 25 (7a) shall be deleted, including the title.

26. The heading of Section 7c is replaced by the heading "Common provisions for the suspension or prohibition of the performance of an audit activity or the termination of an authorisation to carry out an audit activity."

27. in Article 7c (1), the words "or permanently prohibited" shall be deleted and the words "audit activities," shall be replaced by the words "audit activities pursuant to Article 7, simultaneously."

28. In Article 7c (2), the words "the information and records referred to in Article 15 of Regulation (EU) No 537 / 2014 of the European Parliament and of the Council 'and the words" and the obligation to comply with the prohibition referred to in Article 45 (4)' are deleted.

29. in Article 7c (3), the words "paragraph 1" shall be deleted;

30. In Paragraph 7c, the following paragraph 4 is inserted after paragraph 3:

"(4) The period laid down in paragraph 3 shall not run for those who have ceased to be authorised to carry out an audit activity for as long as they are a quality controller under the quality assurance system referred to in Article 24 (2). ';

Paragraphs 4 and 5 shall become paragraphs 5 and 6.

31. in Article 7c (5), the word "Ten" shall be replaced by the word "Tto" and the words "request the issue of an audit" shall be replaced by "be issued by an audit."

32. In the first sentence of Article 7c (6), the words "carrying out audit activities' shall be inserted after the word" suspension '.

33.

„§ 8

Audit test

(1) The audit test consists of subsections. The audit test shall be carried out if all its sub-parts are successfully carried out. The audit exam takes place in the Czech language and is written.

(2) The content of the parts of the audit test shall correspond to the purpose of the audit test, which is to determine the level of knowledge of the applicant necessary for carrying out the audit activity.

(3) The audit test shall examine knowledge in the following areas:

(a) general accounting theory and principles;

(b) the legislation and standards relating to the drawing up of accounts and consolidated accounts;

(c) international accounting standards, international financial reporting standards and related interpretations, amendments to those standards and related interpretations issued or adopted by the International Accounting Standards Board;

(d) financial analysis;

(e) management accounting,

(f) risk management and internal control;

(g) audit and professional knowledge;

(h) legislation and professional standards relating to statutory audits and auditors;

(i) international auditing standards issued by the Board for International Audit and Verification Standards and Audit Standards issued by the Chamber; and

(j) professional ethics and independence.

(4) Furthermore, the audit test focuses on knowledge in the following areas to the extent relevant for carrying out audit activities:

(a) corporate governance;

(b) information and communication systems;

(c) business economy and general and financial economics;

(d) mathematics and statistics; and

(e) basic principles of financial management.

(5) The audit examination also focuses, to the extent relevant for carrying out audit activities, on the knowledge of the legal order of the Czech Republic in the following fields of law:

(a) civil and commercial law;

(b) financial law;

(c) insolvency law; and

(d) labour law and social security law.

(6) The Chamber shall set at least one deadline for each part of the audit examination in each calendar semester. The audit examination shall be completed no later than 5 years after the date of the first part of the audit examination. Where any part of the audit examination has been successfully carried out more than 5 years ago from the date of successful completion of the last part of the audit examination, it shall not be taken into account.

(7) Where a candidate has successfully passed a national final examination at a university or comparable professional qualification test in a Member State in one or more of the fields or disciplines referred to in paragraphs 3 to 5, the scope and content of that examination shall be in conformity with the areas or branches of the audit examination referred to in paragraphs 3 to 5, and the examination has been successfully carried out no more than 5 years before the date on which the applicant has requested an audit examination, that tenderer shall be exempted from the partial audit examination which is subject to such an examination if he so requests. The conformity of the scope and content of the test shall be decided by the Chamber. The Chamber's decision may be appealed to the Council.

(8) The Chamber shall keep the personal data specified in the application for the audit test and its parts until the completion of the audit authorisation procedure. "

34. The following Sections 8a to 8c are inserted after Section 8, including the headings:

„§ 8a

Division test

(1) The division examination is based on the Act on the Recognition of Professional Qualification13) verifies the level of adequate knowledge of the Czech legal order to the extent that they relate to statutory audit.

(2) The split test consists of subsections. The split test shall be composed if all parts of the differential test are successfully performed. The split test is held in Czech and is written.

(3) In determining the content of the individual parts of the Chamber's differential examination, the recommendations of the Council issued pursuant to Paragraph 38 (2) (i) shall be taken into account.

(4) Paragraph 8 (6) to (8) shall apply mutatis mutandis to the difference test.

§ 8b

Test schedule

(1) The Chamber shall issue a test schedule, which is the internal regulation of the Chamber.

(2) The test schedule shall be established by:

(a) the procedure for assessing the qualification assumptions referred to in Article 4;

(b) the content of each part of the audit examination and of the part of the difference test;

(c) the number of parts of the audit examination and parts of the difference test;

(d) the amount of the application fee for the part of the audit examination and the maturity of the fee; the amount of the application fee for the part of the audit exam must not exceed CZK 7,000;

(e) the amount of the fee for the application for the difference test and the maturity of the fee; the fee associated with carrying out the differential examination must not exceed the amount determined under the Law on the Recognition of Professional Qualifications,

(f) the non-participation process in the part of the audit examination or part of the difference test;

(g) the manner in which the applicant is informed of the outcome of the part of the audit or part of the difference test;

(h) the number of members of the Board of Appeal and its procedure for reviewing the evaluation of the outcome of the part of the audit examination or of the part of the split examination of the sub-panel;

(i) the way in which the audit examination is organised and the way in which the audit examination is carried out, the course and the evaluation of the individual tests and any reviews.

§ 8c

Test Panel

(1) The examination committee consists of statutory auditors and other experts from the theory and practice of the areas and disciplines referred to in Section 8. The members of the Examination Board shall be appointed and withdrawn by the Council.

(2) Evaluation of the outcome of the part of the audit examination or of the part of the difference test shall be carried out by at least a three-member sub-test panel. The Chair and the members of the Sub-Test Panel shall be appointed by the Chamber from among the members of the Test Committee. The number of members of the sub-test committee must always be odd.

(3) The subtest panel shall decide on the assessment of the outcome of the part of the audit examination or the part of the difference test of the candidate by "passed 'or" failed'.

(4) The applicant may request the Comoros in writing to review the assessment of the outcome of the part of the audit examination or part of the difference test within 15 days of the date on which the outcome of the part of the audit examination or part of the difference test was notified.

(5) The examination of the outcome of the part of the audit examination or part of the split test shall be carried out by at least a three-member appeal panel composed of members of the panel who did not decide to evaluate the outcome of the part of the audit examination or part of the split test. The Chair and members of the Board of Appeal shall be appointed by the Chamber.

(6) The appeal panel shall decide on the request for review of the assessment of the outcome of the part of the audit examination or of the part of the difference test within 30 days of its receipt, by amending the assessment of the result of the part of the audit examination or of the part of the difference test or of the part of the difference test or of the part of the difference test that may have had an impact on the proper conduct or outcome of the part of the audit or part of the difference test; otherwise the assessment of the outcome of the part of the audit examination or part of the difference test shall be confirmed. No appeal shall be made to the decision on the request for review of the assessment of the outcome of the part of the audit examination or part of the difference test.

(7) The review of the part of the audit examination or part of the difference test shall take place no later than 30 days after the date of the decision referred to in paragraph 6, before the part of the examination panel appointed by the Chamber from the members of the examination committee.

(8) The Administrative Regulation shall not apply to decisions on the assessment of the outcome of a part of the audit examination or part of a part of the separate examination by the subcommittee. ';

35. in Article 10 (1) to (3):

"(1) At the request of the Chamber, it shall also issue an audit authorisation to an auditor from another Member State, unless it is suspended or prohibited from carrying out the statutory audit in the home Member State and shall pass a difference test. The Chamber does not require a difference test from an auditor from another Member State where the level of his knowledge of the legal system of the Czech Republic relating to statutory audit is comparable to that required under § 8.

(2) An audit activity, with the exception of statutory audit, may also be carried out in the territory of the Czech Republic by a natural person who is entitled to conduct audit activities in another Member State or the Swiss Confederation. This person shall be granted an audit authorisation by the Chamber with the exception of carrying out a statutory audit.

(3) For the purposes of recognising the qualification assumptions referred to in paragraph 2, the Law on the Recognition of Professional Qualification13 shall apply. The recognition body is the Chamber. '.

36. Paragraph 10a, including the title, reads:

„§ 10a

Approval of auditors from third countries

On the basis of reciprocity, the audit activity under this Act is also authorised to be carried out in the territory of the Czech Republic by an auditor from a third country, provided that it demonstrates that it meets requirements equivalent to those laid down in § 4 (1) (a) to (e) and (g) and passes a differential examination. This person shall be granted audit approval by the Chamber. '.

37. The following Section 10b is inserted after Paragraph 10a, which includes the title:

„§ 10b

Auditor from another Member State and free provision of services

(1) At the request of the Chamber, it shall also issue an audit authorisation to an audit person from another Member State, unless he is suspended or prohibited from carrying out a statutory audit in his home Member State, and where the key audit partner designated by an audit officer from another Member State is a statutory auditor on his behalf.

(2) In order to assess the requirements referred to in paragraph 1, the Chamber shall require from the competent authority of the home Member State a certificate of the authorisation of an audit person from another Member State to carry out a statutory audit in the home Member State.

(3) The Chamber shall immediately inform the Council and the competent authority of the home Member State of the issue of the audit authorisation referred to in paragraph 1.

(4) An auditor from another Member State who has been granted an audit authorisation shall be deemed to be an audit firm under this law; Articles 7 (2) (b) and 24 to 24i shall not apply.

(5) An auditor from another Member State who has been granted an audit authorisation may not carry out an audit activity where:

(a) it has ceased to have an audit authorisation under § 7c; or

(b) no longer fulfils any of the conditions laid down in paragraph 1, or if it has been revoked by an authorisation to carry out statutory audits in the home Member State.

(6) The Chamber shall immediately inform the Council, the competent authority of the home Member State and the competent authorities of another Member State in which an audit officer from another Member State who has been granted an audit authorisation is entitled to carry out a statutory audit of the termination of the audit authorisation referred to in paragraph 5 (a).

(7) On a temporary or occasional basis, and with the exception of statutory audit, an audit activity may also be carried out in the territory of the Czech Republic by a non-natural person authorised to conduct an audit activity in another Member State or by the Swiss Confederation if, before the start of the temporary or occasional audit activity, the Chamber notifies the intention to carry out such an activity in the territory of the Czech Republic in writing; Paragraph 10 (5) shall apply mutatis mutandis. ';

38. in Article 11 (1) (c):

"(c) persons carrying out an audit activity in the Czech Republic on a temporary or occasional basis pursuant to § 10 (4) or § 10b (7),"

39. In Article 11, the words "and Title XI 'shall be added at the end of the text of paragraph 2.

40. in Article 12, the following point (c) is inserted after point (b):

"(c) the identifier of the data box in accordance with the law governing electronic operations,"

Points (c) to (f) shall be renumbered (d) to (g).

41. in Article 12, the following point (e) is inserted after point (d):

"(e) information on the audit authority to carry out the audit activities, except for carrying out the statutory audit referred to in Article 10 (2),"

Points (e) to (g) shall be renumbered as points (f) to (h).

(42) In Article 12 (h), the words "penalties imposed under Title XI" shall be inserted after the word "reason" and the words "their" shall be added at the end of the text of the letter "unless otherwise provided for by this law."

43.In Article 12a (d):

"(d) the identifier of the data box in accordance with the law governing electronic operations and, where appropriate, the contact details and the name of the contact person;"

44. in Article 12a, the following point (e) is inserted after point (d):

"(e) the address of the place of establishment where it is established;"

Points (e) to (k) shall be renumbered as points (f) to (l).

45. in Article 12a (l), the words', penalties imposed under Title XI 'shall be inserted after the words' their 'and the words' shall be added at the end of the text of the letter ', unless otherwise provided for in this law';

46. After Paragraph 13, the following Section 13a is inserted:

„§ 13a

Professional scepticism of the auditor

In carrying out the statutory audit, the statutory auditor shall take a position that involves critical thinking, observance and sensitivity to circumstances that may indicate a possible error caused by error or fraudulent conduct, and a critical assessment of the evidence, regardless of his previous experience of the integrity and integrity of the management of the entity for which he or she carries out the statutory audit and of the persons in charge of its management; the statutory auditor holds this position in particular when reviewing the management estimates of the entity in respect of:

(a) fair value measurement;

(b) changes in the value of the entity's assets;

(c) the creation, modification, valuation and use of the entity's reserves; and

(d) future cash flows relevant to the assumption of the entity's continuous life. "

47. Paragraph 14, including the title, reads:

„§ 14

Independence

(1) The auditor must be independent of the entity for which he carries out his audit activities. Where an auditor carries out a statutory audit with an entity, he shall be independent for at least the accounting period for which the financial statements or consolidated financial statements are drawn up and until the audit report is issued.

(2) An auditor is considered not to be independent of the entity if:

(a) there is any financial or commercial relationship, or any other contractual relationship, including the provision of non-audit services, between him or the person constituting the network and the entity;

(b) when carrying out a statutory audit with an entity, it would check its own services; or

(c) when carrying out a statutory audit with an entity, there would be a self-interest in the outcome of the statutory audit.

(3) An auditor may be considered independent where the facts referred to in paragraph 2 do not create conflicts of interest or threaten compliance with the requirements laid down by this law or by a directly applicable European Union regulation governing specific requirements for statutory audits of public-interest entities.

(4) An auditor may not perform a statutory audit on an entity if:

(a) affects the management of the entity;

(b) obtains or promises to obtain from the audited entity any benefit other than its remuneration for the services provided to the entity; or

(c) it holds investment vehicles issued, secured or maintained by an entity, with the exception of collective investment securities held indirectly through, or has a significant and direct share in, or is involved in, an investment fund, mutual funds or funds managed by a pension company.

(5

(a) the statutory auditor carrying out the statutory audit on his behalf;

Citation	Act No. 299 / 2016 Coll., amending Act No. 93 / 2009 Coll., on Auditors and amending certain laws (Act on Auditors), as amended, and other related laws
Regulation Type	-
Author	-
Collection	Code of Laws

Date of Promulgation	21.09.2016
Effective from	01.10.2016
Effective until	-
Status	Valid

Act No. 299 / 2016 Coll.

Act amending Act No. 93 / 2009 Coll., on Auditors and amending certain laws (Act on Auditors), as amended, and other related laws

Contents