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Text consolidated by Valsts valodas centrs (State Language Centre) with amending regulations of:

8 November 2011 (No. 856) [shall come into force from 11 November 2011].

If a whole or part of a paragraph has been amended, the date of the amending regulation appears in square brackets at the end of the paragraph. If a whole paragraph or sub-paragraph has been deleted, the date of the deletion appears in square brackets beside the deleted paragraph or sub-paragraph.

 

Republic of Latvia

Cabinet
Regulation No. 536
Adopted 17 June 2009

Regulations Regarding an Inspection of Compliance with the Quality Control Requirements of Audit Services

Issued pursuant to
Section 35.1, Paragraph four of
the Law On Sworn Auditors

I. General Provision

1. This Regulation prescribes the procedures by which the authorised representative of the Ministry of Finance (hereinafter - authorised representative) shall inspect the compliance with the quality control requirements of audit services, as well as the information to be included in an inspection report and the content of an inspection programme.

II. Procedures for Inspection of Compliance with the Quality Control Requirements of Audit Services

2. The authorised representative shall perform inspections of compliance with the quality control requirements of the audit services (hereinafter - inspection):

2.1. regular inspections shall be performed in order to obtain information regarding the state of compliance with the quality control requirements of audit services and changes thereof;

2.2. extraordinary inspections shall be performed in order to:

2.2.1. determine the causes which hinder providing audit services in accordance with the international audit standards recognised in Latvia;

2.2.2. gain information regarding the quality of audit services provided by a particular sworn auditor or a commercial company of sworn auditors.

3. In performing an inspection, an authorised representative shall:

3.1. inspect the decisions made by the Board of the Latvian Association of Sworn Auditors (hereinafter - Association) regarding approval of the quality controller of audit services (hereinafter - quality controller), other decisions of the Association Board or Committee and Commission in quality control matters and quality control reports, quality controller working documents, as well as the transparency report of a sworn auditor or a commercial company of sworn auditors to be inspected;

3.2. and where required:

3.2.1. become acquainted with the audit working documents of a sworn auditor or a commercial company of sworn auditors to be inspected;

3.2.2. with the help of a questionnaire, report and clarification obtain information regarding facts (e.g., whether there is rotation of quality controllers, regarding the independence of the quality controller from the sworn auditor or the commercial company of sworn auditors to be inspected);

3.2.3. hear the quality controller, the sworn auditor to be inspected or authorised representative of the commercial company of sworn auditors to be inspected.

4. An authorised representative shall establish an inspection file for each inspection. The inspection file shall include documents obtained or prepared during the inspection. The authorised representative shall prepare an inspection report within a month following the inspection.

[8 November 2011]

4.1 Prior to completion of an inspection report an authorised representative shall inform the quality controller, the commercial company of sworn auditors or sworn auditor to be inspected regarding the results of the inspection and the recommendations referred to in Sub-paragraph 6.4.4 of this Regulation, including also regarding the results of the inspection in relation to the transparency report of the commercial company of sworn auditors or the sworn auditor, as well as hear the opinion of the quality controller, the commercial company of sworn auditors or sworn auditor to be inspected regarding the results of the inspection and the recommendations referred to in Sub-paragraph 6.4.4 of this Regulation.

[8 November 2011]

4.2 A commercial company of sworn auditors or sworn auditor to be inspected shall, within a year after signing of the inspection report, take all the necessary measures in order to improve the internal control system in accordance with the recommendations referred to in Sub-paragraph 6.4.4 of this Regulation, and shall inform the Ministry of Finance thereof in writing. If a month prior to expiry of the time period specified in this Paragraph the Ministry of Finance has not received information regarding the measures for improvement of the internal control system, it shall send a relevant reminder to the commercial company of sworn auditors or sworn auditor to be inspected.

[8 November 2011]

4.3 If within the time period specified in Paragraph 4.2 of this Regulation a commercial company of sworn auditors or sworn auditor to be inspected has not taken measures for improvement of the internal control system, the Ministry of Finance shall, within a month after expiry of the time period specified in Paragraph 4.2 of this Regulation, publish information on the Internet home page regarding substantial deficiencies of the internal control system of the commercial company of sworn auditors or sworn auditor to be inspected and shall also inform the Latvian Association of Sworn Auditors thereof in writing.

[8 November 2011]

5. The documents included in the inspection file and the inspection report shall be stored in the relevant file in the Ministry of Finance archives.

5.1 An authorised representative shall, within a month after the end of each calendar year, prepare and submit to the Ministry of Finance a summary on the results of all inspections performed in the relevant year and the recommendations provided. The Ministry of Finance shall, within a month after receipt of the summary, prepare a report on it. Information regarding the recommendations provided and the planned measures related thereto, as well as regarding the efficiency and usefulness of the assurance of quality control in relation to the commercial company of sworn auditors or sworn auditor to be inspected shall be included in the report. The Ministry of Finance shall, within two weeks after preparation of the report, inform the Latvian Association of Sworn Auditors in writing regarding substantial facts indicated in the report.

[8 November 2011]

III. Information to be Included in an Inspection Report

6. Information to be included in an inspection report:

6.1. the location, address, date and time of drawing up of the inspection report;

6.2. the given name, surname and position of the authorised representative who performed the inspection;

6.3. the details (identification data) of the document, in accordance with which the authorisation to perform the inspection was received;

6.4. information regarding the inspection:

6.4.1. the date of performance of the inspection;

6.4.2. substance of the inspection;

6.4.3. the result of the inspection;

6.4.4. the recommendations for improvement of the internal quality control system of the commercial company of sworn auditors or the sworn auditor according to the inspection performed.

[8 November 2011]

7. If the inspection regarding the compliance of a quality controller's activities with the Auditing Services Quality Control By-law is performed, the following information shall be included in the inspection report in addition to the information referred to in Paragraph 6 of this Regulation:

7.1. the given name and surname of the quality controller (as well as that of the responsible quality controller, if such exists);

7.2. information regarding the quality control performed by the quality controller and subject to inspection:

7.2.1. the date and time of the quality control performed by the quality controller (regular/extraordinary);

7.2.2. the given name, surname, certificate number and the address of the place of practice of the sworn auditor included in the quality control or the name, licence number and legal address of the commercial company of sworn auditors included in the quality control;

7.2.3. the opinion included in the quality control report regarding the audit services' provided by the sworn auditor or the commercial company of sworn auditors compliance with the requirements of the quality control;

7.3. information regarding examined working documents (identification data) of the quality controller;

7.4. the assessment of performed quality control.

8. If the authorised representative has performed the activities referred to in Sub-paragraph 3.2 of this Regulation, information related to these activities shall also be included in the inspection report.

9. An inspection report shall be signed by the authorised representative who performed the inspection.

IV. Content of an Inspection Programme

10. The following measures shall be included in an inspection programme, which are necessary in order to:

10.1. inspect the operational efficiency of the Association in ensuring the quality control requirements of the audit services as prescribed to the Association by the Law On Sworn Auditors (hereinafter - Law), inter alia inspecting the following:

10.1.1. whether the requirement of the Law that not less than once every five years all commercial companies of sworn auditors and sworn auditors who perform professional activities as individual merchants or self-employed persons are subject to auditing services quality control, is ensured;

10.1.2. whether the requirement of the Law that not less than once every three years all commercial companies of sworn auditors and sworn auditors which provide audit services to financial institutions and commercial companies, the transferable securities of which are admitted to trading on the regulated market of the Member States, are subject to auditing services quality control, is ensured;

10.1.3. whether persons which the Association Board has approved as quality controllers are independent from the sworn auditor or the commercial company of sworn auditors to be inspected. A quality controller is considered to be independent from the sworn auditor or the commercial company of sworn auditors to be inspected, if he or she is not the sworn auditor to be inspected or a person, who under the supervision of that sworn auditor provides audit services or has provided them during the last two years, or is otherwise connected or had been connected with the sworn auditor or the commercial company of sworn auditors to be inspected during the last two years;

10.2. inspect the compliance of the activities of the quality controller with the Auditing Services Quality Control By-law approved by the Association Board and co-ordinated with the Ministry of Finance.

11. The following information regarding the planned inspection measures for the current year shall be indicated in the inspection programme:

11.1. [8 November 2011];

11.2. the time of performance of the inspection;

11.3. [8 November 2011];

11.4. tasks and terms of the inspection.

[8 November 2011]

12. [8 November 2011]

13. Regular inspections shall be performed in accordance with the inspection programme approved by the Ministry of Finance.

V. Closing Provision

14. This Regulation shall come into force on 29 June 2009.

Acting for the Prime Minister -
Minister for Finance E. Repše

Minister for Economics A. Kampars

 


Translation © 2013 Valsts valodas centrs (State Language Centre)

 
Document information
Title: Noteikumi par revīzijas pakalpojumu kvalitātes kontroles prasību ievērošanas pārbaudi Status:
No longer in force
no longer in force
Issuer: Cabinet of Ministers Type: regulation Document number: 536Adoption: 17.06.2009.Entry into force: 29.06.2009.End of validity: 17.03.2017.Publication: Latvijas Vēstnesis, 97, 26.06.2009.
Language:
LVEN
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  • Has ceased to be valid with
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193723
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11.11.2011
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