IFAC members and associates have provided self-assessment information about the regulatory and standard-setting framework in their countries (Part 1) and their organizations' activities in addressing IFAC's membership requirements (Part 2) as described in the Statements of Membership Obligations. Based on an analysis of this information, they are developing SMO Action Plans for continuous development and improvement.

Some organizations have qualified to submit SMO Action Plans on a biennial basis by meeting eligibility criteria. These organizations are indicated with an asterisk (*).

In the interest of transparency and providing information to the profession, regulators, and other stakeholders, all responses and SMO Action Plans are accessible below.

Chamber of Auditors of the Czech Republic

Introduction

The information below has been submitted as part of the IFAC Member Body Compliance program. The Program has two components:

Part 1:	Assessment of the Regulatory and Standard-Setting Framework (provides information about regulatory requirements and standard-setting processes in member body countries); and
Part 2:	Assessment of Compliance (provides information on compliance by member bodies with the Statements of Membership Obligations). Part 2 of the Compliance Program will begin later this year, and the results will also be posted to the website.

The responses to Part 1 are provided below. IFAC staff has reviewed the responses and, where necessary, validated them with external knowledgeable parties. A list of key terms is available to assist readers in understanding the responses.

The purpose of this Part 1 Assessment is to collect information on the roles of IFAC member bodies and other organizations (including government, regulatory or other appointed authorities) with respect to:

Setting auditing, accounting, ethics, public sector and education standards; and
Regulating the accountancy profession.

Sections 1 and 2 of Part 1 contain an introduction and instructions for member body respondents. For this reason, they are not included here, and the responses begin with Section 3.

Questions or comments may be sent to complianceassessment@ifac.org.

Section 3 -- Member Body General Information

1. Country:

Czech Republic

2. Name of member body:

Chamber of Auditors of the Czech Republic

Or please specify name:

3. Individual responsible for preparation:

Ms. Eva Rokosova

4. Date member body became a member of IFAC:

Note: Please enter a numeric date (e.g., 12/2001, Month/Year)

12 / 1994

Questions 5 - 22 are for internal use only

Section 3G -- Affiliations

23. Please list those regional organizations to which your organization belongs (e.g., FEE, CAPA, ECSAFA, IAA, etc.):

The Fédération des Experts Comptables Européens (FEE)

Section 4 -- Statutory Framework

Responses to this section will provide a description of the legal framework governing the commercial aspects of auditing and financial reporting in your country.

Section 4A -- The Companies Act or Commercial Code

The following questions concern the Companies Act (the Act) or Commercial Code (the Code) or similar Legal authority in your country. If no Legal authority exists, or the Legal authority does not address particular questions, please indicate "N/A" for Not Applicable.

24. What is the full name of:

a). the Act or the Code:		Commercial Code No. 513/1991 Coll., as subsequently amended
b). the Enacting body:		Ministry of Justice
c). date the Act or Code came into force:		01 / 1992

25. How can IFAC obtain a copy of the Act or Code?

By mail on the request addressed to the Chamber of Auditors (CACR). Collection of Acts of the CR in Czech webpage www.sbirka.cz

26. Is the Act or Code available in English?

Yes

27. What are the types of entities covered by the Act or the Code?

Please check all that apply.

	Listed entities					Other (please specify): Only for those governmental entities that were established for business purposes
	Private companies					Other (please specify): Other individual businessmen, farmers and professionals
	Governmental					Other (please specify):
	Not-for-profit					Other (please specify):

28. Is there a requirement for the following entities to prepare annual statutory financial statements? If YES, please describe the financial reporting requirements including the accounting standards to be followed.

Please check all that apply.

	No	Yes	(If YES, please describe)
Listed entities			Listed entities are required to prepare their individual and consolidated financial statements related to the financial year beginning on or after May 1, 2004 in accordance with IFRS as endorsed by the EU.
Private companies			Private companies are required to prepare their individual financial statements in accordance with the national GAAP (Czech Accounting Standards). They are allowed to choose between application of the Czech accounting standards or IFRS for the purposes of their consolidated financial statements.
Governmental			Czech GAAP
Not-for-profit			Czech GAAP
Other (please describe) Selected sole traders			Individuals only if they meet specified criteria
Other (please describe)

29. Is there a statutory requirement for the following entities to be audited? If YES, describe the requirement including the auditing standards to be followed:

Please check all that apply.

	No	Yes	(If YES, please describe)
Listed entities			The obligation to be audited relates to the financial statements of the joint-stock and listed companies that meet at least one of three criteria (annual turnover more than CZK 80 mln., the amount of total assets more than CZK 40 mln., average number of employees 50) both in current and in previous accounting period.
Private companies			The other entities required to prepare their annual statutory financial statements have the obligation to be audited if they meet at least two of the three criteria mentioned above.
Governmental			Voluntary. Public sector entities (if these are governmental entities) must have their activities checked either by the auditor or the state officer. This check, however, does not fulfill the criteria of the statutory audit.
Not-for-profit			Certain entities after meeting required limits, must be audited in any case.
Other (please describe) Selected sole traders			If required by relevant legislation.
Other (please describe) Selected sole traders

30. Are the auditors ("statutory auditors") that are appointed for audits required by the Act or Code ("statutory audits") appointed for a specific period?

Yes

If YES, please indicate the term of appointment:

Year(s)

31. Who appoints the statutory auditors?

Please check all that apply.

	Shareholders					Management
	Board of directors					Other (please specify):
	Audit committee					Other (please specify):
	Government agency					Other (please specify):

32. Does the Act or Code require joint auditors for the statutory audit?

Yes

If yes, please describe the requirement:

33. Does the Act or Code require the rotation of the auditors or audit firms performing statutory audits?

Yes

If yes, please describe the requirement:
CACR is aware of the issues connected with the proposed new EU VIII directive. Latest development is being monitored by CACR. It was decided to wait until the proposed new EU VIII directive is approved.

Section 4B -- Securities Market Regulations

Responses to this section will provide a description of the financial reporting and auditing requirements for listed entities in your country.

34. What are (a) the major items of Legal authority for such requirements, (b) the Enacting body(ies) and (c) the latest amendment date? Please identify the specific articles or sections that pertain to auditing and financial reporting:

the major items of Legal authority for such requirements

Act No. 256/2004 Coll. on capital market business (Article 118-123).
the Enacting body(ies)

Parliament of the Czech Republic
the latest amendment date?

April 14, 2004

35. How can IFAC obtain a copy of the Legal authority?

By mail.

36. Is the Legal authority available in English?

Yes

37. Are there any additional or alternative financial statement reporting requirements for listed entities that are not described in your answer to Question 28?

Yes

If YES, please describe the requirement:

Listed companies have the obligation to present and submit to the Czech Securities Commission financial reports related to the first six months of the current accounting period and annual financial reports in specific deadlines. Those unaudited reports contain additional disclosures compare to the annual statutory financial statements (e.g. remuneration of management and the Board of Directors, auditor´s fees, shares and securities issued by the entity held by related party, etc.).

38. Are there any additional auditing requirements that apply to listed entities other than those described in your answer to Question 29 (e.g., additional GAAS requirements, additional independence requirements, requirements to report to those charged with governance, etc.)?

Yes

If YES, please describe the requirement:

Audit of all companies is governed by the Law on Auditors and Auditing Standards (ISAs since 2005). There is no difference between audit of listed and unlisted company.

39. Who appoints the statutory auditors of listed entities?

Please check all that apply.

	Shareholders			Management
	Board of directors			Other (please specify):
	Audit committee			Other (please specify):
	Government agency			Other (please specify):

40. Are auditors who perform audits of listed entities appointed for a specified period?

Yes

If YES, please indicate the term of appointment:

11 Year(s)

41. Are joint auditors required for audits of listed entities?

Yes

If YES, please describe the requirement:

42. Is rotation of the auditor or audit firm for audits of listed entities required?

Yes

If YES, please describe the requirement:

Section 5 -- Auditing Standards

Responses to this section will provide a description of the legal and professional framework governing audit and other assurance standards in your country. The section focuses on the establishment of such standards. Please indicate the role your organization plays within this framework.

Section 5A -- Statutory Framework

43. Please provide the name of the Legal authority and/or self-regulatory rules that establish audit and other assurance standards in your country, the date of the last amendment of such authority or rules and the name of body responsible for setting audit and other assurance standards. If the standards are different for different entities (e.g., listed entities, private companies, governmental bodies, not-for-profit organizations, etc.), please specify the details that apply to each:

Type of entity	Name of applicable legal authority	Date of last amendment (e.g. MM/YYYY 06/2001)	Name of body responsible for setting audit and other assurance standards
Listed entity	Act on Auditors	03/2004	Czech Chamber of Auditors
Other (please describe)
Other (please describe)
Other (please describe)

By mail on the request addressed to the Chamber of Auditors. Note: The Act will be available in English on the website of the Chamber www.kacr.cz (part English version)

Yes

Section 5B -- Standard-Setting (Czech Chamber of Auditors)

44. For Czech Chamber of Auditors, please indicate the nature of the body (i.e., whether it is part of a government ministry or department, an agency appointed by government, a private organization established by the profession, or other [please describe]) and the name of the standards.

Chamber of Auditors is a selfregulating professional organisation established by the Act on Auditors.

Standards are prepared by the Auditing Standards Committee of the CACR.

Czech Standards on Auditing

A move to ISA is approved from 2005 (2004 on a voluntary basis).

45. How many voting members does the standard-setting body have?

Standards are prepared in the Auditing Standards Committee (approx. 12 members), then issued for comments and finally approved by the Council (17 members).

46. Are the members of the standard-setting body involved on a voluntary basis or employed by the standard-setting body?

	Voluntary
	Employed
	Both - Please describe:

47. What are the criteria considered in selecting members of the standard-setting body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?

Best person for the job.
There are no special criteria.

48. Who appoints these members (e.g., member body, government, user, regulator, etc.)?

The General Meeting of all auditors appoints the Council and the Council appoints the ASC.

49. What is the term of appointment for members?

3 Year(s)

50. For how many years has the standard-setting body been in existence?

10 Year(s)

51. Please indicate the budget in US$ of the standard-setting body for the last fiscal year:

Note: Please enter a whole number using commas (e.g., 4,000,000)

12,000

Please enter the exchange rate used to calculate this number.

Note: Please enter a decimal amount (e.g., 4.0027)

25.65

52. To what entity is the standard-setting body accountable?

The Auditing Standards Committee is accountable to the Council (the budget above is ASC only), the Council is accountable to the General Meeting. Supervisor is the Ministry of Finance.

53. Describe the due process followed by the standard-setting body. Please include explanations of the following:

public exposure of standards
accessibility of meetings (i.e., public or private)

Private.
approval process for final standards (i.e., majority required to approve final standards)

Standards are prepared by the Auditing Standards Committee (or the Public Sector Committee). These, after being exposed to comments by auditors and regulators and approved by the Council are published and binding for auditors. A move to ISA is approved from 2005 (2004 on a voluntary basis). After that the ASC role would be to develop and publish application guidelines for Czech environment.
other relevant due process activities

Translating body � Chamber of Auditors of The Czech Republic

Principal translator � Translating Board for translation of standards and guidance IFAC ,
established by Chamber of Auditors of The Czech Republic. The board comprises ten members, four members of large audit firms, one academic, one deputy of regulator of profession and four members in public practice.

Key words � Translating board maintain the translated list of key words. The key words are used consistently in the translation of the selected standards and guidance.

Translation Process � the translation process is following :

1. Preparation of preliminary translation by Translating board member (usually representative of large auditing company)
2. Revise of translation by other Translating board member
3. Revise the complete translation based of review comments
4. Discussion translation by Translating board
5. Adoption of the translation by Translating board

The translated text contains complete published text of standard or guidance including Effective date and Public sector perspective. Text is completed by text in compliance with article 22. of Policy statement �Translation of Standards and Guidance Issued by the International Federation of Accountants�, September 2004.

Timeframe � translation of Handbook of International Auditing, assurance and Ethic pronouncements 2004 Edition was published in October 2004 in form electronic, Handbook Edition 2005 was published in June 2005 in electronic form.

54. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?

10 Day(s)

Section 6 -- Ethics

Responses to questions in this section will provide a description of the legal and professional framework governing ethics standards for accountants in your country. This section focuses on the establishment of such standards. Please indicate the role your organization plays within this framework.

Section 6A -- Statutory Framework

55. For each of the following types of professionals, please indicate the name of the Legal authority and/or self-regulatory rules establishing ethics standards for accountants and auditors in your country, the date of the last amendment of such authority or rules and the name of body responsible for setting the ethics standards.

Type of professional covered	Name of applicable legal authority	Date of last amendment (e.g. MM/YYYY 06/2001)	Name of body responsible for setting ethics standards
Professional Accountants in Public Practice	Code of Ethics	01/2004	Chamber of Auditors
Professional Accountants in Business
Professional Accountants in the Public Sector
Other (please describe)

This document is a Czech translation of IFAC Code of Ethics, except for the Accountants in industry section, which is not relevant and was omitted. It is available in Czech in the website www.kacr.cz

Yes

Section 6B -- Standard-Setting (Chamber of Auditors)

56. For Chamber of Auditors, please indicate the nature of the body (i.e., whether it is part of a government ministry or department, an agency appointed by government, a private organization established by the profession, or other [please describe]) and the name of the standards.

Czech Chamber of Auditors is an independent selfregulatory professional organisation established by the Act on Auditors.
Code of Ethics has to be and was approved by the Annual General Meeting.

Code of Ethics

57. How many voting members does the standard-setting body have?

1234

58. Are the members of the standard-setting body involved on a voluntary basis or employed by the standard-setting body?

	Voluntary
	Employed
	Both - Please describe:

59. What are the criteria considered in selecting members of the standard-setting body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?

IFAC Code of Ethics (without Accountants in industry section) approved by the General Meeting.

60. Who appoints these members (e.g., member body, government, user, regulator, etc.)?

N/A

61. What is the term of appointment for members?

Year(s)

62. For how many years has the standard-setting body been in existence?

10 Year(s)

63. Please indicate the budget in US$ of the standard-setting body for the last fiscal year:

Note: Please enter a whole number using commas (e.g., 4,000,000)

Please enter the exchange rate used to calculate this number.

Note: Please enter a decimal amount (e.g., 4.0027)

25,6

64. To what entity is the standard-setting body accountable?

N/A

65. Describe the due process followed by the standard-setting body. Please include explanations of the following:

public exposure of standards

Draft of the CACR Code of Ethics was issued for comments and also available on website more than 3 months before the General Assembly.
accessibility of meetings (i.e., public or private)

N/A
approval process for final standards (i.e., majority required to approve final standards)

Draft prepared by Ethics Committee (answer 66 relates to the Ethics Committee) then recommended by the Council for final approval during Annual General Meeting.
other relevant due process activities

General Assembly authorised Council to clarify further the definitions used in the CACR Code of Ethics.

The due process of translating IFAC Code of Ethics is the same as regarding translation of ISAs. For more information see Q.53 d.

66. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?

4 Day(s)

Section 7 -- Education

Responses to questions in this section will provide a description of how education requirements for the profession are established. Please indicate the role your organization plays within this process.

Section 7A -- Education Requirements

67. Please describe in general terms the education system in your country including the different stages of education from early childhood education through to tertiary level study. Please indicate which aspects / levels are compulsory as part of the national education system:

Basic education
Basic education takes generally 9 years and it starts in the age of 6; it provides the pupils with general education.

Secondary education
It is necessary for the future auditors to continue their studies at a secondary school; those schools provide either general or special education. The secondary studies take generally four years.

Graduate studies
After the secondary studies it is necessary for the future auditors to continue their studies at a University or Business School; the university studies take at least three years, but due to strong history about 99% of the students continue in their consider two or more years to acquire Master degree.

Generally, the only basic education is compulsory part of the national education system.

68. Is there a legal authority or regulation that specifies the requirements for an individual to operate as an accountant or auditor in your country?

Yes

Act on Auditors approved by Parliament states the pre-qualification requirements for professional education and exams of the future auditors. The Act is fully in the compliance with the 8th Directive of EU. To specify legal requirements The Chamber of Auditors follows especially the requirements of IFAC Pre-qualification International Education Standards, IFAC IEG 9 and the UNCTAD pre-qualification guideline.
The Act states the obligation of
1. Preceding graduate studies
2. Three-year work experience as assistant auditor
3. Passing maximum 10 written and one final oral exam in the period of 3 years.

69. Please select from below all the relevant key levels of requirements to obtain certification from your member body (i.e. to qualify as a certified or chartered accountant) and provide a general description of the requirement.

	Academic requirements Preceding graduate studies (at least bachelor degree). Note: Till 2004 it was even necessary to complete five-year Master studies. The Act does not give any possibility of the preceding education or exams recognition.
	Professional examinations Passing maximum 10 written and one final oral exam in the period of 3 years.
	Practical experience Three-year work experience as assistant auditor.
	Final qualifying examination In the compliance with the Act the Chamber states the obligation to pass 9 written exams and the final oral exam (plus three-year work experience as assistant auditor).
	Other (please describe)

70. Which of the following arrangements best describes who establishes the education requirements for the accounting profession in your country? Please select one option.

	A government ministry, department or agency establishes education requirements for the accounting profession with no additional requirements set by the member body(ies).
	A government ministry, department or agency establishes minimum education requirements for the accounting profession, and member body(ies) supplement these requirements.
	Member body(ies) establishes the education requirements for the accounting profession.
	Other (please describe)

71. Please provide the name(s) of the relevant body in the government ministry, department, agency and / or member body who establishes the education requirements.

A general description of the role of the relevant body(ies) including how it operates and its due process in establishing the education requirements.
N/A
How many voting members does the relevant body(ies) have
N/A
Are the members of the relevant body(ies) involved on a voluntary basis or employed by the standard-setting body?

Voluntary

Employed

Both - Please describe:
For how many years has the body been in existence?

Year(s)

72. How would you describe the authority that the education requirements have?

	Requirements are legally-based
	Requirements are set in the constitution, by-laws or other rules of the relevant body(ies).
	Requirements are set in member body(ies) policy document(s).
	Other (please describe)

72 a. How can IFAC obtain copies of these documents?

72 b. Are these documents available in English?

Yes

73. Are the education requirements for accountants and auditors the same throughout your country, or do they differ among regions, provinces or states?

Same

Different

If different, please briefly describe the main differences:

74. Please indicate the scenario that best describes who delivers the education and examination process for members of the profession. Please only select one option.

	The education program and final examination are delivered by the member body.
	The education program and final examination are delivered by the member body and other education institutions (e.g., universities, colleges, and others).
	The education program and final examination are delivered by education institutions (e.g., universities, colleges, and others).
	Other (please explain)

75. Once qualified as a member of your professional body, can members offer their services directly to the public?

Yes

Section 7B -- Licensing

76. Are there licensing requirements for auditors in your country?

Yes (continue with Question 77)

No (proceed to Section 8)

77. Who sets the requirements to obtain a license?

Act on Auditors approved by Parliament states the pre-qualification requirements for professional education and exams of the future auditors.

78. What are the requirements to obtain a license (please select all relevant requirements.)?

	Academic study specific for obtaining a license
	Practical experience
	Licensing examination
	Final qualifying examination
	Other (please describe)

79. Are there ongoing requirements to retain a license?

Yes

	Continuing professional development
	Re-examination
	Other (please specify): Stay in public practise or academics

80. What entity grants the license?

Czech Chamber of Auditors.

81. Describe any additional licensing requirements for auditors of listed entities (e.g., additional education requirements, registration, etc.).

No additional licencing requirements
Bank auditors can be vetoed by the central bank.

Section 8 -- Public Sector Accounting Standards

Responses to this section will provide a description of the legal and professional framework governing public sector accounting standards in your country. The section focuses on the establishment of such standards. Please indicate, where appropriate, the role of your organization within this framework.

Section 8A -- Statutory Framework

82. Please provide the name of the Legal authority and/or self-regulatory rules establishing public sector accounting standards in your country, the date of last amendment and the name of the body responsible for setting public sector accounting standards. If the standards are different for different entities (e.g., whole of government, ministry/department, statutory authority/agency, profit entity owned by government, state governments, local governments, other [please specify]), please specify the details that apply to each.

Type of entity	Name of legal authority	Date of last amendment (e.g. MM/YYYY 06/2001)	Name of body responsible for setting public sector accounting standards
Whole of government
Ministry/department	Accountancy Act. Decree implementing certain measures included in the Act on Accounting with regard to public sector entities. Accounting standards for public sector entitities.	01/2005	Ministry of Finance
Statutory authority/agency
Profit entity owned by government
State governments
Local governments
Other (please describe)
Other (please describe)

From Ministry of Finance, in the Collection of Acts, website www.sbirka.cz

Yes

Section 8B -- Standard-Setting (Ministry of Finance)

83. For Ministry of Finance, please indicate the nature of the body (i.e., whether it is part of a government ministry or department, an agency appointed by government, a private organization established by the profession, or other [please describe]) and the name of the standards.

Part of a government ministry (technical department for accounting)

Czech Accounting Standards for public sector entities.

There is specific set of Czech Accounting Standards applicable to public sector entities. Public sector accounting is also regulated by the relevant decree implementing certain measures included in the Act on Accounting.

84. How many voting members does the standard-setting body have?

N/A (part of ministry)

85. Are the members of the standard-setting body involved on a voluntary basis or employed by the standard-setting body?

	Voluntary
	Employed
	Both - Please describe:

86. What are the criteria considered in selecting members of the standard-setting body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?

N/A

87. Who appoints these members (e.g., member body, government, user, regulator, etc.)?

N/A

88. What is the term of appointment for members?

Year(s)

89. For how many years has the standard-setting body been in existence?

Year(s)

90. Please indicate the budget in US$ of the standard-setting body for the last fiscal year:

Note: Please enter a whole number using commas (e.g., 4,000,000)

Please enter the exchange rate used to calculate this number.

Note: Please enter a decimal amount (e.g., 4.0027)

25,6

91. To what entity is the standard-setting body accountable?

N/A

92. Describe the due process followed by the standard-setting body. Please include explanations of the following:

public exposure of standards

N/A, however, draft are usually circulated to the professional public
accessibility of meetings (i.e., public or private)

N/A
approval process for final standards (i.e., majority required to approve final standards)

N/A
other relevant due process activities

N/A

93. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?

Day(s)

Section 9 -- Private Sector Accounting Standards

Responses to the questions in this section will provide a description of the legal, statutory and professional framework governing private-sector accounting standards in your country. The section focuses on the establishment of such standards. Please indicate what role your organization plays within this framework.

Section 9A -- Statutory Framework

94. Please provide the name of the Legal authority and/or self-regulatory rules that establish private-sector accounting standards in your country, the date of last amendment, and the name of the body responsible for setting private sector accounting standards. If the standards are different for different entities (for example, listed entities, private companies, governmental organization, not for profit organizations, etc.), please specify the requirements that apply to each.

Type of entity	Name of legal authority or applicable rules	Date of last amendment (e.g. MM/YYYY 06/2001)	Name of body responsible for setting private sector accounting standards
Listed entity	Accountancy Act	12/2003	Ministry of Finance
Other (please describe) All other public sector	Accountancy Act and Practice Statements	12/2003	Ministry of Finance
Other (please describe)
Other (please describe)
Other (please describe)

By mail.

Yes

Section 9B -- Standard-Setting (Ministry of Finance)

95. For Ministry of Finance, please indicate the nature of the body (i.e., whether it is part of a government ministry or department, an agency appointed by government, a private organization established by the profession, or other [please describe]) and the name of the standards.

Part of a government ministry (department for accounting).

Czech Accounting Standards for businessmen.
Czech Accounting Standards for financial institutions.
Czech Accounting Standards for governmental organizations.
Czech Accounting Standards for insurance companies.
Czech Accounting Standards for health insurance entities.
Czech Accounting Standards for non-business entities.

96. How many voting members does the standard-setting body have?

N/A

97. Are the members of the standard-setting body involved on a voluntary basis or employed by the standard-setting body?

	Voluntary
	Employed
	Both - Please describe:

98. What are the criteria considered in selecting members of the standard-setting body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?

This is the matter of the recruitment rules and principles applied by the governmental institutions.

99. Who appoints these members (e.g., member body, government, user, regulator, etc.)?

Government.

100. What is the term of appointment for members?

Year(s)

101. For how many years has the standard-setting body been in existence?

Year(s)

102. Please indicate the budget in US$ of the standard-setting body for the last fiscal year:

Note: Please enter a whole number using commas (e.g., 4,000,000)

Please enter the exchange rate used to calculate this number.

Note: Please enter a decimal amount (e.g., 4.0027)

25,6

103. To what entity is the standard-setting body accountable?

Czech Government

104. Describe the due process followed by the standard-setting body. Please include explanations of the following:

public exposure of standards

N/A However, drafts are usually provided to professional public for comments.
accessibility of meetings (i.e., public or private)

N/A
approval process for final standards (i.e., majority required to approve final standards)

N/A
other relevant due process activities

N/A

105. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?

Day(s)

Section 10 -- Monitoring (Quality Assurance) and Enforcement

Responses to the questions in this section will provide a description of the legal and professional framework governing regulation of the profession in your country. Please indicate what role your organization plays within this framework.

Section 10A -- Securities Market Regulatory Authority

106. Name the authority that regulates the securities market:

Czech Securities Commission.

107. What responsibilities does this organization have for monitoring and enforcing compliance with accounting, reporting or auditing requirements? Please identify the Legal authority that establishes that responsibility:

N/A

108. Briefly describe the role of the regulatory authority as it relates to the following:

regulation of the audit profession

N/A
accounting and auditing standard-setting

N/A
review of financial statements prepared by listed entities, and monitoring of their compliance with the accounting and disclosure requirements

Securities Commission is entitled to review FS, however, in practise is performing only formal checks.

Section 10B -- Stock Exchange

109. Name the four largest stock exchangers (by market capitalization) and whether it is organized as a profit or not-for-profit organization:

Profit	Not for profit	Stock Exchange
		Prague Stock Exchange
		RMS System (organised OTC market)

Section 10B -- Stock Exchange
Prague Stock Exchange Details

110. For Prague Stock Exchange, is there a mechanism at the stock exchange(s) for monitoring and enforcing financial reporting, accounting and auditing of listed entities?

Yes

If YES, please describe the following:

How the monitoring and enforcement of financial reporting, accounting and auditing is conducted.

N/A
The consequences of non-compliance with the financial reporting, accounting or auditing requirements.

N/A
How enforcement actions are administered.

N/A

Section 10B -- Stock Exchange
RMS System (organised OTC market) Details

110. For RMS System (organised OTC market), is there a mechanism at the stock exchange(s) for monitoring and enforcing financial reporting, accounting and auditing of listed entities?

Yes

If YES, please describe the following:

How the monitoring and enforcement of financial reporting, accounting and auditing is conducted.

N/A
The consequences of non-compliance with the financial reporting, accounting or auditing requirements.

N/A
How enforcement actions are administered.

N/A

Section 10C -- Regulatory Oversight of the Accounting Profession

111. Has an audit profession oversight body been established (e.g., to oversee the external quality assurance review process, etc.)?

Yes

If NO, proceed to the next section.

If YES, please describe :

What are the name and duties of the oversight body?

Note: CACR is aware of the issues connected with the proposed new EU VIII directive, including establishment of the independent oversight body. Latest developments are being monitored by CACR. It was decided to wait until the proposed new EU VIII directive is approved.
The number of members on the oversight body
Its powers
How the oversight body conducts or oversees a program of inspections to assess the degree of compliance of each audit firm/auditor with applicable auditing standards and regulations
The sanctions the oversight body may impose in the event of non-compliance
How the oversight body is accountable to any public institution or body

Section 10D -- Banks Regulatory Authority

112. Name the authority that regulates the banks and similar financial institutions. Discuss how this authority differentiates between accounting requirements for regulatory reporting and general purpose external financial reporting:

Czech National Bank (the central bank), banking supervision.

113. Discuss briefly the legal requirements with respect to monitoring and enforcement by the regulatory authority of accounting and auditing standards that apply to the banks and similar financial institutions:

CNB receives all FS and audit reports on banks and is authorised to reject any audit appointment on the grounds of quality or conflicts of interest. They can also impose fines or remove banking licence of any bank for non-compliance with accounting or regulatory rules.

114. Briefly describe the role of the regulatory authority as it relates to the following:

regulation of the audit profession

Authority to veto audit appointment in a bank.
accounting and auditing standard-setting

N/A
review of financial statements prepared by listed entities

Listed banks are regulated - fines and licence removal - see above plus CNB may impose fines upto 3 (in some cases 6) percent of total assets of the bank.
enforcement of accounting, reporting and auditing requirements

All banks are regulated and their auditors have to be accepted by CNB. Plus CNB may impose fines up to 3 (in some cases 6) percent of total assets of the bank.

Section 10E -- Non-Banking Financial Institutions Regulatory Authority

115. Name the regulatory authority(ies) responsible for monitoring compliance with and enforcing accounting, reporting and auditing requirements imposed on non-banking institutions.

Securities Commission

116. What is the source of Legal authority of the regulatory authority(ies)?

Act on Capital Markets Activities Act on Investment and Mutual Funds

117. Briefly describe the role of the regulatory authority(ies) as it relates to the following:

regulation of the audit profession

N/A
accounting and auditing standard-setting

N/A
review of financial statements prepared by listed entities

SEC may impose fines up to 3 (in some cases 6) percent of total assets of the company.
enforcement of accounting, reporting and auditing requirements

SEC may impose fines up to 3 (in some cases 6) percent of total assets of the company.

Section 10F -- Insurance Companies Regulatory Authority

118. Name the regulatory authority responsible for monitoring compliance with and enforcing accounting, reporting and auditing requirements imposed on insurance companies.

Ministry of Finance.

119. What is the source of Legal authority of the regulatory authority(ies)?

Act on Accounting Act on Insurance

120. Briefly describe the role of the regulatory authority(ies) as it relates to the following

regulation of the audit profession

N/A
accounting and auditing standard-setting

N/A (The accounting function of the MoF is the accounting standard setter)
review of financial statements prepared by listed listed entities

MoF may impose fines up to 3 (in some cases 6) percent of total assets on insurance companies.
enforcement of accounting, reporting and auditing requirements

MoF may impose fines up to 3 (in some cases 6) percent of total assets on insurance companies.

Section 10G -- Other Regulatory Authority

121. Name any other regulatory authority(ies) responsible for monitoring compliance with and enforcing accounting, reporting and auditing requirements.

Ministry of Finance and regional finance offices

122. What is the source of Legal authority of each regulatory authority?

Act on Accounting
Act on Auditors

123. Briefly describe the role of the regulatory authority(ies) as it relates to the following

regulation of the audit profession

Basic functions and review of internal guidelines and codes
accounting and auditing standard-setting

Accounting Standard Setter
review of financial statements prepared by listed listed entities

N/A
enforcement of accounting, reporting and auditing requirements

Regional finance offices may impose fines up to 3 (in some cases 6) percent of total assets.

Section 10H -- Quality Assurance

124. Does any organization of professional accountants/auditors organize a program of quality assurance review to monitor compliance with accounting, reporting and auditing requirements?

Yes

If NO, proceed to next Section.

If YES, briefly describe the monitoring and enforcement mechanism.

The Supervisory Commission consists of 11 elected and practicing auditors supported by 5 employees of the Czech Chamber of Auditors. It is charged with monitoring of quality of auditors and audit firms.
Results of inspections lead by the Supervisory Commission are given to the Disciplinary Commission of CACR.
The Supervisory commission has no power do impose any sanctions, but the case may be submitted to the Disciplinary Commission, which can impose fines and temporarily or permanently withheld the license.

125. Under what authority does the organization conduct the program of quality assurance review?

Act on Auditors.

126. Who performs the review (e.g., one firm reviewing another firm, staff from the national professional organization, contractors, or a combination of these)?

Supervisory (11 members)and Disciplinary (7 members) Commissions in cooperation with the Chamber office (5 specialists).

Section 10 I -- Investigation and Discipline

127. Is there a process for investigating and disciplining the accounting profession in your country?

Yes

If NO, proceed to the Certification of Chief Executive

128. Which of the following best describes the responsibility for the investigatory and disciplinary function in your country?

	Government or other agencies are solely responsible for this function.
	Government or other agencies have this responsibility, but the member body or bodies participate in the process.
	Government formally delegates this function to the member body or bodies, to exercise on its behalf.
	Member body or bodies have separate and independent processes that operate alongside processes of legal authorities.
	Other (please explain)

129. Please indicate the name of the body or bodies responsible for investigation and discipline.

The Supervisory Commission (SC) and the Disciplinary Commission (DC).

Responses to the remaining questions in this Section are required if your organization has responsibility for investigation and disciplinary actions.

130. How many voting members does the body have?

11 (SC) + 7 (DC)

131. Are the members of the body involved on a voluntary basis or employed by the standard-setting body?

	Voluntary
	Employed
	Both - Please describe:

132. What are the criteria considered in selecting members of the body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?

Members of both commissions are elected by the General Assembly of auditors. Candidates are best persons for the job, professional behaviour and knowledge of languages.

133. Who appoints these members (e.g., member body, government, user, regulator, etc.)?

General Assembly of auditors listed by the Chamber

134. What is the term of appointment for members?

3 Year(s)

135. For how many years has the body been in existence?

10 Year(s)

136. Please indicate the budget in US$ of the body for the last fiscal year.

Note: Please enter a whole number using commas (e.g., 4,000,000)

120,000

Please enter the exchange rate used to calculate this number.

Note: Please enter a decimal amount (e.g., 4.0027)

25.6 (specify currency)

137. To what entity is the body accountable?

Both commissions are accountable to the General Meeting of auditors.

138. Approximately how many days per year does the body meet in full session (including teleconferences)?

22 Day(s)

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