Wirtschaftsprüferkammer (WPK)

 

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:

1. Setting auditing, accounting, ethics, public sector and education standards; and
2. 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:

Germany

2. Name of member body:

Wirtschaftsprüferkammer (WPK)

Or please specify name:

3. Individual responsible for preparation:

Dr. Reiner J. Veidt, Executive Director

4. Date member body became a member of IFAC:

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

01 / 1984

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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.):

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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:		Various - see IDW Attachment Question 24a
b). the Enacting body:		Various - see IDW Attachment Question 24b (and 24c for relevant dates)
c). date the Act or Code came into force:		/

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

The official version of German law is that contained in the �Bundesgesetzblatt�. However, access to German legislation can be obtained via the Internet, a starting point is : http://bundesrecht.juris.de/bundesrecht/index.html. The official versions of the above mentioned laws in respect of government accounting are issued in state law gazettes (Gesetzesblätter). However, access to German legislation can be obtained via the Internet, a starting point for the federal legislation is: http://bundesrecht.juris.de/bundesrecht/GESAMT_index.html. Also see IDW Attachment for additional information on Question 26.

26. Is the Act or Code available in English?

Yes

No

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

Please check all that apply.


	Listed entities					Other (please specify): Please see IDW Attachment Question 27 for all checked entities.
	Private companies					Other (please specify):
	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			From 2005 (from 2007 for those currently using US GAAP), listed companies will be required to prepare consolidated accounts in accordance with IFRS, but continue to prepare nonconsolidated accounts in accordance with HGB (the German Commercial Code) - See IDW Attachment Question 28
Private companies			See IDW Attachment Question 28
Governmental			See IDW Attachment Question 28
Not-for-profit			See IDW Attachment Question 28
Other (please describe)			See IDW Attachment Question 28
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			See IDW Attachment Question 29
Private companies			See IDW Attachment Question 29
Governmental			See IDW Attachment Question 29
Not-for-profit			See IDW Attachment Question 29
Other (please describe)			See IDW Attachment Question 29
Other (please describe)

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

No

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): See IDW Attachment Questions 30 and 31
	Audit committee					Other (please specify):
	Government agency					Other (please specify):

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

Yes

No

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

No

If yes, please describe the requirement:

For entities listed in the �amtlicher Markt� [This is a specific segment of the regulated market with more demanding requirements.] § 319 paragraph 3 No. 6 HGB (Commercial Code) requires internal rotation of the German public auditor signing the auditor�s report, if that German public auditor has signed the auditor�s report six times within the previous 10 years. With the Bilanzrechtsreformgesetz coming into force, the requirement for internal rotation will be extended to all listed entities.

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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:

1. the major items of Legal authority for such requirements
   
   With regard to financial reporting and auditing there are no specific individual laws or regulations applying solely in respect of listed companies. Listed companies are covered by the Acts and Codes described in our answers to section 4A, depending on their legal form and on the section of industry to which they belong. The German Commercial Code (Handelsgesetzbuch, HGB) contains some specific requirements applicable to listed companies.

2. the Enacting body(ies)
   
   See answer to question 24b

3. the latest amendment date?
   
   See answer to question 24c

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

See answers to question 25

For question 36 - see question 26.

36. Is the Legal authority available in English?

Yes

No

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

No

If YES, please describe the requirement:

Refer to question 28.

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

No

If YES, please describe the requirement:

Refer to question 29.

39. Who appoints the statutory auditors of listed entities?

Please check all that apply.


	Shareholders			Management
	Board of directors			Other (please specify): �Appointment� of statutory auditors of listed entities covers 3 actions: 1-recommendation of the auditor by the supervisory board, 2-election of the auditor by the shareholders at their general meeting and 3-engagement of auditor by the supervisory board
	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

No

If YES, please indicate the term of appointment:

Year(s)

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

Yes

No

If YES, please describe the requirement:

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

Yes

No

If YES, please describe the requirement:

For entities listed in the �amtlicher Markt� [This is a specific segment of the regulated market with more demanding requirements.] § 319 para. 3 No. 6 HGB (Commercial Code) requires internal rotation of the German public auditor signing the auditor�s report, if the same German public auditor has signed the auditor�s report six times within the previous 10 years. With the Bilanzrechtsreformgesetz coming into force the requirement for internal rotation will be extended to all listed entities.

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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	See IDW Attachment Questions 43-54 for all entities
Other (please describe)	See IDW Attachment Questions 43-54 for all entities
Other (please describe)
Other (please describe)


a. How can IFAC obtain copies of these documents?

In respect of legislation; the official version of German law is that contained in the �Bundesgesetzblatt�. However, access to German legislation can be obtained via the Internet, a starting point is: http://bundesrecht.juris.de/bundesrecht/index.html.

In respect of IDW Auditing Standards; from the IDW.

In respect of public sector audits; the official versions of the above mentioned laws in respect of government accounting are issued in state law gazettes (Gesetzesblätter). However, access to German legislation can be obtained via the Internet, a starting point for the federal legislation is:
http://bundesrecht.juris.de/bundesrecht/GESAMT_index.html

For question 43b - see question 26.

b. Are the documents available in English?

Yes

No

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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	See IDW Attachment for Questions 55-66	See IDW Attachment for Questions 55-66
Professional Accountants in Business	See IDW Attachment for Questions 55-66	See IDW Attachment for Questions 55-66
Professional Accountants in the Public Sector	See IDW Attachment for Questions 55-66	See IDW Attachment for Questions 55-66
Other (please describe)


a. How can IFAC obtain copies of these documents?

German Commercial Code: The official version of German law is that contained in the �Bundesgesetzblatt�. However, access to German legislation can be obtained via the Internet, a starting point is: http://bundesrecht.juris.de/bundesrecht/index.html

WPO (German Law Regulating the Profession) and Satzung der Wirtschaftsprüferkammer (By-laws Regulating the Profession): http://www.wpk.de

See IDW Attachment Question 55b.

b. Are the documents available in English?

Yes

No

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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:

Primary education: 4 years (age 6 � 10)
Secondary education: 6-9 years (age 10 � 16/19)
Education until the age of 16 is compulsory in Germany. Those wishing to attend University must complete �Abitur� until the age of 19.
Tertiary education: Bachelors degree � 3 years or Masters degree � 5 years.
Technical colleges [similar to polytechnics (Fachhochschule)]: minimum 3 years plus 6 to 12 months practical training.

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

No


If YES, please provide the name and describe the requirements, including any relating to education, experience or qualifications.

The following relates only to auditors:

Wirtschaftsprüferordnung WPO (German Law Regulating the Profession) by Parliament

See also Question 69.

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 Masters degree or similar university degree (Diplom): The legally required minimum duration for a Diplom is 4 years but the majority of the students takes 5 � 6 years. Bachelor degree or similar degree: The legally required minimum duration is 3 years. Over 98% of the candidates have either a university degree or a diploma from a �Fachhochschule� because this is required by law. However, if a candidate has worked for a Wirtschaftsprüfungsgesellschaft (audit firm) for at least 10 years, the requirement of an academic study is waived.
	Professional examinations
	Practical experience The duration of practical experience depends on the academic degree: Masters or similar degree: 3 years of auditing practice Bachelors or similar degree: 4 years auditing practice Two years of the required practical experience must be in the area of financial statements audit. The academic degree is obtained prior to the recognition of practical experience.
	Final qualifying examination The examination is the same for all candidates, regardless of the educational background. The written examination consists of 7 papers (one paper per day) with four to six hours time available per paper. The oral examination consists of both a short speech of 10 minutes and a question and answer session of two hours per person. Subjects: � Accounting and auditing, analysis of financial statements, business valuation, Law Regulating the Profession of Wirtschaftsprüfer (2 papers) � Business administration and economics (2 papers) � Taxation (2 papers) � Business and commercial law (1 paper) It should be pointed out that the additional examination tutoring, in which most examination candidates participate, usually requires an additional one or two years of part time study during the period of practical work experience.
	Other (please describe) Membership with the WPK is mandatory for all German public auditors (�Wirtschaftsprüfer�) and public audit firms, i.e. when licensed officially by the WPK (see 7B) they become instant members. Licensing requires the final qualifying examination as described in Q68. In addition the individual has to be of good standing , solvent and maintain an indemnity insurance. The IDW does not certify its members as IDW membership is voluntary for an individual who is qualified as a �Wirtschaftsprüfer� (German public auditor) and for audit firms.

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.

The entrance requirements for the qualification and the examination are regulated by law. The Federal Minister of Economics regulates the details of the examination procedure (Examination Regulations for Wirtschaftsprüfer) by regulation
1. A general description of the role of the relevant body(ies) including how it operates and its due process in establishing the education requirements.

   Amendments of the law have to pass the German legislative procedure.

2. How many voting members does the relevant body(ies) have

   Not applicable

3. 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:		Not applicable

4. 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?

http://www.wpk.de

72 b. Are these documents available in English?

Yes

No

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) See IDW Attachment for Questions 74, 75

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

Yes

No

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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?

See IDW Attachment for additional information in respect of Question 76.

The requirements are part of federal legislation in the WPO (Law Regulating the Profession).

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) As above, licensing by WPK and successful participation in the system of quality assurance organized by WPK.

79. Are there ongoing requirements to retain a license?

Yes

No


If YES, please select all relevant requirements.


	Continuing professional development
	Re-examination
	Other (please specify): The license as Wirtschaftsprüfer (public auditor) is unlimited, but can be revoked under specific circumstances. However, participation in the system of quality assurance every 3 years is required to maintain the right to perform statutory audits see 10H

80. What entity grants the license?

WPK Wirtschaftsprüferkammer [Chamber of Public Auditors]. The certificate for participation in the system of quality assurance is also granted by WPK.

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

Not applicable in respect of listed entities. Please note that there are no additional qualifications as such, but a Wirtschaftsprüfer may only accept an audit engagement if he or she has, or can obtain, sufficient expertise required to carry out that engagement. As described in sections 10E and 10F, the German financial regulator (BaFin) may also reject a proposed auditor of a bank or an insurance company prior to his or her being engaged.

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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
Statutory authority/agency
Profit entity owned by government
State governments
Local governments
Other (please describe) See IDW Attachment for Question 82			See IDW Attachment for Question 82
Other (please describe)


a. How can IFAC obtain copies of these documents?

The official versions of the above mentioned laws are issued in the �Bundesgesetzblatt� or in state law gazettes (Gesetzesblätter). However, access to German legislation can be obtained via the Internet, a starting point for the federal legislation is:
http://bundesrecht.juris.de/bundesrecht/GESAMT_index.html

See IDW Attachment for additional information for Question 82b.

b. Are the documents available in English?

Yes

No

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Section 8B -- Standard-Setting (See IDW Attachment for Question 82)

83. For See IDW Attachment for Question 82, 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.

a. Nature of body

For Questions 83-93 see IDW Attachment.

b. Name of standards

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

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.)?

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

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)

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

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

1. public exposure of standards
   
   
   
   
2. accessibility of meetings (i.e., public or private)
   
   
   
   
3. approval process for final standards (i.e., majority required to approve final standards)
   
   
   
   
4. other relevant due process activities
   
   

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

Day(s)

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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
Other (please describe) See IDW Attachment for Question 94	See IDW Attachment for Question 94		German Accounting Standards Board/Committee
Other (please describe)
Other (please describe)
Other (please describe)


a. How can IFAC obtain copies of these documents?

See Section 4 and Question 26.

b. Are the documents available in English?

Yes

No

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Section 9B -- Standard-Setting (German Accounting Standards Board/Committee)

95. For German Accounting Standards Board/Committee, 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.

a. Nature of body

Private Body; Federal Ministry of Justice recognised German Accounting Standards Committee in accordance with § 342 German Commercial Code (HGB)

b. Name of standards

German Accounting Standards (GAS)
refer to http://www.drsc.de for details

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

7

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:		Not employed, 6 Employed 1

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.)?

Members must be accountants and should meet different qualification criteria (refer to http://www.drsc.de for details). Independence is also necessary.

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

Executive Board of the German Accounting Standards Committee

See IDW Attachment for additional info for Question 100

100. What is the term of appointment for members?

4 Year(s)

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

5 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)

Information not available

Please enter the exchange rate used to calculate this number.

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

N/A

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

Federal Ministry of Justice

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

1. public exposure of standards
   
   See IDW Attachment for Question 104.
   
   
2. accessibility of meetings (i.e., public or private)
   
   
   
   
3. approval process for final standards (i.e., majority required to approve final standards)
   
   
   
   
4. other relevant due process activities
   
   

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

20 Day(s)

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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:

SEE OVERALL COMMNETS IN IDW ATTACHMENT SECTION 10.

Federal Financial Supervisory Authority (BaFIn)

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:

Currently, the BaFin has no responsibilities for monitoring and enforcing compliance with accounting, reporting and auditing requirements. However, the �Bilanzkontrollgesetz� (legislation on the enforcement of financial reporting coming into force in late autumn 2004) will provide the BaFin with certain responsibilities in the enforcement of accounting standards in annual and consolidated financial statements of listed entities.

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

1. regulation of the audit profession
   
   No role of the BaFin
   
   
2. accounting and auditing standard-setting
   
   No role of the BaFin
   
   
3. review of financial statements prepared by listed entities, and monitoring of their compliance with the accounting and disclosure requirements
   
   Currently no role of the BaFin (see answer to question 107).
   

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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
		Frankfurter Wertpapierbörse; held by Deutsche Börs
		Börse Stuttgart
		Börse Düsseldorf
		Börse München

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Section 10B -- Stock Exchange Frankfurter Wertpapierb�rse; held by Deutsche B�rs Details

110. For Frankfurter Wertpapierb�rse; held by Deutsche B�rs, is there a mechanism at the stock exchange(s) for monitoring and enforcing financial reporting, accounting and auditing of listed entities?

Yes

No

If YES, please describe the following:



1. How the monitoring and enforcement of financial reporting, accounting and auditing is conducted.
   
   Not applicable
   
   
2. The consequences of non-compliance with the financial reporting, accounting or auditing requirements.
   
   Not applicable
   
   
3. How enforcement actions are administered.
   
   Not applicable

Section 10B -- Stock Exchange B�rse Stuttgart Details

110. For B�rse Stuttgart, is there a mechanism at the stock exchange(s) for monitoring and enforcing financial reporting, accounting and auditing of listed entities?

Yes

No

If YES, please describe the following:



1. How the monitoring and enforcement of financial reporting, accounting and auditing is conducted.
   
   Not applicable
   
   
2. The consequences of non-compliance with the financial reporting, accounting or auditing requirements.
   
   Not applicable
   
   
3. How enforcement actions are administered.
   
   Not applicable

Section 10B -- Stock Exchange B�rse D�sseldorf Details

110. For B�rse D�sseldorf, is there a mechanism at the stock exchange(s) for monitoring and enforcing financial reporting, accounting and auditing of listed entities?

Yes

No

If YES, please describe the following:



1. How the monitoring and enforcement of financial reporting, accounting and auditing is conducted.
   
   Not applicable
   
   
2. The consequences of non-compliance with the financial reporting, accounting or auditing requirements.
   
   Not applicable
   
   
3. How enforcement actions are administered.
   
   Not applicable

Section 10B -- Stock Exchange B�rse M�nchen Details

110. For B�rse M�nchen, is there a mechanism at the stock exchange(s) for monitoring and enforcing financial reporting, accounting and auditing of listed entities?

Yes

No

If YES, please describe the following:



1. How the monitoring and enforcement of financial reporting, accounting and auditing is conducted.
   
   Not applicable
   
   
2. The consequences of non-compliance with the financial reporting, accounting or auditing requirements.
   
   Not applicable
   
   
3. How enforcement actions are administered.
   
   Not applicable

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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

No

If NO, proceed to the next section.

If YES, please describe :



1. What are the name and duties of the oversight body?
   
   The following relates to public auditors only:
   
   The Public Oversight Board on Quality Control (Qualitätskontrollbeirat) is responsible for ensuring, in the public interest, that the German system of quality assurance is appropriate and effective. In addition, it develops recommendations for the further development and improvement of the quality assurance system.
   
   
2. The number of members on the oversight body
   
   5 individuals (non-members of the audit profession)
   
   
3. Its powers
   
   Board members are entitled to participate in individual external quality control reviews and in the meetings of the Quality Control Commission (Kommission für Qualitätskontrolle) which is responsible for the organisation of the external quality assurance system. Furthermore, they can request any information which they need to fulfill their tasks from the Wirtschaftsprüferkammer (Chamber of Public Auditors) and from the German public auditor conducting the quality assurance review. Board members may participate in meetings of the Advisory Board of WPK.
   
   
4. 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
   
   This is not a task of the Public Oversight Board on Quality Control but of the Quality Control Commission, a division within the Wirtschaftsprüferkammer (Chamber of Public Auditors).
   
   
5. The sanctions the oversight body may impose in the event of non-compliance
   
   The Public Oversight Board on Quality Control has no sanctioning power towards the single auditor or audit firm. If the Public Oversight Board on Quality Control discovers weaknesses in the system of quality assurance it has to provide recommendations for improvement of the system. These recommendations will be included in the annual report of the Public Oversight Board on Quality Control.
   
   
6. How the oversight body is accountable to any public institution or body
   
   The Public Oversight Board on Quality Control is required to publish an annual report on its activities. Members are appointed by the Federal Ministry of Economics and Labour, but are independent and not bound by instructions of the Ministry.

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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:

General Remarks: AS NOTED IN THE ANSWER TO QUESTION 107 THE FEDERAL FINANCIAL SUPERVISORY AUTHORITY (BAFIN)WILL IN THE FUTURE PLAY AN IMPORTANT ROLE WITHIN THE TWO-STAGE ENFORCEMENT PROCESS IN GERMANY. The Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht � BaFin) and the German National Bank (Deutsche Bundesbank). The BaFin has no authority to establish requirements for �general purpose external financial reporting�. Requirements in addition to legal accounting requirements are laid down in the Long-form Audit Report Regulation (Prüfungsberichtsverordnung � PrüfBV) of the Federal Financial Supervisory Authority.

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:

The audit of the annual financial statements and the reporting thereon in the long-form audit report are essential sources of information for the regulatory authority. In addition, the regulatory authority itself can carry out special audits or can engage certified public accountants to do so.

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

1. regulation of the audit profession
   
   No role (They do, however, have the authority to reject an auditor proposed by the entity before the contract is offered.)
   
   
2. accounting and auditing standard-setting
   
   No role
   
   
3. review of financial statements prepared by listed entities
   
   The BaFin does not perform a review in the general sense, but only in as far as is necessary for its oversight function. This is not a compliance review. There is currently no special role with regard to listed entities. In this respect it is not relevant whether an entity is listed or not, rather the fact that it is a bank. As noted above this role is subject to future revision.
   
   
4. enforcement of accounting, reporting and auditing requirements
   
   Financial statements of banks and similar financial institutions are a source of information for the regulatory authority; currently there is no additional responsibility � but see general remarks above. The role of the BaFin with regard to enforcement of accounting, reporting and auditing requirements does not extend to �policing� compliance with these requirements. In so far as errors or inconsistencies have come to the attention of BaFin appropriate action can be instigated, within the context of BaFin�s regulatory duties in respect of the banking industry.

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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.

The Federal Financial Supervisory Authority (BaFin) and the German National Bank

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

Banking Act (Kreditwesengesetz)

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

1. regulation of the audit profession
   
   No role (The BaFin, however, has the authority to reject an auditor proposed by the entity before the contract is offered.)
   
   
2. accounting and auditing standard-setting
   
   No role
   
   
3. review of financial statements prepared by listed entities
   
   The BaFin does not perform a review in the general sense, but only in as far as is necessary for its oversight function. This is not a compliance review. There is currently no special role with regard to listed entities. In this respect it is not relevant whether an entity is listed or not, rather the fact that it is a financial service entity. As noted above this role is subject to future revision.
   
   
4. enforcement of accounting, reporting and auditing requirements
   
   Financial statements of financial service entities and similar financial institutions are a source of information for the regulatory authority; until now there is no additional responsibility � but see general remark under 10D. The role of the BaFin with regard to enforcement of accounting, reporting and auditing requirements does not extend to �policing� compliance with these requirements. In so far as errors or inconsistencies have come to the attention of BaFin appropriate action can be instigated, within the context of BaFin�s regulatory duties in respect of the financial service industry.

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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.

Federal Financial Supervisory Authority (BAFin)

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

The German Insurance Supervisory Law (Versicherungsaufsichtsgesetz (VAG)).

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

1. regulation of the audit profession
   
   No role (The BaFin, however, has the authority to reject an auditor proposed by the entity before the contract is offered and retain the right to appoint an external auditor on behalf of the insurance company.)
   
   
2. accounting and auditing standard-setting
   
   None
   
   
3. review of financial statements prepared by listed listed entities
   
   The BaFin does not perform a review in the general sense, but only in as far as is necessary for its oversight function. This is not a compliance review. There is currently no special role with regard to listed entities. In this respect it is not relevant whether an entity is listed or not, rather the fact that it is an insurance entity. As noted above this role is subject to future revision.
   
   
4. enforcement of accounting, reporting and auditing requirements
   
   Financial statements of insurance entities are a source of information for the regulatory authority; until now there is no additional responsibility � but see general remark under 10D. The role of the BaFin with regard to enforcement of accounting, reporting and auditing requirements does not extend to �policing� compliance with these requirements. In so far as errors or inconsistencies have come to the attention of BaFin appropriate action can be instigated, within the context of BaFin�s regulatory duties in respect of the insurance industry.

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Section 10G -- Other Regulatory Authority

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

Please refer to section 10C in respect of regulation of the audit profession (WPK). As noted in section 10A, the BAFin�s responsibilities are to be extended in future.

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

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

1. regulation of the audit profession
   
   
   
   
2. accounting and auditing standard-setting
   
   
   
   
3. review of financial statements prepared by listed listed entities
   
   
   
   
4. enforcement of accounting, reporting and auditing requirements
   
   

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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

No

If NO, proceed to next Section.

If YES, briefly describe the monitoring and enforcement mechanism.

See IDW Attachment for Question 124

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

See IDW Attachment for Question 125.

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

See IDW Attachment for Question 126.

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Section 10 I -- Investigation and Discipline

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

Yes

No


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.

By law, the Chief Public Prosecutor�s office and WPK are responsible for the disciplinary oversight of the profession. For minor violations of professional conduct WPK may take remedial action, such as reprimand and fines. More serious violations are investigated by the Chief Public Prosecutor�s office and � in case of sufficient evidence � are subject to the disciplinary jurisdiction of the court. The nature of sanctions varies with the seriousness of the misconduct and other mitigating or aggravating factors. Sanctions may include a ban on performing certain kinds of engagements, and ultimately, the revocation of the professional license to practice. Additional detail available.

Independent from the aforementioned legal system of disciplinary oversight the IDW maintains disciplinary procedures with respect to its members governed by the Ehrenrat [council of honour] of the IDW.

See IDW Attachment for additional information for Questions 130.

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?

IDW Ehrenrat 6

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

	Voluntary
	Employed
	Both - Please describe:		The staff of the Wirtschaftsprüferkammer (Chamber of Public Auditors) are employed.

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.)?

The members of the IDW Ehrenrat must be Wirtschaftsprüfer (German public auditors).

See IDW Attachment for additional information for Questions 132.

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

See IDW Attachment for Question 133, 134, 135, 138

134. What is the term of appointment for members?

4 Year(s)

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

42 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)

N/A

Please enter the exchange rate used to calculate this number.

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

N/A (specify currency)

137. To what entity is the body accountable?

The WPK - Federal Ministry of Economics and Labour
The Chief Public Prosecutor�s office � Ministry of Justice in Berlin
The court � independent state authority
The IDW Ehrenrat - the members of the IDW

For Q138 - See IDW Attachment.

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

Day(s)

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