Compliance Responses and Action Plans

  • Compliance Responses and Action Plans

    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.

    Consiglio Nazionale dei Dottori Commercialisti e degli Esperti Contabili

     

    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:

      ITALY


    2. Name of member body:
      Consiglio Nazionale dei Dottori Commercialisti e degli Esperti Contabili

      Or please specify name:
      CNDCEC



    3. Individual responsible for preparation:
      Di Segni


    4. Date member body became a member of IFAC:
      Note: Please enter a numeric date (e.g., 12/2001, Month/Year)

      10 / 1977



    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.):
      FEE - CILEA - FCM



    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: Civil Code (Book V - Title V) + Financial markets act (Legislative Decree no. 58/98)
      b). the Enacting body: Code: Parliament. financial market act: parliament and government
      c). date the Act or Code came into force: 03 / 1942


    25. How can IFAC obtain a copy of the Act or Code?
      The Code is available in any Italian bookstore. Click "codice civile" in italian pages in google.


    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):
      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 IFRS to be applied as from 1/2005; for dates prior national standards apply
      Private companies National accounting standards issued by OIC:
      Governmental Legislative Decree no. 279/97 and "Principi contabili per gli enti locali" issued by the "Osservatorio per la contabilità e la finanza degli enti locali"
      Not-for-profit There are no standards as such. However, CNDC issued a number of "recommendations" on non-for-profit business, which are to be found on their site. CNRPC has issued a paper "Criteri di rilevazione, valutazione e rappresentazione di donazioni, legati ed altre erocazioni liberali per enti non profit" which can also be found on line.
      Other (please describe)
      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 Financial market act (D.lgs 58/98) provides that listed entities are audited on the basis of principles recommended by CONSOB, having consulted the CNDCEC
      Private companies Civil Code doesn't provide the auditing standards to be followed. National auditing standars are enacted by CNDCEC and recommended to its members
      Governmental Legislative Decree no. 279/97; Legislative decree no. 286/1999 and Legislative decree no. 267/2000 for local entities
      Not-for-profit
      Other (please describe)
      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: 3 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   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 audit of PIEs yes - the engagement can be reassigned to the same firm only after three years have lapsed.
      Rotation is not mandatory for the audit of non PIEs.



    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

      Civil Code;
      Financial markets Act (D.lgs 58 of 24.1.98);
      Consob recommendations

    2. the Enacting body(ies)

      Parliament;
      Government
      CONSOB (Fianncial market regulator)

    3. the latest amendment date?

      Civil code: 1/2004;
      Financial markets Act update: D.Lgs 37 of 6.2.2004
      Consob recommendations are issued on a more or less continuous basis.


    35. How can IFAC obtain a copy of the Legal authority?
      All laws are ordinarily available in major bookstores and following internet sites:
      www.consob.it/www.parlamento.it


    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:
      Interim reports


    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:
      Behavior Rules encated by CNDCEC


    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   No
      If YES, please indicate the term of appointment: 9 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:
      The same audit firm can be appointed only after 3 years have lapsed at the end of the 9 years period.



    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 Fiancial markets act 11/07 CONSOB
      Other (please describe) Private companies Civil Code; National auditing standard 01/04 CNDCEC
      Other (please describe) Public local entities D.lgs 267/2000 Test unico sugli enti locali; principi di comportamento dell'organo di revisione degli enti locali 8/8/2000 CNDCEC
      Other (please describe)

      a. How can IFAC obtain copies of these documents?

      Internet www.consob.it;
      www.google.


      b. Are the documents available in English?
      Yes   No


    Section 5B -- Standard-Setting (CONSOB)


    44. For CONSOB, 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

      CONSOB is an Independent authority established by a dedicated law in 1975;

      b. Name of standards

      Principi di revisione


    45. How many voting members does the standard-setting body have?
      5


    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;


    48. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      the 5 members are appointed with a Presidential decree on the basis of a recommendation of he Prime Minister.


    49. What is the term of appointment for members?
      7 Year(s)


    50. For how many years has the standard-setting body been in existence?
      33 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)

      -

      Please enter the exchange rate used to calculate this number.

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

      -



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


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

      No

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

      Meetings are private.

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

      Subject to the opinion of CNDCEC;

      The CONSOB recommends the standards for listed entities to the auditing firms registered in the role held by the CONSOB.


    4. other relevant due process activities



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


    Section 5B -- Standard-Setting (CNDCEC)


    44. For CNDCEC, 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

      Public entity

      b. Name of standards

      Principi di revisione


    45. How many voting members does the standard-setting body have?
      21


    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.)?
      Members of CNDCEC are appointed within the framework of the governance rules of CNDCEC, based on thelegislative decree n. 139/05. Members are eligible if thy have been registered for at least 10 years in the professional roll and are in good standing.


    48. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      Members of the 140 regioanl Councils.


    49. What is the term of appointment for members?
      4 Year(s)


    50. For how many years has the standard-setting body been in existence?
      55 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)

      -

      Please enter the exchange rate used to calculate this number.

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

      -



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


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

      No

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

      No

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

      50%

    4. other relevant due process activities

      A special drafting standing Committe is appointed by the CNDCEC, with the criteria of the best person for the job, including academia represetnatives, auditors and sudit firms. The Committee regularly consults with CONSOB.


    54. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      2 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 12/2008 CNDCEC
      Professional Accountants in Business
      Professional Accountants in the Public Sector
      Other (please describe)

      a. How can IFAC obtain copies of these documents?

      www.cndcec.it

      b. Are the documents available in English?
      Yes   No


    Section 6B -- Standard-Setting (CNDCEC)


    56. For CNDCEC, 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

      Public entity

      b. Name of standards

      Norme di comportamento del Collegio sindacale - Norme di deontologia professionale
      Regolamento formazione continua
      Regolamento disciplinare


    57. How many voting members does the standard-setting body have?
      21


    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.)?
      geographical representation, at least 10 years seniority in the profession.


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


    61. What is the term of appointment for members?
      4 Year(s)


    62. For how many years has the standard-setting body been in existence?
      55 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)

      within the overall budget of the council's activity

      Please enter the exchange rate used to calculate this number.

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

      -



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


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

      no. consultations are held with major stakeholder according to the nature of standards: Ministry of Justice/Ministry of University/

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

      private

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

      50%

    4. other relevant due process activities



    66. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      12 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:
      The education system in Italy is undergoing a continuous and complex reform process. As it is very difficult to have a clear picture at this stage, please note that the information in this section is subject rapid change.

      Mandatory education from years 6/7 to 16 (envisaged by the reform);
      secondary education from years 13/14 to 18/19 (high school/lyceum, professional training);
      University (3 yrs undergraduate + 2 for specialised degree);
      PhD (post graduate) - 3 years.


    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.

      To be qualified as "esperto contabile" or "dottore commercialista" an individual has to comply with requirements established in law by parliament, specifically, dlegated decree 139/05: those requirements are indicated below (item 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
      University degree (3 years) in order to become "esperto contabile" and specialized university degree (5 years) in order to become "Dottore commercialista". Only economics or equivalent degrees are admitted.
      Professional examinations
      Practical experience
      3 years professional training with a 5 years seniority enrolled professional accountant (esperto ocntabile or dottore commercialista)
      Final qualifying examination
      written and oral State examination

      1) written examination: two compositions on following subjects: accountancy; auditing; industrial and commercial technique; banking technique; professional technique; company finance; civil law; commercial law; bankruptcy law; taxation - fiscal law; labour law.

      2)oral examination on: computer science; informative System; political economy;mathematics; statistics; as well as every written examination subjects.
      Other (please describe)
      italian citizenship; complete enjoyment of civil rights; irreproachable behaviour; professional domicicle in the local order's jurisdiction; not having conviction for crimes specified in the profesisonal law.


    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.
      Ministry of Education for the accademic requirements and State Examination/ Ministry of Justice (Minitero della Giustizia)for requirements related to traianing

    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.

      Ministry of Justice establishes the requirements.

      CNDCEC supplies technical advice and comments concerning bills of the Ministry of Justice related to professional field (thus also on professional education sector).

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

      N/A

    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: n.a

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

      61 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?
      web pages of Ministry of Education or Justice or google
      www.giustizia.it
      www.miur.it
      google

    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)


    75. Once qualified as a member of your professional body, can members offer their services directly to the public?
      Yes   No



    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?
      Parliament by delegated decree, implementing the audit directive. Currently d.lgs nr. 88/92 is under revision in acordanc ewith the new audit directive.


    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)
      3 year practice with an audit firm


    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 new law will introduce CPD requirements in accordance with the directive 2006/43/CE


    80. What entity grants the license?
      Ministry of Justice


    81. Describe any additional licensing requirements for auditors of listed entities (e.g., additional education requirements, registration, etc.).
      the share capital of the audit firm has to possessed at least by 50% by approved auditors (registered with the ministry of justice). Also requirements related to the orgnaisational and technical aspects are considered by the regulator CONSOB.



    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 Legislative decree no. 279/97 Ragioneria Generale dello Stato
      Ministry/department
      Statutory authority/agency
      Profit entity owned by government
      State governments
      Local governments testo unico enti locali- legislative decree no. 267/2000 18/08/2000 OSSERVATORIO PER LA FINANZA E LA CONTABILITA' DEGLI ENTI LOCALI
      Other (please describe)
      Other (please describe)

      a. How can IFAC obtain copies of these documents?

      On the web:
      http://osservatorio.interno.it/
      http://www.rgs.mef.gov.it/


      b. Are the documents available in English?
      Yes   No


    Section 8B -- Standard-Setting (Ragioneria Generale dello Stato)


    83. For Ragioneria Generale dello Stato, 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

      It's a governmental department of Ministry of Finance

      b. Name of standards

      Principi e regole contabili del sistema di contabilit


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


    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.)?
      They are public officers


    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)

      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)


    Section 8B -- Standard-Setting (OSSERVATORIO PER LA FINANZA E LA CONTABILITA' DEGLI ENTI LOCALI)


    83. For OSSERVATORIO PER LA FINANZA E LA CONTABILITA' DEGLI ENTI LOCALI, 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

      It is a committee which operates within the Ministry of Justice

      b. Name of standards

      Principi contabili per gli enti locali


    84. How many voting members does the standard-setting body have?
      21


    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.)?
      best person/ per sector/academics


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


    88. What is the term of appointment for members?
      5 Year(s)


    89. For how many years has the standard-setting body been in existence?
      5 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?
      government


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

      no

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

      private

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

      absolute mojority

    4. other relevant due process activities

      -


    93. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      15 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 02/1998 International Accounting Standards board (IASB)
      Other (please describe) Civil code 01/2004
      Other (please describe)
      Other (please describe)
      Other (please describe)

      a. How can IFAC obtain copies of these documents?

      See the following websites: www.consob.it
      www.fondazioneoic.it


      b. Are the documents available in English?
      Yes   No


    Section 9B -- Standard-Setting (International Accounting Standards board (IASB))


    95. For International Accounting Standards board (IASB), 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

      See IASB website.

      b. Name of standards



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


    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.)?


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


    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)



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


    104. 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



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


    Section 9B -- Standard-Setting (organismo italiano di contabilit (OIC))


    95. For organismo italiano di contabilit (OIC), 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 organization

      b. Name of standards

      Principi contabili


    96. How many voting members does the standard-setting body have?
      9


    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.)?
      Attitudes, best person for the job, sector of the profession


    99. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      each stakeholder appoints its representatives. CNDCEC appoints two members.


    100. What is the term of appointment for members?
      3 Year(s)


    101. For how many years has the standard-setting body been in existence?
      6 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)

      .82



    103. To what entity is the standard-setting body accountable?
      it is an independent board. Public accountability.


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

      The board proposes a draft to the executive committee. If this body approves the ed, the OIC publishes an ED for public ocnsultation.

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

      private

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

      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)?
      21 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:
      CONSOB - Commissione Nazionale per le societ


    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:
      according to the law CONSOB has the responsibility of ensuring: a) transparency and correct behaviour by securities market participants; b) disclosure of complete and accurate information public by listed companies; c) accuracy of the facts represented in the prospectuses related to offerings of transferable securities to the investing public. d) oversight and monitoring of audit firms


    108. Briefly describe the role of the regulatory authority as it relates to the following:
    1. regulation of the audit profession

      Consob is the competent authority for supervision and inspection of audit firms registered in the special roll held by CONSOB.

    2. accounting and auditing standard-setting

      Consob has the power to set the auditing standards for listed entities.

    3. review of financial statements prepared by listed entities, and monitoring of their compliance with the accounting and disclosure requirements

      Consob has oversight over the correctness of all financial information provided by the listed companies to the public. In addition, CONSOB has the power to dispute the validity of the act of the general assembly which has approved the annual balance sheet and profit and loss account, in case the financial statement is not compliant with the requirements which govern the preparation of financial statements (see article 193 of the legislative decree n. 58/1998).



    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
      Borsa Italiana S.p.A..



    Section 10B -- Stock Exchange
    Borsa Italiana S.p.A.. Details


    110. For Borsa Italiana S.p.A.., 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.



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

      CONSOB has the power to supervise Borsa Italiana S.p.A. The consequences in cases of a adverse opinion or a disclaimer for two consecutive years is the suspension from listing; CONSOB may adopt other disciplinary decisions.

    3. How enforcement actions are administered.

      CONSOB regulates these aspects.



    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?

      In Italy there is a double tier system of public oversight. A general level for all the auditors registered in the roll held by the Ministry of Justice; a second level only for statutory auditors of PIEs enrolled in the special CONSOB register.

    2. The number of members on the oversight body

      At CONSOB level there are 5 members.

      Within the Ministry of Justice a special central Committee is responsible for this area. At this level there are 12 members.


    3. Its powers

      Consob:
      - establishes auditing standard, after consulting with CNDCEC;
      - receive from audit firms information, data and records on a regular basis or require specific infromation;
      - carry out controls and inspections and disciplinary sanctions;

      The Central Commission approves the auditors and oversight their activity and has disciplinary powers.


    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

      The Consob and the Central committee carry out inspections on the basis of external complaint or on thier own initiative.

    5. The sanctions the oversight body may impose in the event of non-compliance

      Consob may:
      - imponse an administrative pecuniary sanctions;
      - order the firm to abstain from using the person responsible for the audit in which the irregularities were found;
      - revoke audit engagements;
      - prohibit to the firm to accept new engagements, for a period of 3 years;
      - cancel the auditing firm from the special roll when irregularitis are partcularly severe.

      The Central committee may:
      - temporarily suspend the audit license (max 1 year);
      - cancel the auditor from the roll.


    6. How the oversight body is accountable to any public institution or body

      The CONSOB is an independent Authority. At the end of every year CONSOB refers to the Italian Parliament on its activity.

      The Central Committe accounts to the Ministry of Justice.


    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:
      The name of the authority that regulates the banks and similar financial institutions is Banca d'Italia. The authority does not differentiate between accounting requirements for regulatory reporting and general purpose external financial reporting: banks and financial institutions send to the Banca d'Italia the informations, data and any documentation requested by the Banca d'Italia which may included the financial statements which are addressed to all users.


    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:
      Banca d'Italia has the power to enact Regulations (named "Provvedimenti") which specify the requirements dealing with the drawing up financial statements of the banks and similar financial institutions (see Provvedimento of Banca d'Italia of 30 July 2002 titled "The financial statements of the banks") includedined in the legislative decree n. 87/1992. In Italy this legislative decree has implemented the relevant European Directives on these subjects.


    114. Briefly describe the role of the regulatory authority 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 entities

      -

    4. enforcement of accounting, reporting and auditing requirements

      -



    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.


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


    117. 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 entities



    4. enforcement of accounting, reporting and auditing requirements




    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.
      The name of the regulatory authority is ISVAP, Istituto per la vigilanza sulle assicurazioni private e di interesse collettivo;


    119. What is the source of Legal authority of the regulatory authority(ies)?
      The source of legal authority of the regulatory authority is the law (see Law 12 August 1982, n. 576);


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

      ISVAP has the power to control the administration of accountants: the Authority verifies the compliance with the legislative, regulatory and administrative requirements; ISVAP has the power to convoke the President of the Board of statutory Auditors and the auditors of the auditing firms which has the duty of auditing the financial statement.

    2. accounting and auditing standard-setting

      ISVAP has the power to enact documents on specific accounting policies of the insurance companies;

    3. review of financial statements prepared by listed listed entities

      The review of the listed companies is of competence of CONSOB.

    4. enforcement of accounting, reporting and auditing requirements

      The activity of ISVAP consists of verifying the fact that insurance companies operate in compliance with the legal requirements. In this context, ISVAP has the power to ask informations, data and any news. In addition ISVAP has the power of inspection and it has the power to adopt repressive and corrective measures.



    Section 10G -- Other Regulatory Authority


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


    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

      -



    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.

      -



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


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



    Section 10 I -- Investigation and Discipline


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

    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 local chapters at the first level and CNDCEC at an appeal level


    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?
      21 (CNDCEC)


    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.)?
      election by the accountancy profession.


    133. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      See Question 132


    134. What is the term of appointment for members?
      4 Year(s)


    135. For how many years has the body been in existence?
      55 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)

      -

      Please enter the exchange rate used to calculate this number.

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

      - (specify currency)



    137. To what entity is the body accountable?
      Ministry of Justice


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



     

     

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