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.

    Accountants Association in Poland

     

    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:

      Poland


    2. Name of member body:
      Accountants Association in Poland

      Or please specify name:
      Accountants Association in Poland



    3. Individual responsible for preparation:
      Agnieszka Ostaszewicz


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

      06 / 1989



    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.):
      European Federation of Accountants and Auditors for Small and Medium Sized Enterprises(EFAA)

      PLEASE NOTE THAT ANSWERS TO ALL THE QUESTIONS IN SECTIONS 4-10 WERE PREPARED JOINTLY BY THE ACCOUNTANTS ASSOCIATION IN POLAND AND THE NATIONAL CHAMBER OF STATUTORY AUDITORS. THESE ANSWERS PROVIDE FOR COMPLETE OVERVIEW OF REGULATORY AND STANDARD-SETTING FRAMEWORK IN POLAND.



    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: The Commercial Code
      b). the Enacting body: Ministry of Finance
      c). date the Act or Code came into force: 09 / 2000


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


    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 Listed companies are preparing their financial consolidated statements according to IFRS and if they chose to do so – also prepare their annual financial statements according to IFRS.
      Private companies Private companies are required to follow provisions of the Act on Accounting (Polish GAAP) or IFRSs if parent is using IFRSs.
      Governmental Polish GAAP
      Not-for-profit Polish GAAP
      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 Statutory Audit is governed by the Act on Accounting and Auditing Act provisions and National Auditing Standards.
      Private companies Statutory Audit is governed by the Act on Accounting and Auditing Act provisions and National Auditing Standards. Statutory audit requirement applies to all entities which in the prior financial year for which financial statements were prepared, met at least two of the following criteria: the average annual number of employees was at least 50, the total assets as at the end of the financial year amounted at least to EUR 2,500,000, the net sales of goods and finished products and the financial income, for the financial year, amounted at least to EUR 5,000,000. Consolidated financial statements are also subject to statutory audit requirement. All Joint Stock Companies regardless of their size are required to have their financial statements audited.
      Governmental In adition to the Act on Accounting and Auditing Act provisions and National Auditing Standards, Companies with state ownership are required to rotate the auditor every 5 years.
      Not-for-profit Statutory Audit is governed by the Act on Accounting and Auditing Act provisions and National Auditing Standards. Audit is required only for not-for profit public utility organisations.
      Other (please describe) Audit is required for Banks, other Financial Institutions and Insurance Companies. Statutory Audit is governed by the Act on Accounting and Auditing Act provisions and National Auditing Standards.
      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): Statutory auditors shall be appointed by the body of an entity that approves its financial statements unless the Company statutes or other applicable regulations provide for otherwise.
      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:
      However companies with the State Treasury ownership are required to rotate the auditor or the audit firm every 5 years (based on the Decree of the Minister of the Treasury of 9 April 2004).



    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

      Accounting Act and its regulatory decrees
      The Act on Public Trading of Securities
      Act on Bonds
      Act on Investment Funds
      Decree on current and periodical information provided by the issuers of securities
      Decree on requirements to be fulfilled by the issue prospectus and a summary of the prospectus
      Warsaw Stock Exchange rules concerning regulated official market

    2. the Enacting body(ies)

      Polish Parliament (Sejm)
      Minister of Finance
      Polish Securities and Exchange Commission
      Warsaw Stock Exchange

    3. the latest amendment date?

      02/2005


    35. How can IFAC obtain a copy of the Legal authority?
      www.kpwig.gov.pl - Polish SEC website
      www.mf.gov.pl - Polish Ministry of Finance web site


    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:


    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:
      Semi-annual financial statements of listed companies have to be reviewed by an auditor, which is the requirement of the Decree on current and periodical information provided by the issuers of securities.


    39. Who appoints the statutory auditors of listed entities?
      Please check all that apply.
      Shareholders   Management
      Board of directors   Other (please specify): According to the Accounting Act, the body which approves financial statements of the company chooses the entity auditing its financial statements, unless the company’s statute, agreement or other binding law impose other solutions.
      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:



    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 Professional Standards 11/2002 National Council of Statutory Auditors
      Other (please describe) All entities Professional Standards 11/2002 National Council of Statutory Auditors
      Other (please describe)
      Other (please describe)

      a. How can IFAC obtain copies of these documents?

      By contacting AAP or NCSA

      b. Are the documents available in English?
      Yes   No


    Section 5B -- Standard-Setting (National Council of Statutory Auditors)


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

      A constituent body of the National Chamber of Statutory Auditors. The standards are drafted by the specific committee of the National Council of Statutory Auditors - Auditing and Professional Standards Committee (APSC). The standard-setting responsibiity was given to NCSA by the Auditing Act drafted by the Ministry of Finance and enacted by the Polish Parliament.

      b. Name of standards

      Professional Standards (Normy wykonywania zawodu)


    45. How many voting members does the standard-setting body have?
      14


    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, sector of the profession


    48. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      Members of the APSC are appointed by the National Council of Statutory Auditors (NCSA). Members of NCSA are appointed by National Assembly of Statutory Auditors that convenes every 4 years


    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?
      13 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)

      The APSC budget is not specified and is a part of NCSA budget

      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?
      The APSC is accountable to NCSA. NCSA is subject to legal/administrative oversight by the Minister of Finance


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

      There are consultations within the profession

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

      The meetings are open to Chamber members and invited guests.

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

      The resolutions of the National Council of Statutory Auditors, which are administrative decisions, are taken by the absolute majority of votes in the presence of at least half number of members of the National Council of Statutory Auditors.

    4. other relevant due process activities

      Professional Standards are based on ISAs. The final resolutions are approved by the Minister of Finance.
      There are steps undertaken in order to fully adopt ISAs. The last aviable translation of ISAs is 2004 version (not published) ISAs 2005 translation should be aviable in June/July 2005.


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



    Section 6 -- Ethics


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

    Section 6A -- Statutory Framework


    55. For each of the following types of professionals, please indicate the name of the Legal authority and/or self-regulatory rules establishing ethics standards for accountants and auditors in your country, the date of the last amendment of such authority or rules and the name of body responsible for setting the ethics standards.
      Type of professional covered Name of
      applicable
      legal
      authority
      Date of last
      amendment
      (e.g. MM/YYYY 06/2001)
      Name of body responsible
      for setting ethics standards
      Professional Accountants in Public Practice Code of Ethics for Statutory Auditors 06/2002 National Assembly of Statutory Auditors
      Professional Accountants in Business See Q. 55a
      Professional Accountants in the Public Sector
      Other (please describe)

      a. How can IFAC obtain copies of these documents?

      www.kibr.org.pl

      Please note that the Code is based on IFAC Code of Ethics.
      The IFAC Code of Ethics was also translated and published by Accountants Association in Poland and all its members are encouraged to follow it.
      Upon completion of this questionnaire, the AAP' Research Council and its Ethics Committee has prepared a draft Code of Ethics which is based on IFAC Code. The Draft will be exposed to public comments in April 2005.


      b. Are the documents available in English?
      Yes   No


    Section 6B -- Standard-Setting (National Assembly of Statutory Auditors)


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

      A constituent body of National Chamber of Statutory Auditors. The Code is drafted by Ethics Committee (EC) of NCSA

      b. Name of standards

      The Code of Ethics for Statutory Auditors (Kodeks etyki zawodowej bieglych rewidentow)


    57. How many voting members does the standard-setting body have?
      6


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


    60. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      Members of EC are appointed by NCSA. While delegates to the National Assembly are elected by Regional Branches of the Chamber


    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?
      13 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)

      No specific budged. Incorporated in NCSA overall budget

      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?
      The Minister of Finance (in legal and administrative aspects)


    65. 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)

      Meetings are open to Chamber members and invited guest

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

      The Code is approved by National Assembly of Statutory Auditors resolution by the absolute majority of votes in presence of at least half of the number of delegates to the Assembly

    4. other relevant due process activities

      Resolutions have to be approved by the Minister of Finance.

      Note to the Question 66: The Ethics Committee meets at least for 12 days/year. National Assembly meets for 3-4 days every 4 years.


    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 Polish educational system consists of elementary (primary) schools, middle schools, secondary schools (general grammar schools, technical grammar schools, and vocational schools), and universities and other institutions of higher education. Tuition in the state schools is free and mandatory until the age of 18.
      1. Elementary "Level 0" - 1 year
      2. Primary school - 6 years
      3. Middle school - 3 years
      4. Secondary school - 3 years
      General and technical secondary school concludes with the final exam called "matura" which is required as a university entrance level
      5. University level:
      On passing the matura school-leavers' examination, students may continue their education at an institution of tertiary education (a university or college). Depending on its type, field of study and the duration of study, students read for the licentiate (BA)(usually 3 years of study) or a master's degree (MA)(5-6 years of study).

      On graduation, holders of the master's degree may begin doctoral or post-graduate studies.


    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.

      For Statutory Auditors:
      According to the Act on Statutory Auditors and their self government the National Council of Statutory Auditors passes, after consulting its Examination Board, the qualification requirements and the programs and rules of holding examinations for statutory auditors.

      Pursuant to the Act a person can be entered in the register of statutory auditors, only if :
      1)fully enjoys public rights and has full capacity for legal transactions,
      2)whose character is flawless and by his past conduct warrants correct performance of the profession of statutory auditor,
      3) has completed higher education in Poland or higher education abroad recognized in Poland as equivalent and is proficient in the Polish language in speech and in writing,
      4) has undergone three years of practical training in Poland, in this at least two years of apprenticeship under the guidance of a statutory auditor, where the fulfillment of this requirement has been recognized by the Examination Board,
      5) has passed the examinations for statutory auditor before the Examination Board,
      6)has been granted the diploma of statutory auditor.

      For Accountants:
      Although there is no specific regulation regarding the accounting profession, there are some requirements for persons providing bookkeeping services to the public. Those conditions are set in the Decree of the Minister of Finance. Generally the licence entitling to provide bookkeeping services to third parties is granted to persons who:
      1) have a university degree in accounting or any university degree and postgraduate studies in accounting and 3 years of professional practice
      2) have secondary level education and 2 years of professional practice and have passed the state exam organized by the Minister of Finance. The exam covers mainly accounting & tax regulations.

      See also 69 Other for requirement applicable to accountants.


    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
      ALL THE REQUIREMENTS LISTED BELOW APLLY TO MEMBERS OF NATIONAL CHAMBER OF STATUTORY AUDITORS

      For candidates for statutory auditors there is a requirement of university degree (Polish or foreign recognized in Poland). There is no specification as to the type of curricula.
      Professional examinations
      There are 10 examination subjects, in each subject in two aspects: the first covers theoretical knowledge, the second - testing of practical skills.
      Each candidate for the profession of statutory auditor must pass written examinations in the following subjects, held in 4 examination sessions:
      Session 1
      1.Financial accounting, part 1
      2.Economics and management
      Session 2
      1.Civil law, labor law, economic law
      2.Tax law, part 1
      3.Finance
      Session 3
      1.Tax law, part 2
      2.Financial accounting, part 2
      3.Expense account and management accounting
      Session 4
      1.Financial statements and their analysis
      2.Auditing financial statements and other services of a statutory auditor
      Practical experience
      3 years of practical experience are required (including at least 2 years under supervision of a statutory auditor)
      Final qualifying examination
      After fulfilling the above requirements, the candidate for statutory auditor is admitted to the diploma examination, which is held in oral form before the examination committee appointed by the Examination Board. The examination covers the major problems that result from the apprenticeship completed by the candidate.
      Other (please describe) FOR AAP ONLY
      As aforementioned the accounting profession is not regulated in this country. Therefore Accountants Association in Poland has no specific academic requirements or professional examinations for its members. However, the Articles of Association stipulate that only individuals possessing appropriate qualifications in the field of accounting and finance can be members of the AAP. It is recognised that the requirements are met by:
      a)employees of finance and accounting departments,
      b)employees of accounting data processing departments,
      c)auditors, chartered accountants, accountants and others responsible financial and business control,
      d)lecturers and academics specialising in finance, accounting, data processing, economics and similar,
      e)bank employees and other advisory and producing expert statements units,
      f)tax authorities officers and tax advisors.
      Membership can be also obtained by:
      g)employees of organisational units of the AAP, students of finance, accounting and related disciplines.


    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.
      Education requirements for statutory auditors are set by National Council of Statutory Auditors.
      There are no specific education requirements for accountants (see Q.69 - Other)

    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.

      National Council of Statutory Auditors sets the educational requirements after consulting its Examination Board. The requirements are subject to approval by the Minister of Finance.

      The Accountants Association in Poland focuses on the whole accounting profession. Its activities relate to education and improving professional qualifications concerning accounting, audit, finance, taxation etc. AAP cooperates with universities and other higher education institutions and vocational schools in preparing curricula and methodology for accounting and related subjects, supports research and grants awards and distinctions for academic achievements in areas within the competence of the Association. The AAP has its Reasearch Council that consists of academics representing accounting departments of all major universities. There is also Education Committee within the APP which oversees activities of the AAP Centre for Profesional Training and educational & training activities of 26 Regional Branches of the AAP.

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

      The National Council of Statutory Auditors has 15 members.

      In the AAP: the Research Council comprises 30 members and the Education Committee has 5 members.

    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: Re Q 71.d. - The National Council Of Statutory Auditors exists for 13 years, while the educational committees of the AAP are in existence since 1907

    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?
      Both NCSA and AAP will be pleased to provide IFAC of copies of relevant documents on request

    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?
      The requirements framework is set by the EU Eight Directive on Company Law and is transposed to Polish Act on Statutory Auditors and their Self-Regulation. Pursuant to the Act the National Council of Statutory Auditors is responsible for setting relevant requirements.


    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)
      Re Q 79 - Other
      Oath of Statutory Auditor
      "I solemnly swore that as a statutory auditor I will perform the duties assigned to me in a spirit of accountability, in full fairness and impartiality, in accordance with the law and professional standards and be guided in my actions by professional ethics and independence. I will keep secret from third parties all the facts and circumstances made known to me in the course of an audit"


    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): Persons registered as statutory auditors must abide Professional Standards and Code of Ethics according to the oath they have taken (see Q78 - Other)


    80. What entity grants the license?
      National Council of Statutory Auditors


    81. Describe any additional licensing requirements for auditors of listed entities (e.g., additional education requirements, registration, etc.).
      There are no additional, specific conditions to be met by statutory auditor of listed company.



    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 Act on Accounting 02/01 Minister of Finance
      Ministry/department
      Statutory authority/agency
      Profit entity owned by government
      State governments
      Local governments
      Other (please describe)
      Other (please describe)

      a. How can IFAC obtain copies of these documents?

      The document are available on the Ministry of Finance web site www.mf.gov.pl

      b. Are the documents available in English?
      Yes   No


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


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

      Minister of Finance is a government ministry that prepares the draft of the applicable acts, which are subject to debate and approval by the Parliament (Polish Sejm and Senat). Minister of Finance also issues decrees that are binding standards for public sector. Most of the legislation is drafted by the Acccounting Department at the Ministry.

      b. Name of standards

      Act on Accounting
      Act on Public Finance
      Minister of Finance Decrees
      Other regulations for specific types of public entities (e.g. hospitals)


    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.)?
      Best person for the job.


    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)

      N/A

      Please enter the exchange rate used to calculate this number.

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

      N/A



    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

      Drafts of standards are disclosed for comments

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

      parliamentary sessions where the law is discussed are accessible to public

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

      majority of MPs is required, approval of second parliamentary chamber (the Senate) and final approval by the signature of the President of the Republic of Poland

    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 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 See Q94.a. for details 02/2005 Minister of Finance
      Other (please describe) All Entities as above Accounting standards Committee
      Other (please describe)
      Other (please describe)
      Other (please describe)

      a. How can IFAC obtain copies of these documents?



      b. Are the documents available in English?
      Yes   No


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


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

      For Q.95-105 answers are the same as Q. 83-93

      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 (Accounting standards Committee)


    95. For Accounting standards 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

      A body appointed by the Decree of the Minister of Finance of 28 November 2001 with further amendments

      b. Name of standards

      National Accounting Standards (Krajowe Standardy Rachunkowosci)


    96. How many voting members does the standard-setting body have?
      18


    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.)?
      The criteria are not specified. Balanced membership would be the best description.


    99. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      1 is appointed by the Minister of Treasury (must be a staff member), 1 by the Securities and Exchange Commission (must be a staff member), 1 by Chairman of the National Bank of Poland (must be a staff member), 5 by Accountants Association in Poland (2 of them must have academic titles), 5 by National Chamber of Statutory Auditors (3 of them must be practicing statutory auditors representing audit firms as defined in the Act of statutory auditors and their self regulation), 5 by Minister of Finance (3 of them must be staff members).


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


    101. For how many years has the standard-setting body been in existence?
      4 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)

      ASC work is financed by the Minister of Finance from the State budget

      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?
      The standard setting body is responsible to the Minister of Finance. The Minister of Finance also evaluates effectiveness of ASC activities.


    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)

      Meeting of the committee are private, observers are allowed subject to approval by the ASC Chairman.

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

      The standard is approved if at least 10 out of 18 ASC members voted in favor of it

    4. other relevant due process activities



    105. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      12 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:
      Polish Securities and Exchange Commission (PSEC)


    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:


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

      PSEC has the right to propose changes to the regulations regarding audit profession. It plays active role during the legislation process of the Accounting Act and the Act on Auditors and their Self-Regulation.

    2. accounting and auditing standard-setting

      PSEC has the right to propose changes to the regulations regarding accounting and audit. It plays active role during the legislation process of the Accounting Act and the Act on Auditors and their Self-Regulation.
      PSEC gives its opinion on the proposed new or changes of national standards of the audit profession.


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

      PSEC monitors financial information provided by issuers in their prospectuses and financial statements. Normal procedures are pre-clearance for prospectuses and ex-post examination of financial statements. Checking procedures for financial statements vary from merely formal checks to in-depth substantive checking. PSEC also provides the issuers, at their request, with an opinion on a certain accounting and disclosure treatments.
      PSEC carries out investigation and administrative proceedings. It imposes administrative sanctions, referred to in the Act on the Public Trading of Securities.




    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
      Warsaw Stock Exchange



    Section 10B -- Stock Exchange
    Warsaw Stock Exchange Details


    110. For Warsaw Stock Exchange, 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.

      The WSE organizational unit responsible for acceptance and monitoring of current and periodical reports, including quarterly and annual individual or consolidated financial statements, submitted by issuers admitted to public trading, is the Division of Issuers (11 employees). The supervising persons are the Director and Deputy Director of the Division. The Division consists of two groups: the Group for Issuers (4 employees) and the Group for Admissions and Operations in Securities (5 employees).

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

      In accordance with the WSE Regulations, the Management Board of the Warsaw Stock Exchange may: - suspend trading in securities for a period of up to three months if the issuer violates the regulations in force at the stock exchange or when the Board deems this is required by the interests and security of the trading participants - exclude securities from exchange trading if the issuer persistently violates the regulations in force at the stock exchange or if the Board deems this is required by the interests and security of the trading participants, - impose a penalty according to the WSE regulations – in the case of violation of the obligations resulting from the regulations in force at the stock exchange; such a penalty may be imposed on an issuer of exchange listed securities. Penalties according to the regulations can take form of reprimand or a cash penalty. The Management Board of the Stock Exchange may impose a fine of up to PLN 10.000, and the Stock Exchange Court a fine from PLN 10.100 to PLN 100.000.

    3. How enforcement actions are administered.

      Over the past 3 years, under the resolution currently in force, the shares of issuers that did not submit financial statements on time were marked in a special way. The information given in the Daily Quotations of the Exchange for a dozen or so companies was given in a special way, where a footnote was placed next to the name of the company in the form of an number signifying: “issuer does not fulfill or improperly fulfills information obligations.” The small number of issuers that did not fulfill this obligation despite the reminders and cash penalties, were excluded from public trading.



    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?

      There are, however, steps undertaken to establish public oversight mechanism over the auditing profession. The proposed structure of such body will be in line with the proposed new 8th EU Directive.

    2. The number of members on the oversight body



    3. Its 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



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



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



    Section 10D -- Banks Regulatory Authority


    112. Name the authority that regulates the banks and similar financial institutions. Discuss how this authority differentiates between accounting requirements for regulatory reporting and general purpose external financial reporting:
      Commission for Banking Supervision (CBS) supervise activities of banks in co-ordination with General Inspectorate of Banking Supervision - GIBS (a separate unit within National Bank of Poland (central bank) structure.


    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 CBS and GIBS monitors and enforces regulatory reporting requirements.


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

      None

    2. accounting and auditing standard-setting

      Banking regulatory authorities take part in the process of establishing the law by giving an opinion on exposure drafts prepared by other authorities (mainly by the Minister of Finance)

    3. review of financial statements prepared by listed entities

      Banks are obliged to submit their annual financial statements and consolidated financial statements to the Commission for Banking Supervision. Those financial statements and reports sent by banks are analysed by the Staff of General Inspectorate of Banking Supervision.

    4. enforcement of accounting, reporting and auditing requirements

      The monitoring of compliance with accounting, reporting, and auditing requirements is conducted by the staff of General Inspectorate of Banking Supervision., specifically by the Banking Systems Off-Site Analysis Division, On-Site Examination Division and Cooperative Banking Division.



    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.
      Insurance and Pension Funds Supervisory Commission


    116. What is the source of Legal authority of the regulatory authority(ies)?
      The Act on Insurance and Pension Funds Supervision and on Insurance Ombudsman


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

      None

    2. accounting and auditing standard-setting

      Regulatory authorities take part in the process of establishing the law by giving an opinion on exposure drafts prepared by other authorities (mainly by the Minister of Finance)

    3. review of financial statements prepared by listed entities

      Office of the Insurance and Pension Funds Supervisory Commission as a supervisory body for pension funds is responsible for review of their financial statements. The Office monitors if the pension funds comply with the accounting principles.

    4. enforcement of accounting, reporting and auditing requirements

      Ministry of Finance is responsible for enforcement of accounting, reporting and auditing requirements. The Office of the Insurance and Pension Funds Supervisory Commission is responsible for monitoring compliance with the 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.
      Insurance and Pension Funds Supervisory Commission


    119. What is the source of Legal authority of the regulatory authority(ies)?
      The Act on Insurance and Pension Funds Supervision and on Insurance Ombudsman


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

      None

    2. accounting and auditing standard-setting

      Regulatory authorities take part in the process of establishing the law by giving an opinion on exposure drafts prepared by other authorities (mainly by the Minister of Finance)

    3. review of financial statements prepared by listed listed entities

      Office of the Insurance and Pension Funds Supervisory Commission as a supervisory body for insurance companies is responsible for review of their financial statements. The Office monitors if the insurance undertakings apply accounting principles in accordance with the rules in a manner which ensures the fair and clear disclosure of the assets and financial position, net profit and profitability of the entity in order to protect of interests of the insuring persons, insured, beneficiaries or entitled from insurance contracts, by preventing the situation, in which any insurance undertaking will not be able to pay benefits due to these persons.

    4. enforcement of accounting, reporting and auditing requirements

      Ministry of Finance is responsible for accounting, reporting and auditing requirements. Office of the Insurance and Pension Funds Supervisory Commission is responsible for monitoring compliance with the requirements.



    Section 10G -- Other Regulatory Authority


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


    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?
      National Council of Statutory Auditors conduct these activities under the Act on Statutory Auditors and their Self-Regulation and is subject to Minister of Finance supervision. The National Supervisory Committee was appointed by the NCSA.


    126. Who performs the review (e.g., one firm reviewing another firm, staff from the national professional organization, contractors, or a combination of these)?
      Control is carried out by contracted inspectors trained by the Supervisory Commission, acting in accordance with the procedures developed by the Commission.



    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.
      FOR ACCOUNTANTS ASSOCIATION IN POLAND:
      National Disciplinary Court

      FOR NATIONAL CHAMBER OF STATUTORY AUDITORS:
      National Disciplinary Spokesman
      National Disciplinary Court



    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?
      AAP NDC - 9 members; NCSA NDS - 15 members


    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.)?
      Best person for the job from within memebers of the relevant member body.

      Re Q. 135
      For AAP - 98 years
      For NCSA - 13 years



    133. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      For AAP: National Assembly of the Accountants Association in Poland; For NCSA - National Assembly of Statutory Auditors


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


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

      no specific budget - a part of whole member body budget

      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?
      For AAP: National Assembly of the Accountants Association in Poland; For NCSA - National Assembly of Statutory Auditors

      Re Q. 137 The meetings are held as required by circumstances.



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



     

     

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