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.

    Ordem dos Revisores Oficiais de Contas (OROC)

     

    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:

      Portugal


    2. Name of member body:
      Ordem dos Revisores Oficiais de Contas (OROC)

      Or please specify name:



    3. Individual responsible for preparation:
      Carlos Rodrigues


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

      01 / 1985



    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



    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: Código das Sociedades Comerciais (CSC)
      b). the Enacting body: Ministry of Justice
      c). date the Act or Code came into force: 01 / 1986


    25. How can IFAC obtain a copy of the Act or Code?
      In the Official Journal (Diário da República - DL 262/86, de 2/9)


    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): Commercial Act requires listed entities (about 40 are listed but public companies also include those where share ownership / transfer requires approval of the courts or by partnership) and anonimous (capital represented by stocks) companies (listed or not
      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 Requirement to prepare annual statutory financial statements - Decree-Law n.º 486/99, of 13/11 (Código dos valores mobiliários CVM); Portuguese GAP - Decree-Law n.º 410/89 of 21/11. Going forward, listed entities will also have to comply with the EU Eigth Directive requirements.
      Private companies Requirement to prepare annual statutory financial statements - Commercial Act (Código das Sociedades Comerciais - CSC - Decree-Law 262/86, de 2/9 ; Portuguese GAP - POC - Decree-Law n.º 410/89 of 21/11
      Governmental Requirement to prepare annual statutory financial statements - several legislation; Portuguese GAP (POCP public accounting - Decree-Law n.º 232/97 of 3/9
      Not-for-profit
      Other (please describe) Banks Requirement to prepare annual financial statements - Law 5/98 of 31/01 (Lei Orgânica do Banco de Portugal); Portuguese GAP - Plano de Contas para o Sistema Bancário (Bank Accounting)
      Other (please describe) Insurance Requirement to prepare annual financial statements - Decree - Law 289/2001 of 13/11 (Estatuto do Instituto de Seguros de Portugal); Portuguese GAP - Plano de Contas para as Empresas de Seguros (Insurance Accounting)


    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 CVM art.º 8.º - All entities; Portuguese Auditing Standards (and Guidelines)
      Private companies All anonimous companies - CSC art.º 420.º; Others namely "sociedades por quotas" have to be audited (2 of 3: more than EUR 1,500,000 total of Balance sheet; more than 3.000.000 of revenue or more than 50 employees) - art.º 262.º. Portuguese Auditing Standards (and Guidelines)
      Governmental Public Institutes, Law n.º 3/2004, art.º 28.º
      Not-for-profit
      Other (please describe) Banks Through the CSC code - see Section 10D
      Other (please describe) Insurance Through the CSC code - see Setion 10F


    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: 4 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:
      This subject is under consideration and requirments will be developed (EU Eight Directive requirements will also be considered)



    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

      Decree-Law n.º 486/99, de 13 de Novembro

    2. the Enacting body(ies)

      Comissão do Mercado de Valores Mobiliários (CMVM)

    3. the latest amendment date?

      November 13, 1999


    35. How can IFAC obtain a copy of the Legal authority?
      http://www.cmvm.pt/english_pages/legislacao_e_publicacoes/legislacao_01.asp


    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 (semestral) financial information need to be prepared


    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:
      To have an audit report with "reasonable assurance" (for investment fund audits) or "moderate assurance" (for general purpose financial audits). For listed entity audits, the audit report also has to refer to some specific characteristics (for example, that the information is true and complete).


    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: 4 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 Decree-Law n.º 487/99 11/1999 Ordem dos revisores Oficiais de Contas
      Other (please describe) Private and other commercial entities Ordem dos revisores Oficiais de Contas
      Other (please describe)
      Other (please describe)

      a. How can IFAC obtain copies of these documents?

      Request to our institute or http://www.cidadevirtual.pt/croc/index.html

      b. Are the documents available in English?
      Yes   No


    Section 5B -- Standard-Setting (Ordem dos revisores Oficiais de Contas)


    44. For Ordem dos revisores Oficiais de Contas, 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

      The OROC is a public body corporate endowed with administrative, financial and asset-owning autonomy, and is responsible for representing and grouping its members registered in accordance with this enactment, as well as overseeing all aspects pertaining to the statutory auditing profession.

      There is a clear distinction between the audit and accounting profession and the OROC only represents the audit profession. The accounting body is the Camara dos Tecnicos Oficiais de Contas (not an IFAC member body). However, the OROC does get involved in the standard-setting area for both accounting and auditing and has been involved with the profession the longest. There are no plans to merge the two bodies.
      Individuals must be a member of the OROC to audit any entities (including listed, banking).


      b. Name of standards

      By law, the OROC has the power to develop auditing standards (which are mandatory for statutory auditors). The focus has been on producing standards not covered by the ISAs and on translating the ISAs. First authority level is the standards (which is more like the framework – the auditor need to perform the audit with integrity etc.), guidelines, and then the ISAs.

      Directrizes de Revisão/Auditoria (Audit standards)
      Interpretações Técnicas (Technical Interpretations)


    45. How many voting members does the standard-setting body have?
      7


    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.)?
      All the members for the Board need to be statutory auditors

      For the Technical Committees, all of these are important for the selection of the executive board.


    48. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      For the Board - Members of the Institute
      For the Technical Committees - The Board


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


    50. For how many years has the standard-setting body been in existence?
      31 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)

      2,537,398

      Please enter the exchange rate used to calculate this number.

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

      1.1857



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


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

      The Board aproves the standards to be sent in draft to all members of the Institute for a monthly appreciation and after that, considering the comments received, they are aproved by the Board and issued as Standards.

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

      The meetings are private.

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

      The majority of the Board approves Standards in board meetings.

    4. other relevant due process activities



    54. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      26 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 Código de Ética e Deontologia Profissional December, 2001 Ordem dos Revisores Oficiais de Contas (Ethical Committee)
      Professional Accountants in Business Código de Ética e Deontologia Profissional December, 2001 Ordem dos Revisores Oficiais de Contas (Ethical Committee)
      Professional Accountants in the Public Sector Código de Ética e Deontologia Profissional December, 2001 Ordem dos Revisores Oficiais de Contas (Ethical Committee)
      Other (please describe)

      a. How can IFAC obtain copies of these documents?

      The "Código de Ética e Deontologia Profissional" (Code of Ethics) was published in "Diário da República, III Série, n.º 297, de 26 de Dezembro de 2001" (Official Gazette)

      b. Are the documents available in English?
      Yes   No


    Section 6B -- Standard-Setting (Ordem dos Revisores Oficiais de Contas (Ethical Committee))


    56. For Ordem dos Revisores Oficiais de Contas (Ethical 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

      Is a public body corporate endowed with administrative, financial and asset-owning autonomy, and is responsible for representing and grouping its members registered in accordance with this enactment, as well as overseeing all aspects pertaining to the statutory auditing profession.

      There is an Ethical Technical Committee that is responsable for drafting the ethical code and related issues that, after the board´s annuence, are to be approved in a General Assembly of the members of the Institute


      b. Name of standards

      Código de Ética e Deontologia Profissional (Code of Ethics)

      Note: Ethics code was revised 2-3 years ago. It was published before the EU Commission recommendations and will be looked at as the EU recommendations are implemented.


    57. How many voting members does the standard-setting body have?
      The Board - 7 members; The General Assembly - 992 members


    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.)?
      The Board members are elected by the members in an election.

      For the members of Technical Committees, all of these are important.


    60. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      For the Board - Members of the Institute
      For the Technical Committees - The Board


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


    62. For how many years has the standard-setting body been in existence?
      31 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)

      2,537,398

      Please enter the exchange rate used to calculate this number.

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

      1.1857



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


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

      The Board aproves the draft of Code of Ethics to be sent to all members of the Institute for a monthly appreciation and after that, considering the comments received, it is discussed and aproved by the members in a General Assembly.

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

      All members of the Institute can attend the General Assembly.

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

      The majority of the members attending the General Assembly.

    4. other relevant due process activities



    66. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      26 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:
      Education is compulsory for 12 years, primary, preparatory and secundary school (all of this are compulsory). After this we can choose university or technical 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.

      Decree-law 487/99 of 16th November, of the Ordem dos Revisores Oficiais de Contas, only for auditors.

      Decree-Law nº 452/1999 de 5 de Novembro, of the Câmara dos Técnicos Oficiais de Contas, only for accounting technicians.


    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 on Accounting, Auditing, Economics, Management or Law
      Professional examinations
      During one year, four modules (tests) with 3 subjects in each, they have to have a positive mark in all of the modules
      Practical experience
      Three year practice training with auditors and presentation of quarterly report with summary of activities. At the end of the 3 years presentation of final thesis.
      Final qualifying examination
      See professional examinations, 4 tests, all with positive marks (over 10)
      Other (please describe)


    70. Which of the following arrangements best describes who establishes the education requirements for the accounting profession in your country? Please select one option.
      A government ministry, department or agency establishes education requirements for the accounting profession with no additional requirements set by the member body(ies).
      A government ministry, department or agency establishes minimum education requirements for the accounting profession, and member body(ies) supplement these requirements.
      Member body(ies) establishes the education requirements for the accounting profession.
      Other (please describe)


    71. Please provide the name(s) of the relevant body in the government ministry, department, agency and / or member body who establishes the education requirements.
      The main rule are established in the Decree-Law 487/99, of November, 16 (similar to the requirements of the 8.ª Directive of EU)

      The practical aplication is of the responsability of Ordem dos Revisores Oficiais de Contas

    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.

      Inscription and Practical Experience Committees of OROC, as in our decree-law:

      SECTION II - Examination for admission to the Ordem

      Article 128 - Frequency

      1 - The examination for admission to the Ordem must be held at least once a year on a date to be fixed by the management council.

      2 - The examination programme may be subdivided into groups of subjects, according to the terms to be fixed by the enrolment and examination regulations.



      Article 129 - The examination

      1 - The examination for admission to the Ordem shall comprise written and oral tests to be undertaken before a panel.

      2 - The composition and appointment of the panel, as well as the subjects, the procedures and, in general, the rules governing the examination, shall be laid down in the enrolment and examination regulations.

      SECTION III - Practical experience period

      Article 130 - Enrolment for the practical experience period

      Enrolment for the practical experience period referred to in article 124(g) can only take place after passing the examination for admission to the Ordem.

      Article 131 - Practical experience committee

      1 - The practical experience period takes place under the general orientation and supervision of the practical experience committee, without prejudice to the specific direction entrusted to the respective principal, who must be a statutory auditor or statutory auditing firm: in the last-mentioned case, a partner must be designated as being responsible for the practical experience period: in any event, the principal («patrono») must be enrolled for more than five years.

      2 - The practical experience committee shall function under the direction of the management council, and shall be responsible for:

      a) Carrying out the work prescribed in the practical experience period regulations to be approved by the general meeting based on the proposals of the management council;

      b) Proposing, for approval of the management council, the draft practical experience contract and the trainee’s membership card;

      c) Proposing, for approval of the management council, the practical experience contract agreements;

      d) Organising the list of trainee members;

      e) Organising the ongoing evaluation of trainee members.

      Article 132 - Duration of the practical experience period

      1. The duration of the practical experience period shall be at least three years, with a minimum of seven hundred hours per annum: at least two thirds of the practical experience period must be spent with the duly qualified principal.

      2. The duration of the practical experience period may, however, be reduced by the practical experience committee to a minimum of one to two years for those trainee members who, having worked in the public or private sectors for five years, the said committee, on the recommendation of the respective principal, is of the opinion that they possess adequate experience in the field of auditing and, accessorily, in areas related to the other subjects which form part of the examination programme for admission to the Ordem.

      3. In duly substantiated exceptional cases, the practical experience committee may dispense individuals from undergoing the practical experience period where such individuals have passed the examination for admission to the Ordem and who, having worked in the public or private sectors for 10 years, the said committee is of the opinion that they possess adequate experience in the field of auditing and, accessorily, in areas related to the other subjects which form part of the examination programme for admission to the Ordem.

      Article 133 - Beginning of the practical experience period

      The practical experience period must begin within a maximum period of three years commencing from the date of the examination for admission to the Ordem.

      Article 134 - The practical experience period

      1 - During the practical experience period, trainee members are subject to the Ordem’s legal and regulatory regimes, where applicable.

      2 - The training period regulations prescribe:

      a) The rules governing enrolment, discontinuance, exclusion and interruption of the practical experience period;

      b) The rules governing the duration and reduction of, and exemption from, the practical experience period;

      c) The rights and obligations of principals and trainees;

      d) The composition and functions of the practical experience committee;

      e) The system for evaluating trainee members’ advancement;
      f) The areas in which trainees member’ advancement are to be evaluated.

      3 - During the practical experience period, trainee members’ advancement must be subjected to at least two interim evaluations and a final evaluation.

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

      5 members in the Inscription Committee

      6 members in the Practical Experience Committes

    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:

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

      31 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?
      Contact the OROC.

    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:
      We have diferent institutes and rules for accountants and auditors. However the education requirements in each profession are the same throughout the country.

      Our answers are only for auditors.


    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 main rule is established in the Decree-Law 487/99, of November, 16.

      The practical aplication is of the responsability of Ordem dos Revisores Oficiais de Contas.


    78. What are the requirements to obtain a license (please select all relevant requirements.)?
      Academic study specific for obtaining a license
      Practical experience
      Licensing examination
      Final qualifying examination
      Other (please describe)


    79. Are there ongoing requirements to retain a license?
      Yes   No

      If YES, please select all relevant requirements.
      Continuing professional development
      Re-examination
      Other (please specify):


    80. What entity grants the license?
      Ordem dos Revisores Oficiais de Contas


    81. Describe any additional licensing requirements for auditors of listed entities (e.g., additional education requirements, registration, etc.).
      They need to be a statutory auditor registed in the Ordem dos Revisores Oficiais de Contas and comply with the art.º 6 of Regulation 6/2000 (Regulamento n.º 6/2000-Auditores) of CMVM (Securities Regulator);

      Article 6
      Registration of Auditors

      1 - Only auditing companies qualified to carry out their activity in Portugal, whose enrolment in the Association of Chartered Accountants is not suspended, and which are equipped with the human, material and financial resources necessary to guarantee their suitability, independence and technical competence may be registered with the CMVM as auditors.
      2 - For the purposes of the preceding paragraph auditors must fulfil at least the following requirements:
      a) Firms must have no less than three full-time chartered accountants/auditors working exclusively for them;
      b) Auditors operating as sole practitioners or, in the case of firms of auditors, one of the partners who is a chartered accountant, must have at least five years of effective professional experience and must have been practising exclusively for at least three years;
      c) They must have net assets of not less than € 50,000;
      d) Firms of auditors must have a business volume of not less than € 250,000, except for sole practitioners, whose overall total fees earned must be no less than € 150,000;
      e) Clients may not represent more than 15% of the total annual business volume of a firm or of the total annual fees of a sole practitioner or a lower limit defined in accordance with the Code of Ethics and Professional Conduct of the Association of Chartered Accountants;
      f) They must hold a professional indemnity insurance policy with a sum insured of not less than € 2,500,000;
      g) They must have an adequate knowledge of financial instruments and how the securities market operates;
      h) They must show evidence that they have at their disposal sufficient organisational, human and material resources for performing the functions allocated to them by the Portuguese Securities Code and its supplemental regulations.
      3 - For the purposes of paragraph 2 a) above, those auditors who satisfy the requirements laid down in article 49(5) of Decree-Law no. 487/99 of 16th November shall be considered to work exclusively for one employer.
      4 - For the purposes of paragraph 2 h) above, the following, in particular, shall be considered sufficient resources:
      a) Possession of an organisation that ensures that the procedures involved in the auditing services to be provided under the Portuguese Securities Code are subject to internal quality control and quality control by the Ordem dos Revisores Oficiais de Contas (the Association of Chartered Accountants), exercised in conformity with the IFAC and European Union recommendations;
      b) Specialised staff members with a minimum qualification of a bachelor's degree, who, in addition to the statutory auditors, must represent no less than a ratio of one for every 15 points awarded to the auditor according to the terms defined for the purposes of determining specific incompatibilities as provided in article 76 of Decree-Law no. 487/99 of 16th November and Schedule I thereto and rounded down to the nearest unit;
      c) Permanent offices equipped with the necessary information technology resources to enable the auditing work to be carried out appropriately;
      d) Adequate documentation and publications with provision for constant updating, modernisation and specialist training.



    Section 8 -- Public Sector Accounting Standards


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

    Section 8A -- Statutory Framework


    82. Please provide the name of the Legal authority and/or self-regulatory rules establishing public sector accounting standards in your country, the date of last amendment and the name of the body responsible for setting public sector accounting standards. If the standards are different for different entities (e.g., whole of government, ministry/department, statutory authority/agency, profit entity owned by government, state governments, local governments, other [please specify]), please specify the details that apply to each.
      Type of entity Name of
      legal
      authority
      Date of last
      amendment
      (e.g. MM/YYYY 06/2001)
      Name of body responsible
      for setting public sector
      accounting standards
      Whole of government
      Ministry/department
      Statutory authority/agency Decree-Law n.º 232/97 09/1997 Comissão de Normalização Contabilística da Administração Pública
      Profit entity owned by government
      State governments
      Local governments
      Other (please describe)
      Other (please describe)

      a. How can IFAC obtain copies of these documents?

      Decree-Law n.º 232/97 of 3 September (http://www.min-financas.pt/cncap/Legislacao_CNCAP.htm)

      b. Are the documents available in English?
      Yes   No


    Section 8B -- Standard-Setting (Comissão de Normalização Contabilística da Administração Pública)


    83. For Comissão de Normalização Contabilística da Administração Pública, 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

      The CNCAP was established by decree-law 232/97 of 3 of September by the Ministry of Finance. It´s mission is to assure harmonization and to follow the progress of the public sector legislation.

      b. Name of standards

      The legislation is issued by government in the form of decree-law, CNCAP only issues guidelines.


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


    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.)?
      The criteria is a conjuction of the examples above.


    87. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      Nominated by Ministry of Finance.


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


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

      54,688

      Please enter the exchange rate used to calculate this number.

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

      1.1857



    91. To what entity is the standard-setting body accountable?
      Accountable to the Ministry of Finance


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

      Issued as final guidelines without consultation to the public in general

    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 is required to approve guidelines and president has the quality vote

    4. other relevant due process activities

      Follow the progress of public sector legislation


    93. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      24 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
      Other (please describe) All entities Decree-Law n.º 410/89 of November, 21 04/2003 Comissão de Normalização Contabilística
      Other (please describe)
      Other (please describe)
      Other (please describe)

      a. How can IFAC obtain copies of these documents?

      Decree-Law n.º 410/89 of 21 of November, called Plano Oficial de Contabilidade (Official Chart of Accounts)(http://www.cnc.min-financas.pt/sitecnc1_EN.htm)

      b. Are the documents available in English?
      Yes   No


    Section 9B -- Standard-Setting (Comissão de Normalização Contabilística)


    95. For Comissão de Normalização Contabilística, 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

      An independent body

      Governmental and private entities interested in the accounting field are represented, at a national level

      Administrative and financially under the scope of the Finance Ministry


      b. Name of standards

      Accounting standards are decreed by law therefore difficult to change standards. The standards board produces guidelines which are starting to be written like IASs. The requirement states that you first follow the decreed law and then the guideline and there is a matter that is not covered by either, must apply the IFRS covering that topic.

      The law deals with the format, recognition and measurement aspects. There is no framework. The guidelines provide more details.

      Directrizes Contabilísticas - Accounting Standards; and
      Interpretações Técnicas - Technical Guidelines


    96. How many voting members does the standard-setting body have?
      The Executive Committe have 13 members, representing 13 entities and the General Council have 43 members, representing 38 entities


    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: They are apointed by the entities and receive a compensation fee.


    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.)?
      Nominated by the 38 entities, representing the most various interests attached to the Government, educational, scientific and professional organisations, industry and commerce


    99. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      Nominated by the 38 entities


    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?
      20 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)

      0

      Please enter the exchange rate used to calculate this number.

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

      0.0



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


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

      The exposure drafts are only subject to consultation inside the entities composing the General Council of CNC

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

      Private

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

      Quorum:
      The majority of 2/3 of members or, after half an hour, in the absence of that majority, the majority of 51% of the members

      Decisions taken by:
      The majority of 2/3, in general circumstances

      The majority of members with legal voting power, in case of the proposal to dismiss the CNC President


    4. other relevant due process activities

      Executive Committee (EC):
      Meetings: Ordinary: weekly
      Extraordinary: called by EC President

      Functions:
      - To implement studies in order to set concepts, principles and accounting procedures
      - To propose changes to the Official Chart of Accounts (POC)
      - To issue accounting standards and technical guidelines
      - To express opinion about accounting standard drafts and charts of accounts of commercial and industrial segments of economy
      - Answer questions about uses of POC and accounting standards interpretations
      - To co-operate with other national entities of accounting standardisation
      - To represent the Portuguese Government in foreign accounting meetings and in the European Union accounting meetings
      - To promote the implementation of the Portuguese accounting standards

      General Council:
      To take decisions about:
      Proposals of Official Chart of Accounts changes
      Accounting standards
      Planning and yearly activities report
      Budget proposals


    105. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      50 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:
      Comissão do Mercado de Valores Mobiliários (CMVM) - Securities Exchange Commission


    107. What responsibilities does this organization have for monitoring and enforcing compliance with accounting, reporting or auditing requirements? Please identify the Legal authority that establishes that responsibility:
      The CMVM was established on the 10th of April of 1991. It is the central institution in the present regulatory and supervisory system for the capital markets and for investment services.

      The functions of CMVM are the regulation, supervision and promotion of the securities markets and of the activities carried out by the agents operating directly or indirectly therein.

      The CMVM advises the Government and in particular the Minister of Finance on all matters related to the securities markets, and ensures co-operation with the corresponding authorities of other countries.

      The CMVM performs its functions in wide areas of the financial sector. The CMVM is responsible, on one hand, for the regulation and supervision of transactions on securities and their respective markets (primary and secondary markets, on exchange and over-the-counter) and for the regulation and supervision of the derivatives market. And on the other hand, the CMVM regulates and supervises the securities intermediation activities, that is, investment services directly or indirectly connected with securities, as well as the financial intermediaries carrying out such activities professionally.

      The CMVM is regulated by decree-law 486/99 of 16th of November.


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

      The professional and independent opinion of auditors on the financial statements published by issuers plays an extremely import role in the credibility of financial documents and investors' confidence in them. National and international discussions on the matter strengthen this point of view and reinforce auditors' role in the market, mainly in what regards the services rendered to listed companies.

      The CMVM pays therefore special attention to the gathering and treatment of auditors' opinions on the information published by listed companies.

      The CMVM has a regulation for Auditors (Regulation 6/2000) with duties that have to be complied. CMVM has a list of Auditors that, under certain conditions, are able to audit listed entities.


    2. accounting and auditing standard-setting

      The CMVM co-operates with the Accounting Standards Board (CNC - Comissão de Normalização Contabilística) and the OROC in the formulation of the principal rules and guidelines for the interpretation of account movements, with the aim of raising the quality, objectivity and clarity of the financial information given to investors by the issuers of securities.

      The CMVM has the right to perform quality reviews and does it by random sample with a minimum selected for review every year so that at least one-fifth of all auditors are selected each year (auditors are reviewed at least every five years).


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

      The CMVM has a department that controls the accounting and disclosure requirements and also gathers and examines the independent auditors' opinions.



    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
      Euronext Portugal



    Section 10B -- Stock Exchange
    Euronext Portugal Details


    110. For Euronext Portugal, 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.

      N/A

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

      N/A

    3. How enforcement actions are administered.

      The CMVM is the enforcement body.



    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?

      Article 5 - Jurisdiction

      The Ordem’s jurisdiction is:

      a) To exercise jurisdiction over all that relates to the activity of statutory auditing and the audit of accounts and the provision of related services to companies or other entities, in accordance with the technical standards approved or recognised by it;

      b) To safeguard the social function, dignity and prestige of the profession, to foster respect for the respective ethics and code of conduct, and to defend the interests, rights and prerogatives of its members;

      c)To promote and contribute to the advancement and professional training of its members;

      d)To exercise disciplinary jurisdiction over all its members;

      e)To promote and support the creation of complementary social security schemes for the benefit of statutory auditors, and to monitor the functioning thereof;

      f)To propose to the relevant authorities measures relating to the defence of the profession, the function of statutory auditors and their professional and moral interests;

      g)To create, join, associate itself or participate in the capital of entities, national or foreign, and to collaborate therewith, with a view to the conduct and furtherance of studies, research, training schemes and other work which promote the streamlining and dissemination of the principles, concepts and standards of accounting and the statutory audit/audit of accounts;

      h)In liaison with standard-setting bodies, to recommend to the government the regulation of accounting matters which are conducive to rendering the statutory audit/audit of accounts more efficient;

      i)To exercise jurisdiction over all matters relating to examinations, the practical experience contract and enrolment;

      j)To collaborate with the government in streamlining the statutory audit/audit of State-enterprise and administrative-sector companies and entities;

      k)To prescribe the principles and norms of the code of professional ethics and conduct;

      l)To expound the standards and technical procedures for professional conduct, taking into consideration international standards;

      m)To discipline the consultancy work undertaken by its members in those areas which form part of the examination programme for admission to the Ordem;

      n)To promote the publication of a journal with the object of providing scientific, technical and cultural information;

      o)To certify, whenever called upon to do so, that statutory auditors are exercising in full the profession in accordance with this enactment;

      p)To exercise all other functions which are attributed to it by this enactment and by any other legal decrees.


    2. The number of members on the oversight body

      992 members

    3. Its powers

      The Ordem dos Revisores Oficiais de Contas is a public body corporate endowed with administrative, financial and asset-owning autonomy, and is responsible for representing and grouping its members registered in accordance with this enactment, as well as overseeing all aspects pertaining to the statutory auditing profession.

    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

      In 1993, the OROC established a Commission to implement a system of external quality control, the “Comissão do Controlo de Qualidade” (Quality Control Commission - CCQ).

      The peer review system came into force in 1994 and was at first primarily directed towards the audit firms registered with the stock exchange regulator, “Comissão do Mercado de Valores Mobiliários” (CMVM). With the objective of monitoring the performance of all statutory audits, the external quality control system has subsequently been expanded to al members of the OROC.

      The reviews carried out in 2003 covered 17% of the total registered auditors and has been done by one of 40 reviewers (peer review system), who must have more than 5 years experience in statutory audits.

      After the review, a report is issued by the appointed reviewer and submitted to the CCQ, which informs the Board of the OROC to take the appropriate actions, If any. Copies of the reports issued on listed companies are also addressed to the stock exchange regulator (CMVM).

      The CMVM also has the power to monitor audit firms with listed company clients. However, in practice it is the OROC which carries out the quality control of listed company engagements, and then communicates the results of its work to CMVM.

      All audit engagements of listed companies are to be reviewed every three years and, with respect to the quality control of individual auditors, the periodicity of reviews will aim at covering all auditors within three years.


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

      If it will be the case, the Commission (CCQ) communicates negative outcomes of quality reviews to the Board of the OROC and the case will be presented to the Disciplinary Board.

      There are several disciplinary sanctions: from a remark to a removal.

      Sanctions are applied by the Disciplinary Board of the OROC.

      1 - It is the disciplinary board’s responsibility:

      a)To judge, in the first instance, the disciplinary infractions committed by statutory auditors and trainee members;

      b)To express opinions on complaints lodged by companies and other entities to whom the statutory auditors render services, on matters relating to the performance of their work;

      c)To carry out the investigations either expressly stipulated in this enactment or those requested by the OROC’s other bodies;

      d)To propose to the management council the legislative or administrative measures necessary for overcoming loopholes or making pronouncements on matters within its term of reference.


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

      The oversight body is endowed with administrative, financial and asset-owning autonomy.


    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 authority is called "Banco de Portugal" and they have the responsability to issue accounting standards, without prejudice of CMVM and CNC, that are applicable to all institutions subject to their supervision and also to define what elements should be disclosed and delivered to Banco de Portugal.


    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:
      For auditing, not applicable. For accounting they are the standard setter. The aplicable GAAP are called "Plano de Contas para o Sistema Bancário".


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

      They do not have any.

    2. accounting and auditing standard-setting

      They are the standard setter for accounting.

    3. review of financial statements prepared by listed entities

      N/A

    4. enforcement of accounting, reporting and auditing requirements

      Supervision Department of Banco de Portugal



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


    115. Name the regulatory authority(ies) responsible for monitoring compliance with and enforcing accounting, reporting and auditing requirements imposed on non-banking institutions.
      The CMVM is responsable for the Funds. The Banco de Portugal is responsable for the other non-banking institutions.


    116. What is the source of Legal authority of the regulatory authority(ies)?
      See CMVM (questions 106 to 108) and Banco de Portugal (questions 112 to 114)


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

      See CMVM (questions 106 to 108) and Banco de Portugal (questions 112 to 114)

    2. accounting and auditing standard-setting

      See CMVM (questions 106 to 108)and Banco de Portugal(questions 112 to 114)

    3. review of financial statements prepared by listed entities

      See CMVM (questions 106 to 108)and Banco de Portugal(questions 112 to 114)

    4. enforcement of accounting, reporting and auditing requirements

      See CMVM (questions 106 to 108)and Banco de Portugal(questions 112 to 114)



    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.
      Instituto de Seguros de Portugal (ISP)


    119. What is the source of Legal authority of the regulatory authority(ies)?
      Decree-Law 289/2001, of November, 13 from the Ministry of Finance


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

      No regulation, though they participate with OROC in the development of audit standards related to the insurance sector.

    2. accounting and auditing standard-setting

      ISP issues a standard that requires insurance companies to disclose in schedules certain financial information.

    3. review of financial statements prepared by listed listed entities

      ISP has the ability to review the financial statements of all insurance companies, even those that are listed.

    4. enforcement of accounting, reporting and auditing requirements

      ISP has the ability to judge tha annual accounts of insurance companies and even impose corrections if duly justified. All insurance companies have to be audited by a statutory auditor.



    Section 10G -- Other Regulatory Authority


    121. Name any other regulatory authority(ies) responsible for monitoring compliance with and enforcing accounting, reporting and auditing requirements.
      Tribunal de Contas (Court of Auditors)

      The attributions legally bestowed upon the Tribunal de Contas (Court of Auditors) correspond to the need for auditing public funds, public revenue and expenditure and public assets, with a view to ensuring that exercising the administration of those resources complies with the Legal Order, judging, if necessary, the inherent financial responsibility


    122. What is the source of Legal authority of each regulatory authority?
      Law no. 98/97, of August, 26


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

      N/A

    2. accounting and auditing standard-setting

      N/A

    3. review of financial statements prepared by listed listed entities

      N/A

    4. enforcement of accounting, reporting and auditing requirements

      N/A



    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.

      In 1993, the OROC established a Commission to implement a system of external quality control, the “Comissão do Controlo de Qualidade” (Quality Control Commission - CCQ).

      The peer review system came into force in 1994 and was at first primarily directed towards the audit firms registered with CMVM. With the objective of monitoring the performance of all statutory audits, the external quality control system has subsequently been expanded to al members of the OROC.

      The reviews carried out in 2003 covered 17% of the total registered auditors and has been done by one of 40 reviewers (peer review system), who must have more than 5 years experience in statutory audits.

      After the review, a report is issued by the appointed reviewer and submitted to the CCQ, which informs the Board of the OROC to take the appropriate actions, If any. Copies of the reports issued on listed companies are also addressed to the stock exchange regulator (CMVM).

      The CMVM also has the power to monitor audit firms with listed company clients. However, in practice it is the OROC which carries out the quality control of listed company engagements, and then communicates the results of its work to CMVM.

      All audit engagements of listed companies are to be reviewed every three years and, with respect to the quality control of individual auditors, the periodicity of reviews will aim at covering all auditors within three years.



    125. Under what authority does the organization conduct the program of quality assurance review?
      Art. 68 of the Decree-Law 487/99 of 16/11


    126. Who performs the review (e.g., one firm reviewing another firm, staff from the national professional organization, contractors, or a combination of these)?
      The review is performed by the “Comissão do Controlo de Qualidade” (Quality Control Commission - CCQ). The CCQ have "controladores relatores" (quality controllers) who are experienced auditors that, under the supervision of the CCQ, review single auditors and audit firms in a peer review system.

      The peer review system came into force in 1994 and was at first primarily directed towards the audit firms registered with CMVM. With the objective of monitoring the performance of all statutory audits, the external quality control system has subsequently been expanded to al members of the OROC.




    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 Disciplinary Board that is one of the OROC bodies.

      It is the Disciplinary Board’s responsibility:
      a)To judge, in the first instance, the disciplinary infractions committed by statutory auditors and trainee members;
      b)To express opinions on complaints lodged by companies and other entities to whom the statutory auditors render services, on matters relating to the performance of their work;
      c)To carry out the investigations either expressly stipulated in this enactment or those requested by the OROC’s other bodies;
      d)To propose to the management council the legislative or administrative measures necessary for overcoming loopholes or making pronouncements on matters within its term of reference.



    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?
      5


    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.)?
      They are elected by the members of the Institute.


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


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


    135. For how many years has the body been in existence?
      31 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)

      2,537,398

      Please enter the exchange rate used to calculate this number.

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

      1.1857 (specify currency)



    137. To what entity is the body accountable?
      The Courts


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



     

     

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