FSR - danske revisorer
Member | Established: 1912 (merger in 2011 between the former institutes FSR, FRR and REVIFORA) | Member since 1977
The FSR–Danish Auditors (FSR) is the Danish umbrella trade organization for auditing (including audit firms), accounting, tax, and corporate finance professionals working predominantly in public practice, business, and industry, with a very small percentage working in the public sector. The FSR was established in 1912. In 2011, three audit institutes—the FSR (chartered accountants), the FRR (Danish Institute of Certified Public Accountants), and the REVIFORA (association for younger accountants or trainees)—merged into one association under the FSR name. The FSR is the only professional accountancy organization in Denmark. It has both corporate and individual types of membership, with more than 700 public accounting firms as members. Auditors in Denmark are not mandated to be members of the FSR, but the vast majority of State Authorized Public Accountants and Registered Public Accountants in public practice are voluntary members.
Statements of Membership Obligations (SMOs)
The Statements of Membership Obligations form the basis of the IFAC Member Compliance Program. They serve as a framework for credible and high-quality professional accountancy organizations focused on serving the public interest by adopting, or otherwise incorporating, and supporting implementation of international standards and maintaining adequate enforcement mechanisms to ensure the professional behavior of their individual members.
Having no direct responsibility for quality assurance (QA), the FSR supports the designated authority, the Danish Business Authority (DBA), in implementing a mandatory QA review system for all auditors, which is compliant with the requirements of SMO 1. The FSR focuses its activities on training QA inspectors and its members. The FSR also provides advice to the DBA on how to improve its QA review system. The FSR operates an annual technical training program for inspectors from the Danish Supervisory Authority on Auditing on how to conduct QA reviews. It assists members in complying with applicable auditing and quality control standards through the provision of technical information that addresses the most significant issues or areas of weakness identified during QA reviews. The FSR also provides guidance to members in its newsletter on lessons learned from the findings of QA reviews.
To serve the public interest, the FSR’s internal regulations require members to self-report on their website and in their annual financial statements if findings of non-compliance resulted in a referral to the Auditor’s Tribunal.
The FSR, which has no responsibility for the adoption of IESs in Denmark, promotes and supports the adoption of IES and other IAESB requirements to the government, business schools, and universities. It maintains good relationships with the various bodies that are involved in the education of members of the profession, and is actively engaged in the design of the new education system for State Authorized Public Accountants. The FSR assists with the implementation of an IES-compliant framework through its focus on education and training of candidates and continuing professional development (CPD). It coordinates and provides practical teaching for students and is in the process of liaising with the Danish Financial Supervisory Authority on strengthened CPD requirements for auditors of financial institutions. The FSR stays abreast of revised standards issued by the IAESB and revises its plans to promote, incorporate, and implement the changes.
With ISAs adopted in Denmark by law in 2000, the main focus of the FSR is now to maintain an ongoing process to consider and adopt new ISAs and to assist its members with the implementation support. The FSR has an extensive training program for facilitating proper implementation of the standards. The FSR’s Auditing Standards Committee is heavily involved in commenting on IAASB Exposure Drafts and also hosts relevant seminars to update members and stakeholders on ISA developments and changes.
The Danish Business Authority is responsible for the adoption of the ethical requirements in Denmark but has delegated to the FSR the authority to set ethical requirements for its members. The FSR translated and published the IESBA 2013 revisions to the Code in October 2014. The FSR supports implementation and raises awareness of the requirements of the Code of Ethics through translation activities and delivery of continuing professional development courses on the topic. Promoting the Code of Ethics and good ethical behavior as a competitive advantage for state authorized and registered public accountants was the main theme of the FSR’s annual strategy symposium in September 2015.
The FSR supports the adoption of IPSASs in Denmark through its participation in the Central Government Accounts Council, which monitors and discusses IPSAS-related issues. It continues to have dialogue with key government bodies such as the Economy Board of the Ministry of Finance and the Supreme Audit Court. The FSR also participates in discussions and consultations conducted by the Public Sector Committee of the Fédération des Experts-comptables Européens.
The FSR continuously seeks to improve awareness among members, students, and public authorities on best practice for accounting and auditing in the public sector to improve awareness of IPSAS. An after-work seminar for graduate students on public sector accounting and auditing was planned for April 2016.
With shared responsibility for investigating and disciplining its members, the FSR continues to support compliance of the investigative and disciplinary (I&D) system with the revised SMO 6 by ensuring that its membership requirements are aligned with SMO 6 and promoting the requirements to the regulator. It liaises with representatives of the Auditors’ Tribunal, the body responsible for the I&D system, and other relevant enforcement bodies to identify areas of improvement for the I&D system and to promote implementation of those improvements.
FSR members who are not auditors are not subject to the Auditors’ Tribunal’s I&D procedures. The FSR’s by-laws (articles of association) also cover ethical behavior and compliance among non-auditors. The FSR continuously comments on I&D decisions in newsletters to members to raise awareness about behaviors that do not comply with current standards.
The FSR is de facto the accounting standard setter in Denmark. It maintains ongoing dialogue with the Danish Business Authority and the Danish Financial Supervisory Authority and provides input on the endorsement and implementation of IFRS. The Danish Accounting Standards Committee (DASC) provides technical guidance on IFRS and participates in the international standard-setting process by providing comments on Exposure Drafts and Discussion Papers issued by the IASB and the European Financial Reporting Advisory Group. The DASC also provides technical information on current accounting issues to FSR members. Since 2007, the DASC has been developing non-mandatory guidance and standards on IFRS application for companies of all sizes in Denmark.
The FSR supports implementation of IFRSs by providing up-to-date courses and conferences on new and revised IFRS and Interpretations. It raises awareness of updates and international developments on standard-related topics through publications on its website.
The FSR is encouraged to develop specific plans to promote and support the full adoption of IFRS and IFRS for SME in the jurisdiction.
IFAC bears no responsibility for the information provided in the SMO Action Plans prepared by IFAC member organizations. Please see our full Disclaimer for additional information.