Ordem dos Revisores Oficiais de Contas
Member | Established: 1974 | Member since 1985
The Ordem dos Revisores Oficials de Contas (OROC), established in 1974 by Ministerial Order 83/74 of February 6, is the mandatory professional accountancy organization for statutory auditors, Revisores Oficiais de Contas, and statutory audit firms (Sociedades de Revisores Oficiais de Contas). The OROC’s mandate includes: regulation of audit-related activities; promotion of the interests of the profession; establishment of ethical, auditing, and other professional standards; administration of the initial professional development and continuous professional development programs for auditors; ensuring members adhere to applicable ethical and technical standards; and the investigation and discipline of its members for failure to exercise and maintain professional standards. OROC is a member of the Fédération des Experts-Comptables Europeéns. As January 2016, the Decree Law No. 148/2015 grants authority to Comissão do Mercado de Valores Mobiliários to oversee the audit profession and the regulatory activities that OROC members carry out.
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.
The OROC, under the oversight of the public oversight authority, Conselho Nacional de Supervisão de Auditoria, is responsible for the implementation of the quality assurance (QA) review system, which is a well-established system that is aligned with the requirements of SMO 1. The institute prepared an inspection manual to guide the review process and has a mandatory annual training program for reviewers. The OROC supports members by offering courses on effective quality control systems and provides mandatory training on ISQC 1. As of 2015, it has been reviewing the current quality control regulations to bring them in line with the new European Union’s Audit Directives. With the introduction of the new audit oversight regime in January 2016, OROC is no longer responsible for the QA review system, although it will continue to conduct the reviews for non-PIEs. For the 2015 cycle, no changes in the established processes were expected.
During the next round of updates, OROC is encouraged to provide an update on the new QA review system and ensure that the resulting QA system is aligned with the requirements of SMO 1.
The OROC, which shares responsibility for providing Initial professional development (IPD) and continuous professional development (CPD) for auditors, reports that it maintains an ongoing process to monitor new and revised standards and other pronouncements issued by the IAESB. The OROC focuses on strengthening its CPD program through the provision of relevant courses for its members and monitoring compliance with the CPD requirements.
The OROC is encouraged to compare the existing IPD and CPD system for professional accountants in Portugal with the requirements of the revised IES, and report to IFAC’s Q&M staff on the extent of compliance. If gaps are identified, the OROC should consider how it can best align its practices with IES. Given that the OROC shares responsibility for the area at the jurisdiction level, it needs to promote IES to the other parties involved in the process and to raise awareness of its members and other stakeholders about new revised and proposed standards, as well as other pronouncements issued by the IAESB. Also, the OROC is encouraged to provide access to translated IES to members and relevant stakeholders and consider participating in the international standard-setting process by providing comments on IAESB Exposure Drafts and other pronouncements.
OROC, under the oversight of the Public Oversight Authority, Conselho Nacional de Supervisão de Auditoria, is responsible for establishing auditing standards in the jurisdiction and supports convergence of national auditing standards with ISA. Although based on ISA, Portuguese standards differed from their international counterparts. Effective January 2016, under the new legal regime for auditing and audit oversight, ISA will become mandatory in Portugal. The OROC translates ISA and makes them available to members. In addition, it informs members about the implementation of IAASB pronouncements by providing training and disseminating information on the latest developments in international standard setting through its website, internal newsletter, and a web-based Auditors’ Manual. The OROC liaises with universities to promote inclusion of ISA-related updates in university curricula. In addition, the OROC provides education and training sessions on ISA to support implementation and monitors compliance with ISA through the QA review system.
During the next round of updates, the OROC is encouraged to share with IFAC’s Q&M staff information on the status of ISA adoption and implementation in the jurisdiction. Also, the OROC is encouraged to consider participating in the international standard-setting process by providing comments on IAASB Exposure Drafts and other pronouncements.
In 2011, the OROC, which shares responsibility for the adoption and implementation of ethical standards for the auditing profession, adopted a Code of Ethics for its members. The Code was adjusted to be in line with the relevant parts of the 2009 IESBA Code of Ethics although not all of the IESBA requirements were incorporated in the OROC’s Code. The OROC reports that it intends to review its Code of Ethics in 2016 against the requirements of the new European Union’s Audit Directives and the latest IESBA Code.
To assist OROC members with the application of the existing Code, the OROC established its Ethics Committee in 2009, which meets regularly to consult with the members. The new Code of Ethics was integrated into the exams that must be taken to access the profession, and training courses on the Code of Ethics are being considered for 2016.
The OROC is encouraged to bring its Code of Ethics fully in line with the requirements of the IESBA Code. During the next round of updates, the OROC is also encouraged to showcase in its SMO Action Plan its activities to support members with the implementation of the existing Code, including education and training opportunities that it provides to its members on ethics-related topics. Also, the OROC is encouraged to consider translating the IESBA’s Code of Ethics and providing member access to the translation, and to disseminate updates on IESBA pronouncements on an ongoing basis in line with IFAC’s Translations and Reproductions policy. The OROC is also encouraged to consider participating in the international standard-setting process by providing comments on IESBA Exposure Drafts.
The OROC has with no responsibility for the adoption of public sector accounting standards, but it reports that it promotes the adoption of IPSAS in the jurisdiction and actively participates in the development of national public sector accounting standards as a member of the Comissão de Normalização Contabilística, the accounting standard setter in Portugal. The OROC also provides updates on IPSAS on its website, translated the 2012 Handbook of International Public Sector Accounting Pronouncements, and offers IPSAS workshops and other training opportunities.
The OROC is encouraged to showcase the specific activities that it conducts to promote the convergence of national public sector accounting standards with IPSAS in Portugal, as well as those it undertakes to support proper understanding and implementation of the standards.
The OROC is responsible for implementing an investigative and disciplinary (I&D) system for its members under the oversight of the public oversight authority, Conselho Nacional de Supervisão de Auditoria. To that end, it focuses on ensuring that members are informed about the requirements of the I&D system and the rules of professional conduct. The OROC has conducted a self-assessment against the requirements of SMO 6 and found that its I&D system is compliant with many, but not all, of SMO 6 requirements.
With the adoption of Law No. 148/2015, Approving the Legal Regime on Statutory Audits Supervision, the Comissão do Mercado de Valores Mobiliários assumes the responsibility for the I&D system of the audit profession. OROC’s role in the future system needs to be clarified.
During the next round of updates, the OROC is encouraged to share with IFAC’s Q&M staff the new arrangement for the I&D of auditors and to indicate whether it has plans for fully aligning the I&D system with SMO 6. It should also aim to ensure that the new system is in line with SMO 6 requirements.
The OROC has no direct responsibility for private sector accounting standards, but reports that it takes an active role in the activities of the accounting standard setter, the Comissão de Normalização Contabilística (CNC), and is using, whenever possible and appropriate, its best endeavors to assist the CNC with the implementation of IFRS in Portugal and to promote ongoing convergence with IFRS. The OROC states that it raises awareness of the requirements of the adopted EU-endorsed IFRS by notifying members of new developments related to the standards and offering IFRS courses in its annual Initial professional development and continuous professional development educational programs.
The OROC is encouraged to consider indicating specific actions for the activities identified above.
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