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.

     

    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:

      Luxembourg


    2. Name of member body:

      Or please specify name:



    3. Individual responsible for preparation:
      Michel Guay


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

      07 / 1995



    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: Law of August 10, 1915, as amended, regarding commercial companies
      b). the Enacting body: Ministry of Justice
      c). date the Act or Code came into force: 10 / 1915


    25. How can IFAC obtain a copy of the Act or Code?
      The act may be downloaded from the web site: www.legilux.lu.


    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): Refer to the IRE Attachment for additional and specific information.
      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 Annual accounts based on Lux GAAP. For additional information on other entities, please see the IRE Attachment.
      Private companies Annual accounts based on Lux GAAP. For additional information on other entities, please see the IRE Attachment.
      Governmental
      Not-for-profit
      Other (please describe) Refer to the IRE Attachment for additional information
      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 Listed entities and companies operating within the financial or insurance sectors must be audited. Other entities must be audited if they meet size criteria. Audits are performed under LUX GAAS (currently ISA standards). For additional information on other entities, please see the IRE Attachment.
      Private companies Companies operating within the financial or insurance sectors must be audited. Other entities must be audited if they meet size criteria. Audits are performed under LUX GAAS (currently ISA standards). Audits are performed under LUX GAAS (currently ISA). For additional information on other entities, please see the IRE Attachment
      Governmental
      Not-for-profit
      Other (please describe) Refer to the IRE Attachment for additional information
      Other (please describe) Refer to the IRE Attachment for additional information


    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: 1 Year(s)


    31. Who appoints the statutory auditors?
      Please check all that apply.
      Shareholders   Management
      Board of directors   Other (please specify): General assembly except for credit institutions (see below)
      Audit committee   Other (please specify): Credit Institutions: auditors are appointed by the Board of Directors
      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:
      The Act does not require the rotation of the auditors. We draw your attention to the revision of the 8th EU Directive which, when enacted into Luxembourg law, will request rotation of the auditors.



    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

    2. the Enacting body(ies)

    3. the latest amendment date?

      See 34a


    35. How can IFAC obtain a copy of the Legal authority?


    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:
      Listed Companies shall publish a half-yearly report of their activities and profits and losses for the first six months of each financial year.


    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:


    39. Who appoints the statutory auditors of listed entities?
      Please check all that apply.
      Shareholders   Management
      Board of directors   Other (please specify): Registered Auditors are appointed for a period of 1 year by the general assembly. The appointment/dismissal of a registered auditor must receive prior consent from the related supervisory body.
      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: 1 Year(s)


    41. Are joint auditors required for audits of listed entities?
      Yes   No
      If YES, please describe the requirement:
      There is no such requirement.


    42. Is rotation of the auditor or audit firm for audits of listed entities required?
      Yes   No
      If YES, please describe the requirement:
      The Act does not require internal nor external rotation of the auditors. We draw your attention to the revision of the 8th EU Directive which, when enacted into Luxembourg law, will request internal rotation.



    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 Article 22 of the law (that establishes registered auditors) of June 28, 1984, as amended - refer attachment for additional information.
      Other (please describe) Any entities Article 22 of the law (that establishes registered auditors) of June 28, 1984, as amended - refer attachment for additional information.
      Other (please describe)
      Other (please describe)

      a. How can IFAC obtain copies of these documents?

      The law stated above, available only in French, may be downloaded from the Institute website: www.ire.lu.

      b. Are the documents available in English?
      Yes   No


    Section 5B -- Standard-Setting (Institut des Rviseurs d'Entreprises)


    44. For Institut des Rviseurs d'Entreprises, 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



      b. Name of standards

      The Institute General Assembly has enacted the International Standards on Auditing as the standards to be followed to perform an audit in Luxembourg.

      To be enforceable a standard must be voted by the general assemble of the Institute.


    45. How many voting members does the standard-setting body have?
      To be enforceable a standard must be voted by the General Assembly of the Institute.


    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: Members of working groups/Council are involved on a voluntary basis. They are assisted by a General Secretary (part time employee) and a Technical Director (full time employee).


    47. What are the criteria considered in selecting members of the standard-setting body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?
      Best person for the job.


    48. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      The Institute Council appoints the members of working groups. Council members are elected by the General Assembly.

      With respect to question 50, IRE has been in existence since the enactment of the 1984 law stated above.


    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?
      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)

      Not separately allocated.

      Please enter the exchange rate used to calculate this number.

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

      Not applicable



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


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



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

      Refer question 53a above.

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

      All standards must be adopted by the Institute General Assembly to be valid.

    4. other relevant due process activities

      Pending the enactment of the revised 8th EU Directive into national law, this process may incur some changes.

      Question 54 with respect to the number of days the body meets is not relevant in the case of the process described above.


    54. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      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 Law of June 28, 1984 as amended
      Professional Accountants in Business N/A
      Professional Accountants in the Public Sector N/A
      Other (please describe)

      a. How can IFAC obtain copies of these documents?

      The law stated above, available only in French, may be downloaded from the Institute website: www.ire.lu.

      The Institute has adopted the IFAC Code of Ethic adjusted for national legislation and the EU recommendation on auditor independence when requirements of the latter are more stringent.

      The Code of Ethics as amended for national needs is available in English (upon request to the Institute).


      b. Are the documents available in English?
      Yes   No


    Section 6B -- Standard-Setting (Institut des Rviseurs d'Entreprises)


    56. For Institut des Rviseurs d'Entreprises, 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



      b. Name of standards

      The Institute has adopted the IFAC Code of Ethic adjusted for national legislation and the EU recommendation on auditor independence when requirements of the latter are more stringent.


    57. How many voting members does the standard-setting body have?
      Refer to Section 5B with respect to the General Assembly.


    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: Refer to Section 5B with respect to the General Assembly.


    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.)?
      Refer to Section 5B with respect to the General Assembly.


    60. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      Refer to Section 5B with respect to the General Assembly.

      With respect to question 50, IRE has been in existence since the enactment of the 1984 law stated above.


    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?
      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)

      Not separately allocated from the overall budget.

      Please enter the exchange rate used to calculate this number.

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

      Not applicable



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


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

      Refer to Section 5B with respect to the General Assembly.

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

      Refer to Section 5B with respect to the General Assembly.

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

      Refer to Section 5B with respect to the General Assembly.

    4. other relevant due process activities

      Refer to Section 5B with respect to the General Assembly.


    66. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      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:
      Responses to this section are limited to the education requirements to become a registered auditor.


    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.



    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
      Full four year university cycle
      Professional examinations
      See Practical Experience below
      Practical experience
      Final qualifying examination
      Other (please describe) Adequate resources
      Additional information is also available on the IRE website (http://www.ire.lu).


    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 Ministry of Justice establishes education requirements for the auditing profession with no additional requirements set by the member body(ies). Those requirements must meet at least the requirements stated in the 8th EU Directive.

    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.

      Not applicable.

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

      Not applicable.

    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: Not applicable

    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?
      Contact the IRE for additional information or refer to the IRE website.

      Note: The summary of the requirements are available in English on the IRE website.

    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) The final examination is delivered by the Ministry


    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?


    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?


    81. Describe any additional licensing requirements for auditors of listed entities (e.g., additional education requirements, registration, etc.).



    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 The public sector accounting requirements are determined by law and regulations.
      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?



      b. Are the documents available in English?
      Yes   No



    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) Private sector Refer response to 95b for Ministry of Justice Ministry of Justice
      Other (please describe) Financial sector Refer 95b for Commission de Surveillance du Secteur Financier Commission de Surveillance du Secteur Financier
      Other (please describe) Insurance sector Refer 95b for Commissariat aux Assurances Commissariat aux Assurances
      Other (please describe)

      a. How can IFAC obtain copies of these documents?

      Refer 95b for the relevant body responsible for setting accounting standards.

      b. Are the documents available in English?
      Yes   No


    Section 9B -- Standard-Setting (Ministry of Justice)


    95. For Ministry of Justice, 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 Ministry of Justice is responsible for setting accounting standards with regards to the private sector.

      Experts from the legal, auditing, accounting professions and representative of the business and the tax authorities are invited to discuss developments in a committee. This committee has an advisory role to the Ministry of Justice. Members of this committee are named by the Minister of Justice on the basis of the best person for the job.


      b. Name of standards



    96. How many voting members does the standard-setting body have?
      Questions 96 to 105 relating to the Ministry of Justice are not applicable.


    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 (Commission de Surveillance du Secteur Financier)


    95. For Commission de Surveillance du Secteur Financier, 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 Commission de Surveillance du Secteur Financier is responsible with regards to the financial sector and for additional requirements with regards to listed entities (agency appointed by government). This agency reports to the Ministry of Finance. Experts from the legal, auditing, accounting professions and representative of the business are invited to discuss developments in committees. These committees have an advisory role to the government agency. Members of those committees are named by the agency on the basis of the best person for the job.

      b. Name of standards



    96. How many voting members does the standard-setting body have?
      Questions 96 to 105 are not applicable.


    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 (Commissariat aux Assurances)


    95. For Commissariat aux Assurances, 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 Commissariat aux Assurances is responsible with regards to the Insurance Sector (agency appointed by government). This agency reports to the Ministry of Finance. Experts from the auditing profession and representative of the business are invited to discuss developments in a committee. This committee has an advisory role to the government agency. Members of this committees are named by the agency on the basis of the best person for the job.

      b. Name of standards



    96. How many voting members does the standard-setting body have?
      Questions 96 to 105 are not applicable.


    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 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:
      Commission de Surveillance du Sector Financier


    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:
      Refer to questions 34 and 94.


    108. 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

      With regards to accounting, please refer to 95. With regards to auditing standards, please refer to sections 5 and 6.

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

      Commission de Surveillance du Secteur Financier has delegated to the Bourse de Luxembourg the above stated tasks with the exception of the financial and insurance sectors whereby controls are performed by the related supervisory body.



    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
      Bourse de Luxembourg



    Section 10B -- Stock Exchange
    Bourse de Luxembourg Details


    110. For Bourse de Luxembourg, 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 Bourse de Luxembourg is organized as a public company limited by shares. Commission de Surveillance du Secteur Financier has delegated to the Bourse de Luxembourg the above stated tasks with the exception of the financial and insurance sectors whereby controls are performed by the related supervisory body.

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



    3. How enforcement actions are administered.




    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?

      Once the revised 8th EU Directive will be enacted into Luxembourg Law, there will be a regulatory oversight of the profession.

    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 de Surveillance du Secteur Financier


    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 laws mentioned in question 94 monitors the accounting standards within the financial sector. As stated earlier, auditing standards are currently under the responsibility of the Institute of Registered Auditors (IRE). The supervisory body may, either by law or regulation, enlarge the scope of an audit (for example: the preparation or a long form report).


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

      The regulatory authority may extend the scope of an audit. Auditing standards remain within the Institute.

    2. accounting and auditing standard-setting

      See a) above with regards to auditing standards. For accounting standards see question 95.

    3. review of financial statements prepared by listed entities

      The supervisory body will review compliance of financial statements for all companies falling within its sector of activities.

    4. enforcement of accounting, reporting and auditing requirements

      See c) above.



    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.
      Commission de Surveillance du Secteur Financier. Refer to section 10D for the remaining question on this section.


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


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



    2. accounting and auditing standard-setting



    3. review of financial statements prepared by listed entities



    4. enforcement of accounting, reporting and auditing requirements




    Section 10F -- Insurance Companies Regulatory Authority


    118. Name the regulatory authority responsible for monitoring compliance with and enforcing accounting, reporting and auditing requirements imposed on insurance companies.
      Commissariat aux Assurances


    119. What is the source of Legal authority of the regulatory authority(ies)?
      The laws mentioned in question 94 monitors the accounting standards within the insurance sector. As stated earlier, auditing standards are currently under the responsibility of the Institute of registered auditors. The supervisory body may, either by law or regulation, enlarge the scope of an audit (for exemple: the preparation or a long form report).


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

      The regulatory authority may extend the scope of an audit. Auditing standards remain within the Institute.

    2. accounting and auditing standard-setting

      See a) above with regards to auditing standards. For accounting standards see question 95.

    3. review of financial statements prepared by listed listed entities

      The supervisory body will review compliance of financial statements for all companies falling within its sector of activities.

    4. enforcement of accounting, reporting and auditing requirements

      See c) above.



    Section 10G -- Other Regulatory Authority


    121. Name any other regulatory authority(ies) responsible for monitoring compliance with and enforcing accounting, reporting and auditing requirements.
      There are no other regulatory authorities.


    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.

      Refer to the Attachment for additional information about the quality assurance system carried out by the IRE.



    125. Under what authority does the organization conduct the program of quality assurance review?
      The amended law of June 28, 1984 organizing the auditing profession provides the legal basis.


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




    Section 10 I -- Investigation and Discipline


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

    128. Which of the following best describes the responsibility for the investigatory and disciplinary function in your country?
      Government or other agencies are solely responsible for this function.
      Government or other agencies have this responsibility, but the member body or bodies participate in the process.
      Government formally delegates this function to the member body or bodies, to exercise on its behalf.
      Member body or bodies have separate and independent processes that operate alongside processes of legal authorities.
      Other (please explain)


    129. Please indicate the name of the body or bodies responsible for investigation and discipline.
      There is a process for investigating and disciplining the auditing profession in Luxembourg.

      The law of June 28, 1984, as amended, organizing the auditing profession provide the framework for the investigatory and disciplinary functions in Luxembourg.

      The Institute President has the responsibility to conduct an instruction and should the investigation being conclusive to present it to the disciplinary Council.

      The Institute President may open an instruction following a complaint or on his own initiative. However, he is required to present to the disciplinary Council any investigation he has performed upon instruction from the Public Prosecutor.

      The Disciplinary Council comprises 5 members each member having one voting right. The Disciplinary Council is chaired by the President of the Luxembourg district Court and assisted by 4 registered auditors and members of the Institute Council.

      The possible sanctions are warning, reprimand, fine, suspension of voting rights (maximum six years), suspension, and exclusion.



    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?
      Refer response to question 129


    131. Are the members of the body involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe: Refer response to question 129


    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.)?
      Refer response to question 129.


    133. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      Refer response to question 129. For question 134, There is no term for the Chairman (by law it is the President of the Luxembourg district Court). The remaining members of the Disciplinary Council have a three year term.


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


    135. For how many years has the body been in existence?
      21 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)

      Not separately allocated.

      Please enter the exchange rate used to calculate this number.

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

      (specify currency)



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


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



     

     

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    * Indicates organizations that qualify to submit SMO Action Plans biennially

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