Chamber of Auditors of the Czech Republic

In the Czech Republic, responsibility for the quality assurance (QA) review system is shared between the Public Audit Oversight Board (PAOB) and the Chamber of Auditors of the Czech Republic (CACR). PAOB organizes and manages inspections of auditors and audit firms that audit public interest entities, while CACR’s Supervisory Committee conducts QA reviews of auditors and audit firms that do not audit public interest entities.

CACR continues to fulfill its role by maintaining the QA review system within its remit under Act No. 93/2009 Coll. on Auditors, as amended, and its Supervisory Rules. CACR supports implementation through its Quality Control Department, ongoing training of quality inspectors, updates to QA methodology, and member-facing guidance and education on auditing and quality management requirements. CACR also provides technical resources and continuing professional development activities to support firms in implementing and maintaining systems of quality management in line with International Standard on Quality Management 1 and International Standard on Quality Management 2.

Recent jurisdictional developments continue to reflect a shared oversight model, with PAOB overseeing CACR’s activities, reviewing proposed inspection plans, and maintaining responsibility for public interest entity audit inspections under the European Union audit framework. The QA system remains operational for all mandatory audits, with CACR and PAOB continuing to cooperate on implementation and oversight.

CACR continues to maintain an operational QA framework within its remit, support members’ implementation of quality management requirements, and cooperate with PAOB in a manner aligned with the requirements of SMO 1. CACR is encouraged to continue strengthening its cooperation with PAOB, regularly update its QA methodology and inspector training to reflect evolving quality management requirements, and use inspection findings to provide targeted guidance and practical support to firms.

Current Status: Sustain

In the Czech Republic, initial professional development and continuing professional development requirements for statutory auditors are established under Act No. 93/2009 Coll. on Auditors, as amended, and implemented by the Chamber of Auditors of the Czech Republic (CACR) under the oversight of the Public Audit Oversight Board (PAOB). CACR administers the auditor examination process, supports practical training requirements, issues auditor licenses, and monitors compliance with continuing professional development obligations.

CACR continues to support implementation through preparatory materials and examination-related guidance for candidates, professional education activities for auditors and assistant auditors, and a broad training calendar covering audit, accounting, reporting, ethics, technology, and emerging regulatory topics. Recent CACR activities include training and events on consolidated financial statements and their audit, audit finalization and documentation, cryptoassets, environmental, social, and governance reporting, and International Standard on Sustainability Assurance 5000.

Recent developments indicate that CACR continues to update its education program in response to changes in auditing, reporting, sustainability assurance, and broader European Union regulatory requirements. CACR also maintains institutional arrangements for professional education through its Continuous Professional Education Committee and continues to provide e-learning and in-person training to support members’ implementation of new and revised professional requirements.

CACR continues to maintain and support an operational education framework for statutory auditors within its remit and to provide relevant implementation support to members in a manner aligned with the requirements of SMO 2.

CACR is encouraged to continue updating its education, examination, and continuing professional development activities to reflect the latest International Education Standards and emerging competence areas, including sustainability assurance, technology, and quality management, and to maintain clear documentation of how its education framework aligns with SMO 2 requirements.

Current Status: Sustain

In the Czech Republic, responsibility for auditing and assurance standards is delegated to the Chamber of Auditors of the Czech Republic (CACR) under Act No. 93/2009 Coll. on Auditors, as amended, subject to oversight by the Public Audit Oversight Board (PAOB). CACR continues to act as the national standard setter for assurance standards and maintains an ongoing process to adopt, translate, and publish International Auditing and Assurance Standards Board (IAASB) pronouncements for application by statutory auditors.

CACR continues to support implementation through technical publications, practical guidance, member communications, and continuing professional development activities covering new and revised IAASB pronouncements. Recent activities include maintaining updated Czech auditing standards pages, incorporating revisions arising from International Standard on Quality Management 1, International Standard on Quality Management 2, International Standard on Auditing 220 (Revised), International Standard on Auditing 600 (Revised), and the International Standard on Auditing for Audits of Financial Statements of Less Complex Entities (ISA for LCE).

CACR has formally adopted ISA for LCE in Czech translation. The standard is effective for audits of financial statements of less complex entities for accounting periods beginning on or after 15 December 2025 and may be applied only to audits of micro, small, and medium-sized entities as defined by the Accounting Act, provided that the other eligibility requirements in the standard are met. CACR has also issued implementation guidance for ISA for LCE, including practical guidance on auditor reporting and other information in such engagements.

Recent developments continue to reflect the broader European Union and national reporting environment, including changes affecting statutory audit, quality management, group audits, and sustainability-related assurance. CACR has adapted its training and technical support to help members apply new and revised standards and respond to evolving assurance requirements.

CACR continues to maintain an active process for adopting and translating IAASB pronouncements and to provide relevant implementation support to members in a manner aligned with the requirements of SMO 3.

CACR is encouraged to continue timely translation and publication of new and revised IAASB pronouncements, provide targeted implementation support on ISA for LCE and sustainability assurance, and document how member guidance, training, and quality assurance findings inform future implementation activities.

Current Status: Sustain

In the Czech Republic, ethical requirements for statutory auditors are established under Act No. 93/2009 Coll. on Auditors, as amended, and are issued by the Chamber of Auditors of the Czech Republic (CACR) under the oversight of the Public Audit Oversight Board (PAOB), which retains oversight authority over the applicable ethical framework.

CACR continues to maintain an ongoing process to translate, adopt, and incorporate amendments to the International Code of Ethics for Professional Accountants (including International Independence Standards) issued by the International Ethics Standards Board for Accountants. The 2023 version of the Code was adopted in November 2024 and incorporated into the Czech ethical framework for statutory auditors. CACR continues to communicate ethical requirements and related updates to members through technical materials, professional publications, training, and member communications.

CACR supports implementation through ethics and independence training, including e-learning for auditors, assistant auditors, and audit staff. Its education program covers core ethical principles, independence, application of the conceptual framework, personal independence, non-audit services, audit and assurance engagements, and related legislative requirements. CACR also continues to support members in anti-money laundering compliance through its Subcommittee on Anti-Money Laundering and Ethics, including updated methodology issued in response to legislative changes and user feedback.

Recent regulatory developments relating to independence, professional conduct, and anti-money laundering compliance continue to shape CACR’s guidance and training activities. CACR’s updated anti-money laundering methodology, effective from 30 April 2025, supports auditors in establishing and applying internal control and communication procedures to identify, mitigate, and manage money laundering and terrorist financing risks.

CACR continues to maintain an active process for updating the ethical framework and providing implementation support to members in a manner aligned with the requirements of SMO 4.

CACR is encouraged to continue prioritizing timely translation and incorporation of amendments to the Code, maintain targeted ethics and independence training, and use member feedback and regulatory developments to further strengthen practical guidance on independence, non-audit services, and anti-money laundering compliance.

Current Status: Sustain

In the Czech Republic, responsibility for public sector accounting standard-setting remains with the Ministry of Finance (MoF), and the Chamber of Auditors of the Czech Republic (CACR) has no direct legal authority in this area. CACR’s role is therefore focused on using its best endeavors to support awareness, technical discussion, and implementation of public sector reporting developments within its remit.

CACR continues to support this area through its Public Sector Committee, which addresses matters specific to public sector entities, contributes views on draft regulations, participates in the development of auditing standards and methodology manuals relevant to the public sector, and collaborates in preparing educational projects for auditors. CACR also maintains cooperation with government institutions and professional stakeholders, including through its broader role as a member of the National Accounting Board.

CACR continues to provide implementation support through professional publications, member communications, technical materials, and education activities for auditors who provide services to public sector entities. These activities help maintain awareness of International Public Sector Accounting Standards (IPSAS) and broader public sector reporting developments among members, even though CACR does not set public sector accounting standards.

At the jurisdiction level, the Czech Republic continues to apply accrual-based national public sector accounting standards with reference to IPSAS rather than adopting IPSAS directly. This context continues to shape CACR’s fulfillment activities, which remain focused on advocacy, awareness-raising, technical input, and support for members within its remit.

CACR continues to undertake relevant advocacy and implementation support activities and remains an active stakeholder in promoting IPSAS-related developments in a manner aligned with the requirements of SMO 5.

CACR is encouraged to continue engaging with the MoF, the Supreme Audit Office, and other public sector stakeholders to promote further alignment with IPSAS, document its advocacy and technical input, and expand practical guidance and training for auditors involved in public sector engagements.

Current Status: Sustain

In the Czech Republic, the investigative and disciplinary (I&D) system for statutory auditors operates under Act No. 93/2009 Coll. on Auditors, as amended, on a shared basis between the Chamber of Auditors of the Czech Republic (CACR) and the Public Audit Oversight Board (PAOB). Within CACR, the Supervisory Committee oversees investigations, quality-related referrals, and compliance monitoring, while the Disciplinary Committee conducts disciplinary proceedings and may impose sanctions under the Act and CACR’s disciplinary rules. PAOB exercises public oversight and acts as the appellate body in specified cases.

CACR continues to maintain an operational enforcement framework through its internal governance structure, disciplinary procedures, and oversight of auditors’ compliance with legal, professional, and internal requirements. CACR’s Supervisory Committee has 11 members and monitors the quality of auditors’ work and compliance with the Act on Auditors and CACR regulations, while the seven-member Disciplinary Committee rules on breaches of duties and may impose disciplinary sanctions.

Recent jurisdictional developments continue to reflect the shared enforcement model established under the Act on Auditors, with PAOB maintaining its role as the independent public oversight authority and publishing annual reports on public oversight of auditing in the Czech Republic. The existing framework also links oversight, quality assurance findings, and disciplinary follow-up, supporting the continued operation of the I&D system within CACR’s remit.

CACR continues to maintain an operational I&D framework, cooperate with PAOB, and support enforcement of professional requirements in a manner aligned with the requirements of SMO 6.

CACR is encouraged to continue documenting outcomes of investigative and disciplinary activities, maintain strong cooperation with PAOB, and consider opportunities to further strengthen public-interest safeguards, including broader non-practitioner input into disciplinary decision-making where feasible.

Current Status: Sustain

In the Czech Republic, responsibility for accounting standard-setting rests with the Ministry of Finance (MoF), and the Chamber of Auditors of the Czech Republic (CACR) has no direct standard-setting authority in this area. CACR nevertheless supports implementation of International Financial Reporting Standards (IFRS) and broader corporate reporting requirements through training, technical updates, publications, and participation in national accounting discussions.

CACR continues to provide implementation support to members through its professional education program and technical publications, including activities focused on accounting and reporting developments relevant to auditors. Recent support has included training and methodological activities related to financial reporting, consolidated financial statements, sustainability reporting, and anticipated changes arising from the proposed new Accounting Act.

Recent jurisdictional developments continue to affect CACR’s fulfillment of SMO 7. In March 2026, the proposed new Accounting Act passed first reading in the Chamber of Deputies. The Ministry of Finance indicates that the reform is intended to modernize the 1991 accounting framework, strengthen the quality and comparability of accounting information, allow wider use of international accounting standards, and reduce administrative burden. CACR has also remained engaged in national standard-setting discussions, including through its participation in the National Accounting Board.

CACR continues to provide relevant implementation support, professional education, and stakeholder engagement in relation to IFRS and broader accounting developments in a manner aligned with the requirements of SMO 7.

CACR is encouraged to continue engaging with the MoF and the National Accounting Board on the proposed new Accounting Act, expand practical guidance and training on IFRS and sustainability-related reporting developments, and document its advocacy and implementation-support activities to demonstrate continued alignment with SMO 7.

Current Status: Sustain