Chamber of Auditors of the Czech Republic

In the Czech Republic, responsibility for the quality assurance (QA) review system continues to be shared between the Public Audit Oversight Board (PAOB) and the Chamber of Auditors of the Czech Republic (CACR). PAOB carries out inspections of auditors and audit firms that perform at least one statutory audit of a public interest entity, while CACR remains responsible for QA reviews of non-public interest entity audits. CACR continues to report that the system is aligned with Statement of Membership Obligations 1 (SMO 1) and the European Union statutory audit framework.

CACR continues to support implementation through ongoing updates to its QA methodology, training of inspectors, and member-facing guidance and educational activities. Since the adoption of International Standard on Quality Management 1 and International Standard on Quality Management 2, CACR has updated its QA review program, trained quality inspectors on the revised standards, and translated implementation materials issued by the International Auditing and Assurance Standards Board. CACR also continues to publish annual and periodic materials highlighting inspection findings and practical issues identified in reviews, and it provides seminars and other continuing professional development activities to support firms in strengthening their systems of quality management.

Recent jurisdictional developments continue to affect the operation of the QA system. Publicly available information indicates that the broader Czech audit framework remains subject to ongoing legislative and supervisory developments, including implementation of new and revised audit-related requirements and continuing cooperation between CACR and PAOB on oversight activities. PAOB continues to maintain its role as the competent authority for public interest entity audit inspections under the European Union framework.

CACR continues to maintain an operational QA framework within its remit, support implementation of quality management standards, and cooperate actively with PAOB in a manner that is aligned with the relevant SMO 1 requirements. Accordingly, CACR’s fulfillment of SMO 1 is assessed as Sustain.

Current Status: Sustain

In the Czech Republic, initial professional and continuing professional development requirements for statutory auditors continue to be 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 continues to administer the professional examination system, support practical training requirements, and monitor compliance with continuing professional development obligations.

CACR continues to support implementation through preparatory courses for candidates, administration of the audit examination process, and a broad calendar of continuing professional development activities for auditors and assistant auditors. Publicly available information indicates that CACR continues to offer courses linked both to the professional examination process and to ongoing technical developments affecting practice, including auditing, reporting, information technology, and emerging areas such as sustainability reporting and assurance. CACR also maintains institutional arrangements for professional education through its Continuous Professional Education Committee.

Recent developments indicate that CACR continues to update its education and training activities in line with changes in professional standards and regulatory requirements. Its current training program includes offerings related to environmental, social, and governance reporting, sustainability assurance, and the implementation of new audit and accounting requirements, which supports members’ ability to respond to evolving professional expectations.

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. Accordingly, CACR’s fulfillment of SMO 2 is assessed as Sustain.

Current Status: Sustain

In the Czech Republic, responsibility for auditing standards continues to be 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 maintain an ongoing process to translate, adopt, and publish International Standards on Auditing (ISA) and related pronouncements issued by the International Auditing and Assurance Standards Board (IAASB). Publicly available CACR materials indicate that the 2022 IAASB Handbook remains the baseline for the Czech translation framework, with subsequent revisions incorporated, including ISA 220 (Revised), ISA 600 (Revised), and the International Standard on Auditing for Audits of Financial Statements of Less Complex Entities (ISA for LCE).

CACR continues to support implementation through training, publications, and practical guidance for members. Its current education program includes courses and workshops on specific ISA requirements and recent revisions, including risk assessment under ISA 315 (Revised 2019), group audits under ISA 600 (Revised), auditor reporting, and related audit methodology topics. CACR also maintains a broad annual training calendar and continues to publish technical and professional materials for auditors through its website and professional magazine.

Recent regulatory and professional developments continue to affect CACR’s fulfillment of Statement of Membership Obligations 3 (SMO 3). In particular, CACR’s education and implementation support now also reflects evolving assurance and reporting requirements, including sustainability-related engagements and legislative developments affecting the audit profession. CACR has also adapted its training priorities in response to changes in the broader European Union reporting environment.

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. Accordingly, CACR’s fulfillment of SMO 3 is assessed as Sustain.

Current Status: Sustain

In the Czech Republic, ethical requirements for statutory auditors continue to be 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 final 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 (IESBA). Recent IFAC and CACR information confirms that the 2023 version of the Code was adopted in November 2024 and incorporated into the Czech ethical framework for statutory auditors. CACR continues to translate amendments and communicate updates to members on an ongoing basis.

CACR continues to support implementation through technical publications, professional training, conferences, and regular member communications. Publicly available information indicates that ethics-related training remains part of CACR’s annual professional education program, including dedicated sessions on independence, professional conduct, anti-money laundering obligations, and related compliance matters. The Subcommittee on anti-money laundering (AML) and Ethics established within CACR’s regulatory and professional development structure continues to support implementation and guidance activities.

Recent regulatory developments, including enhanced European Union and national requirements relating to ethics, independence, and AML compliance, continue to shape CACR’s support activities and member guidance.

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. Accordingly, CACR’s fulfillment of SMO 4 is assessed as Sustain.

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. Nevertheless, CACR continues to support implementation of public sector reporting requirements through its Public Sector Committee and through technical activities aimed at members who provide services to public sector entities. Publicly available IFAC information continues to indicate that CACR promotes awareness of International Public Sector Accounting Standards (IPSAS) developments and engages with relevant stakeholders in the jurisdiction.

CACR continues to provide implementation support through professional publications, member communications, and education activities. Its SMO Action Plan indicates ongoing cooperation with public sector stakeholders, including the Supreme Audit Office (SAO), and continued participation of public sector specialists in its committee structure, including members connected to the MoF. These activities support CACR’s advocacy role and help maintain awareness of IPSAS and broader public sector reporting developments among members.

At the jurisdiction level, recent publicly available information continues to show that the Czech Republic applies accrual-based national public sector accounting standards with reference to IPSAS rather than adopting IPSAS directly. The International Public Sector Financial Accountability Index continues to classify the Czech Republic as using national accrual standards with reference to IPSAS. This context continues to shape CACR’s role, which is focused on advocacy, awareness-raising, and technical support rather than direct standard-setting.

CACR continues to undertake relevant advocacy and implementation support activities within its remit and remains an active stakeholder in promoting IPSAS-related developments in a manner aligned with the requirements of SMO 5. Accordingly, CACR’s fulfillment of SMO 5 is assessed as Sustain.

Current Status: Sustain

In the Czech Republic, the investigative and disciplinary (I&D) system for statutory auditors continues to operate 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 continues to oversee investigative activities and compliance monitoring, while the Disciplinary Committee conducts disciplinary proceedings and may impose sanctions under the Act and the Chamber’s disciplinary rules. PAOB continues to exercise public oversight and retains its own disciplinary competence in the public interest entity segment.

CACR continues to maintain an operational enforcement framework and to support implementation through its internal governance structure, disciplinary procedures, and oversight of members’ compliance with legal and professional requirements. Publicly available information confirms that CACR’s Supervisory Committee has 11 members and that the Disciplinary Committee has 7 members. IFAC’s current member information also notes that CACR completed a self-assessment against Statement of Membership Obligations 6 (SMO 6) and continues to report that its processes meet the majority of SMO 6 best practices.

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 continuing to publish annual reports on the operation of the public oversight system. This ongoing oversight framework continues to shape CACR’s fulfillment activities in the areas of investigation, discipline, and cooperation with the competent authority.

CACR continues to maintain an operational I&D framework within its remit and to cooperate with PAOB in a manner aligned with the relevant requirements of SMO 6. Accordingly, CACR’s fulfillment of SMO 6 is assessed as Sustain.

Current Status: Sustain

In the Czech Republic, responsibility for accounting standard-setting continues to rest 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 nonetheless continues to support implementation of International Financial Reporting Standards (IFRS) through training, technical updates, and participation in national accounting discussions.

CACR continues to provide implementation support to members through its professional education program and technical publications. Publicly available materials indicate that its 2025-2026 priorities include education and methodological support in areas affected by the proposed new Accounting Act and evolving reporting requirements. CACR’s magazine and training activities also continue to address accounting and reporting developments relevant to auditors, including IFRS-related changes and broader corporate reporting reforms.

Recent jurisdictional developments continue to affect CACR’s fulfillment of Statement of Membership Obligations 7 (SMO 7). In particular, the proposed new Accounting Act passed first reading in March 2026 and is intended to modernize the national accounting framework and expand the application of international accounting standards in certain areas. CACR also remains active in the National Accounting Council, including through its chairing role in 2025 and participation in technical seminars on accounting developments.

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. Accordingly, CACR’s fulfillment of SMO 7 is assessed as Sustain.

Current Status: Sustain