Under the supervision of the Public Interest Oversight Board for the Accountancy Profession (CSIPPC), the CFAR is responsible for establishing and operating a quality assurance (QA) review system for all audits. The...

Under the supervision of the Public Interest Oversight Board for the Accountancy Profession (CSIPPC), the CFAR is responsible for establishing and operating a quality assurance (QA) review system for all audits. The chamber has adopted ISQC 1, ISA 220, and has established a QA review system in line with SMO 1 requirements. Its focus is now on the system’s implementation.

To support its members, CFAR disseminates norms and guidance notes on QA topics and updates on the review system through its website and magazine publications. It has also developed trainings for its members to address areas of QA reviews where auditors commonly have difficulties.

CFAR continues to use its best endeavors to ensure that the QA review system is in line with the requirements of SMO 1 and EU Audit Directives. CFAR has conducted several self-assessments against the requirements of SMO 1 and EU Audit Directives and made adjustments and improvements to the development and execution of its QA review system.

CFAR also collaborates with the CSIPPC via its representatives in the oversight body to ensure a consistent exchange of information on the operations and findings of the QA review system.

In light of the upcoming implementation of the EU Audit Reform in Romania, CFAR is encouraged to provide an update in its next Action Plan submission on any resulting developments or changes to its QA review system, particularly with regards to the division of responsibility between CFAR and CSIPPC.

As initial professional development and continuing professional development requirements (CPD) for auditors have been established by Government Emergency Ordinance No. 90 of 2008 and are in line with IES requirements...

As initial professional development and continuing professional development requirements (CPD) for auditors have been established by Government Emergency Ordinance No. 90 of 2008 and are in line with IES requirements, CFAR concentrates its efforts on ensuring their implementation. The institute reports that the IES requirements are reviewed, translated, and incorporated on an ongoing basis by CFAR’s Department for Admission, Continuous Education and Trainees to remain compliant with the IES. CFAR notes that it has translated the latest revised IES for internal use.

In addition, CFAR strives to continuously improve its accounting educational program. For example, it has created a centralized, automatic system to record trainings of financial auditors and in 2014 and 2015, it opened two new offices in Northeastern and Western regions of Romania in order to better serve candidates and members in the admission, CPD, and training processes on a regional level. CFAR is also focused on streamlining its accounting qualifications and organizing the professional competence exam.

CFAR organizes a yearly CPD training program for its members and the courses are available in-person and online through the institute’s e-learning platform.

Furthermore, the institute is proactive in providing relevant training opportunities to university students as well as engaging with universities for accreditation purposes.

Finally, CFAR is promoting the recognition of foreign qualifications and in 2014 has signed an addendum to its 2008 agreement with the Association of Chartered Certified Accountants (ACCA) on mutual recognition of professional qualifications.

CFAR is encouraged to consider participating in the international standard-setting process by providing comments to the exposure drafts issued by the IAESB.

As the Government Emergency Ordinance No. 90 of 2088 stipulates the application of ISA as issued by the IAASB for all statutory audits, CFAR is responsible for the ongoing translation and promulgation of ISA. In line...

As the Government Emergency Ordinance No. 90 of 2088 stipulates the application of ISA as issued by the IAASB for all statutory audits, CFAR is responsible for the ongoing translation and promulgation of ISA. In line with its mandate, CFAR has been translating ISA on an ongoing basis since 2006.

In 2016, CFAR translated the 2015 ISA and subsequently published the standards in February 2017. The institute reports that the 2016–2017 ISA amendments will be translated and the changes will be disseminated to auditors through annual training courses and on the CFAR website.

Furthermore, CFAR’s Department for Admission, Continuous Education and Trainees permanently updates the training themes and programs according to the provisions of the IAASB (e.g. the 2016 training program included themes and issues arising from revised ISA). The annual training programs focus on the latest topics in the field of international standards.

CFAR supports its members’ understanding of the standards by providing regular technical seminars and workshops on the new and revised ISA. To this effect, CFAR updates its initial professional development and continuing professional development syllabus and programs to incorporate courses on new and revised auditing standards.

CFAR also indicates that it participates in international events to exchange experiences and information with other national, European, and non-European bodies regarding the implementation of ISA.

CFAR is encouraged to establish ongoing processes to try and reduce the time lag when new and revised ISA are translated and made available. For example, the institute is encouraged to indicate when the 2016 ISA, which includes the new auditor report, will be translated and disseminated to members. CFAR could also consider participating in the international standard-setting process by submitting comments to Exposure Drafts issued by the IAASB.

Under the oversight of the Public Interest Oversight Board for the Accountancy Profession, CFAR is responsible for establishing ethical requirements for auditors and has translated and adopted the IESBA Code of Ethics...

Under the oversight of the Public Interest Oversight Board for the Accountancy Profession, CFAR is responsible for establishing ethical requirements for auditors and has translated and adopted the IESBA Code of Ethics. The 2015 version of the IESBA Code of Ethics was adopted and translated by CFAR in December 2016.

CFAR supports the implementation of the IESBA Code of Ethics on an ongoing basis by informing and educating members on ethical requirements through its website, newsletters, magazines, trainings, and continuing professional development programs.

In cooperation with the Association of Chartered Certified Accountants (ACCA) and large audit firms, CFAR organizes technical seminars on an ongoing basis to disseminate information on updates to the IESBA Code of Ethics.

Additionally, the institute, through CFAR’s Department for Admission, Continuous Education and Trainees, reviews changes in IESBA pronouncements and updates the curricula for professional education and training programs.

CFAR is encouraged to establish ongoing processes to try and reduce the time lag when the new and revised IESBA pronouncements are translated and made available. Of note is the 2016 IESBA Code of Ethics, which includes the new NOCLAR standard, effective July 2017. CFAR is encouraged to review the 2016 IESBA Code and establish plans to adopt, translate, and support the implementation of the new Code. This may require extensive collaboration with stakeholders such as the government, legislators, and the business community. Finally, the institute could also consider participating in the international standard-setting process by providing comments on exposure drafts issued by the IESBA.

CFAR is not responsible for the adoption of public sector accounting standards and its focus is to promote the adoption of IPSAS to the relevant stakeholders, including the Romanian Presidency and Ministry of Public...

CFAR is not responsible for the adoption of public sector accounting standards and its focus is to promote the adoption of IPSAS to the relevant stakeholders, including the Romanian Presidency and Ministry of Public Finance—both of which have made a commitment to the adoption and implementation of accrual IPSAS.

CFAR states that it is active in promoting the adoption of IPSAS by participating in national and international events that deal with the topic of public sector accounting standards.

CFAR also raises awareness and attempts to increase the knowledge of its members about IPSAS through the inclusion of information on IPSAS in its magazine.

CFAR is encouraged to include in its Action Plan specific actions planned to promote and support the adoption of IPSAS, such as disseminating updates and information on new IPSASB pronouncements to raise awareness of the standards. Similarly, the institute should also include activities that it undertakes to support and enhance the knowledge of its members who work in the public sector and implement public sector accounting standards.

CFAR, under the oversight of the Council for the Public Interest Oversight of the Accounting Profession (CSIPPC), is responsible for establishing an investigative and disciplinary (I&D) system for its members...

CFAR, under the oversight of the Council for the Public Interest Oversight of the Accounting Profession (CSIPPC), is responsible for establishing an investigative and disciplinary (I&D) system for its members regarding engagements performed by auditors aside from statutory audits.

CFAR reports that it has an operational I&D system in place to oversee the performance of its members and in 2016, CFAR conducted a self-assessment of its I&D system against the revised requirements of SMO 6. CFAR found that areas requiring improvement include: its investigative processes, the composition of its Disciplinary Committee, certain administrative processes, making results of its cases public, and procedures for liaising with outside bodies.

CFAR states that it communicates changes to the jurisdiction’s I&D framework, based on CSIPPC’s I&D mechanisms, to its members via articles in its magazine, seminars, and conducting multi-stakeholder roundtable discussions. CFAR also publicly publishes I&D statistics in order to enhance transparency of the profession.

CFAR indicates that its Council has made I&D a priority focus since 2015. Part of their strategic plan includes establishing processes to receive requests for investigations, prepare and present an annual report to the CFAR Council on I&D cases, and publish case studies to encourage students and members to study and review them. CFAR intends to continue roundtable discussions with stakeholders regarding the impact of new EU audit legislation on I&D systems.

CFAR notes that the implementation of the EU Audit Reform in the second half of 2017 will further clarify the I&D responsibility of CSIPPC over the jurisdiction including any developments to its oversight over CFAR and CFAR’s I&D procedures.

In its next SMO Action Plan, CFAR is encouraged to include actions it is planning in order to address the gaps in its I&D system based on the results of its review. CFAR could also share the revised SMO 6 requirements with the Public Interest Oversight Board for the CSIPPC and the Body of Expert and Licensed Accountants of Romania in order to encourage them to address any existing gaps and bring the existing I&D systems fully in line with the requirements of SMO 6. CFAR is also recommended to provide an update in its Action Plan on any changes to the I&D system as a result of the EU Audit Reform implementation.

The CFAR has no responsibility for setting accounting standards in Romania but it plays an active role in supporting the Ministry of Finance (MoF), which issues national accounting standards, and supporting the...

The CFAR has no responsibility for setting accounting standards in Romania but it plays an active role in supporting the Ministry of Finance (MoF), which issues national accounting standards, and supporting the implementation of both EU-endorsed IFRS and RAS.

CFAR is a member of the Council for Accounting and Financial Reporting (CCRF) since its establishment by Government Decision No. 401 of 2005. The CCRF is the entity that advises the MoF on the development of the Romanian Accounting Standards (RAS).

CFAR is also involved in strengthening the knowledge and technical competency of its members in the application of IFRS by offering trainings and learning opportunities in its standard-related courses in its continuing professional development program. CFAR also informs its members about new, proposed, and revised IFRS, and publishes articles and news about the implementation and adoption of IFRS, as well as international trends in the CFAR magazine.

In its next Action Plan update, the institute is encouraged to also include activities that it undertakes to support and enhance the knowledge of its members with implementation of the RAS.