Corpul Expertilor Contabili si Contabililor Autorizati din Romania

Member | Established: 1921 | Member since 1996

CECCAR was established by Royal Decree of King Ferdinand I on July 13^th, 1921, and subsequently reestablished in 1994 by Government Ordinance No. 65 of 1994. CECCAR is comprised of expert accountants and licensed accountants, who must join CECCAR to offer related services. It is mandated by law to (i) maintain registries of its members; (ii) set initial and continuing professional development (IPD and CPD) requirements; and (iii) establish ethical standards and an investigative and disciplinary (I&D) system for its members.

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Statements of Membership Obligation (SMO)

The Statements of Membership Obligations form the basis of the IFAC Member Compliance Program. They serve as a framework for credible and high-quality professional accountancy organizations focused on serving the public interest by adopting, or otherwise incorporating, and supporting implementation of international standards and maintaining adequate enforcement mechanisms to ensure the professional behavior of their individual members.

Methodology
Last updated: 09/2021
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SMO Action Plan

Status of Fulfillment by SMO

• SMO 1: Quality Assurance

  Although members of the Body of Expert and Licensed Accountants of Romania (CECCAR) do not provide statutory audit services, the institute has implemented a quality assurance (QA) review system that extends to all the services provided by its members, such as assurance engagements. CECCAR indicates that its QA review system is in line with the best practices of SMO 1 and regularly conducts self-assessments against the requirements.

  CECCAR issues the CECCAR Quality Control Book and has an ongoing process to ensure compliance and convergence with all the materials issued by IAASB related to quality control and assurance.

  To support its members, CECCAR arranges seminars and trainings for its members to keep them up to date on theoretical knowledge, technical competencies, and application on relevant standards. CECCAR collaborates with academic institutes as well as audit and accounting firms in conducting the training sessions. The institute has translated and published the Guide to Quality Control for Small and Medium-Sized Practices, Fourth Edition as well as the Guide to review engagements and the Guide to compilation engagements. CECCAR has also translated the new quality management standards (ISQM 1 and 2) that are pertinent to the services provided by CECCAR members.

  Current Status: Sustain

• SMO 2: International Education Standards

  As the entity responsible for setting IPD and CPD requirements for expert and licensed accountants, CECCAR has stated its commitment to converge with the IESs and it has incorporated the main provisions of IES in the CECCAR internal standards and regulations. CECCAR’s Professional Services and Education Committee has reviewed its

  Expert accountants must have a university economics degree acknowledged by the Ministry of Education and Research, pass an admission/initial exam for IPD, three years of practical experience, and pass an aptitude/final exam. Licensed accountants are to have a high school diploma recognized by the Ministry of Education, Research, Youth, and Sports, pass an admission/initial exam for IPD, three years of practical experience, and pass an aptitude/final exam. CECCAR indicates it is active in promoting the IES to universities (IES 1). It has engaged with universities for accreditation purposes and has signed cooperation agreements with 29 certified Romanian universities that take with the IES into consideration when developing accountancy curricula.

  Information on accredited universities, the admission exam, and practical experience requirements are all available on CECCAR’s website. CECCAR also organizes the final/aptitude exam and offers preparatory sessions for candidates. All details are also available on CECCAR’s website.

  CECCAR oversees the National CPD Program of its members and has updated it to ensure continued alignment with IES 7. It offers training through its 42 chapters throughout Romania.

  Recently, to become more involved in supporting international efforts related to professional education and development, CECCAR nominated a representative in the newly formed International Panel on Accountancy Education in 2019 and will support its nominee for a second term as a member of IPAE. CECCAR has also signed agreements with other professional accountancy organizations (notably the Chamber of Financial Auditors of Romania, the Association of Chartered Certified Accountants, and the Institute of Chartered Accountants in England and Wales) to collaborate on activities related to training and capacity building for its members.

  Current Status: Sustain

• SMO 3: International Standards on Auditing

  The Law No. 162 of 2017 on Statutory Audit of Annual Financial Statements and Annual Consolidated Financial Statements which translates the EU Audit Directive, stipulates that all statutory audits are to be carried out in compliance with ISA as issued by the IAASB as translated by the Statutory Audit Public Oversight Authority (ASPAAS). The ASPAAS has delegated its translation authority to the Chamber of Financial Auditors of Romania (CFAR).

  Although CECCAR has no legal responsibility to adopt or translate auditing standards, it is committed to supporting implementation and is very proactive in the translation process. ASPAAS and CECCAR worked together and translated the IAASB Handbook 2018. Furthermore, CECCAR has translated several implementation support materials, such as the ISA 315 revised, ISRS 4400 revised and the Illustrative Examples to ISA 540 (Example 1&2 and the Auditing expected credit loss (ECL) accounting estimates). It has also translated the IFAC ISA Guide for SMEs and several guidance on audit during COVID-19.

  In terms of training and capacity building, CECCAR supports its members’ understanding of the standards by offering training on the new and revised standards and regular dissemination of practical case studies.

  CECCAR also indicates that it cooperates with universities, audit firms, and other PAOs on training programs related to ISA implementation.

  CECCAR maintains a timely translation and implementation support process to fulfill obligations under SMO 3. The IAASB has issued an exposure draft of the proposed separate standard for audits of Less Complex Entities. CECCAR is encouraged to participate directly in the public consultation and/or ensure that the Romanian audit profession’s perspective is included in the consultation process for this landmark new draft standard.

  Current Status: Sustain

• SMO 4: Code of Ethics for Professional Accountants

  Under the Law No. 162 of 2017 on Statutory Audit of Annual Financial Statements and Annual Consolidated Financial Statements, both professional accountancy organizations in the jurisdiction, the Chamber of Financial Auditors of Romania (CFAR) and the CECCAR, are responsible for adopting ethical requirements for auditors and expert and licensed accountants, respectively. In 2019, CECCAR translated and made publicly available the 2018 edition of the International Code of Ethics for Professional Accountants issued by the IESBA. The new Code is mandatory for application by all professional accountants in the jurisdiction, including CECCAR members.

  CECCAR reports that it has an ongoing process to adopt, translate, and support the implementation of the IESBA Code of Ethics since 2011. It has translated and published the revisions to Part 4B of the Code and revisions to the Code to promote the Role and the Mindset which are effective by December 2021.

  To support its members with the adherence to ethical requirements, CECCAR organizes workshops for its members, incorporates ethics modules into its CPD program, and advises its members and the public on the revisions of the IESBA Code of Ethics. CECCAR’s members are subject to investigation and discipline for any ethical breaches or misconduct.

  CECCAR maintains a timely translation and implementation support process to fulfill obligations under SMO 4. The IESBA eCode may be another resource that it shares with its members.

  Current Status: Sustain

• SMO 5: International Public Sector Accounting Standards

  The Ministry of Public Finances (MFP) is responsible for the adoption of public sector accounting standards in Romania. MFP Order No. 1917/2005, with its subsequent amendments and supplements, requires the application of accrual-basis accounting principles. Notably, the regulation includes the adoption of certain accrual-basis IPSAS provisions of certain items such as tangible fixed assets, stocks, provisions, expenses, and revenues. According to the CIPFA/IFAC 2020 International Public Sector Financial Accountability Index, partial accrual national standards are applied currently and full accrual-basis standards are expected to be applied by 2025.

  CECCAR has focused its efforts on advocating for the convergence with accrual-based IPSAS to the relevant stakeholders, such as the Romanian Presidency, the MFP, and the Ministry of European Integration. Since 2009, it has regularly translated IPSASB Handbooks, including the 2020 version, to raise awareness of the IPSAS and participates in consultations regarding any legislative changes to promote IPSAS. It has also offered training and conferences with sessions dedicated to the public sector.

  CECCAR is using its best endeavors to fulfill its obligations under SMO 5, and it is encouraged to continue its advocacy and support toward accrual-basis IPSAS. Adoption and implementation of accrual IPSAS as issued by the IPSASB would ensure application of global best practice. CECCAR may find IFAC’s Train the Trainers: Introduction to IPSAS resource helpful for any advocacy and/or educational activities it offers.

  Current Status: Review & Improve

• SMO 6: Investigation and Discipline

  The Law No. 65 of 1994 authorizes CECCAR to establish and operate an investigative and disciplinary (I&D) mechanism for its members who are expert and licensed accountants.

  The internal policies of CECCAR regulate the organization of 42 Disciplinary Commissions at the county level and the Superior Disciplinary Commission at a national level. The disciplinary commissions attached to the CECCAR (territorial) branches’ councils can investigate the misconduct of the members residing within the territorial area of the branch and to apply sanctions. The Superior Disciplinary Commission attached to the Superior Council of the Body can judge the appeals against the decisions of the territorial disciplinary commissions, as well as to investigate any disciplinary misconduct of the members of the territorial disciplinary commissions, and to apply sanctions.

  CECCAR conducts annual trainings for the members of its 42 disciplinary commissions across its 42 branches nationwide and trains its staff in its Ethics department and quality control units. CECCAR has also developed and disseminated case studies from the jurisprudence of the CECCAR disciplinary commissions to its members. CECCAR In addition, CECCAR offers an Arbitrage Commission to help members resolve any conflicts with clients.

  CECCAR has conducted a self-assessment of its I&D system with the requirements of the revised SMO 6 and noted that there is not a process for independent review of complaints or procedures for liaising with outside bodies.

  Public confidence in enforcement mechanisms for all professional accountants is essential. CECCAR has addressed limitations in making proceedings publicly available but there remain components of SMO 6 global best practices that are not incorporated since 2018. CECCAR is encouraged to explain its plans (along with timeframes) for addressing these within its Action Plan.

  Current Status: Execute

• SMO 7: International Financial Reporting Standards

  Law 82/1991, also known as the Accounting Law, establishes the Ministry of Public Finances (MFP) as the accounting standard-setter in Romania and is responsible for transposing EU regulations that require the application of IFRS as endorsed by the European Commission into national law. Listed companies must apply EU-endorsed IFRS. The MFP has also permitted companies that do not trade in the regulated market to choose between EU-endorsed IFRS for consolidated financial statements or Romanian Accounting Standards.

  CECCAR is actively supporting the implementation of IFRS in Romania particularly by fulfilling its responsibility to translate the IFRS into Romanian, which was used as a basis for the publication of standards in the European Union Official Journal. It has established an ongoing process to ensure the availability of translations of new and amended IFRS standards as issued by the IASB.

  In addition, CECCAR includes IFRS Standards in its National CPD Program and organizes roundtables on IFRS adoption and implementation with relevant stakeholders.

  In terms of participating in the international standard-setting process, CECCAR indicates that it also reviews exposure drafts as issued by the IASB and submits comment letters.

  Current Status: Sustain

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IFAC bears no responsibility for the information provided in the SMO Action Plans prepared by IFAC member organizations. Please see our full Disclaimer for additional information.