Corpul Expertilor Contabili si Contabililor Autorizati din Romania
Member | Established: 1921 | Member since 1996
Established in 1921, the Body of Expert and Licensed Accountants of Romania (CECCAR) represents the accountancy profession in Romania. CECCAR is committed to supporting and promoting the competence, skills, and values of individuals involved in the profession in order to ensure high-quality practices and services that meet market needs, the business environment, and serve the public interest.
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.
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 requirements of SMO 1 and regularly conducts self-assessments against the requirements.
Furthermore, it also issues the CECCAR Quality Control Book and has an ongoing process to ensure the compliance and convergence with all the documents issued by IFAC related to quality 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 theoretical application on relevant standards. CECCAR collaborates with academic institutes as well as audit and accounting firms in conducting the training sessions. Lastly, the institute has also translated and published the Guide to Quality Control for Small and Medium-Sized Practices, Second Edition.
SMO 2: International Education Standards
As the entity responsible for setting IPD and CPD requirements for expert and licensed accountants, CECCAR has incorporated the main provisions of IES in its internal standards and regulations and has been active in implementing the requirements to its members. CECCAR has translated the 2009 IES for internal use and reports that the requirements are reviewed on a regular basis by the CECCAR Professional Services and Education Committee to ensure compliance with the revised IES. For instance, the institute indicates that it is reviewing its educational regulations to address changes in the 2015 revised IES requirements.
CECCAR oversees the CPD program of its members and reports that there is an ongoing consultation and review process to align its internal CPD regulations and program with IES 7. Furthermore, it develops guidance for its members to assist them with the understanding of the IES requirements.
In addition, CECCAR is proactive in promoting IES adoption into university curricula and provides relevant training opportunities to university students. It has also engaged with universities for accreditation purposes and has signed cooperation agreements with 29 certified Romanian universities.
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.
As CECCAR continues to strengthen various aspects of its educational programs in order to meet the requirements of the 2015 revised IES, it is encouraged to update its SMO Action Plan regarding the activities it has undertaken to update the internal regulations in line with the revised IES and consider learning outcomes-based approaches to CPD measurement. CECCAR may also consider participating in the international standard-setting process by providing comments to the exposure drafts issued by the IAESB.
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 other professional accountancy organization in the jurisdiction, the Chamber of Financial Auditors of Romania (CFAR).
Therefore, CECCAR has no direct responsibility for adopting auditing standards in Romania; nonetheless it has been active in promoting and disseminating ISA amongst its members through activities such as publishing the IFAC ISA Guide for SMEs (3rd edition, 2011). 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 international European PAOs on training programs related to ISA implementation.
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 are responsible for adopting ethical requirements for their members.
CECCAR reports that it has an ongoing process to adopt, translate, and support the implementation of the IESBA Code of Ethics. Since 1996, CECCAR has been responsible for setting ethical requirements for accountants. In 2011, it issued the National Code of Ethics for Professional Accountants in accordance with the 2011 IESBA Code of Ethics. Currently, the 2011 National Code is still applied, however as of January 2017, CECCAR has undertaken a project to update its National Code of Ethics with the most recent version of the 2016 IESBA Code.
In addition, CECCAR organizes workshops for its members and incorporating ethics modules into its CPD program, and advises its members and the public on the revisions of the IESBA Code of Ethics. CECCAR has also established an ongoing process for the translation of the standards by its Translation Committee.
As CECCAR is undergoing the process to update its National Code of Ethics to be in line with the 2016 IESBA Code of Ethics, it is encouraged to collaborate with other relevant stakeholders including CFAR and ASPAAS to ensure proper implementation. As part of the 2016 IESBA Code of Ethics, CECCAR is also encouraged to establish plans to raise awareness of the new NOCLAR standard to its members. In addition, CECCAR is encouraged to consider participating in the international standard-setting process by submitting comments to Exposure Drafts issued by the IESBA.
SMO 5: International Public Sector Accounting Standards
In Romania, certain accrual-based IPSAS provisions have already been adopted by Ministry of Public Finances (MFP) and CECCAR reports that there are further plans to adopt accrual-basis IPSAS but the timeline is currently unknown.
CECCAR, which has no direct responsibility for the adoption of public sector accounting standards, has focused its efforts on supporting the full adoption of accrual-based IPSAS by promoting the adoption of the remaining international standards to the stakeholders, such as the Romanian Presidency, the MFP, and the Ministry of European Integration. It has also been active in supporting the implementation since 2009 with the provision of technical support, including training, the development of implementation guidelines, and translating IPSAS into Romanian (the most recent translation is the 2016 IPSASB Handbook).
In addition, CECCAR is involved in public consultation procedures regarding the revision of the regulations specific to public institutions which is contributing to increasing their level of convergence with the IPSAS.
CECCAR is encouraged to further assist government in adopting the accrual based IPSAS and to disseminate information on the international developments to its members and the public. CECCAR is also encouraged to update its SMO Action Plan to communicate any updates on plans for the full adoption of accrual-based IPSAS and what the organization’s role might be in the process.
SMO 6: Investigation and Discipline
The Law No. 65 of 1994 authorizes CECCAR to set I&D requirements 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. CECCAR conducts annual trainings for the members of its 42 disciplinary commissions across its 42 branches nationwide. CECCAR has also developed and disseminated case studies from the jurisprudence of the CECCAR disciplinary commissions to its members. In addition, CECCAR introduced changes to the design and operations of its I&D system to assess members’ compliance to CECCAR’s standards and regulations.
In 2017, CECCAR conducted a self-assessment of its existing I&D system with the requirements of the revised SMO 6 and noted several areas in its I&D system that require further developments: the process for independent review of complaints, making results of its cases public and procedures for liaising with outside bodies.
CECCAR’s is encouraged to use the findings of its SMO 6 self-assessment to prepare an integrated I&D plan, involving the Statutory Audit Public Oversight Authority (ASPAAS) and other relevant stakeholders, to further develop the I&D system for licensed accountants in Romania that is compliant with the revised SMO 6 requirements. Specifically, CECCAR is encouraged to consider how to: a) establish a separate disciplinary committee to make disciplinary decisions on referrals from the investigation committee; b) allow non-accountants to be represented in the disciplinary committee to ensure public interest agenda is taken into consideration; c) review the disciplinary sanctions that may be applied to the CECCAR members as established by GEO No. 65 of 1994 against the list of sanctions as prescribed by the revised SMO 6 requirements and promote the need to address the gaps if needed to relevant authorities; and d) consider publishing the results of the investigative and disciplinary proceedings for public disclosure as per revised SMO 6. CECCAR is encouraged to outline these plans in its next SMO Action Plan update along with concrete timelines.
SMO 7: International Financial Reporting Standards
Law 82/1991, also known as the Accounting Law, with its subsequent amendments and supplements, 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. 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 is currently upgrading its education programs for its members in order to ensure the effective implementation of the standards. CECCAR has also organized roundtables on IFRS adoption and implementation with relevant stakeholders, and is working to enforce the application of IFRS.
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.
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