Estonian Auditors’ Association

The Auditors Activities Act (AAA) assigns responsibility for the quality assurance review system to the Auditing Activities Oversight Board (AAOB). Within this framework, the Estonian Association of Auditors (EAA) continues to support implementation through standard-setting support, member training, and practical guidance. The EAA maintains a dedicated professional standards page, publishes updated translations of relevant standards, and makes methodology guidance, templates, frequently asked questions, and quality control observations available to members.

Since the previous assessment, the EAA has continued to support implementation of the quality management standards through publication of International Standard on Quality Management (ISQM) 1 and related materials on its standards page, together with implementation resources and practice support for auditors. The EAA’s recent annual report also indicates continued cooperation with the oversight board on methodology, continuing professional development, and translation of professional standards.

The EAA also continues to support members through its continuing professional development program and technical events. Its training calendar shows ongoing professional training and practice-focused events, while its website separately publishes oversight findings from quality control reviews to help members understand recurring deficiencies and improve audit quality.

At the jurisdiction level, the quality assurance system remains established and operational under the AAA and continues to apply to all statutory audits. The EAA reports ongoing cooperation with the AAOB and continued efforts to support members in preparing for reviews and implementing updated requirements. On that basis, the EAA continues to demonstrate an ongoing process to maintain and support fulfillment of Statement of Membership Obligations 1 (SMO 1). SMO 1 fulfillment is assessed as Sustain.

Current Status: Sustain

The Auditors Activities Act (AAA) establishes the jurisdiction-level framework for initial and continuing professional development for statutory auditors, while the Estonian Association of Auditors (EAA) continues to play an active supporting role in implementation. The EAA contributes to the professional education framework through cooperation on qualification matters, support for practical experience pathways, and the organization of continuing professional development for members. The AAA continues to require professional examination, supervised practical experience, and ongoing training for sworn auditors.

Since the previous assessment, the EAA has continued to support implementation through an active training program and ongoing engagement with the development of the profession. The EAA maintains a public training calendar with regular technical courses and professional events for auditors, and its current strategy highlights regular delivery of relevant training, diversified learning methods, and the updating and development of shared guidance materials. The EAA also continues outreach related to the profession and auditor career pathways, including information directed toward prospective entrants.

The EAA has previously reported that it uses its best endeavors to align the education and development framework with the International Education Standards (IES), and current IFAC jurisdiction materials continue to assess IES in Estonia as adopted. Given the continued operation of the jurisdiction-level framework and the EAA’s ongoing role in training, professional development, and support for entry pathways, the EAA demonstrates sustained fulfillment of Statement of Membership Obligations 2 (SMO 2). SMO 2 fulfillment is assessed as Sustain.

Current Status: Sustain

The Auditors Activities Act (AAA) establishes the use of international auditing standards in Estonia, while the Estonian Association of Auditors (EAA) continues to play a central role in supporting implementation through translation, technical guidance, and professional training. The EAA remains responsible for the timely translation and publication of standards for use in the jurisdiction and maintains an ongoing process for reviewing new and revised International Auditing and Assurance Standards Board (IAASB) pronouncements.

Since the previous assessment, the EAA has continued to update its professional standards page to reflect the current International Standards on Auditing (ISA) applicable in Estonia, including the standards effective for audits of financial statements for periods beginning on or after 15 December 2024, as well as newly effective standards for 2025. This includes updated translations of revised ISA, the International Standard on Auditing for Audits of Financial Statements of Less Complex Entities (ISA for LCE), and related quality management standards.

To support implementation, the EAA continues to provide members with access to the latest standards, methodological guidance, templates, and examples through its website and technical committees. It also incorporates changes in ISA into its continuing professional development program and technical events calendar, ensuring members receive ongoing training on new and revised standards.

Regulatory developments since the previous assessment include the continued jurisdiction-level adoption of the full ISA suite effective from 15 December 2024, together with the publication of ISA for LCE, which further supports proportionate application of auditing standards for smaller and less complex audits.

The EAA continues to demonstrate an established and sustainable process to support the implementation and maintenance of auditing standards in Estonia and remains actively engaged in updating members on developments and practical application. SMO 3 fulfillment is assessed as Sustain.

Current Status: Sustain

The Auditors Activities Act (AAA) requires sworn auditors in Estonia to comply with the International Code of Ethics for Professional Accountants (including International Independence Standards) (the Code). Within this framework, the Estonian Association of Auditors (EAA) continues to support fulfillment of Statement of Membership Obligations 4 (SMO 4) through translation, publication, training, and monitoring of ethical developments.

Since the previous assessment, the EAA has published the 2025 Estonian translation of the Code on its professional standards page and continues to maintain ethics-related implementation materials for members. The EAA’s Methodology Committee monitors developments to the Code and supports the updating of the Estonian text to maintain alignment with current international requirements.

The EAA also continues to support implementation through its continuing professional development program and technical events calendar, which provide an ongoing platform for communicating developments in professional requirements and practice issues to members. At the jurisdiction level, the AAA continues to require compliance with the Code and includes independence requirements and related safeguards for statutory auditors.

Accordingly, the EAA continues to demonstrate an ongoing and sustainable process to support implementation of the Code in Estonia. SMO 4 fulfillment is assessed as Sustain.

Current Status: Sustain

Public sector accounting standards in Estonia continue to be established by the Ministry of Finance through the General Rules for State Accounting (GRSA), which remain based on national accrual standards with reference to the International Public Sector Accounting Standards (IPSAS). The jurisdiction continues to operate a full accrual accounting and reporting system for the public sector, and the Ministry of Finance prepares consolidated financial reporting for the whole of government.

Since the previous assessment, no material change has been identified in the jurisdiction-level public sector accounting framework. The Estonian Association of Auditors (EAA) continues to have no direct responsibility for public sector accounting standard-setting, which remains fully within the remit of the Ministry of Finance.

The EAA has previously indicated that, beyond its general support for high-quality financial reporting and awareness of developments in IPSAS, further direct involvement in public sector accounting matters is not currently feasible. No recent evidence has been identified of expanded PAO-led initiatives in this area. Given the absence of direct responsibility and the continued operation of an established national accrual-based framework, the EAA’s level of fulfillment remains appropriate within the jurisdictional context. Accordingly, SMO 5 fulfillment is assessed as Sustain.

Current Status: Sustain

The Auditors Activities Act (AAA) establishes the jurisdiction-level investigative and disciplinary (I&D) system for statutory auditors in Estonia. Within this framework, the Estonian Association of Auditors (EAA) continues to support fulfillment of Statement of Membership Obligations 6 (SMO 6) through member guidance, training, and ongoing cooperation with the public oversight system.

Since the previous assessment, no material change has been identified in the underlying jurisdictional framework. The AAA continues to provide for investigations, disciplinary proceedings, sanctions, and appeals, while IFAC’s current Estonia profile continues to state that the procedures updated effective 2021 remain aligned with SMO 6 best practices.

The EAA continues to support implementation by incorporating professional rights, obligations, ethics, and practice-related responsibilities into its continuing professional development activities and written member communications. Its training calendar and technical materials indicate an ongoing process to keep members informed of professional requirements and oversight expectations.

Regulatory developments affecting fulfillment include the continued operation of the AAA framework under which disciplinary proceedings, complaint handling, and sanctions remain established at the jurisdiction level, with penalties and oversight actions reflected in the statutory system and public register arrangements.

Accordingly, the EAA continues to demonstrate an ongoing and sustainable process to support implementation of the jurisdiction’s I&D framework. SMO 6 fulfillment is assessed as Sustain.

Current Status: Sustain

International Financial Reporting Standards (IFRS Accounting Standards) as adopted by the European Union continue to be required in Estonia for the consolidated financial statements of entities whose securities are admitted to trading on a regulated market, as well as for credit institutions, financial holding companies, mixed financial holding companies, investment firms, and insurance undertakings under the Accounting Act (AA) and applicable European Union law. Other entities may apply IFRS voluntarily or use the Estonian financial reporting standard.

Within this framework, the Estonian Association of Auditors (EAA) continues to support implementation of Statement of Membership Obligations 7 (SMO 7) through training, lectures, technical materials, and written communications for members on both IFRS and Estonian generally accepted accounting principles. IFAC’s current member information for EAA continues to state that the association provides support on IFRS implementation and offers at least one IFRS update training each year. The EAA training calendar also continues to show IFRS-focused courses and archived IFRS update programs as part of its continuing professional development offering, while the professional examination framework continues to include IFRS as a subject area for auditor qualification.

Regulatory developments affecting fulfillment include the continued application of the EU-endorsed IFRS framework in Estonia and the absence of any identified change to the jurisdictional allocation of responsibilities for financial reporting standard-setting. On that basis, the EAA continues to demonstrate an ongoing and sustainable process to support implementation of IFRS in the jurisdiction. SMO 7 fulfillment is assessed as Sustain.

Current Status: Sustain