Institut Österreichischer Wirtschaftsprüfer

Member | Established: 1952 | Member since 1982

IWP was established in 1952 and is recognized by general consensus as a voluntary membership organization for individual CPAs and firms. Its main objective is the provision of guidance for auditors.

IWP is a member of IFAC and Accountancy Europe.

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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: 12/2019
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SMO Action Plan

Status of Fulfillment by SMO

• SMO 1: Quality Assurance

  The legal basis for the Austrian Quality Assurance and Public Oversight System is set out in the Austrian Auditor Oversight Act of 2016 (Abschlussprüfer-Aufsichtsgesetz – APAG) which establishes the Audit Oversight Body of Austria (Abschlussprüferaufsichtsbehörde – APAB) as the audit supervisory authority in the jurisdiction that operates under the oversight of the Ministry of Finance. APAB is responsible for establishing and conducting quality assurance (QA) reviews for all mandatory audits.

  The Institute of Austrian Certified Public Accountants (Institut Österreichischer Wirtschaftsprüfer – IWP) reports in its 2019 SMO Action Plan that the QA review system operating in the jurisdiction is in line with the requirements of SMO 1.

  IWP, with no direct responsibility for the QA system in Austria, focuses on supporting its members to implement appropriate internal control systems in accordance with ISQC 1 and ISA 220. The Institute publishes implementation guidance, Quality Assurance Manual, which it revises periodically. It informs its members of updates to the QA review system. In addition, the IWP delivers continuing professional development training courses for its members.

  Current Status: Sustain

• SMO 2: International Education Standards

  The Accountants Act (Bundesgesetz über die Bilanzbuchhaltungsberufe – BibuG); the Public Accountants’ Statute of Professional Practice (Wirtschaftstreuhandberufsgesetz – WTBG); and the Directive on the Practice of the Public Accounting Professions (Wirtschaftstreuhandberufs-Ausübungsrichtlinie – WTARL) establish initial professional and continuing professional development (IPD and CPD respectively) requirements for all segments of the profession.

  The Institute of Austrian Certified Public Accountants (Institut Österreichischer Wirtschaftsprüfer – IWP) and the Chamber of Public Accountants (Kammer der Wirtschaftstreuhänder – KSW) report in their 2019 SMO Action Plan that the education requirements in the jurisdiction address all the relevant revised 2015 IES requirements.

  IWP supports the implementation of the education requirements through the provision of various education, examination preparation, and continuing professional development programs and webcasts to its members at the KSW Academy of Public Accountants. The Institute updates members of the profession on new and revised standards and other pronouncements in the IWP Journal. It also reportedly participates in the international standard-setting process by providing comments on Exposure Drafts.

  Current Status: Sustain

• SMO 3: International Standards on Auditing

  European Union member states had until June 17, 2016 to transpose the European audit reform package, comprising the Directive 2014/56/EU on statutory audits of annual accounts and consolidated accounts), into their national legislation. At the same time, the Regulation (EU) No 537/2014 on specific requirements regarding statutory audit of public interest entities (PIEs) came into force. The Regulation is directly applicable law in all EU member states and overrides any national law on the same subject matter. The Directive requires auditors and audit firms in member states to apply international auditing standards adopted by the EU Commission which—as stated in the Directive—means ISA, ISQC 1, and other related standards issued through the International Auditing and Assurance Standards Board (IAASB). While the German parliament adopted the EU audit reforms on March 10, 2016, the EU Commission has not yet adopted ISA.

  The Institute of Austrian Certified Public Accountants (Institut Österreichischer Wirtschaftsprüfer – IWP) updates members of the profession on new and revised ISA through the ISA Info Tool, and other pronouncements issued by the IAASB, in the IWP journal.

  Since 2014, the IWP has delivered a comprehensive training program ("ISA-fit Training") on the application of ISA and updates the program on a regularly basis. It reports to be developing new training modules for its members using web-based tools.

  IWP (along with the Chamber of Public Accountants (Kammer der Wirtschaftstreuhänder – KSW)) participates in the EU standard-setting process by submitting comments on Exposure Drafts and other related materials. Since 2014, it has delivered a comprehensive training program on the application of ISA.

  IWP already participates in the EU standard-setting process, but it is also encouraged to participate in the international standard-setting process by collaborating with KSW to provide comments on Exposure Drafts and other IAASB pronouncements.

  Current Status: Sustain

• SMO 4: Code of Ethics for Professional Accountants

  The Accountants Act (Bundesgesetz über die Bilanzbuchhaltungsberufe – BibuG); the Public Accountants’ Statute of Professional Practice (Wirtschaftstreuhandberufsgesetz – WTBG); and the Directive on the Practice of the Public Accounting Professions (Wirtschaftstreuhandberufs-Ausübungsrichtlinie – WTARL) establish ethical requirements for all segments of the profession.

  The Institute of Austrian Certified Public Accountants (Institut Österreichischer Wirtschaftsprüfer – IWP) and the Chamber of Public Accountants (Kammer der Wirtschaftstreuhänder – KSW) report in their 2019 SMO Action Plan that the ethical requirements for professional accountants in Austria are equivalent and more stringent than the requirements of the 2018 Handbook of the International Code of Ethics for Professional Accountants.

  The IWP, with no responsibility for the adoption of ethical standards for members of the profession, promotes the continued convergence of national and EU regulations with the IESBA Code of Ethics. The institute also raises its members’ awareness of changes to the IESBA Code of Ethics in the IWP Journal.

  IWP (along with KSW) participates in the EU standard-setting process by submitting comments on Exposure Drafts and other related materials.

  IWP already participates in the EU standard-setting process, but it is also encouraged to participate in the international standard-setting process by collaborating with KSW to provide comments on Exposure Drafts and other IESBA pronouncements.

  Current Status: Sustain

• SMO 5: International Public Sector Accounting Standards

  The Austrian government requires accrual-basis reporting to be applied in preparing the financial statements/reports for the federal/central government for the most recently completed financial year. The Austrian government issues its own national standards.

  It is unclear if there are plans to formally adopt IPSAS for application in the jurisdiction in light of the ongoing initiative to develop EU’s European Public Sector Accounting Standards (EPSAS) which are based on IPSAS but tailored for application in the EU.

  In 2019, the government established a working group to consider plans for implementation of IPSAS. This working group comprises of representatives of the profession, the academia, the government, federal lands and municipalities.

  The Institute of Austrian Certified Public Accountants (Institut Österreichischer Wirtschaftsprüfer – IWP) has no responsibility for the adoption or implementation of public sector accounting standards in the jurisdiction. Nevertheless, the institute reports that its representatives promote convergence of national and EU regulations with IPSASB pronouncements and that the institute also helps to keep its members informed about pronouncements and updates issued by the IPSASB.

  Current Status: Sustain

• SMO 6: Investigation and Discipline

  The Accountants Act (Bundesgesetz über die Bilanzbuchhaltungsberufe – BibuG); the Public Accountants’ Statute of Professional Practice (Wirtschaftstreuhandberufsgesetz – WTBG); and the Directive on the Practice of the Public Accounting Professions (Wirtschaftstreuhandberufs-Ausübungsrichtlinie – WTARL) establish investigation and disciplinary (I&D) requirements for all segments of the profession.

  The Institute of Austrian Certified Public Accountants (Institut Österreichischer Wirtschaftsprüfer – IWP) and the Chamber of Public Accountants (Kammer der Wirtschaftstreuhänder – KSW) report that all I&D systems in the jurisdiction are in line with SMO 6 requirements.

  IWP established an Honorary and Disciplinary Council to oversee its I&D system. The Arbitral Tribunal, which comprises three Council members or alternate members of the Honorary and Disciplinary Committee, is responsible for settling disputes amongst individual members or between the Board and individual members of the arbitral tribunal.

  IWP ensures that all members have access to adequate continuing professional development courses on current regulations and the I&D systems and processes. The institute also raises awareness of the system through the publication of cases and verdicts in various newsletters on its website. It also provides its members with guidance on how to initiate complaints.

  Current Status: Sustain

• SMO 7: International Financial Reporting Standards

  In Austria, section 245a of the Austrian Commercial Code of 2015, as amended (Unternehmensgesetzbuch – UGB) stipulates the requirements for preparation of financial statements, including applicable accounting standards and financial reporting thresholds which are in line with the European Commission (EC) Regulation No. 1606/2002. Authority to set accounting standards in Austria rests with the government. EU-endorsed IFRS are required for the preparation of consolidated financial statements of all public interest entities (PIEs) in Austria, which comprise listed entities, credit institutions, and insurance undertakings. All other entities are free to choose to prepare consolidated financial statements in accordance with EU-endorsed IFRS or in accordance with Austrian GAAP as established in law.

  The Institute of Austrian Certified Public Accountants (Institut Österreichischer Wirtschaftsprüfer – IWP), with no responsibility for the adoption of IFRS in Austria, focuses on keeping members abreast of new and revised standards through updates that it publishes in its Journal. It also collaborates with the Chamber of Public Accountants (Kammer der Wirtschaftstreuhänder – KSW) to host continuing professional development training events on the standards, and to provide comments on public consultations.

  Current Status: Sustain

Disclaimer

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.