Suomen Tilintarkastajat ry
Member | Established: 2014 (legacy body in 1925) | Member since 1977
Suomen Tilintarkastajat ry, the Finnish association of auditors, is a voluntary organization uniting all certified auditors in Finland since April 2014. The association was formed as a result of a merger between two audit institutes, KHT-yhdistys and HTM-tilintarkastaja. Over 90% of all auditors from the former KHT and HTM audit institutes have joined since the merger. Suomen Tilintarkastajat ry supports its members in the performance of high quality-work and helps them meet ethical and professional requirements by developing sound auditing practices including the promotion of accounting and financial reporting standards. The association also develops and strengthens the skills of its members by providing education, information on current industry issues, and opportunities for professional dialogue and networking. In addition to its IFAC membership, Suomen Tilintarkastajat ry is a member of Accountancy Europe and the Nordic Federation of Public Accountants.
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
Suomen Tilintarkastajat ry has no direct responsibility for the quality assurance (QA) review system, however it supports implementation activities by providing guidance and QA training for its members. The association publishes a Quality Reviewer’s Handbook which is available in print and on its website. The association has also translated and published the 2015 Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements according to IFAC Translation Policy. Suomen Tilintarkastajat ry provides a range of continuing professional development training which incorporates ISA and ISQC 1 topics using the results of inspections to design relevant training. It ensures that members fulfill and maintain their professional qualifications and competence.
With the Audit Oversight Unit (AOU) having direct responsibility for the QA review system, Suomen Tilintarkastajat ry is encouraged to provide information on how it collaborates with the AOU on the implementation activities of the review system and how it could promote the continued fulfillment of SMO 1 requirements.
- SMO 2: International Education Standards
Suomen Tilintarkastajat ry provides training and education for members’ continuing professional development (CPD) and for pre-qualification candidates preparing for professional examinations. In 2014, it developed a system to provide members with certificates to verify CPD activities. The association reports in its 2016 SMO Action Plan that it updates members on revised IES and ensures that its practical experience and training programs are in line with IES. Suomen Tilintarkastajat ry also has its own academic institute, which provides publications and professional training on topics such as accounting, financial reporting, corporate law, and taxation.
Suomen Tilintarkastajat ry is encouraged to provide an update on how the association is working with the Audit Oversight Unit (AOU), which has the responsibility for administering initial professional development and CPD requirements. The association is also encouraged to review the revised IES (effective as of July 2016) and to ensure that its requirements remain aligned with the standards and if possible, indicate activities and future plans with AOU to promote the revised IES.
- SMO 3: International Standards on Auditing
Suomen Tilintarkastajat ry has translated ISA for its members, and also uses its best endeavors to promote the adoption and implementation of ISA. It monitors developments and amendments to pronouncements issued by the IAASB and translates and disseminates all new and revised ISA. It has translated the 2015 IAASB Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements and the Reporting on Audited Financial Statements – New and Revised Auditor Reporting Standards and Related Conforming Amendments according to IFAC Translation Policy.
The association also assists its members by delivering training, hosting seminars, and facilitating discussions on auditing SMEs and other topical issues in auditing.
Suomen Tilintarkastajat ry is encouraged to consider participating in the international standard-setting process by providing inputs on Exposure Drafts and other pronouncements issued by the IAASB.
- SMO 4: Code of Ethics for Professional Accountants
Suomen Tilintarkastajat ry, while not legally responsible for adoption, has adopted the IESBA Code of Ethics for its members. The association has translated the 2015 version of the IESBA Handbook of the Code of Ethics for Professional Accountants and notifies members of new, proposed and revised amendments to the Code. The association also delivers training on the IESBA Code of Ethics to its members.
Suomen Tilintarkastajat ry is encouraged to indicate in their SMO Action Plan the extent of alignment of the existing ethical requirements with those of the IESBA Code of Ethics. In cases differences exist, the association is encouraged to promote the adoption at the jurisdiction level, including for public finance auditors and accountants. If not adopted, It is encouraged to promote adoption of the IESBA Code for all categories of professional accountants in Finland. The association is also encouraged to make relevant authorities such as the Audit Oversight Unit aware of the new auditor reporting standards (NOCLAR), which will become effective as of July 2017, in order to incorporate the new standard. The association should also plan to support its implementation among its members and raise their awareness.
- SMO 5: International Public Sector Accounting Standards
Suomen Tilintarkastajat ry, has no direct responsibility for the adoption or implementation of public sector accounting standards, nonetheless it has undertaken some activities in support of public sector accounting standards, including publishing a book on public sector regulations. The association also reports continuously monitoring the activities of the IPSASB. Apart from this activities, no another actions have been reported.
Suomen Tilintarkastajat ry is encouraged to consider its role in raising awareness of IPSAS and if deemed relevant, to develop a strategic plan to promote the standards to its members and relevant authorities at the local and state governments. It may be beneficial for the association to facilitate discussions on IPSAS-related topics as a way to promote the adoption of IPSAS to the responsible stakeholders.
- SMO 6: Investigation and Discipline
Suomen Tilintarkastajat ry, assuming responsibility for investigating its members, uses its best endeavors to ensure that its members comply with ethical requirements. It investigates and disciplines its members for non-compliance with the Code of Ethics, although they do not have legal authority to do so. Its investigative and disciplinary (I&D) system is reported to be equivalent to SMO 6. In addition, it ensures its Ethical Board identifies areas for improvement in order to comply with SMO 6.
Suomen Tilintarkastajat ry is encouraged to report its activities with the Audit Oversight Unit on supporting the overall I&D system in the jurisdiction and promoting that it be in line with SMO 6 requirements.
- SMO 7: International Financial Reporting Standards
Suomen Tilintarkastajat ry has no direct responsibility for the adoption of IFRS however it supports the implementation of the standards by making available translations of IFRS since 2005, and promoting awareness of new and updated standards. It also provides implementation guidance to members by publishing examples of financial statements prepared in accordance with IFRS. To enhance its members’ understanding of the standards, the association delivers training and periodically facilitates discussions on application.
Suomen Tilintarkastajat ry is encouraged to share information in its SMO Action Plan on the range of education and training opportunities that it provides on IFRS. It may wish to consider raising awareness of IFRS for SMEs in order to promote adoption of the standards. It is also encouraged to participate in the international standard setting process through the provision of comments on Exposure Drafts and other pronouncements issued by the IASB.
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.