Suomen Tilintarkastajat ry

Suomen Tilintarkastajat ry has no direct responsibility for operating the quality assurance (QA) review system in Finland, as this function is carried out by the Audit Oversight Unit (AOU) under the Auditing Act (1141/2015). The statutory QA system is operational for all mandatory audits and is reported to be aligned with the requirements of SMO 1.

Within the scope of its authority, the association actively supports the implementation of quality management requirements by its members. Suomen Tilintarkastajat ry maintains ongoing communication with the AOU regarding developments and findings arising from QA inspections and provides regular training programs addressing audit quality, International Standards on Auditing, and International Standards on Quality Management.

The association has translated and disseminated the IAASB standards, including ISQM 1 and ISQM 2, and updates its tools, templates, and publications accordingly It also publishes guidance materials to assist members in understanding and applying quality management requirements.

Suomen Tilintarkastajat ry performs periodic reviews to ensure continued alignment with SMO 1 requirements and has demonstrated sustained commitment to supporting high-quality audit practices in Finland.

Current Status: Sustain

Initial professional development (IPD) and continuing professional development (CPD) requirements for auditors, the only segment of the profession regulated in Finland, are established in the Auditing Act (1141/2015) and are further detailed and implemented by the Ministry of Employment and Economy, and the Audit Oversight Unit. The extent of alignment of IPD and CPD requirements with those of the 2019 IES needs to be established.

Suomen Tilintarkastajat ry is involved in the training of auditors through a voluntary examination preparation program that it administers and provision of CPD programming. The association reports that it regularly updates its programming to ensure that it continues to be aligned with the requirements of the IES. However, it is not clear whether the IES in effect as of 2021 have been incorporated.

The institute’s CPD Committee meets periodically to update its program and ensure that its members are fulfilling the requirements. In line with the Auditing Act No. 1141 of 2015, the CPD requirements established in law oblige auditors to complete at least 120 hours CPD activities in a three-year period, with at least 20 hours per year. Half of the required CPD activities must be verifiable. Subsequently, Suomen Tilintarkastajat ry developed a system to provide members with certificates to verify their CPD activities. The CPD Committee also consults with the Board concerning non-compliant members and refers cases to the Disciplinary Commission as needed.

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, within the scope of its authority, to collaborate with the Audit Oversight Unit and relevant authorities to periodically assess alignment of national education requirements with the most recent IES and to document the results of such assessments. Where differences are identified, the association may consider advocating for updates or enhancing its own educational programming to address identified gaps. IFAC’s IES Checklist and Accountancy Education E-Tool may be used to support this process.

Current Status: Review & Improve

Although Suomen Tilintarkastajat ry is not formally responsible for the legal adoption of International Standards on Auditing (ISA), which is subject to the European Union endorsement process, the association has established well-developed and ongoing processes to support the consistent application of ISA in Finland. It has translated IAASB pronouncements and supported their implementation since 2000.

Suomen Tilintarkastajat ry translates and disseminates the IAASB Handbook, including the International Standards on Auditing and the International Standards on Quality Management, and makes these standards available to practitioners in Finnish. In practice, the association ensures timely translation of new and revised standards, including those not yet incorporated into consolidated handbooks, and communicates updates to its members.

The association provides continuous implementation support through its ST-Akatemia, organizes seminars and technical updates, and develops and regularly updates audit templates, reporting formats, and guidance materials. It also maintains practical tools, including audit documentation solutions, to assist auditors in applying ISA in practice.

In addition, Suomen Tilintarkastajat ry incorporates insights from quality assurance reviews conducted by the Audit Oversight Unit into its training and guidance activities, supporting continuous improvement in audit quality across the profession.

Through these established and ongoing activities, the association demonstrates sustained commitment to supporting the implementation of ISA and maintaining high-quality audit practices within the jurisdiction.

Current Status: Sustain

Suomen Tilintarkastajat ry is not legally responsible for establishing ethical requirements at the jurisdiction level, as these are set out in the Auditing Act (1141/2015) and overseen by the Audit Oversight Unit. However, within the scope of its authority, the association requires its voluntary members to adhere to the International Code of Ethics for Professional Accountants (including International Independence Standards).

The association has translated and made publicly available the 2023 edition of the IESBA Handbook of the Code of Ethics and informs members of new, proposed, and revised amendments to the Code. It supports implementation through training programs, guidance materials, and technical updates.

Suomen Tilintarkastajat ry has demonstrated an ongoing commitment to fulfilling its obligations under SMO 4 by maintaining processes to monitor developments in the IESBA Code and to promote high ethical standards among its members.

While the statutory ethical framework incorporates principles aligned with the IESBA Code, the extent to which national requirements are fully aligned with the Code in effect as of the time of assessment has not been formally demonstrated. Accordingly, within the scope of its authority, the association is encouraged to continue engaging with relevant authorities to promote alignment of national ethical requirements with the most recent IESBA Code, including consideration of direct reference to the Code in legislation or regulatory guidance where appropriate.

Current Status: Review & Improve

Suomen Tilintarkastajat ry has no direct responsibility for the adoption or implementation of public sector accounting standards in Finland. Public sector accounting requirements are established by the Government and are based on accrual accounting principles. National standards are reported to be largely aligned with IPSAS, particularly at the municipal level; however, IPSAS in their entirety have not been formally adopted in the jurisdiction.

Finland has expressed support for the development of European Public Sector Accounting Standards (EPSAS), and no formal plans to adopt IPSAS have been reported

Suomen Tilintarkastajat ry’s involvement in public sector matters primarily relates to promoting good auditing practice in the public sector. The association has established a working group on public sector auditing and has issued guidance on good audit practice in the public sector, which is publicly available.

Recognizing that the association’s primary mandate relates to auditing rather than accounting standard-setting, Suomen Tilintarkastajat ry is encouraged, within the scope of its authority, to continue engaging with relevant stakeholders to promote high-quality accrual-based public sector financial reporting frameworks and to support alignment with international best practices, whether through IPSAS or other internationally recognized standards.

Current Status: Execute

Suomen Tilintarkastajat ry has no direct responsibility for operating the statutory investigative and disciplinary (I&D) system in Finland. Investigation and discipline of authorized auditors is carried out by the Audit Oversight Unit (AOU) under the Auditing Act (1141/2015).

In addition to the statutory framework, Suomen Tilintarkastajat ry has established an Ethical Board that monitors compliance by its voluntary members with ethical requirements and the association’s constitution. The Ethical Board reviews disciplinary matters and prepares proposals to the Board of the association, which makes final decisions regarding sanctions, including remark, warning, or termination of membership.

While the association is not legally required to report disciplinary outcomes to the AOU, coordination may occur in cases where matters are already under review by the statutory oversight authority. This supplementary mechanism operates alongside the statutory I&D system and reinforces ethical oversight within the membership.

To promote transparency and understanding of disciplinary processes, Suomen Tilintarkastajat ry provides guidance materials and information on its website and through its training portal.

Within the scope of its authority, the association has demonstrated sustained commitment to supporting an effective investigative and disciplinary framework consistent with SMO 6 requirements.

Current Status: Sustain

Suomen Tilintarkastajat ry has no direct responsibility for the legal adoption of International Financial Reporting Standards (IFRS Accounting Standards), which are incorporated into Finnish legislation through the Accounting Act (1620/2015) and the EU IAS Regulation (1606/2002).

Within the scope of its authority, the association actively supports the implementation of IFRS by translating and disseminating standards, promoting awareness of new and revised pronouncements, and delivering training programs through ST-Akatemia. The association also provides practical implementation guidance, including illustrative financial statements and technical materials to assist members in applying IFRS in practice.

Suomen Tilintarkastajat ry periodically facilitates professional discussions on the application of new and amended standards and maintains ongoing processes to monitor developments in IFRS.

Through these activities, the association has demonstrated sustained commitment to fulfilling its obligations under SMO 7 and to supporting high-quality financial reporting in Finland.

Current Status: Sustain