Czech Republic

As a member of the European Union (EU), the Czech Republic is subject to accounting, auditing, and financial reporting requirements established in EU Regulations and Directives as transposed into national laws and regulations. The jurisdiction’s legal framework remains broadly aligned with the EU acquis communautaire in the areas of corporate reporting, statutory audit, and public oversight.

The financial reporting framework is primarily established by the Accounting Act of 1991, as amended, under which the Ministry of Finance is responsible for accounting standard-setting and the issuance of implementing decrees and Czech Accounting Standards. Entities whose securities are admitted to trading on an EU regulated market are required to prepare consolidated financial statements in accordance with International Financial Reporting Standards (IFRS) as endorsed by the EU. Listed entities also apply EU-endorsed IFRS in separate financial statements where required by law. Other entities generally prepare financial statements in accordance with Czech GAAP and related Ministry of Finance decrees, although certain entities may elect to use IFRS for consolidated reporting. IFRS for Small and Medium-sized Entities has not been adopted in the jurisdiction.

The Czech reporting framework continues to operate a differential reporting model based on entity size and public interest status. Public interest entities, including listed companies, credit institutions, insurance undertakings, pension companies, and health insurance companies, are subject to additional reporting and audit requirements under EU and national legislation.

Statutory audit requirements are established under the Act on Auditors No. 93/2009 Coll., as amended, which transposes the EU Statutory Audit Directive and Regulation (EU) No. 537/2014 into national law. The Act regulates the approval, registration, supervision, and discipline of statutory auditors and audit firms and establishes the Public Audit Oversight Board (PAOB) as the independent public oversight authority.

Mandatory audits apply to public interest entities and to medium-sized and large entities that exceed the prescribed statutory thresholds. A significant legislative amendment approved in 2025 and effective from 1 January 2026 substantially increases the monetary thresholds for mandatory audit and limits the requirement primarily to medium-sized and large entities, while exempting most small entities unless otherwise classified as public interest entities. The revised thresholds include assets exceeding CZK 120 million, turnover exceeding CZK 240 million, or more than 50 employees, with at least two criteria to be met over two consecutive reporting periods.

Audits are required to be conducted in accordance with International Standards on Auditing (ISA) as issued by the International Auditing and Assurance Standards Board and promulgated by the Chamber of Auditors of the Czech Republic (CACR), subject to approval and oversight by the PAOB. Current evidence indicates that the jurisdiction maintains an ongoing process for the translation and adoption of updated ISA pronouncements.

In parallel, a new Accounting Act is currently under legislative consideration and passed first reading in March 2026. The proposed reform is expected to modernize the existing 1991 framework, further align national reporting requirements with international standards, and incorporate additional provisions related to sustainability reporting and expanded IFRS application for certain regulated entities.

Only statutory auditors are regulated at the state level in the Czech Republic. The audit profession is governed by Act No. 93/2009 Coll. on Auditors, as amended, which establishes the legal framework for the approval, registration, supervision, and discipline of statutory auditors and audit firms. Public oversight of the profession is vested in the Public Audit Oversight Board (PAOB), an independent legal person established under the Act.

Entry into the statutory audit profession is regulated by the Act on Auditors and administered through the Chamber of Auditors of the Czech Republic (CACR). Statutory audits may be performed only by certified auditors and audit firms entered in the Register of Auditors maintained by CACR. The legal framework provides for professional qualification requirements, the taking of an auditor’s oath, and recognition of qualifications obtained in other European Union Member States, subject in some cases to differential examinations. The Act also provides for continuing professional development requirements and cross-border recognition arrangements.

CACR is the self-regulating professional accountancy organization established by law for the governance of the audit profession. Its responsibilities include maintaining the Register of Auditors; administering audit examinations and differential examinations; issuing auditor licenses; supporting initial and continuing professional development; issuing internal regulations, the Code of Ethics, and auditing standards in consultation with the PAOB; conducting quality assurance reviews for auditors within its remit; and exercising disciplinary powers in accordance with the Act. Membership in CACR is mandatory for statutory auditors and audit firms authorized to perform statutory audits in the jurisdiction.

The PAOB oversees the activities of CACR and the performance of audit activity in the public interest. Under the Act, the PAOB supervises compliance with legal requirements, auditing standards, the Code of Ethics, and CACR’s internal regulations; oversees the organization and operation of the quality assurance and continuing professional development systems administered by CACR; reviews the application of disciplinary measures; and acts as an appellate body in cases stipulated by law. In addition, the PAOB serves as the competent authority under Regulation (EU) No. 537/2014 and conducts inspections of auditors and audit firms that perform at least one audit of a public interest entity.

Other accountancy professionals are not regulated by the state as a distinct professional category, although voluntary professional organizations operate in the jurisdiction. The Union of Accountants of the Czech Republic is a voluntary professional organization that brings together accountants, auditors, tax advisers, and other interested persons. It supports professional development and operates, through the Institute of Certification of the Union of Accountants, a certification system for the designations Certifikovaný úcetní and Úcetní expert. The certification framework was developed by the Union in cooperation with the Association of Chartered Certified Accountants, and the Institute administers preparatory courses, examinations, and certification processes.

Tax advisers are regulated separately under Act No. 523/1992 Coll. on Tax Advisory Services and the Chamber of Tax Advisers of the Czech Republic. The Chamber of Tax Advisers administers the professional qualification process for tax advisers. Current publicly available information indicates that applicants for the tax adviser qualification examination must demonstrate integrity, full legal capacity, and completion of at least bachelor-level higher education, among other statutory conditions.

Independent public oversight of the audit profession in the Czech Republic is established under Act No. 93/2009 Coll. on Auditors, as amended, which provides the legal framework for the regulation and supervision of statutory auditors and audit firms.

The Act designates the Public Audit Oversight Board (PAOB) as the independent public oversight authority for the audit profession. The PAOB is an independent legal person established in 2009, and its principal task is to perform public oversight of audit activities and the activities of the Chamber of Auditors of the Czech Republic (CACR).

Under the Act on Auditors, the PAOB oversees CACR’s performance of delegated public-interest functions, including supervision of compliance with auditing standards, the Code of Ethics, and CACR’s internal regulations, as well as the operation of the continuing professional development and quality assurance systems within CACR’s remit. The PAOB also acts as the appellate administrative body in proceedings concerning appeals against decisions of CACR in cases specified by law.

In addition, the PAOB is the competent authority under Article 20 of Regulation (EU) No. 537/2014 and carries out quality inspections of auditors and audit firms that perform at least one statutory audit of a public interest entity. Publicly available PAOB materials also indicate that follow-up sanction procedures form part of its oversight activities in this area.

The PAOB is a member of the International Forum of Independent Audit Regulators

Chamber of Auditors of the Czech Republic (CACR)

The Chamber of Auditors of the Czech Republic (CACR) is the professional accountancy organization established by law for the governance of the audit profession in the Czech Republic. CACR was founded in 1993 and operates under Act No. 93/2009 Coll. on Auditors, as amended. Membership is mandatory for statutory auditors and audit firms authorized to perform statutory audits in the jurisdiction. CACR’s responsibilities include maintaining and publishing the Register of Auditors; administering audit examinations and recognition procedures; issuing auditor licenses; supporting continuing professional development; issuing internal regulations, the Code of Ethics, and auditing standards in consultation with the Public Audit Oversight Board; carrying out quality assurance reviews within its remit; and exercising disciplinary powers in accordance with the law. CACR also publishes technical materials and collaborates with domestic and international institutions relevant to the profession.

In addition to its national role, CACR is a member of the International Federation of Accountants and Accountancy Europe. CACR also indicates that it is a member of the National Accounting Board.

Chamber of Tax Advisers (CTA)

The Chamber of Tax Advisers of the Czech Republic is the professional body established under Act No. 523/1992 Coll. on Tax Advisory Services and the Chamber of Tax Advisers of the Czech Republic. It regulates the tax advisory profession in the jurisdiction and maintains the register of authorized tax advisers and tax advisory companies. The Chamber also supports entry into the profession, professional development, and continuing education for tax advisers, and provides professional guidance and services to its members.

Union of Accountants (UOA)

The Union of Accountants of the Czech Republic is a voluntary and independent professional organization that has operated under its present name since 1990. It brings together accountants, auditors, tax advisers, and other interested persons and continues the activities of the former Czech Union of Accountants and Statisticians established in 1969. The Union’s principal role is to support the development of the accountancy profession through education, certification, advisory activities, publications, and methodological support. Its certification framework was developed with reference to European practice and in consultation with the Association of Chartered Certified Accountants.

The Union indicates that it is a member of the International Federation of Accountants and the European Management Accountants Association.

The quality assurance review system in the Czech Republic is established under Act No. 93/2009 Coll. on Auditors, as amended, and applies to all statutory audits. The framework operates on a shared basis between the Public Audit Oversight Board (PAOB), which conducts inspections of auditors and audit firms that perform at least one statutory audit of a public interest entity, and the Chamber of Auditors of the Czech Republic (CACR), which remains responsible for quality assurance reviews of non-public interest entity audits. The inspection cycle is at least every three years for public interest entity audits and at least every six years for other statutory audits.

CACR reports that its quality assurance system is aligned with the requirements of Statement of Membership Obligations 1 and the European Union statutory audit framework. Publicly available information indicates that CACR supports implementation through inspector training, updated review guidance, and practice support materials for firms subject to review.

With respect to quality management standards, CACR has adopted ISQM 1 and ISQM 2 in Czech translation, and both standards became effective from 15 December 2022. CACR’s current auditing standards pages continue to list ISQM 1 and ISQM 2 as adopted standards in force in the jurisdiction, alongside ISA 220 (Revised).

Accordingly, the Czech Republic’s QA review system is Adopted. The system is operational for all mandatory audits and, based on available evidence, is aligned with the relevant SMO 1 requirements.

Current Status: Adopted

Initial and continuing professional development requirements for statutory auditors in the Czech Republic are established under Act No. 93/2009 Coll. on Auditors, as amended, and are implemented by the Chamber of Auditors of the Czech Republic (CACR) under the oversight of the Public Audit Oversight Board. Entry requirements include completion of higher education, practical experience, and successful completion of the auditor examination. The Act also requires statutory auditors to participate in continuing professional development programs of up to 60 hours per year, as determined by CACR’s internal regulations.

CACR reports that it assessed its requirements against the 2019 International Education Standards, including the revisions to IES 2, IES 3, IES 4, and IES 8 effective in January 2021, and introduced amendments to its framework accordingly. Publicly available IFAC information also notes that, from 2023, engagement partners are required to demonstrate at least eight hours of learning outcomes in areas aligned with IES 8.

However, available evidence does not demonstrate that the latest IES requirements are adopted for all aspiring and professional accountants in the jurisdiction. Outside the statutory audit profession, other accountancy segments such as accountants and tax advisers are largely organized through voluntary professional bodies, and publicly available information does not clearly demonstrate jurisdiction-wide alignment with the latest IES for those segments.

Accordingly, the Czech Republic is assessed as Partially Adopted for IES. The jurisdiction has adopted and implemented requirements aligned with the 2019 IES framework for statutory auditors, but available evidence does not support adoption of the latest IES in effect as of the time of the assessment for all aspiring and professional accountants in the jurisdiction.

Current Status: Partially Adopted

Statutory audit requirements in the Czech Republic are established under Act No. 93/2009 Coll. on Auditors, as amended, which delegates authority for auditing standards to the Chamber of Auditors of the Czech Republic (CACR), subject to oversight by the Public Audit Oversight Board. CACR publishes the applicable auditing standards on its official standards pages.

Publicly available CACR materials indicate an ongoing process to translate, adopt, and publish International Standards on Auditing (ISA) as issued by the International Auditing and Assurance Standards Board. Accordingly, ISA in the Czech Republic are assessed as Adopted.

In addition, the ISA for Audits of Financial Statements of Less Complex Entities (ISA for LCE) has been adopted by CACR in Czech translation and is effective for audits of financial statements of less complex entities for periods beginning on or after 15 December 2025.

Current Status: Adopted

Ethical requirements for statutory auditors in the Czech Republic are established under Act No. 93/2009 Coll. on Auditors, as amended, and are issued by the Chamber of Auditors of the Czech Republic (CACR) under the supervision of the Public Audit Oversight Board, which has final oversight authority for the applicable ethical framework.

CACR maintains an ongoing process to translate and incorporate amendments to the International Code of Ethics for Professional Accountants (including International Independence Standards).

For other professional accountants, including bookkeepers and tax advisers, ethical requirements are generally established through voluntary professional body membership, including the Union of Accountants and the Chamber of Tax Advisers. Available public information does not clearly demonstrate alignment of these frameworks with the latest IESBA Code in effect. Accordingly, the International Code of Ethics is assessed as Partially Adopted.

Current Status: Partially Adopted

The Ministry of Finance (MoF) is responsible for public sector accounting standard-setting in the Czech Republic and issues the applicable legal and methodological framework for selected public sector entities, including decrees and Czech public sector accounting standards. The MoF continues to maintain a distinct public sector accounting framework under its public finance accounting reform program.

Current publicly available International Federation of Accountants (IFAC) and Chartered Institute of Public Finance and Accountancy (CIPFA) information indicates that the Czech Republic applies an accrual-based national public sector accounting framework that uses International Public Sector Accounting Standards (IPSAS) as a reference point, rather than adopting IPSAS directly. The IFAC country profile states that financial reporting is based on accrual accounting, with national standards referencing and being significantly inspired by IPSAS.

Available evidence does not indicate that accrual-basis IPSAS in their entirety have been adopted for application by all public sector entities in the jurisdiction, nor does it identify a specific IPSAS Handbook version as formally adopted. Instead, the Czech framework remains a set of national accrual standards with reference to IPSAS. Accordingly, IPSAS in the Czech Republic are assessed as Partially Adopted.

Current Status: Partially Adopted

The investigative and disciplinary (I&D) system for statutory auditors in the Czech Republic is established under Act No. 93/2009 Coll. on Auditors, as amended, and operates on a shared basis between the Chamber of Auditors of the Czech Republic (CACR) and the Public Audit Oversight Board (PAOB). Under the Act, CACR is responsible for disciplinary proceedings relating to statutory auditors within its remit, while PAOB conducts oversight and, in the public interest entity segment, carries out inspections and related enforcement activities under its statutory authority.

Within CACR, the Supervisory Committee is responsible for oversight and investigative activities, while the Disciplinary Committee conducts disciplinary proceedings and may impose sanctions in accordance with the Act and CACR’s internal regulations. PAOB acts as the appellate body in cases where an auditor challenges a decision of CACR.

CACR reports that it has completed a self-assessment of its I&D system against Statement of Membership Obligations 6 (SMO 6) and that the framework meets the majority of the SMO 6 best practices. The system is operational for statutory auditors and appears broadly aligned with the key requirements of SMO 6 for that regulated segment.

Other professional accountants, including bookkeepers and tax advisers, are subject to disciplinary arrangements through separate professional bodies or sector-specific legal frameworks. However, a comprehensive jurisdiction-wide assessment against the SMO 6 benchmark for all professional accountants is not currently available.

Current Status: Partially Adopted

The Ministry of Finance (MoF) is responsible for the national accounting framework in the Czech Republic under the Accounting Act, while the application of International Financial Reporting Standards (IFRS) is governed through the European Union (EU) endorsement framework and national law.

In accordance with the Accounting Act and the IFRS Foundation jurisdiction profile, IFRS as adopted by the European Union (EU) are required for the preparation of separate and consolidated financial statements of entities whose securities trade in a regulated market. Other entities may apply IFRS for consolidated financial statements on a voluntary basis and, in certain cases, subsidiaries of IFRS-reporting parent entities may use IFRS as a basis for their separate financial statements.

The applicable framework in the jurisdiction is IFRS as adopted by the EU. According to the IFRS Foundation, this framework is substantially aligned with IFRS as issued by the International Accounting Standards Board (IASB), subject to limited EU modifications and carve-outs affecting a small number of entities.

Other entities continue to apply Czech GAAP and the related decrees and accounting standards issued by the MoF. Companies applying IFRS are also required to maintain accounting records in accordance with Czech GAAP for tax purposes or reconcile IFRS financial statements to Czech GAAP.

Accordingly, IFRS in the Czech Republic are assessed as Partially Adopted. IFRS are required for listed entities whose securities trade in a regulated market and are permitted for certain other entities, but are not required for all domestic publicly accountable entities at the jurisdiction level.

The IFRS for Small and Medium-sized Entities (IFRS for SMEs) are Not Adopted in the Czech Republic.

Current Status: Partially Adopted

Relevant Organizations

Chamber of Auditors of the Czech Republic (CACR)

European Union (EU) / EUR-Lex

IFRS Foundation – Czechia Jurisdiction Profile

IFRS Foundation – European Union Jurisdiction Profile

International Forum of Independent Audit Regulators (IFIAR)

Ministry of Finance of the Czech Republic (MoF)

Public Audit Oversight Board (PAOB)

Supreme Audit Office of the Czech Republic (SAO)

Relevant Legislation

Act No. 93/2009 Coll. on Auditors, as amended

Accounting Act No. 563/1991 Coll., as amended

Regulation (EU) No 537/2014 on specific requirements regarding statutory audit of public-interest entities

Directive 2014/56/EU amending Directive 2006/43/EC on statutory audits

Relevant Publications

CACR – Auditing Standards 2025

CACR – Courses and Training Calendar

CACR – ISA for LCE

CACR – Quality Management Standards (ISQM 1 and ISQM 2)

IFAC and CIPFA – International Public Sector Financial Accountability Index

PAOB Annual Reports

World Bank – Report on the Observance of Standards and Codes (ROSC): Czech Republic, Accounting and Auditing