Law on Audit

Chapter I - GENERAL PROVISIONS

    Article 1. Scope of
    This law establishes the legal framework for organization of audit work by audit firms and individual entrepreneurs auditors, governing the profession of auditor.

    Article 2. Basics
    In the present law, the terms below are defined as follows:
    audit activity - business activity for the provision of professional services performed under contract, to express an opinion on the veracity of financial statements in accordance with this law and legislation;
    audit - an independent review of annual financial reports, consolidated annual financial reports and other information related to them, the auditee to the auditor to express an opinion on their compliance professional, in all material respects, the requirements to these reports;
    auditor - a person who holds a qualification certificate of the auditor;
    association of auditors - voluntary formation of independent, self, created by the free will of auditors, audit firms and individual entrepreneurs auditors, based on community interests associated professional to jointly exercise their civil, economic and social, which is not a for profit;
    auditor's qualification certificate - a document issued as provided by this Act, the auditor confirming professional qualification;
    Code of Ethics - Code of Ethics for Professional Accountants, issued by the Auditing and Assurance Standards;
    auditee - the entity, including its subdivisions, whose annual financial reports, consolidated annual financial reports and / or other related information are subject to audit;
    auditor's report - legally binding document, prepared in accordance with Article 8;
    audit risk - the risk of giving the auditor an inappropriate audit opinion when the financial statements contain material misstatements;
    audit applicant - natural or legal person applying for the audit;
    audit firm, auditor individual entrepreneur - a subject of entrepreneurial activity, recorded in accordance with the Civil Code and special legislation in the field, which is licensed to conduct the audit;
    Trainee - an individual employed for probation as provided in Article 19, which is not the auditor, but participating in the audit led by an auditor;
    auditing standards - international standards of quality control, audit, review missions, certification and related services issued by the Auditing and Assurance Standards.

    Article 3. Fundamental principles of audit
    The audit work is based on the following principles:
    a) independence;
    b) integrity;
    c) objectivity;
    d) professional competence and prudence;
    e) confidentiality;
    f) professional behavior.

    Article 4. Types of audit
    (1) The audit may be required or requested.
    (2) The statutory audit of annual financial reports, including consolidated, shall be public entities and other entities according to law.
    (3) The required audit is performed at the request of shareholders (partners), auditee management, investors, creditors, the state bodies of the court.

Chapter II - ORGANIZATION OF AUDIT

    Article 5. Company audit, the auditor individual entrepreneur
    (1) The audit may be formed as limited liability or joint stock company. Most contributions to the capital value of the audit firm belongs to the auditors and / or audit firms or non-resident.
    (2) The executive body of the audit firm, auditor individual entrepreneur are led by the auditor.
    (3) The auditor may carry out audit work as an employee of the auditor's audit or individual entrepreneur.
    (3) The auditor may carry out audit work as auditor of a private entrepreneur or employee of the audit firm or auditor of a private entrepreneur.
    (4) Company audit, the auditor individual entrepreneur shall be obliged to respect the principles of organizing and conducting the audit in accordance with auditing standards, with legislative and other normative acts regulating these principles.

    Note: Paragraph 3 of Article 5 will be the new version from 13.07.2012 according to Law 267 of 12/23/2011.

    Article 6. Audit services provided by society, individual entrepreneur auditor
    (1) The audit, the auditor individual entrepreneur, in addition to the audit, can provide services:
    a) organization, the restoration and maintenance of accounting records;
    b) to provide assistance to the automation of accounting;
    c) the accounting;
    d) planning and calculation of tax liabilities to the budget, preparing tax returns;
    e) the financial and economic analysis;
    f) the advice and information service on issues related to the financial and tax legislation;
    g) the development and dissemination of methodological materials, recommendations on accounting, taxation, auditing;
    h) legal assistance in matters of economic and financial activity;
    i) management assistance;
    j) assistance in management, reorganization and liquidation;
    k) investment management consultancy, the analysis of investment projects;
    l) of carrying out the auditor / auditing committee.
    (2) In addition to the audit, a single auditor can not provide, within an audited entity, for the same reporting period, the services mentioned in para. (1) a) c) d) i), j), l).

    Article 7. Audit
    (1) The senior management of the audited entity has the power to confirm the audit firm, individual auditor will audit the business and set their fees.
    (2) The relationship between audit firm, auditor and the audited entity or individual entrepreneur applicant is regulated by the contract audit audit concluded under civil law.
    (3) The contract audit shall be in writing and, in addition to the requirements of civil law, will contain objective and scope of the audit.

    Article 8. Auditor's Report
    (1) The auditor's report will include the auditor's opinion in all material respects on whether the audited financial statements are prepared in accordance with applicable financial reporting framework. The auditor's opinion may be unmodified or modified, respectively, qualified opinion, adverse opinion or disclaimer of opinion.
    (2) The auditor's report will meet the requirements of auditing standards and will contain the basic elements in the following sequence:
    a) title;
    b) the recipient;
    c) introduction listing the audited financial reports;
    d) description of management's responsibility for financial reporting;
    e) description of the auditor's responsibility to express an opinion on the financial statements and the scope of the audit, including:
    - A reference to auditing standards and other regulations applied in auditing;
    - Description of the audit in accordance with standards,
    f) paragraph containing the auditor's opinion on the financial statements and a reference to the financial reporting framework used for financial reporting;
    g) the name, signature auditor qualification certificate data from the auditor;
    h) the date of the report;
    i) address the audit firm, the individual entrepreneur whose auditor / auditor whose working name, license and stamp data from the audit firm, auditor of the individual entrepreneur.
    (3) In case of violation of the restrictions provided under Article 11. (4) The supervisory board of audit the auditor's report declared null, which attracts repeat performance audit to another auditor.

    Article 9. Ensuring audit risk
    (1) To ensure audit risk, audit firm, auditor individual entrepreneur shall be obliged to conclude contracts with the insurer professional indemnity insurance, the insurance contract subject to audit or auditing financial reports, and / or constitute minimum size provisions which shall not be less than 15% of sales income of the reporting year for financial statement audit and / or consolidated annual financial reports.
    (2) The provisions set is placed in high liquidity assets to ensure their availability at any time.

    Article 10. Quality control for audit work
    (1) audit companies, individual entrepreneurs auditors are required to develop and follow policies and procedures for quality control of audit work in accordance with auditing standards and requirements of the Code of Ethics.
    (2) policy and procedures for quality control of audit work is approved by a document (order, etc. available.) Issued by the company management audit, the auditor individual entrepreneur.
    (3) procedures for quality control of audit work is performed within each audit firm and the auditor each individual entrepreneur.
    (4) quality control procedures applied audit work by audit companies, individual entrepreneurs auditors documented criteria established auditing standards and ethical code and include:
    a) responsibility of the audit firm, the individual entrepreneur auditor quality audit work;
    b) relevant ethical requirements, including independence;
    c) Acceptance and continuance of client relationships and specific missions;
    d) human resources, including the designation of mission teams;
    e) the task, including:
    - Consultation;
    - Engagement quality control review;
    - Differences of opinion;
    - Documenting the mission;
    f) monitoring, including:
    - Monitoring of policies and procedures for quality control;
    - Assess, communicate and address any deficiencies identified;
    - Complaints and appeals.
    (5) audit companies, individual entrepreneurs auditors report yearly to the oversight of the audit, up to April 30th of the year following the reporting year:
    a) financial reports and information on the procedures for quality control audits, auditing standards established;
    b) transparency report audit firm, the individual entrepreneur auditor for placement on the official website of the Supervisory Board of the audit, the audit if the public entity, which includes at least:
    - Information about membership of the audit firm, auditor of individual entrepreneur to a professional audit firms and auditors;
    - Information about policies and procedures for quality control audits, their stated efficiency of the executive;
    - Date of last inspection the quality of audit work;
    - Statement of compliance by auditing company, the auditor independence principle of individual entrepreneur;
    - Information on continuing vocational training of auditors;
    - Name, surname, data of auditor qualification certificate, signature of the audit firm, auditor of the individual entrepreneur, stamp, serial number and issue date for the audit activity.

Chapter III - WARRANTIES AUDIT PROFESSION

    Article 11. Auditor Independence
    (1) In the profession, the auditor is independent and is governed by this Law and other normative acts approved for its execution.
    (2) The auditor is free to choose the method to conduct the audit and to coordinate with team members, audit, management audit firm or individual auditor business procedures it will use.
    (3) management audit firm, audit firm owners or shareholders or affiliated society involved in the audit in any way that would limit the independence and objectivity of the auditor.
    (4) the auditor independence principle is violated if:
    a) direct or indirect involvement of the audited entity as a founder, owner, public official liability and / or his participation in its economic and financial affairs;
    b) the performance of management or other positions within the auditee during the audit period or the last three years up to the audit;
    c) the existence of kinship up to grade III or affinity including owners and members of the governing body of the audited entity;
    d) acceptance of goods and services as gifts, and an exaggerated cordiality and hospitality of the audited entity;
    e) remuneration, subject to factual findings or results of services provided;
    g) the audit by the same auditor for more than seven years consecutive to the same entity. The auditor who conducted the audit in an entity within 7 consecutive years can perform the same audit entity only at the expiration of two years from the last audit.
    (5) Fees for audit services will be independent of events based on conditioning or unforeseen contingencies or based on the fact that the auditor, auditing company, the auditor provides individual entrepreneurs and other services to the audited entity.

    Article 12. Auditor independence guarantees
    (1) Interference in the profession of auditor is prohibited.
    (2) The auditor may have heard about the essence of his relationship with the entity that has provided audit services in criminal proceedings and civil offenses.
    (3) No public authority is entitled to influence the provision of audit services, the report and auditor's working papers.

    Article 13. Confidentiality in the audit
    (1) The auditor shall respect the confidentiality of information about the auditee business, acquired in the performance of professional services. Obligation of secrecy remains in force after termination of the relationship between auditor and auditee.
    (2) The auditor, audit firm, individual entrepreneur auditor ensure that the confidentiality of the personnel that operate under its control and the people who provide advice and assistance.

Chapter IV - RIGHTS AND DUTIES OF AUDITORS. THE AUDITED ENTITY AND OF ITS AUDITORS AND AUDIT COMPANY

    Article 14. Rights of auditor
    The auditor is entitled:
    a) choose the method of conducting the audit, within the limits of auditing standards;
    b) planning the audit itself;
    c) require the management of oral and written explanations of the audited entity;
    d) to have the services of experts, specialists and other persons whose knowledge is necessary to audit;
    e) to refuse the audit, the audit is terminated if the auditee:
    - Not present the necessary documents or submitted documents containing false or incomplete data;
    - Failed to remove obstacles arising during the audit;
    - Interfere with the actions of the auditor;
    f) receive all notices and communications relating to any meeting convened by the board, general meeting of the audited entity.

    Article 15. Auditor's obligations
    The auditor shall:
    a) to audit in accordance with auditing standards and legislation;
    b) comply with conditions of the audit;
    c) notify the owner, the applicant for audit and / or person responsible for management of the audited entity about detected misstatements and the recommended actions from the audit of financial statements;
    d) to waive the audit if it violates the principle of independence of the auditor's work;
    e) to keep confidential information relating to the audited entity and not to disclose to third parties, except for disclosure in criminal proceedings and civil offenses;
    f) each year, starting next year after receipt of the auditor's certificate of qualification, raise their skill level (not more than 40 academic hours) in organizations, professional training institutions to continue as established by the Government ;
    g) comply with requirements for quality control of audit work;
    h) general meeting to present its report to the audited entity and information about detected misstatements.

    Article 16. Rights auditee
    Audited entity is entitled:
    a) receive from the company audit, the auditor comprehensive information on individual business requirements and auditing standards of the legislation on audit and other documents on which the auditor to express an opinion on the financial statements;
    b) receive from the company audit, the auditor recommendations on removing individual entrepreneur violations of requirements of normative acts;
    c) to terminate the contract unilaterally completed audit firm audits, individual entrepreneur auditor if the auditor in performing the obligations set out in Article 15 audit. In case of termination, the auditee will inform the supervisory board of audit this fact and the reasons for termination;
    d) to notify the supervisory board of audit and other bodies in case of violation of legislation committed by auditors.

    Article 17. Audited entity's liabilities
    Auditee is obliged:
    a) create audit society representatives, private entrepreneur auditor to audit requirements, provide the documentation requested, oral and written explanations;
    b) not interfere with the actions of the audit firm, auditor of the individual entrepreneur to limit the issues subject to audit;
    c) send in his name to the requirement of the audit firm, auditor of individual entrepreneur, written request addressed to third persons to receive necessary information;
    d) comply with conditions of the audit.

    Article 18. Association auditors and companies audit rights and obligations
    (1) auditors and audit firms have the right to associate, on a voluntary basis, according to the Civil Code, the trade association membership under individual or collective.
    (2) Association of auditors and audit firms is their general meeting. Powers of general assembly of auditors and audit firms and their management body functions are established in the bylaws and approved by the General Assembly.
    (3) the general assembly of auditors and audit firms and their management body work is based on principles of self.
    (4) Association of auditors and audit firms is entitled:
    a) represent the professional interests of its members;
    b) collaborate with other associations and nongovernmental organizations in the country and abroad;
    c) develop and implement their own professional standards in accordance with auditing standards, the Code of Ethics and draft programs of continuous professional training of auditors.
    (5) Association of auditors and audit firms are required:
    a) to coordinate its members;
    b) ensure the supervision of the internal audit activity of its members;
    c) to monitor the continuous professional training of its members;
    d) to mediate, with the agreement of all parties, disputes between its members and auditees;
    e) Ministry of Finance to provide quarterly information on membership association of auditors, individual entrepreneurs auditors, audit firms for keeping the State Register of auditors and of the State register of audit firms, auditors of individual entrepreneurs and update information from them .

Chapter V - EXAMINATION OF PROFESSIONAL COMPETENCE

    Article 19. Internship in the audit
    The trainee in auditing individual who meets the following conditions:
    a) has higher education in economic and financial or legal;
    b) corresponds, during internship, requirements of the Code of Ethics;
    c) an employee of the audit firm or auditor of the individual entrepreneur throughout the period of probation, in accordance with Labor Code requirements, and participate in audit.

    Article 20. General requirements for examination qualification
    (1) the auditor's qualification certificate issued to persons who meet the requirements specified in this article and qualification exam.
    (2) To obtain quality audit by the auditor general, the claimant argues qualification examination. The exam consists of written tests in the following disciplines:
    a) audit:
    - Auditing;
    - Legal requirements and auditing standards;
    - Professional conduct and independence;
    b) Financial accounting:
    - General accounting principles and theory;
    - Legislative requirements for the preparation of annual and consolidated annual reports, the accounting standards;
    c) management accounting:
    - Risk management and internal control;
    - Basic principles of financial management of enterprises;
    d) Financial management:
    - Financial analysis;
    - Business economics, financial and general;
    - Mathematics and statistics;
    e) right:
    - Labor law, social security and health;
    - Tax law, civil and commercial matters;
    - Legislation on companies;
    - Legislation on insolvency and similar procedures;
    f) management of information technology and computer systems (user level).
    (3) qualifying examination may be held by Moldovan citizens, foreign citizens and stateless persons who meet the following requirements:
    a) have full legal capacity, higher education in economic and financial or legal confirmed complete university degree issued by an institution of higher education in Moldova or in another state, provided the recognition of qualifications and equivalence the diplomas of the Ministry of Education;
    b) to have work experience of at least three years in economic and financial or legal, of which two thirds as a trainee in the audit under the guidance of an auditor;
    c) have no criminal records;
    d) be a language.
    (4) For examination in each subject will be charged a payment in the amount of 350 lei. Sum payments for the examination shall be paid to the special account of Chisinau territorial Treasury - State budget.
    (5) To obtain a certificate of qualification of auditor auditor of financial institutions and financial market professional participants, claimants examinations and receive certificates of qualification appropriate to the National Bank and National Securities Commission only after the examination and receive certificate qualification of the auditor general audit.

    Article 21. Organizing qualification examination
    (1) qualification examination organized by the Ministry of Finance and the examination is performed by the certification. Participate as observers representatives of the Ministry of Finance and other central organs of government, associations of auditors, accountants and audit firms.
    (2) claimants who have not passed the exam in some subjects may be allowed to repeat the exam the first time - more than 6 months and the second time - a year after the previous attempt, to meet the deadline of up to three years, which commences the day the candidate passed the exam at one of the disciplines.
    (3) Decision on the outcome of the qualification examination may be appealed supervisory board of audit within 30 days of receipt of the result.
    (4) General requirements for the qualification examination, examination and registration management process of the applicants, composition of the Commission for certification and manner of selection of its members to evaluate test results, the organization and supervision, terms of qualification exam the way of issuing, suspending and withdrawing of auditor qualification certificate, continuing professional education requirements are established by the Regulation on certification of auditors approved by the Government.

Chapter VI - ISSUE AND WITHDRAWAL OF CERTIFICATE QUALIFICATIONS OF THE AUDITOR. SUSPENSION, CESSATION AND RESUMPTION OF AUDITOR

    Article 22. Certificate of qualification Auditor
    (1) pretender who receives qualifying exam certificate of qualification of the auditor. The validity of the certificate is unlimited.
    (2) the auditor's qualification certificate issued by the Ministry of Finance and will include:
    a) coat of arms;
    b) number and number;
    c) name of the holder;
    d) name of the issuer;
    e) Commission decision number and date of certification;
    f) the qualification;
    g) signature of the president and secretary of the certification;
    h) number and date of registration;
    i) photograph of the holder;
    j) stamp of the Ministry of Finance.
    (3) Form of auditor qualification certificate is a document of strict accounting.

    Article 23. Withdrawal of the qualification Auditor
    (1) the auditor's qualification certificate by Ministry of Finance to withdraw the decision of the Supervisory Board of the audit if:
    a) the certificate was received on submission of false or unauthentic data was found in the documents;
    b) the certificate holder has violated the requirements of continuing professional education, provided in Article 15 f);
    c) the certificate holder was given a final and unappealable conviction for an offense related work.
    (2) decision to withdraw the qualification certificates of the auditor shall notify the holder of the supervisory board of audit work within 5 days from date of issue. Decision is enforceable after the expiration of 10 days from the date.
    (3) The person to whom the auditor qualification certificate has been withdrawn:
    a) under par. (1) a), is entitled to the qualification exam over five years from the date when the decision to withdraw the certificate;
    b) under par. (1) b) and c), is entitled to the qualification exam 6 months after violations committed by fire or criminal record.

    Article 24. Suspension of auditor
    (1) The auditor shall be suspended by the Ministry of Finance if the auditor:
    a) holds a public office incompatible, according to law with the audit;
    b) an application for suspension of activity for a period not exceeding three years.
    (2) In the case referred to. (1) a), the auditor shall notify, within 30 days of the Supervisory Board of the audit about possible incompatibilities.
    (3) In the case referred to. (1) b), the auditor shall submit to the Supervisory Board of the audit a written request for suspension of work as auditors. Supervisory board of audit shall notify the auditor within 30 days about the decision.
    (4) At the end of each quarter, Council oversight of the audit of the Ministry of Finance will present information on auditors who have suspended business activities, to update information from the state register of auditors.
    (5) Any auditor's report issued in the period for which he was suspended activity is declared invalid by the supervisory board of audit.

    Article 25. Cessation of auditor
    Auditor's work shall terminate upon:
    a) the deletion of his request, the State register of auditors;
    b) withdrawal of certificate of qualification of the auditor on the grounds set out in article 23. (1);
    c) the death of the auditor.

    Article 26. Resumption of auditor
    (1) If the conditions disappear auditor's work led to the suspension under Article 24, the auditor may be resumed provided that f art.15).
    (11) Where the whereabouts situation of incompatibility under Article 24 para. (1) a), the auditor shall notify, within 30 days of the supervisory board of audit work on return to work. Supervisory board of the audit informs the Ministry of Finance about auditor activity resumption, to update information from the state register of auditors.
    (2) In case of closure:
    a) under article 25 a), the auditor may be resumed provided that the provisions of Article 20;
    b) according to article 25 b), the auditor may be resumed provided that the provisions of article 23. (3).

Chapter VII - STATE REGULATION OF BUSINESS AUDIT

    Article 27. State bodies empowered regulation of audit
    (1) State regulation of audit activity includes providing regulatory, certification and licensing.
    (2) State regulation of the audit shall be conducted by the Ministry of Finance and the Chamber of Licensing.
    (3) The competence of the Ministry of Finance are:
    a) implementation and publication of audit standards and code of ethics, development, approval and publication quality review program to give the auditor general audit and other audit related laws;
    b) organizing qualification examination and auditing records of trainees;
    c) keeping, as required, the State Register of auditors and of the State register of audit firms, auditors individual entrepreneurs, their publication in the Official Gazette of the Republic of Moldova and the placing on the website of the Ministry of Finance;
    d) representation of the Republic of Moldova in international organizations specialized in auditing, as required by law;
    e) working with professional associations of auditors and audit firms in the development and implementation of draft legislation on Audit;
    f) issue certificates of qualification of auditors in the Commission decision of certification suspension and revocation of certificates of qualification of auditors in the decision of the Supervisory Board of the audit.

    Article 28. Licensing of audit
    Licensing of audit
    (1) Licensing audit work is performed in accordance with the law on licensing of entrepreneurial activity.
    (2) In conducting the audit shall be determined following license terms:
    a) compliance audit firm and individual entrepreneur art.5 auditor;
    b) provision by the auditing company and the auditor individual entrepreneur, in addition to the audit, only those services provided in Article 6.
    (3) The statement of license documents as provided by law on licensing of business activity and copies of qualification certificates of the fund and / or auditors employed by audit firm, or, as appropriate, auditor's individual entrepreneur.
    (4) In addition to the grounds established by law on licensing of entrepreneurial activity, the license for audit activity is canceled in cases where the audit firm or auditor, individual entrepreneur:
    a) on another business activity together with the audit, except as permitted by this Act;
    b) does not comply with Article 5;
    c) has committed in the audit process, as confirmed by decision of the Supervisory Council of the audit.
    (5) Suspension of license for audit activity is carried out in accordance with the law on licensing of business activity and if the auditor or auditors engaged in the audit firm, individual auditor have suspended business activities in accordance 24 para. (1).

    Article 29. State Register of auditors
    (1) State Register of auditors in the state take on paper and electronically, and updated according to changes.
    (2) State Register of auditors include:
    a) Current number of registration;
    b) the full name of the auditor;
    c) serial number and date of issue of certificate of qualification of the auditor;
    d) data on vocational training;
    e) data on termination of the auditor;
    f) data on the suspension of the certificate of qualification of the auditor;
    g) data on withdrawal of qualification of the auditor;
    h) data from the ID (serial number, date and issuing office);
    i) name, address and telephone number of the audit firm, auditor's individual business operating auditor;
    j) belonging to a joint auditor of auditors, accountants.
    (3) extract from state register of auditors which includes information from b), c) and j) is published annually in the Official Gazette of the Republic of Moldova, as at January 1, and placed on the official website of Ministry of Finance at the beginning of each quarter or the extent of occurrence of changes.
    (4) If the data stipulated in para. (2) b), d)-j) were modified, the auditor must inform the Ministry of Finance and submit it within 30 days after the amendment, children confirming documents to update the information from the state register of auditors.
    (5) for keeping the State Register of auditors and update information from it, the National Bank and National Commission of Financial Market Finance Ministry presents quarterly information stipulated in para. (2) b) c) and g).
    (6) In case of withdrawal of certificate of qualification of the auditor, have suspended business activities, the auditor is removed from the state register of auditors.

    Article 30. State register of audit firms, auditors of individual entrepreneurs
    (1) State register of audit firms, auditors take individual entrepreneurs in the state, in electronic form and updated according to changes.
    (2) State register of audit firms, auditors of individual entrepreneurs include:
    a) Current number of registration;
    b) name audit firm, auditor of the individual entrepreneur;
    c) the location and telephone number of the audit firm, auditor of the individual entrepreneur;
    d) information on shareholders (associates) and the share they hold in the capital;
    e) data on company registration audit, the auditor individual entrepreneur;
    f) data on termination of the audit firm, auditor of the individual entrepreneur;
    g) name and surname auditors who carry out the audit firm, the auditor individual entrepreneur;
    h) the serial number and issue date for the audit activity;
    i) license update data for audit activity;
    j) information on suspending audit activity;
    k) information on the withdrawal of the license for audit activity;
    l) information on membership of the audit firm, auditor of individual entrepreneur to an association of auditors and audit firms.
    (3) extract from state register of audit firms, auditors of individual entrepreneurs including information from b), c), h) and l) is published annually in the Official Gazette of the Republic of Moldova, as at 1 January, and placed on the official website of the Ministry of Finance at the beginning of each quarter or as the occurrence of changes.
    (4) In case of closure, audit companies, individual entrepreneurs auditors are removed from the state register of audit firms, auditors of individual entrepreneurs.
    (5) The maintenance and updating of information from the state register of audit firms, auditors of individual entrepreneurs, half, the State Registration information submitted to the Ministry of Finance stipulated in para. (2) b)-f), the Chamber of Licensing - information specified in par. (2) b), g)-k).

Chapter VIII - SUPERVISION AND CONTROL OF AUDIT ACTIVITY

    Article 31. Surveillance and control of audit and its competence
    (1) Supervision and control of the audit shall be exercised by the Supervisory Board of the audit.
    (2) The supervisory board of audit, the legal person, is an administrative authority created under the Ministry of Finance to supervise the audit, which operates under this Act and the regulations approved by the Government.
    (3) The supervisory board of audit shall:
    a) approves drafts of normative related audit work, prepared by the Ministry of Finance;
    b) making recommendations for improving vocational education system and training of auditors;
    c) monitors the certification of auditors;
    d) establish minimum requirements for executing the training program the trainee in the audit;
    e) review requests for audit quality work performance;
    f) submit to the Chamber of Licensing proposals to withdraw or suspend licenses for audit activity;
    g) to decide on withdrawal of certificates of qualification of auditors, the suspension of the auditor;
    h) monitor and control auditors, auditors of unincorporated enterprises and audit firms, audit trainee activity;
    i) monitor the continuous professional training of auditors, referred to in Article 15 f);
    j) select and approve the service component control specialists and verification;
    k) consider the principle of independence of the auditor and adopt decisions.

    Article 32. Supervisory board of audit
    (1) The supervisory board of audit (hereinafter Council) is composed of seven members: two representatives each from the Ministry of Finance and National Financial Market Commission, a representative of the National Bank, two representatives of educational institutions higher economic profile specializing in accounting and auditing, with scientific basis in economics, is appointed by the Ministry of Education, at the request of the Ministry of Finance.
    (2) The nominal composition of the Council shall be approved by the Government for a period of three years.
    (3) Council presents the annual activity reports of the Ministry of Finance, on an annual place on the website of the Ministry.
    (4) The Council consists of control and verification service, which is a permanent work unit consisting of four specialists with higher education in economic and financial or legal status of public officials, including Secretary of the Council, classified in accordance the Law on civil service and civil servant status. Service control and verification inspection on how auditors, audit firms and individual entrepreneurs auditors comply with legislation in the field of audit, audit standards, Code of Ethics and other regulations governing the audit, quality control procedures for audits.
    (5) During the performance of the control and verification, control and verification service specialists have the right to conduct audits within the audit firm or auditor individual entrepreneur.
    (6) The Council shall develop and submit annually to the Minister of Finance for approval internal business plan and annual budget. Remuneration expense of specialists in control and verification service and members of legislative acts during the examination and audit activity related to their participation in meetings, other expenses of the Council's work will be paid from funds provided in the budget.

    Article 33. Leadership Council
    (1) is chaired by the President, elected by Council members by secret ballot from among the representatives of the Ministry of Finance, National Bank, the National Commission of Financial Market which are members of the Council.
    (2) Council President is elected for a term of three years. The same person can be elected President of the Council for more than two consecutive terms.
    (3) direct the Council President and chair its meetings. In the absence of the President Council's functions are exercised by the Vice President.
    (4) Vice Chairman is elected at the proposal of the President from among members of the open voting.
    (5) Council Secretary candidature is proposed by the President of control and verification service members. Secretary, in addition to performance monitoring and verification organization is responsible for secretarial work and activities of the Council protocol.
    (6) Council members and the Service are responsible for control and verification of the work entrusted by the President and are obliged to respect confidentiality.

    Article 34. Organization of Council
    (1) Council meetings shall be convened by the President's if necessary, but not less than once per quarter. Meetings shall be recorded in minutes signed by the President / Vice-President and Secretary.
    (2) The Board is legally constituted if at present are at least two thirds of all members, including President or Vice President.
    (3) Council's decisions are taken by majority vote of members.
    (4) The Council shall decide independently on the conduct of meetings and voting - secret or open.
    (5) Board meetings, except confidential, may be invited specialists in economic and financial and legal are not members of.

Chapter IX - LIABILITY FOR VIOLATION OF THIS LAW. SETTLEMENT OF DISPUTES

     Article 35. Auditor's responsibility, the audit firm, Auditor of individual entrepreneur
     (1) The auditor is responsible for forming and expressing opinions in its report.
     (2) Company audit, the auditor responsible individual entrepreneur to the audited entity, the applicant for audit under civil law, criminal and administrative.
     (3) Repair of damage to property caused auditees, audit applicant be covered from the insurance claims, the provisions established for this purpose from other sources available to the audit firm, auditor of the individual entrepreneur.

     Article 36. Responsibility of the audited entity
     (1) The audited entity is responsible for preparing and presenting financial reports.
     (2) The audit of the audited entity does not relieve the responsibility for the authenticity and completeness of financial reports and other information submitted to the conditions provided by the audit contract.
     (3) The head entity evade liability under mandatory audit law.

     Article 37. Settlement of disputes
     Disputes between parties who contract to audit shall be settled amicably or judicial.

Chapter X - FINAL AND TRANSITIONAL

Article 38
    (1) audit firms, individual auditors working entrepreneurs entry into force of this Law, within one year, will bring their foundation to the present law.
    (2) licenses for carrying out audit issued by the Licensing Chamber until the adoption of this law are valid for their entire period of validity.
    (3) Certificates of qualification of auditors, issued by the Ministry of Finance, available at publication of this law and auditors qualification certificates issued after its publication, will be replaced before its entry into force, but not later than 6 months, with no term qualification certificates.
    (4) Persons who, together with the certificate of qualification of the auditor general audit issued by the Ministry of Finance, have the auditor qualification certificate for financial institutions, issued by the National Bank, and / or certificate of qualification of the auditor's professional participants financial market, issued by the National Securities Commission, shall be issued without appropriate qualification certificate within the respective bodies in the grounds provided in par. (3).
    (5) licenses for operation of real property assessment audit firms issued by the Licensing Board until the entry into force of Law no.78-XVI from 10 April 2008 amending Article 6 of Law no.61-XVI March 16 2007 on auditing are valid for their entire period of validity.

    Article 39
    Government, within six months of the adoption of this law:
    a) Submit proposals to bring legislation into conformity with this Law;
    b) bring its legislation in conformity with this law;
    c) Develop and approve Council Regulation oversight of the audit of the Ministry of Finance, will approve the composition of the Council;
    d) develop and approve Regulations on certification of auditors.

    Article 40
    (1) This Law shall enter into force on 1 January 2008 except Article 38 and 39 which come into force on publication.
    (2) Upon entry into force of this Law, the Law nr.729-XIII of 15 February 1996 on the audit shall be repealed.







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