Quality Assurance
The National Supervisory Committee, one of KIBR bodies, is responsible for Quality Assurance.
The National Assembly of Statutory Auditors appoints its members. The National Supervisory Committee oversees whether the statutory auditors and audit firms follow national professional standards and best professional practices with due care. The Committee is composed of five practitioners. The activities of the Committee are funded by the National Chamber of Statutory Auditors (KIBR).
The review process
The quality assurance system is a monitored "peer review" system. Supervision over
inspections and inspectors are provided by members of the National Supervisory Committee and
through appreciation of inspectors work provided by the National Supervisory Committee. The
National Supervisory Committee selects the entities to be inspected on a periodic basis (every year).
The selection methodology is - as for the basis - random. In cases where the National Supervisory
Committee is informed about inappropriate professional conduct of statutory auditors and audit firms,
a purpose-focused selection is possible.
The reviews are mainly focused on whether the auditors, when auditing financial statements, follow
the national professional standards. Furthermore, the quality review comprises the assessment of the
effectiveness of the audit firms’ internal quality control system. The Committee supervises the reviews
and prepares internal procedures including the package of documents (work papers) for the reviewers.
The reviewers
Qualified auditors are responsible for the reviews. The inspectors are selected and appointed by the
National Supervisory Committee from among current audit practitioners. Inspectors are required to
complete a training before they start to perform their activities. While providing inspection activities,
inspectors complete periodic trainings (minimum once a year). The Committee organises the training
sessions on quality assurance systems twice per year.
Before starting inspection activities, the independence of the inspector is determined (independence
declarations and control procedures). An inspector shall neither be a member of KIBR bodies nor
work for the KIBR regional branch of which he is a member.
The review reporting process
The results of each review are presented in a final report. The final report issued by the reviewer is
available to the statutory auditor or audit firm and to the Committee. The firm reviewed has the
possibility to present its remarks and answers to the issues raised in that report. The Committee makes
a decision within 30 days of the completion of the inspection. The decision may result in the
conclusion that no further supervisory procedures are necessary (inspections without significant
failures), or initiate proceedings in front of other KIBR bodies (disciplinary proceedings and removing
from the register).