Trtnete [szerkeszts]

Tartalomjegyzk[elrejts]1 Trtnete 2 Cljai 3 A V4 naplja 3.1 CEFTA 3.2 Nemzetkzi Visegrdi Alap 3.3 Egyb tallkozk 4 Mkdse 5 Kls hivatkozsok

CHAMBER OF HUNGARIAN AUDITORS

Duality of public interest and authority functions

1. History2. Organisation structure (committees, sections)3. Members (statistics)4. Place

History of the ChamberFirst law in 1930Society of Chartered Auditors founded in 1932Dissolved in 1950Society of Hungarian Auditors founded in 19871997: Parliament passed the act on the Chamber1997 December: Chamber registered by the Court2007: new act was passed by the Parliament2010: Amendments to the act were passed by the Parliament

Structure of the Chamber

Membership statisticsMembersAudit firms

Number of active auditors(publishing reports)Number of active auditors: 3 346

NumberFirms1768BIG484Enterpreneurs1303TOTAL3071

*Distribution of members

GENDERNumberRateMale1 79031,78 %Female3 84362,22 %Total5 633100,00 %

AGEActive%Inactive%Total-3010,0300131-403059,1235515,5266041-5082624,6967229,381 49851-601 27338,0595741,852 23061-6967120,0526811,7293970-2708,07351,53305Total3 34659,42 28740,65 633

Auditing is compulsory ifAnnual net revenue was over 100 m Ft in average of 2 business years before business yearNumber of average employees is over 50 in average of 2 business years before business yearValue correction is appliedValuation on real value is chosen Involved in consolidationsMutual savings banksCredit institution or financial firmsInsurance company with annual revenue of 300 mFtCounty, regional, (capital district) local governments with last years expenditure over 300 mFt and have credits Hungarian branches of foreign entrepreneurs Does not meet requirements of Par. 4 (4) of Act on AccountingTransformingSwitching to double-entry system from single entry system or from revenue recordsSwitching currencyCondominiumCompany contract prescribesThose for whom the law prescribes in order to protect public interest+ possibility in case of defining value of non-liquid assets

Number of published reports*

20092010Difference (2010-2009)Rate of Difference (2010-2009)Number of published reportsFirms34 01633 433-58398,3%Entrepeneurs13 88213 327-55596,0%TOTAL47 89846 760-1 13897,6%

Requirements of an auditorCollege or university degree (professional qualification?)Chartered accountant certificateExamination in 7 subjects: law, tax, finance, organization, accountancy, IT, audit (participation at courses, exemptions Bologna system)Mentor system for 2 years +1 year experiencecompetency examination

Appointing, remuneration of auditorsActivities that can be carried outFixed term, rotation, registration in a Court of Registry (association, natural person, substitute auditor)Fee minimum (lack) (Competition Authority ), publication in the supplementary appendixServices that can be provided (incompatibility)In case of unlawful activities Supervisory Committee, Board, General Meeting shall be convenedCourt of Registry, Customs and Finance Guard (money laundering), Financial supervisory authority (supplementary report) shall be notifiedReturning appointment, withdrawal of endorsementRequest at the Court of Registry, if not deleted within 60 days

SecrecyCivil Code: testimony can be refused by: a lawyer, a doctor, a cleric, and any other person, who is obliged to secrecy by profession, if through testimony he would breach his obligation of secrecy, except he has been exempted from this obligation. Chamber Oath: I do solemnly swear that . I shall maintain confidentiality regarding all classified information of which I become aware during performing auditing activities.Code of Ethics: Exemptions from the obligation of secrecy except as otherwise specified can be made only by client and in writing. Auditor shall not disregard this in either civil, or administrative, or criminal cases.

Assurance, responsibilityInsurance limit: by loss or damage, lower limit of compensation amount shall be 5 mFt (low)No umbrella insuranceIt means a cover for the contractor alsoUnlimited liability for damageThe part of damage shall not be compensated which originated from the injured party not complying with his obligationsExempted from liability if he proves he acted in a way it is acceptable in the given situationMaterial responsibility of natural person auditor versus audit firm

Breaching requirements, expectationsEthics defaultInfringement of lawBreaching requirements of activitiesBreaching attitude rulesNegligence, professional fault, purposefulness, conflict of interest

Disciplinary defaultMissing professional advanced educationLack of responsibility insuranceNot (or wrong) meeting requirements of obligatory data serviceNot preparing anti-money laundering rules and does not have it approvedDerogating goodwill of the Chamber and professionDoes not pay membership feeFalse certification of apprenticeshipGot non-compliance twice during quality assurance reviewHas not worked according to the standards

Requirements and services of the ChamberData service, client gateMembership fee (Fix, subject to revenues, default interest)4-day advanced training courses a yearQuality control every 3/6 yearsDelegates, presidency (regions-counties, for max. 2*4 yrs)Seven committees (admission, education, experts, central election, quality control, supervisory, disciplinary)Six sections (budget, money and capital markets, tax, justice, nature, accountancy)Forums, conferencesNewsletter of the profession, NewsletterConsultation service

Base of contribution fee

Total revenue Auditing activityActivity other than auditingRevenue(1000 HUF)Rate (%)Revenue (1000 HUF)Rate (%)Revenue (1000 HUF)Rate (%)Big Four31 406 79544,2% 13 447 31842,8%17 959 47757,2%Top 256 784 4399,5%3 136 44746,2%3 647 99253,8%Other (1953)28 112 83239,6%14 182 42550,4%13 930 40749,6%Firms66 304 06693,3%30 766 19046,4%35 537 87653,6%Entrepeneur 9 019 63612,0%4 770 03852,9%4 249 59847,1%Total71 074 104100%30 766 19043,3%40 307 91456,7%

Public oversightPublic oversight system is operated by the Chamber and the Oversight body togetherAim: statutory auditor function will be transparent, controllable, accountable, and public interest is adequately representedPublic oversight body cannot act in cases in which criminal or administrative procedure has otherwise right to take place or in which the Chamber is authorized to act, but it can initiate extraordinary quality control Auditor presenting the reason shall communicate to the Oversight body if his term of appointment is repealed or he resignedPublic oversight body can request auditors documents, data, information, statements, has access to their documents, data files

Auditing creates valueFor the budget, as it inspires to voluntary compliance (cheap) + Strengthens knowledge of being controlled (correlation)For creditors, as it increases reliability, credibility, transparencyFor the trustee, as auditor can prevent defaults

The auditor can warn against actual, intended or accidental breaching of taxation/accounting rules, thus tax authorities sanctions can be avoided; help and have ideas to find taxation optimumCall attention to favourable funding opportunities Reliable island professional pillar!

Thank you for your attention!

**Thank you for your attention.