Bulgaria: new supervisory regime for registered auditors

New rules governing the activities of the Commission for Public Supervision of Registered Auditors have been published by the FSC.

The Commission acts as an independent authority, subsidised by the state budget out of FSC funds. It comprises a chairman and four members, each with a four-year mandate, elected by the Bulgarian Parliament. It supervises:

• the rules and procedures by which applicants may become registered auditors, including auditors and audit businesses of other EU member states;

• auditor firms’ compliance with standards of professional ethics and internal quality controls;

• continuous training for registered auditors and their implementation of quality assurance control systems, etc.

The requirements for quality assurance controls apply to all registered auditors and audit businesses, including members of the Institute of Certified Public Accountants (ICPA) and auditors from other countries both inside and outside the EU. They include a requirement to ensure compliance with International Auditing Standards and with mandatory instructions prescribed by the Commission.

In addition, the Commission:

• approves various rules, methodologies and actions proposed by the ICPA

• conduct a quality assurance review of the ICPA’s quarterly and annual reports

• investigates possible breaches of EU law on statutory audits and make rules for registered auditors in this regard

• rules on complaints about decisions by the ICPA management board to refuse applicants for membership or to register candidates as registered auditors

• collaborates with the supervisory authorities of other EU member states by exchanging information and conducting investigations at their request

Law: Regulation for the Activity of the Commission for Public Supervision of Registered Auditors, promulgated in State Gazette No 55/2012, published in FSC Bulletin No 6/2012

Directive 2006/43/EC on the Statutory Audits of the Annual Accounts and the Consolidated Accounts, amending Council

Directives 78/660/EEC and 83/349/EEC and repealing Council Directive 84/253/EEC