Auditing
Corporations and foundations are under the obligation to appoint an
auditor and conduct an audit in accordance with the Auditing Act, Accounting
Act and any acts applicable to the corporation or foundation in question. The
smallest corporations, however, are exempted from the statutory audit
obligation.
An audit covers the audit of the accounting records, the financial statements,
the annual report and the administration of a corporation of a foundation. After
having conducted an audit, the auditor issues an auditor’s report. Further
specifications of the content of an audit and the obligations of an auditor are
enacted under the Accounting Act.
Auditing is an essential instrument in ensuring the accuracy and transparency
of financial reporting and the reliability of capital markets. Auditing also
forms an important part of companies’ administrative and management systems. The
credibility of financial information disclosed by auditors is important not
only to companies subject to public trading, but also to other corporations. Primarily,
an auditor performs his/her duties on behalf of the corporation’s owners or
members, but auditing also benefits other stakeholders, such as debtors and
authorities.
The Auditing Board of the Central Chamber of Commerce authorises KHT auditors (Authorised Public Accountants) and supervises the activities of KHT auditors and audit firms. Similarly, the Auditing Committees of local Chambers of Commerce approve and supervise HTM auditors (Approved Accountants) in their respective operating regions. Furthermore, the Auditing Board of the Central Chamber of Commerce maintains a register of authorised auditors.
National legislation:
- Auditing Act (459/2007)
- Government Decree on Auditing (735/2007)
- Decision by the Ministry of Employment and the Economy on the qualifications of KHT auditors and HTM auditors (262/2008)
- Decree by the Ministry of Employment and the Economy on chargeable services of the Auditing Board of the Central Chamber of Commerce and the Auditing Committees of local Chambers of Commerce (107/2008)
EU regulations:
- Directive 2006/43/EC of the European Parliament and of the Council on statutory audits of annual accounts and consolidated accounts, amending Council Directives 78/660/EEC and 83/349/EEC and repealing Council Directive 84/253/EEC (8th Company Law Directive, Statutory Audit Directive)
- Commission Recommendation on Statutory Auditors' Independence in the EU: A Set of Fundamental Principles (2002/590/EC).
- Commission Recommendation on external quality assurance for statutory auditors and audit firms auditing public interest entities (2008/362/EC)
- Commission Recommendation concerning the limitation of the civil liability of statutory auditors and audit firms (2008/473/EC)
