CHALLENGES FOR LITHUANIA S AUDITORS: PUSH FORWARD, HOLD BACK OR FLY ALONGSIDE?

Transcription

1 CHALLENGES FOR LITHUANIA S AUDITORS: PUSH FORWARD, HOLD BACK OR FLY ALONGSIDE? Aurelija Lauruševičiūtė, director of The Lithuanian Chamber of Auditors

2 STARTING POINT Audit system i 1990 by the Lithuanian Association of Auditors and Accountants Controllers or Ревизор Training for auditors i st auditor s certificates to 27 professionals i 1991

3 LAW ON AUDIT: PHASE I => the first Law on Audit based on EU 8 th Directive: provisions regarding the establishment of the Chamber responsibility for certification and oversight assumed by the Authority

4 LAW ON AUDIT: PHASE II => the new Law on Audit: certification of auditors / licensing of audit firms / oversight => the Chamber National Audit Standards => by the LAR based on ISA s => until 2009 From 2009 new era: ISA s mandatory for all Lithuanian auditors and audit firms

5 LAW ON AUDIT: PHASE III. Audit Reform based on EU legislation Revised Law on Audit 1 st March 2017 The LAR was delegated with the following tasks: certification of auditors/licensing of audit firms operation of registers of auditors/audit firms oversight of auditors/audit firms that carry out an audit of o -PIE s disciplinary measures (to a particular extent)

6 ACHIEVEMENTS Almost 30 years to be: Recognised Trusted Respected

7 REGISTERS Based on the resent data (as of 1 st November 2017): 350 auditors are in the register of certified auditors (LAR); and 170 audit firms are in the register of audit firms (LAR).

8 2000 m m m m m m m m m m m m m m m m m. NUMBER OF AUDITORS FROM

9 Number AGE MATTERS Distribution of women by age groups Distribution of men by age groups < 25 years years years years years years years years years 66 +

10 PRACTICING VS IN BUSINESS 6% Only practicing 26% Both practicing and in business 50% Only in business Other 18%

11 REVENUE OF AUDIT FIRMS 34.30% 25.48% 4.13% Audit services Assurance and other related services Bookkeeping services Consultation services Other revenue 4.02% 32.08%

12 FUTURE OF THE PROFESSION Number of auditor's assistants

13 EVOLUTION What to do? - Go down - Build a bridge

14 WHAT PUSHES DOWN? Strictier rules and higher requirements Grenerational gap obstacles and trigers Public s perception who is an auditor?

15 KEEP HEAD ABOVE WATER Reputation Strong and active cooperation Stability factors..?

16 CERTIFICATION Certification requirements for statutory auditor: at least 3 years experience as auditor s assistant passed 5 auditors qualification examinations clean reputation

17 OVERSIGHT SYSTEM NON-PIE

18 STEP BY STEP

19 STRENGTHENING THE POSITION Through atio a cooperatio : National Audit Office State Tax Inspectorate Central Electoral Commission Financial Crime Investigation Service National Commission for Energy Control and Prices Lithuanian Film Centre

20 NATIONAL AUDIT OFFICE Cooperation Committee National Audit Office, State Tax Inspectorate, Ministry of Finances, Association of Municipal Controllers, Association of Internal Auditors and Lithuanian Chamber of Auditors: To improve public sector governance. To improve external and internal audit quality. To increase public confidence in the accounting profession. Joint events to promote profession. Joint projects to raise awareness.

21 STATE TAX INSPECTORATE Current issues i.mas, i.e. smart tax administration information system Cooperation through Round tables Working parties Recommendation on draft Laws

22 CENTRAL ELECTORAL COMMISSION The methodology for assessment of political parties: Agreed upon procedures CPD trainings for auditors => Central Electoral Commission Recommendation on draft Laws

23 FINANCIAL CRIME INVESTIGATION SERVICE Methodology for audit firms on Anti-money Laundering and Terrorist Financing CPD trainings for auditors => Financial Crime Investigation Service Round tables Working parties Recommendation on draft Laws

24 NATIONAL COMMISSION FOR ENERGY CONTROL AND PRICES Regulated activities energy, natural gas and water sector: Methodology for audit under ISA 800 Cooperation to improve quality of financial statements Achievement AUP in new draf law Recommendation on draft Laws

25 LITHUANIAN FILM CENTRE Relief from Corporation Tax for Film Projects Audit Methodology Recommendation on draft Laws: To improve quality of the special purpose statements

26 FUTURE

27 TO BE OR NOT TO BE? Push forward? Hold back? Fly alongside?

28 THANK YOU!