The JSC Law, State in the new Law on Auditing Activity Addressed Enterprise Law and Law on where statutory audit of financial statements of all Enterprises should be amended public interest entities became mandatory. to require statutory financial statement audits in all public interest entities Clarify the role of the The Law on Joint Stock Companies Outstanding. with remains unchanged. As described in the main body of Censors’ Committee respect to the financial this ROSC report, the role of JSCs’ Censors’ reporting process and restrict Committee continues to be unclear. the obligation to have Censors to entities not subject to statutory audits and Partially addressed. Regulatory framework improved; CNVM’s SIIS’s powers and capacity for The CNVM substantial implementation challenges. enforcing accounting standards and SIIS have been superseded by the National and financial reporting Commission on Financial Markets (NCFM) which requirements should be has the power to enforce accounting standards and strengthened financial reporting requirements. Finalize the draft of a new Regulatory framework improved; substantial Auditing Law A new Law on Auditing implementation challenges. Activity was adopted in 2007 and entered into force on January 1, 2008 Establish an independent Regulatory framework improved; substantial Audit Oversight Council An Auditing Oversight implementation challenges. Council (AOC) independent of the auditing profession was established under the MOF. However, there are issues with respect to resources and capacity that are described in the main body of this ROSC report.
The JSC Law, State Enterprise Law and Law on Enterprises should be amended to require statutory financial statement audits in all public interest entities Addressed in the new Law on Auditing Activity where statutory audit of financial statements of all public interest entities became mandatory. Clarify the role of the Censors’ Committee with respect to the financial reporting process and restrict the obligation to have Censors to entities not subject to statutory audits Outstanding. The Law on Joint Stock Companies remains unchanged. As described in the main body of this ROSC report, the role of JSCs’ Censors’ Committee continues to be unclear. CNVM’s and SIIS’s powers and capacity for enforcing accounting standards and financial reporting requirements should be strengthened Partially addressed. Regulatory framework improved; substantial implementation challenges. The CNVM and SIIS have been superseded by the National Commission on Financial Markets (NCFM) which has the power to enforce accounting standards and financial reporting requirements. Finalize the draft of a new Auditing Law Regulatory framework improved; substantial implementation challenges. A new Law on Auditing Activity was adopted in 2007 and entered into force on January 1, 2008 Establish an independent Audit Oversight Council Regulatory framework improved; substantial implementation challenges. An Auditing Oversight Council (AOC) independent of the auditing profession was established under the MOF. However, there are issues with respect to resources and capacity that are described in the main body of this ROSC report.
ACS41110ROSC0E0ox0379834B00PUBLIC0.docx