Profession of registered

auditor(Belgium)

Professional organization – Royal Institute Created in 1953 Role of the Institute (law of 1953) : organization of

the profession

Belgian Institute of Registered Auditors

Role of the Institute (under public oversight)­ Public register of auditors­ Access to the profession / training period­ Standards on auditing­ Permanent education­ Quality control­ Investigation

Belgian Institute of Registered Auditors

Access to the profession / training period- Entrance exam to the training period- Training period of three years with a trainee

supervisor (registered auditor)- Seminars - Training examination- Aptitude test twice a year

> written test: analysis of specific cases> oral test in front of a jury

- One training journal per year- Paid traineeship

Belgian Institute of Registered Auditors

Permanent education - Obligation of permanent education for registered

auditors

- Activities: seminars, workshops, training cycles, study days, regional meetings

- Target audience: registered auditors, trainees

Belgian Institute of Registered Auditors

The profession in figures- 1,040 registered auditors- 500 trainees- 500 audit firms- 3,000 persons employed in audit firms

Profession of registered auditor

Profession of registered auditor

Privileged partner of all economic actors:- companies- public and private institutions, not for profit sector- approximately 18,000 companies and 3,000 not for

profit organizations (hospitals, NGO’s, …) subject to audit in Belgium

Added value of the registered auditor Increases confidence of third parties and

stakeholders in the audited entity:- managers and management- employees and trade unions- shareholders and bankers - suppliers and clients- Government (Public Treasury, Social Security, etc.)

Positive impact on:- the company’s financial position- the economy in general- the public interest

Engagements of the registered auditor Statutory permanent engagements

- statutory audit of financial statements - workers’ council

Statutory non-permanent engagements Contractual engagements

Statutory engagements

Statutory audit of (consolidated) financial statements: - Monopoly of certification of (consolidated) financial

statements in Belgium = report in which the true and fair view of the company’s net assets value and financial position is being certified

Safeguard quality of financial reporting- Independent and impartial expert

Statutory engagements

Workers’ council- Certification of the true and fair view and

completeness of the economic and financial information provided to the workers’ council

- Analysis and explanation of the economic and financial information

Belgian Institute of Registered Auditors

Statutory engagements

Other statutory engagements- Contribution in kind- Mergers and demergers- Conversion- Dissolutions- Modification of the corporate purpose- Modification of the legal form- Liquidation of a company- Limitation of priority rights- Issues below accounting par- Etc.

Contractual engagements

Due diligence (analysis of financial reporting – acquisitions / investment)

Company valuation engagements Restructuring Criminal investigations Advise and assistance provided to companies

with respect to company law, accounting law or tax law, in compliance with independence rules

Registered auditor = liberal profession - prohibition to exercise commercial activities - prohibition to be administrator of a commercial company

Quality and requirements of the procedures of the registered auditor (regular quality control, compulsory permanent education)

His values - Impartial

- Independent - Subject to the professional ethical rules

Profession of registered auditor

ContactBelgian Institute of Registered Auditors

Boulevard Emile Jacqmain 135

1000 Brussels

info@ibr-ire.be

Tel.: +32 (0)2 512 51 36

Fax: +32 (0)2 512 78 86

www.ibr-ire.be

Belgian Institute of Registered Auditors