Regulations *)Regarding The Quality Auditing In The Field Of Accounting Services
*) Approved by the Decision no. 08/91 of the Superior Council of the Body of Expert and Licensed Accountants of Romania, published in the Official Journal of Romania No. 472/2008, Part I.
CHAPTER 1
Introduction
Art. 1 Quality auditing of the accounting services rendered by the members of Body of Expert and Licensed Accountants of Romania (named hereafter the “Body”) is based on the:
1. International Standards issued by the International Federation of Accountants (IFAC):
a) International Standard on Quality Control (ISQC) No. 1;
b) International Professional Practice Statement (IPPS) No. 1, called “Professional Services Quality Assurance”;
c) Member Body Compliance Statement (SMO) No. 1, issued by IFAC Board in November 2004 and approved by the Decision No. 05/55 from 26th of March 2005 of the Body’s National Conference.
2. The EC Recommendation of15 November 2000(No. 2001/256/EC) regarding the minimum requirements in respect of the professional services quality control.
3. The EC practice statements stipulate two approaches for the quality control:
a) the control through persons employed by the professional body, by another authority or entity;
b) the control through active members with adequate training.
4. The Government Ordinance No. 65/1994, republished, regarding the organization of the accounting expertise activity and of the licensed accountants:
– Art. 20: “The Body of Expert and Licensed Accountants of Romania, has the following attributions:
(…)
c) it insures the proper development of the expert and licensed accountants’ activity;
5. The Internal Operating and Organization Regulations of the Body, approved by the Decision of the National Conference of the Body, No. 1/1995, published in the Official Journal of Romania, Part I, No. 276/27 November 1995, republished in the Official Journal of Romania, Part I, No. 153/28 March 2001;
- paragraph 65: “The Subsidiary Board has the following attributions:
a) monitors the manner of exercising the professions of expert accountant and licensed accountant within the range of activity of the subsidiary”;
- paragraph 115: ”The General Assembly has the following attributions:
(…)
c) takes into consideration the report of the Subsidiary Board regarding the professional activity outcome of the public practice experts and of the controlled business entities in order to insure a good exercise of the profession of expert and licensed accountants within the subsidiary. The General Assembly approves the list with the independent experts and the business entities subject to be analyzed in the following year;”;
- paragraph 124:… “The following deeds are deemed to be disciplinary offences”
(…)
j) the refusal to submit to the control authorities and quality auditors of the Body, the documents regarding professional activity;”
(…)
l) comments in the accounting expertise reports or in other papers drafted for third parties regarding other members of the Body without their consent or without being asked;
m) breaches of the norms and professional standards issued by the Body when drafting papers for third parties;
n) not fulfilling the obligations within the Regulations regarding the professional services quality auditing.
6. The National Code of Ethics of the professional accountants approved by the Decision of the Superior Council of the Body of Expert and Licensed Accountants of Romania No. 07/80/2007, issued in the Official Journal of Romania, Part I, No. 429 and 429 bis from 27th of June 2007, Chapter 100 “Preface and basic principles. Conceptual framework approach”:
- paragraph 100.1 – “Quality of Services. It is necessary to ensure that all the services provided by the expert accountant are delivered at the highest standard of performance.”
Art. 2 Within the internal regulations, the following terms have these definitions:
a) Quality auditing designates an aggregate of measures taken by the Body regarding the analysis of the organization and operating methods of a practice and the evaluation of the professional regulations application by the Body and the observation of every member’s obligation. The quality auditing is exercised with regard to the practice and to every professional accountant registered within the Body’s Table. It shall be exercised both at the practice headquarters and at the secondary offices, registered or not within the Body’s Table. The purpose of the quality auditing is to insure the respect, by all the Body members, of the professional regulations issued by the Body for every activity, accounting service or type of performed works.
b) Practice designates either an individual firm managed by an expert or licensed accountant, Body member or an accounting expertise and/or an accounting company, acknowledged by the Body.
c) Quality audit of a practice with secondary offices located in several subsidiaries of the Body designates the auditing operation performed both at the firm headquarters, at its main offices and at its secondary offices.
d) Quality auditors are senior expert accountants formed and trained by the Body in the field of quality audit of accounting services.
CHAPTER 2
Audit objectives, principles and practice statements regarding the quality of the accounting services
Art. 3 The quality audit in the field of accounting services answers to the following objectives:
a) provides the public with a good perception of the quality of the rendered services, the harmonization of the members’ professional behavior;
b) brings its contribution to the good organization of the practices and to the improvement of the working methods;
c) assesses the application of professional rules and regulations and the observance of members’ obligations;
d) develops the profession solidarity by encouraging the connections between the colleagues, the closeness and the respect of the professionals towards the authorities of the Body.
Art. 4 The quality auditing is based on five main principles:
a) universality: the auditing operation is applied to all the practices defined as such and to all the professional services rendered by these practices: accounting, auditing, consultancy, expertise, etc. ;
b) confidentiality: no information regarding a practice or a member of a practice can be disclosed to third parties;
c) adapting the auditing: it corresponds to the nature of the performed assignments and to the practice size;
d) collegiality: the auditing is performed by expert accountants who are active members of the Body, formed and trained in this purpose, and who are employees of the Body;
e) harmonization: as much as possible, the practices that carry out activities regulated by several professional bodies can make the object of an audit with goals established by mutual consent with these authorities.
Art. 5 The quality auditing requires:
a) knowing the organization charter of the practice, of the systems and procedures in force within the practice (structural auditing);
b) evaluating the manner in which professional norms are enforced, examining at random the working files corresponding to the assignments selected for auditing (technical auditing).
c) fulfilling the Body membership obligations regarding education, ethics, fees payment, submitting the annual activity report, participating at the activities organized by the Body (conformity auditing).
Art. 6 The quality auditing has as reference the professional standards issued by the Body for each type of service rendered, rules and professional norms in force at the time of performing the assignments and the professional habits.
Art. 7 The present rules refer both at the assignments established by the Body, as well as at the assignments requested by certain regulations in force.
CHAPTER 3
The organization of the quality auditing
Art. 8 The Department for the supervision of professional norms and quality auditing application (named hereafter the “DUANPAC”) has the following attributions:
a) elaborates the annual quality auditing program in the field of accounting services, a program that includes the lists of the practices to be audited, according to the proposals formulated by the subsidiaries;
b) supervises the accomplishment of the program regarding the quality auditing in the field of accounting services, in function of monthly schedule graphics of the practices reported by the subsidiary ;
c) prepares and adapts to the circumstances the practice statements of the quality auditing in the field of accounting services;
d) analyses the challenge files of the quality auditors and makes all necessary proposals;
e) organizes the interview for the hiring of quality auditors, analyses and controls their activity and proposes sanctions, if the case might be;
f) formulates recommendations to the subsidiaries, arising from the synthesis of the auditing operations performed within the practices;
g) administrates the quality audit certifications in the field of accounting services and makes proposals to the audited practices regarding the issue of these certifications;
h) in case of certain breaches of the professional practice regulations, of the National Code of Ethics of the professional accountants, as well as of the professional norms issued by the Body, it informs the Subsidiary Board;
i) solves the problems regarding the quality auditing activity, as a consequence of the personal investigations or notifications received from third parties in the field of accounting services;
j) prepares the biannual synthesis of the quality auditing and submits it to the general executive director to present it to the President of the Superior Body Council;
k) ensures the quality auditors’ training, the organization of round tables and business meetings in the field of quality auditing and accounting services;
l) prepares the annual costs budget (remunerations, transportation and accommodation costs) regarding the quality auditing and submits it to the general executive director to present it for approval to the Superior Council of the Body.
Art. 9 Quality auditors are hired with an individual labor contract and are part of the DUANPAC structure.
Art. 10 The auditing activity on the quality of accounting services may also be performed by externalization, through agreements for services rendered concluded by DUANPAC with natural or legal persons, members of the Body, in the circumstances approved by the Standing Board of the Superior Council.
Art. 11 Quality auditors have the following rights:
a) to exercise their quality assignment mission, personally, within the practices stipulated in the quality auditing program in the field of accounting services;
b) to organize their assignment and to determine the scope of the investigations within the period of time stipulated in the Regulations;
c) to visit the practices in order to carry out quality auditing operations, taking into consideration the practice statements related to the structural, technical and conformity analysis;
d) to receive the norms, professional guidelines and regulations of the Body and to benefit from the professional trainings organized by the Body;
e) to receive refunds of the expenses incurred in the course of official travels, with the purpose of exercising their attributions.
Art. 12 Quality auditors have the following obligations:
a) to ensure the accomplishment of the quality auditing assignment within the practices mentioned in the monthly schedule graphics of the quality auditing program in the field of accounting services;
b) to carry out the quality auditing operation with respect to the professional norms and guidelines issued by the Body;
c) to fill in the audit file of the practice, containing the report, the synthesis notes and the appendix stipulated by the Guidance, as well as the notes of the practice;
d) to inform DUANPAC and, as the case may be, the Subsidiary Board about certain breaches of the regulations regarding the professional practice, the National Code of Ethics, as well as the professional norms issued by the Body;
e) to analyze the problems regarding the quality auditing activity, as a consequence of the personal investigations or notifications received from third parties in the field of accounting services and make proposals to DUANPAC;
f) to make proposals in order to be able to take the necessary measures (sanctions, recommendations etc.);
g) to make proposals on adapting to the conjuncture conditions of the practice statements of quality auditing in the field of accounting services.
Art. 13 Quality auditors have the right, and in the same time, the obligation to refuse a quality auditing engagement, in case that independence would be endangered.
CHAPTER 4
Quality Auditing Procedure
Art.14 “Until April 20 of every year the executive directors of the subsidiaries shall submit to DUANPAC:
a) the annual reports for the former year filled in by all the members within the range of activity in compliance with the Norms No. 1500/2009 regarding the member registration and administration;
b) a list approved by the general assembly with the practices the subsidiary consider that should be audited the following year, with the mention of the practices that voluntarily requested to benefit from a quality auditing.
Art.15 DUANPAC prepares the quality auditing program for the following year, program submitted for approval until 31 May of each year, with the mention of the quality auditing accomplishment method: through auditing based on declarations, through field or mixed auditing.
Art.16 Until 30 June of each year, DUANPAC sends to every subsidiary the Quality Auditing Program for the following year.
Art.17 The stages of the Quality Auditing are:
a) Training. The required auditing period is based on the importance of the practice and is decided only after the filling in and the inquiry questionnaire analyze. The practice chosen for the quality auditing operation is notified by letter, at least 60 days before the date established for the beginning of the auditing. The letter is accompanied by a questionnaire including an aggregate of information regarding, on one hand, the general organization of the practice, the assignments carried out and on the other, the observance of the member obligations. The filled in questionnaire must be remanded to the subsidiary council, within 30 days from the reception date. Once the questionnaire was returned, the practice may request to benefit from the provisions of these present regulations regarding the auditor’s challenge, case in which the auditing shall be accomplished by auditors out of the activity field of the subsidiary, with the support of DUANPAC.
b) Auditing Procedures. Each quality auditing assignment includes three complementary stages: structural auditing, technical and conformity auditing. Quality auditing is performed according to the Guidance approved by the Superior Council of the Body.
- Structural auditing consists of a diagnosis of the practice organization, in order to assess whether the organization manner complies with the accomplishment of the engagement according to the norms, regulations and professional habits, issued or acknowledged by the Body, emphasizing the deficiencies in relation to the existing methods and the procedures within the practice, the presence of logistics, professional standards and norms, according to the practice activity field.
- Technical auditing consists of a number of working files and allows the assessment of the quality methods currently applied methods by the practice. The choice of the files is based on the conclusions and information arisen from the structural auditing. Technical auditing is performed by complying with the rules and regulations in force, as well as with the professional habits.
- Conformity auditing consists of evaluating the manner in which the practice respects its member obligations regarding the professional training and development, the submit of the annual activity report, the payment of financial obligations, ethical aspects etc.
c) Assessing results and taking measures
1. At the end of the engagement developed on the basis of the auditing guidance, the auditor shall fill in “The records table of the quality auditing results” provided at Appendix 1 within the present regulations.
2. The maximum quality points granted to the audited practice for the whole, as well as for audit areas, are 100.
3. In order to determine the quality points for each the 3 audit areas (structural, technical and conformity audit) one must take into consideration the results within “The records table of the quality auditing results” evaluated as follows:
- more than 95% correct answers – 100 points
- 80% – 95% correct answers – 80 points
- 50% – 79% correct answers – 60 points
- 25% – 49% correct answers – 40 points
- under 25% correct answers – 20 points
4. In order to determine the total number of the quality points granted to the audited practice and the quality degree, one must take into consideration the following weights according to the audit areas:
- structural audit – 20%
- technical audit – 50%
- conformity audit – 30%.
5. According to the audit quality results, the audited practice can be placed in one of the following quality degrees:
- A degree: more than 95 quality points
- B degree: 80 – 95 quality points
- C degree: 50 – 79 quality points
- D degree: 25 – 49 quality points
-E degree: under 25 quality points
6. According to the quality degree in which the practice was placed, one can take the following measures:
|
Degree |
Measures |
|
A |
- Recommendations and timeframes for the improvement of the minuses detected in the “The records table of the quality auditing results” |
|
B |
- Recommendations and timeframes for the improvement of the deficiencies - Participation at training classes for the acquiring of professional standards and/or ethical knowledge |
|
C |
- Recommendations and timeframes for the improvement of the deficiencies - Participation at training classes for the acquiring of professional standards and/or ethical knowledge - Planning a new control in maximum 2 years |
|
D |
- Recommendations and timeframes for the improvement of the deficiencies - Participation at training classes for the acquiring of professional standards and/or ethical knowledge - Publication in the Magazine of the Body - Planning a new control in maximum 1 year - Informing the Subsidiary Board |
|
E |
- Recommendations and timeframes for the improvement of the deficiencies - Participation at training classes for the acquiring of professional standards and/or ethical knowledge - Publication in the Magazine of the Body - Establishing a permanent oversight system - Informing the Subsidiary Board |
The practices that obtained A Degree may ask DUANPAC for a quality certificate. The procedures for the issuing of the quality certificate, as well as the rights and obligations of the practices that hold such a certificate are decided by the Standing Board of the Superior Council within 90 days from the approval of these regulations.
d) Reporting
1. At the end of a quality audit engagement, auditors draft a synthesis note which shall be sent to the audited practice. The practice has a 30 – day term to submit, in writing, its observations to the auditors.
2. The quality auditor’s report provided at Appendix 2 from these regulations is drafted by the auditors and includes in the appendix synthesis notes and possible observations of the practice. The report emphasizes the deficiencies discovered during the auditing operation and the serious and repeated misconduct regarding the professional regulations. The report must also include recommendations for the classification of the control results or other measures to remediate the deficiencies.
3. The report, “The records table of the quality auditing results”, the synthesis note and the observations of the practice are sent to DUANPAC, within 15 days from the expiring of the period in which the practice had the possibility to file observations.
4. After verifying the documents received, DUANPAC formulates recommendations to the subsidiary, including necessary measures and sanctions, and following their approval, it sends them to the president of the subsidiary council..
5. The president and the executive director of the subsidiary decide on the manner of evaluation and communication of the quality auditing results, besides the recommendations in force.
6. The auditing file, the DUANPAC recommendations, as well as the correspondence with the practice are kept in the existing file of the concerned practice within the subsidiary, until the practice will be submitted to another quality auditing operation.
7. In case of repeated breaches, the president of the subsidiary council will inform the disciplinary commission of the Body subsidiary.
CHAPTER 5
Special provisions regarding the audit of the accounting expertise works
Art. 18. When making judicial accounting expertise works, expert accountants have the obligation to respect and to apply the provisions of the Professional Standard No. 35/2000, approved by the Decision of the Superior Council of the Body of Expert and Licensed Accountants of Romania No. 01/42 from 11th of August 2001, with the subsequent amendments, and to submit the expertise reports, as well as the individual opinions of every expert, in order to be subject to the quality audit according to these regulations.
Art. 19. Quality auditors have the following attributions:
a) auditing the judicial accounting expertise works before submitting those to the soliciting authorities;
b) drafting the papers for the technical and professional checking regarding the accounting expertise works currently in progress at the disciplinary commissions of the Body, on their the demand;
c) drafting the registration documents of the activities developed and the reporting.
Art. 20. In order to fulfill the attributions provided under Art. 19, paragraph a), the quality auditors shall act as follows:
1. study the expertise report in order to detect if:
- the expert accountants have respected totally the provisions of the Professional Standard No. 35/2000, when drafting the work;
- the objectives established have been accordingly dealt with and the given answers have been supported by papers and documents that connect with the cause;
- the authors of the work did not depart from the accounting principles, proceeding at legal approaches of the facts or at drafting of works and operations that assume other knowledge than the accounting ones;
- the authors of the work have respected the provisions of the National Code of Ethics of the Professional Accountants;
2. analyses the individual opinions of the expert accountants – counselors of the parties, having the same objectives as those within the expertise report;
3. checks the independence state of the expert accountant in relation with the cause and the mandate received on the basis of the given affidavit signed by the expert accountant; the statement shall be certified by the quality auditor, with the mention ” signed in our presence”, as stated in Appendix 3 at this regulation.
Art. 21 The findings and the observations of the quality auditor shall be gathered in a proceeding regarding the audit of the process of keeping to the professional norms as stated in Appendix 4 at this regulation, and the document shall be printed and distributed by the General Secretary of the Body.
Art. 22 Through the instrumentality of law, accounting science, standards and professional norms, the quality auditor demands the persons that elaborated the accounting expertise works to check them and, based on the observations made he shall proceed to
a) if there are not any observations or the works are redrafted, the quality auditor shall apply on the first page of the analyzed papers a rectangular auditing stamp as stated in Appendix 5 at this regulation, he shall sign and put the stamp of the subsidiary
b) if the works are nor redrafted, the quality auditor shall attach the proceeding to the analyzed work (the original copy) with all his observations with information purpose and he shall deliver it to the body that had required it in order to come to a decision.
Art. 23 In fulfilling the attributions stated in Art. 19 letter a), the quality auditor cooperates with the expertise office attached to the court in that county and also with the bodies that benefit by the expertise works elaborated by the members of the Body.
Art. 24 In fulfilling the attributions stated in Art. 19 letter c), the quality auditor must cooperate with the ethics department and with the discipline commission within the subsidiary and also with the juridical department of the Body.
Art. 25 In fulfilling the attributions stated in Art. 19 letter c), the quality auditor must cooperate with the other operative and administrative departments of the subsidiary and also with the ones at the Headquarters of the Body.
Art. 26 In order to keep an inventory of the accounting expertise activities, the quality auditor must maintain an “Inventory Register for the expertise works” as stipulated in Appendix 6 of this regulation, a document that is to be printed under the Body’s supervision.
Art. 27 The special department organizes biannually experience exchanges, analyses, seminars and workgroups for all the quality auditors, an occasion when are invited to participate all the representatives of the bodies that benefit by the accounting expertise works.
CHAPTER 6
The statute of quality auditors in the field of accounting services and juridical accounting expertise
Art. 28 The quality auditor is part of DUANPAC and is employed by the Body at the request of the president of the subsidiary for an undetermined period, having a full time or part time work contract, given the volume of works and according to the characteristics and clear conditions in every subsidiary. The quality auditor is an experienced expert accountant, prepared and trained by the Body in the field of quality audit for accounting services and juridical accounting expertise.
Art. 29 The principle mission of the quality auditor is to verify the keeping of the professional norms regarding the expert and licensed accountants practice, of the National Code of Ethics for the professional accountants and also of the internal regulation of the Body.
Art. 30 The quality auditor may be a person fulfilling the following conditions:
a) he is a Romanian citizen with residence inRomania;
b) he is legally competent to bear his civil rights;
c) he is acknowledged as expert accountant and he has a minimum 10 years professional experience;
d) he finished a professional training and may prove his continuous professional development;
e) he had a flawless personal and professional behavior from the moment he registered in the Body and until now and answers all the requirements concerning the independence, the conflict of interests and all the others ethical and deontological aspects;
f) he is medically capable to practice the quality auditor profession; this ability is to be proven through a medical certificate released according to the law.
Art. 31 Performing the quality auditor engagement does not correspond with:
a) the activities that trench upon the dignity and the independence of the expert accountant profession, the prestige of the Body and the morals;
b) the professional activities that make the quality auditor undergo situations that generate conflict of interest;
c) simultaneous provision of some services or participation on activities organized by other bodies or competitive entities.
Art. 32 From a technical-professional point of view, the quality auditor is subordinated to DUANPAC and from an administrative point of view to the executive director of the subsidiary.
Art. 33 The technical-professional subordination to DUANPAC includes:
a) sending monthly, bi-annually and annually activity reports for the field of accounting services and juridical accounting expertise.
b) sending the audit files of the practices according to the annual program of the quality audit;
c) announcing all the important problems that appear during the quality audit on the accounting services and the juridical accounting expertise;
d) training of the quality auditors on aspects regarding the quality auditing in the field of the accounting and judicial accounting expertise services;
e) analyzing an proposing for settlement the expenses generated by the quality audit process;
f) monthly communication to DUANPAC of the every day work program that has been presented to the executive director of the subsidiary and also the proposals for the holidays’ planning;
g) annual valuation of the professional activity and of the quality auditors behavior, valuation that is presented to the management of the Body.
Art. 34 (1)The administrative subordination of the quality auditor consists of:
a) the quality auditor presents the daily work program and supervises its fulfillment by the executive director of the subsidiary; personal leaves must be approved by the executive director of the subsidiary;
b) cooperation with the executive directors in creating the monthly repartition chart for the practices scheduled for a quality audit, must see their accomplishment, the sending and the receipt of the annual activity report from the members of the body, must verify the fulfillment of the member obligations for professional development and training, the payment of the fees and the adherence to their authorized activity;
c) the executive director assures the necessary conditions so that the quality auditor may perform his activity (space, equipments, consumables and other materials).
2) In regard to the administrative subordination relations of the quality auditor, the following actions will be taken:
a) the quality auditor sets the daily work schedule, stating the days and/or the hours during which the quality auditor will work at headquarters of the subsidiary in order to review the judicial accounting examination and, respectively, the quality audit of accounting services of practices (nominating the practices in accordance with the monthly schedule chart). The work schedule is developed at the end of each month for the following month and is presented to the executive director of the subsidiary on a monthly basis, as well as to the DUANPAC, at the same time with the “Activities list” for the previous month. The executive director ensures the information of the expert accountants who report for the review of the judicial accounting examination works in regards to the schedule of the quality auditor and monitors the compliance to this schedule;
b) business traveling, both within the domicile locality of the subsidiary and in other localities, with the purpose of performing a quality audit of the practices nominated in the schedule chart shall be based on the “Travel order”, which must be approved by the executive director. Business traveling for the auditing of a practice is ensured during a single working day, without a travel allowance or a settlement of accommodation expenses. The settlement of travel expenses for other localities than the domicile of the subsidiary is made on the basis of documents issued by the carrier (ticket, voucher etc). The expenses incurred upon traveling with a personal vehicle are settled within the limits of an average fuel usage established by the Body’s pronouncements. The travel orders and the supporting documents, if they exist, shall be submitted to the DUANPAC for analysis and for the settlement of expenses incurred upon performing the quality audit, together with the quality audit file;
c) according to the provisions in Art. 39 of the Body’s Internal Regulation, the personal interest leaves of the quality auditor during the work program is approved by the executive director of the subsidiary for a maximum of three hours a day and a maximum of three days in a semester. The leaves are recorded in a special register held by the secretariat of the subsidiary, which is signed daily by the executive director, in accordance with art.39 of the Body’s Internal Regulation. A copy of the special register of the leaves of quality auditors must be submitted at the and of each month to the Human Resources Department of the General Headquarters of the Body, together with the “Collective attendance file”. The leaves that exceed the above mentioned durations must be approved by the general executive director. In this regard, the quality auditor shall send a leave request to the DUANPAC for analysis and submission for approval;
d) proposals to schedule the holidays of the quality auditor are being transmitted to DUANPAC and they are brought to the approval of the general director, according to art. 49 from the Internal Regulation of the Body. The quality auditor shall inform the executive director regarding the scheduled holidays that has being approved by the management of CECCAR;
e) The recall from the holidays of the quality auditor for reason of unexpected service problems that have made mandatory his presence in the subsidiary, is made based on a written order issued buy the general director, at the proposal of the executive director of the subsidiary;
f) in cooperation with the executive directors, in creating the monthly repartition cards for the practices that are to undergo a quality audit, they are to ensure the reparation of the practices that are to be included in the card, taking into consideration the information the subsidiary has for the nature, activity volume and headquarters of the members of the Body. The information letter of the practice together with the preparing study set by the Regulation for the quality audit of accounting services will be prepared and submitted by the executive director who will also monitor the development of the quality audit chart.
g) at the date stipulated in this regulation, the executive director of the subsidiary must ensure himself that the annual activity reports for the past year have been sent to DUANPAC, filled in by all the members registered in that area of activity. The quality auditor must cooperate in order to centralize and synthesize some information within the”Annual Activity Report”, regarding the activity of the members of the subsidiary of the Body;
h) regarding the way fees are being paid by the members of the subsidiary, the executive director shall put at the disposal of the quality auditor the “ Annual Activity Reports” in order to consult and verify the reality of the presented data and the payment of the obligations towards the body. In the same time, the executive director shall facilitate the quality auditor to get acquainted with the continuous professional development program that the members of the subsidiary use;
i) the quality auditor shall inform the council of the subsidiary with regard to all the issues resulting from the quality audit of the practices regarding the broking of the norms for filing the annual activity reports, training and continuous professional development, payment of the professional fees, practicing the expert or licensed accountant profession without having an authorization released by the Body;
j) the executive director assures the quality auditor all the necessary conditions in order to perform his activity, so to say with a space and a work desk, a computer (that must be included in the investment program if there is not one available), access to phone, xerox and at the services offered by the Secretary of the subsidiary, consumables and technical books, at the publication “The Official Journal of Romania, Part I” and to other publications available in the library of the subsidiary. In the same time, the quality auditor must be provided with all the decisions, decrees, regulations and norms issued by the management of the Body.
CHAPTER 7
Rights and obligations of the audited practice
Art. 35 The practice chosen for a quality auditing is under the obligation to make available to the auditors, at its registered offices or/and to the secondary offices all the papers and documents necessary for the performance of the auditing and to provide any useful explanation.
Art. 36 The practice informed about a quality auditing is entitled to challenge the designated auditor. The challenge may be required within 30 days from reception date of the letter announcing the auditing, by letter addressed to the president of the subsidiary council. The request is sent to DUANPAC who shall take the necessary measures.
Art. 37 A practice cannot be audited before the expiring of a 5 year period from the end of the previous auditing, of a 3 year period if the practice in question provides services for public interest entities or at shorter periods in order to verify the manner in which the measures from previous controls are applied.
Art. 38 The duration of a quality auditing, on the field, is established according to the size of the audited practice, which cannot surpass 20 hours.
CHAPTER 8
The Auditing of the Practices Set in Several Subsidiaries
Art. 39 The quality auditing performed within the practices set in several subsidiaries is characterized by the separation of the structural and conformity auditing which are carried out at the practice headquarters, by technical auditing, accomplished at the secondary offices, starting from the synthesis of the structural auditing.
CHAPTER 9
Financing
Art. 40 The costs of the quality auditing are included in a distinctly budget included in the budget of the Body. DUANPAC elaborates the annual cost budget (wages, transportation and accommodation fees), submitted for the approval to theSuperior Council of the Body, in order to include it separately in the annual budget of the Body.
CHAPTER 10
The Informing of the National Conference
Art. 41 DUANPAC elaborates the quality auditing annual synthesis and submits it, with the support of the general executive director, to the president of the Superior Council of the Body. Following its acknowledgement by the Superior Council of the Body, the synthesis is included in the annual report, in order to inform and be approved by the regular National Conference.
Art. 42. Breaches of the provisions within these regulations by the structures of the Body are considered disciplinary departure and are punished according to the Organization and Functioning Regulations of the Body or of the Internal Regulations of the Body, as the case may be.
Art 43. Following the entering into force of these regulations, the Norms No. 12.264/2002 regarding the judicial accounting expertise activity, approved by the Decision of the Standing Board of the Superior Council of the Body No. 02/90 from 12th of December 2009, with the subsequent amendments and additions are revoked, as well as the Regulations of the Quality Auditors in the field of the accounting and judicial accounting expertise services, approved by the Decision of the Superior Council of the Body No. 05/66 from 14th of September 2005.
Art. 44. Within 60 days from the approval of the present regulations, a new handbook with the technical guidelines of the quality auditor will be issued.
Art. 45. These regulations enter into force within 90 days from the date of the Superior Council of the Body’s approval.