Public Oversight of the Audit Profession
The Law of 23 July 2016 concerning the audit profession (“Audit Law”) transposes into Luxembourg law Directive 2014/56/EU of 16 April 2014 amending Directive 2006/43/EC of 17 May 2006 on statutory audits of annual accounts and consolidated accounts and implements Regulation (EU) No 537/2014 (“EU Audit Regulation”) on specific requirements regarding statutory audit of public-interest entities. This law confers upon the CSSF the mission of public oversight of the audit profession.
In this context, the CSSF is responsible for:
- the admission to the traineeship of candidate to the audit profession, the organisation of additional training and the examination of professional competence (Examen d’Aptitude Professionelle);
- granting the titles réviseur d’entreprises and cabinet de révision;
- the approval and registration of réviseurs d’entreprises agréés and cabinets de révision agréés carrying out statutory audits;
- the registration and public oversight of third-country auditors and audit entities;
- the management and accessibility of the public register;
- the adoption of international standards on auditing and standards on professional ethics and on internal quality control of cabinets de révision agréés;
- the verification of compliance with the continuing education requirements for réviseurs d’entreprises agréés;
- the establishment of an independent quality assurance system including the development of the inspection approach, the determination of taxes to finance the activity and the performance of quality control inspections of réviseurs d’entreprises agréés and cabinets de révision agréés in Luxembourg;
- the system of investigations, administrative measures and sanctions relating to the activities that are carried out by the audit profession; and
- the cooperation with the competent authorities of the other Member States and the competent authorities of third countries.
The CSSF is also represented at the level of European and international institutions and organisations dealing with public oversight of the audit profession, namely:
- The Committee of European Auditing Oversight Bodies (CEAOB): The aim of the Committee of European Auditing Oversight Bodies is to ensure effective coordination of public oversight systems of statutory auditors and audit firms within the European Union.
- The International Forum of Independent Audit Regulators (IFIAR): The International Forum of Independent Audit Regulators (IFIAR) comprises independent audit regulators from 55 jurisdictions representing Africa, North America, South America, Asia, Oceania and Europe. The IFIAR’s mission is to serve the public interest, including investors, by enhancing audit oversight globally.