IFIAR 2016 Member Profile - DBA

Transcription

1 - DBA 1. Jurisdiction and year of IFIAR Membership Insert the name of the Jurisdiction in English: Denmark In which year did the Organization become IFIAR Member? 2006 when IFIAR was founded 2. Organization Insert the name of the Organization, both in the local language and in English: Erhvervsstyrelsen Danish Business Authority (DBA) Include relevant contact information, including postal address, telephone numbers, a link to the website and other relevant information: Danish Business Authority Dahlerups Pakhus Langelinie Allé 17 Denmark 2100 Copenhagen TEL FAX erst@erst.dk Website: Include the basis for establishment and the mission/responsibilities and authority with respect to audit regulation: Section 32 of the Danish Act on Approved Auditors and Audit Firms states that (1) The Danish Business Authority shall be responsible for the supervision of auditors and audit firms. (2) The Danish Business Authority s supervisory duties shall include supervision of 1. examination as well as continuing education, cf. Section 33, 2. quality assurance reviews, cf. Sections 34 36, 3. investigations, cf. Sections 37 42, 4. disciplinary sanctions, cf , and 5. cooperation and exchange of information with the competent authorities in other countries, cf. Sections 48 and 49.

2 (3) In connection with the performance of the Danish Business Authority s supervisory duties in pursuance of (1) and (2), the Authority may obtain information from other Danish and foreign competent authorities and demand any necessary information from auditors and the audit firm, including the surrender of working papers and other documents regarding assignments performed in pursuance of Section (2). Have there been any changes to your governing legislation since completing last year s Member Profile? Yes No If yes, please describe the changes: 3. Governing Body Composition and Members Describe the current composition of the organization s governing body: The Danish Business Authority is an Agency under the Ministry of Business and Growth. The head of the Authority is a board of 1 Director General and 5 Deputy Director Generals. Director General Betina Hagerup Deputy Director General Victor Kjær (responsible for the audit legislation and the Public Oversight) What are the eligibility criteria / requirements or composition requirements for the members of the governing body? All board Members have a fulltime appointment at the Danish Business Authority and as such have not been employed by or affiliated to an audit firm at all. Is each member of the governing body independent of the audit profession? The audit profession includes, for example: audit firms, professional bodies and bodies or entities associated with the audit profession. 1 1 For purposes of this questionnaire, the audit profession does not include an individual who is a CPA, Chartered Accountant, or holder of another equivalent qualification, but who is not employed by a registered audit firm, nor employed by or acting on behalf of a professional accountancy body.

3 Are the majority of the members of the governing body nonpractitioners? If not all members of the governing body are independent, what safeguards are in place to provide for the organization s overall independence from the audit profession? Is there a restriction or recusal process that is applicable to members of the governing body of your organization who are current or former auditors/practitioners? Yes Does this include a cooling-off period for former auditors? Yes If yes to either of the above, please describe: Other than the governing body, are members of the profession involved in your organization (e.g., in a management or inspection function)? If yes, please describe their role: The management of the quality assurance system is delegated to the Danish Supervisory Authority of Auditing (DSAA). The Authority has 9 members. A minority of the members are practitioners. 4. Funding Arrangements Describe the main funding arrangements, including the setting and approval of the budget and the fees, if any: Danish Business Authority is funded by the national budget (Finansloven) and by fees imposed om all approved auditors. Is the funding free from undue influence by the profession?

4 5. Inspection System Do you have the responsibility for recurring inspections of audit firms undertaking audits of public interest entities? Is this responsibility undertaken directly or through oversight of inspection conducted by another party? Directly Through Oversight If through oversight of another party, please describe the other party, its role, and the arrangements for oversight: DBA has set up the Danish Supervisory Authority on Auditing (DSAA) and has laid down the Rules and Procedures for this Authority. Additionally DBA has issued an executive order on quality assurance reviews and the activities of DSAA. DSAA consist of a Chairman and 8 other members. 4 members shall be approved auditors and 4 shall be representatives of financial statement users. The Chairman and the representatives of financial users must not be approved auditors or be employed with or run an audit firm together with the approved auditors. The Chairman and the members of DSAA are appointed by the DBA for a period of up to 4 years. DBA provide secretarial assistance to DSAA. On-site inspections are performed by inspectors that are full-time employed by DBA. The inspectors prepare a report on the outcome of the inspection and a draft decision based on the outcome. The report and the draft decision are presented to DSAA which has the final responsibility for the decision on the inspection. Please describe the requirements and practices regarding the frequency of inspections: Audit firms auditing public interest entities must be inspected at least every 3 year.

5 6. Audit and Financial Market Provide the number of audit firms subject to inspections. Include an indication of the number of public interest audits and other audits that fall under the member organization s oversight / mandate. Approx audit firms and auditors are subject to inspections. 11 audit firms audit PIE clients. What are the sizes and market shares of each of the largest audit firms? Detailed market information is not available. The following list shows the turnover of the 10 biggest audit firms in No. Audit firm Turnover in mio. Euro 1 Deloitte PWC EY BDO Beierholm 69 6 RSM Redmark 19 8 a Brandt 16 8 b Martinsen 16 9 AP KPMG 14 KPMG as a new company started up activities in Brandt and Martinsen are at the same size and as such ranked 8 a and 8 b. Late in 2015 Beierholm (5) announced that they will merge with RSM+ (6) effective from May At the beginning of 2015 part of AP (9) merged with Grant Thornton (13) 7. Main Other Tasks Performed by Member Describe whether the Member also performs other tasks, such as registration, education, standard setting and enforcement in the area of auditing, or other supervisory tasks, such as supervision of financial reporting or securities regulation: Danish Business Authority performs the following tasks within the area of auditing:

6 1. registration, approval and withdrawal 2. adoption of standards and regulations (education and continuing education, ethics and auditing and reporting) 3. enforcement (including investigations) 4. responsible for international cooperation Danish Business Authority performs activities within the areas of commercial development, business regulation and company registration. Business regulation includes company laws applicable to certain types of business such as estate agents. Within the area of accounting Danish Business Authority is responsible of non-financial listed companies and the technical reporting of non-financial companies. 8. Major Events and Activities Describe any recent major events and activities: Danish Supervisory Authority on Auditing (set up by Danish Business Authority) manages the Quality Assurance System. The Supervisory drafted its 11 th annual report on the 2014 inspections on January 2016 for publication in March Following the EU Audit Directive and Regulation a drafted Bill for an updated Act on Audit has been published in December After a period for commenting it is expected that the Bill will be proposed for approval at the Parliament in Denmark late February After final approval at the Parliament the Act will be effective from June 17 th For the moment it is foreseen that the major organizational change will be that the setup of the Danish Supervisory Authority on Auditing (DSAA) will be terminated and the responsibility directly undrtaken by the Danish Business Authority (DBA).