1. Jacek Gdański Accounting Department
Establishing a Public Oversight System of the Audit Profession in Poland
Jacek Gdański Accounting Department
Ministry of Finance
15 March 2006, Vienna

2. are of tentative character and are subject of ongoing consultation
The views presented
are of tentative character
and are subject of ongoing consultation
Jacek Gdański
Ministry of Finance, Accounting Department

3. Audit profession in Poland
National Chamber of Statutory Auditors [NCSA] (acts on the basis of the Act of 13th October 1994 on Auditors and their Self-Governing Body)
Audit in figures:*
Individual auditors entitled to carry out audit – 3 935
Audit firms entitled to carry out audit – 2 032
Number of conducted audits and reviews –
Entities to be audited – less than 10% companies falling under the scope of the 4th Directive are subject to statutory audit
* As at 31 December 2004 (source: the NCSA)
Jacek Gdański
Ministry of Finance, Accounting Department

4. Stakeholders of the current oversight system in Poland
Civil Court of Warsaw
resolves disputes between Ministry of Finance and the NCSA
National Chamber of Statutory Auditors
National Supervisory Committee
Administrative Court
appeals concerning registration and deregistration of auditors
National Assembly of Statutory Auditors
quality assurance
supreme body
meetings held every 4 years
National Disciplinary Court
National Council of Statutory Auditors
Ministry of Finance
approves the statute of the NCSA
appeals to the Regional Court against resolutions of the bodies of the NCSA, which violate the law or its statute
applies for particular matters to be examined by the bodies of the NCSA
disciplinary actions
managing body
Jacek Gdański
Ministry of Finance, Accounting Department

5. Ministry of Finance, Accounting Department
Challenges
Ensuring transparency of the system
Finding an appropriate organisational form that will enable to implement provisions of the 8th Directive effectively and timely
Organizing appropriate division of tasks between the oversight body and the profession
Setting-up an efficient funding system and limiting the costs of introduction and functioning of the new system to what is strictly necessary
Fitting the new system into the legislative framework
Jacek Gdański
Ministry of Finance, Accounting Department

6. Tentative assumptions
Establishing a new single body (board) bearing ultimate responsibility for the oversight system
Composing the board of independent members provided by wide range of stakeholders
Applying solution based on the existing models of the oversight in the financial sector
Taking advantage of experience and expertise of other countries and external advice
Jacek Gdański
Ministry of Finance, Accounting Department

7. Stakeholders of the improved oversight system in Poland
Ministry of Finance
District Court of Warsaw
Auditing Oversight Board
Public finance entity
Administrative Court
National Chamber of Statutory Auditors
Jacek Gdański
Ministry of Finance, Accounting Department

8. Ministry of Finance, Accounting Department
Auditing Oversight Board
The ultimate responsibility for:
 the approval and registration of statutory auditors and audit firms,
 the adoption of standards on ethics, internal quality control of audit firms and auditing, and
 continuous education, quality assurance and investigative and disciplinary systems
Office
Secretariat
Executive Office
The bodies of the National Chamber of Statutory Auditors:
1) National Assembly of Statutory Auditors:
 elects members of the NCSA’ bodies
 approves the statute of the NCSA
 approves the activity programme and financial management procedures of the NCSA
 approves the principles of professional ethics for statutory auditors
 sets the principles of obligatory continuous professional development of statutory auditors
 reviews and approves the reports of the NCSA’ bodies and formally grants the approval of the activities of each
body for the period under review
 sets the principles of setting the membership fees for statutory auditors
 sets the principles of setting the payments for entry onto the list and annual fees for supervision
2) The National Council of Statutory Auditors:
 implements resolutions of the National Assembly of Statutory Auditors
 represents the NCSA before state and local bodies, academic institutions, economic and social organisations as well as
international professional organisations
 sets professional standards for statutory auditors
 sets, after having consulted the Examinations Committee:
 qualification requirements as well as programmes and rules of conducting professional exams for statutory auditors
 the conditions of recognizing university or equivalent exams in the subjects included in the process of qualifying as
a statutory auditor
 takes resolutions concerning entries onto the register and the list
 grants of the diplomas and certificates (IDs) to statutory auditors
3) The National Supervisory Committee:
 supervises and controls whether:  auditors properly perform their profession
 auditors comply with procedures of carrying out audits (reviews) of financial statements
4) The National Disciplinary Spokesman and the National Disciplinary Court:
 initiates disciplinary actions and adjudicates on disciplinary responsibility of statutory auditors
Jacek Gdański
Ministry of Finance, Accounting Department

9. Ministry of Finance, Accounting Department
Timetable
Planned entry into force of the 8th Directive
I/II quarter of the year 2006
Finalizing draft law implementing the provisions of the 8th Directive*
III quarter of the year 2006
Consultations on draft law on the inter-governmental level and with social partners
IV quarter of the year 2006/ I quarter of the year 2007
Adoption of the draft law by the Council of Ministers and submitting the draft law to the Parliament
I – II quarter of the year 2007
* Taking into consideration the findings of the report prepared under the World Bank grant project
Jacek Gdański
Ministry of Finance, Accounting Department

10. Thank you for your attention
Jacek Gdański
Ministry of Finance, Accounting Department