1. Progress of the Financial Reporting Technical Assistance Project
ANNUAL MEETING SWISS-LATVIAN COOPERATION PROGRAMME April 2015 – March 2016
Riga, 21 April 2016

2. Activities implemented during the reporting period
Enhancing institutional capacity to implement ISA
Report «Oversight and Quality Assurance in Latvia: Observance» (May 2015)
AOC (MoF)
IT System for Auditing (LASA) (Sep 2015)
20 SMEs of Sworn Auditors
Enhancing the relationship between tax and accounting
PwC`s report - Study report on relationship between Tax and Financial Reporting (May 2015)
MoF
Mazar`s report – Tax reporting rules (May 2015)
Training for tax inspectors (Oct 2015)
21 (SRS, MoF, T)
Study visit «Law to implement Base Erosion and Profit Shifting –relating transfer pricing requirements» (Jan 2016, 2d, Vienna)
2 (MoF)
ROSC Accounting & Auditing report (Oct 2015)
MoF – Ministry of Finance
SRS – State Revenue Service
T – Treasury
AOC – Audit Oversight Commission

3. Enhancing institutional capacity to implement ISA
Planned activities
Enhancing institutional capacity to implement ISA
IT System for the Oversight of Sworn Auditors (MOF)
Objective
Strengthen the oversight of statutory auditors (who audit public interest entities)
Improve the performance of observance of requirements for the auditing services quality control carried out by MoF
The system will provide on risk based approach at quality control inspections as database will comprise information on disciplinary and administrative proceedings, results of inspections, recommendations, customers, reports, certificates, etc.
User
IT system will be used by the MoF as the competent authority
Implementation
Dec 2016
Seminar on risk based tax assessment (study trip to the Netherlands)
Jun 2016
MOF – Ministry of Finance

4. Planned activities (new)
Enhancing institutional capacity to implement IFRS
Guide on accounting organization and documents issued
Limited liability companies that correspond to micro company category according to the Annual Accounts and Consolidated Annual Accounts Law
Enhancing institutional capacity to implement ISA
Guide to applying administrative violations principles.
Competent authority (MoF) in administrative proceeding cases where sworn auditors are involved in
Report on quality and competitiveness of Latvian auditing market in 2015 (data processing, analysis, development of proposals for risks decreasing) in Latvian and English
Competent authority (MoF)
Development of content including outline of annual report which will be submitted to the competent authority by the sworn auditors auditing PIEs
Guide for municipalities in order to enhance cooperation with the sworn auditors during the financial and performance audits.
Local municipalities

5. Planned activities (new)
Enhancing institutional capacity to implement ISA
Guide to financial and performance auditing also including the guide for verifying whether:
the expenditures of local municipality is made in accordance with its budget and estimated costs and law
financial activities of municipality`s officials are lawful and appropriate
the financial resources, movable and immovable property are managed in accordance with council decisions and in favour of inhabitants
the budget of local municipality is drawn up and spent in accordance with law and council decisions
Auditors
Update of sworn auditor qualification examination programs for the candidates
LASA
Development of training program for the candidates so as to prepare for the sworn auditor qualification exams
Guide on establishing, operating and oversight of public interest entitiy`s (PIE) audit committee
FCMC, Nasdaq Baltic, PIEs
Enhancing the relationship between tax and accounting
Methodology for evaluating the size of shadow economy in industry
MoF
LASA – Latvian Association of Sworn Auditors
FCMC - Financial and Capital Market Commission

6. Thank you for attention!
Ministry of Finance of the Republic of Latvia 1 Smilšu Str. Riga, LV – 1919 Phone.: