Auditor - licence step by step

1. 5. 2014 | Source: Point of Single Contact (PSC) Czech Republic

Auditing services consist of validating normal and special or interim financial statements and consolidated financial statements and annual reports or consolidated annual reports, management review under other legislation, validating accounting records; if other legislation so provides, validating other matters under special legislation and validating other economic information carried out by auditing standards to the extent specified in the contract.

Procedure for obtaining authorisation:

Citizen of the Czech Republic

In order for a citizen of the Czech Republic to become an auditor, they must initially file an application for inclusion onto the list of assistant auditors and complete a mandatory three-year spell of practical experience as an assistant auditor. During this training period, the applicant must pass a specified number of tests. Once the above conditions have been complied with, the applicant shall file their application to be included onto the list of auditors. The Chamber shall list the applicant in the list of auditors and call upon them to swear an oath. On the day the oath is sworn, the auditor shall obtain their authorisation.

1) A written application for inclusion onto the list of auditor assistants (maintained by the Chamber of Auditors of the Czech Republic)

  • One sentence only, whereby the applicant applies for the inclusion onto the list of auditor assistants – not available in an electronic format, the application must be signed and sent by mail.

The following shall be annexed to the application:

  • A copy of the employment contract stating the position of assistant auditor and attesting to employment by an auditor or auditing firm and with a statement of the weekly working hours (the length of weekly working hours is not limited, but to meet the practice of an assistant auditor the working hours are to equal 35 hours a week for three years),
  • certified copy of university diploma,
  • for foreign nationals an extract from the Crime Register not older than 3 months documented in an original or in a certified copy issued by the country of origin and from the Czech Republic (in accordance with Act No. 18/2004 Coll.)
  • completed questionnaire of an assistant auditor (48kB)
  • proof of payment of the fee of 2,900 CZK, which is payable annually (application for registration filed by 30 June) after 30 June – half (application for registration filed from 1 July) 1,450 CZK
  • the fee shall be paid to the account of the Chamber of Auditors: The account number of the chamber – 87039-011/0100, invariable symbol 0308, variable symbol 33.

More information about the Conditions for registration in the list of auditors and the requirements for the application

The Chamber of Auditors shall register the applicant in the list of assistant auditors.

After registration in the list of assistant auditors, the assistant must

  • work for at least 3 years as an assistant (to meet this requirement, the working hours shall be equal to at least 35 hours a week for three years)
  • take 12 partial written exams; the applicant may request to take the exams after being entered in the examination system, even during the period when the applicant is not on the list of assistant auditors
  • the applicant himself will oversee the fulfilment of the conditions necessary for registration in the list of auditors – depending on completing the exams and work experience – and he alone decides when to submit the application for registration in the list of auditors.

More information about the Conditions for registration in the list of auditors and the requirements for the application

Further information on the licence proceedings

Upon the completion proceed to the next step

2) Application for the examination system

To take the auditor’s exam, the applicant shall provide:

  • the application to take the auditor’s exam
  • notarized copy of university degree, a diploma supplement or a similar document certifying the successful completion of a university program abroad
  • extract from the Crime Register, which the Chamber itself shall request in accordance with a special legal regulation (Act No. 269/1994 Coll. on the Crime Register)

The Chamber of Auditors shall notify the applicant within 60 days of receiving the application to take the auditor’s exam about whether his application has been accepted or rejected

3) Application for registration in the list of auditors

This application has no prescribed form, it should be sent by registered mail.

The following shall be included:

  • a certified photocopy of the highest achieved professional education, in case this condition was not fulfilled upon the application for inclusion onto the list of auditor's assistant,
  • confirmed summary of the stages of professional experience as an assistant auditor (according to the Guidelines for the professional experience of an assistant auditor),
  • completed questionnaire of the auditor,
  • confirmation that the applicant has no arrears of taxes or levies, fees, payments, remuneration, fines or penalties, including the costs of proceedings collected and levied by local financial institutions under special legislation (this also applies to persons who are only employees of companies),
  • the applicant has no arrears on premiums or penalties for public health insurance (this also applies to persons who are only employees of companies),
  • the applicant has no arrears on premiums or penalties for social security contributions to the state employment policy (this also applies to persons who are employees of companies),
  • affidavit that the applicant is of good character,
  • proof of payment of the fee to the activities of the Chamber in the amount of 2,900 CZK upon registration before 30 June of the current year, 1,450 CZK as of 1 July of the current year. The fee is not paid by assistant auditors who have this fee paid for a function similar to an assistant auditor (account number of the chamber – 87039011/0100, invariable symbol 0308, variable symbol 31).

After reviewing all the requirements, the Chamber will register the auditor in the list. The Chamber of Auditors shall allow the oath to be taken no longer than 30 days from the date of meeting the last condition.

4) Taking the oath

Authorization shall be granted on the date of taking the prescribed oath. The auditor receives the authorization from an auditor.

5) Membership fee

The auditor shall pay an annual fixed fee no later than 31 January to support the activities of the Chamber (no reminder is given by the Chamber, it is the auditor’s obligation under the Membership Code).

6) Insurance

It is mandatory, not provided en masse, nor is the level fixed – it depends on the risk.

The business may be conducted after fulfilling all the above stated requirements.

Auditor – EU Citizen

If it concerns a citizen of the European Union who wants to provide the services of an auditor in the Czech Republic, he has the following two options:

  1. He may perform the work of an auditor here occasionally, meaning he can provide only cross-border services without having to obtain permission in the Czech Republic. In this case, he may not carry out a statutory audit.
  2. He may perform the work of an auditor here with the same rights and obligations of an auditor – citizen of the Czech Republic, meaning with the possibility of performing a statutory audit, but he must apply for a Czech license.

Guest entity

Where the services are to be provided on a cross-border basis, the foreign prospective auditor shall apply for recognition of qualification obtained in their home country, with subsequent registration in the Czech Republic.

Person performing the work of an auditor occasionally

In the case of the cross-border provision of services, the foreign entrepreneur shall, prior to commencing his auditing activities, notify the Chamber in writing of his intention to perform this activity in the Czech Republic and ask his home country for recognition of his qualifications, and he will be subsequently registered at the Chamber of Auditors of the Czech Republic.

Application for the recognition of qualifications.

The following shall be included:

  • Proof of identity
  • The type of auditing activities he intends to perform, the location of performing these auditing activities, and the anticipated period of performing these auditing activities; mailing address in the Czech Republic,
  • Extract from the Crime Register, or an affidavit
  • Permission from another Member State
  • Payment of the fixed fee
  • Insurance policy

In the application, a visiting auditor shall indicate both the length of time he wants to be registered, but it is at his discretion – the length of registration shall be assessed according to the length of validity of the insurance policy.

The office of the Chamber of Auditors shall verify whether the activities of the applicant were not suspended

The office of the Chamber of Auditors shall issue its decision on the registration and register an auditor performing occasional services in the register of auditors

The business may be conducted after fulfilling all the above stated requirements

A person from another Member State of the EU who wants to perform statutory audits in the Czech Republic

In the event a foreign auditor wants to establish himself in the Czech Republic, he shall first request for recognition of his qualifications from his home country and then apply for an aptitude test. After passing the aptitude test and meeting the other requirements under the Auditors Act, the auditor shall be registered in the list of auditors.

Established entity

Where a foreign auditor seeks to settle in the Czech Republic, they shall initially apply for their Member State qualification to be recognised and then apply to sit a differential exam. Once the differential exam has been passed, the auditor shall be included onto the list of auditors.

1) Application for the recognition of qualifications

The following shall be included:

  • Proof of identity
  • Extract from the Crime Register of the home country, or an affidavit
  • Permission to perform auditing activities in another Member State
  • Payment of the fixed fee
  • Insurance policy

2) Application to take the aptitude test

  • 6 written examinations
  • Conditions of experience – the Chamber of Auditors requires the confirmation of experience performed from its partner institution abroad

The Chamber will register an auditor from another EU Member State in the list.

The business may be conducted after fulfilling all the above stated requirements.

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