In the document, refer to the conditions for registration in the list of auditors and the details of the application for registration.
Issuing an auditor’s license:
Upon request, the Chamber shall issue an auditor’s license to a natural person who:
- obtained a university degree in an accredited bachelor’s or master’s degree program (Act No. 111/1998 Coll., on universities and amending other laws (Universities Act), as amended) or completed a study program recognized by a Member State as part of its higher educational system and the completion of which provides the student with the qualification of higher education,
- has a legal capacity,
is of good character – for the purposes of the Auditors Act, No. 93/2009 Coll., good character does not constitute a person who
- has been convicted of an offense committed intentionally, or
- has been convicted of an offense committed through negligence in connection with the work of an auditor unless he is regarded as if he had not been convicted.
Also not considered of good character is that person who does not have a good reputation from a professional point of view.
- has professional experience for at least 3 years pursuant to § 29, employed as an assistant auditor, or professional experience in a similar job in another Member State, to the extent of at least 35 hours per week or for an equivalent period of 3 years if the work was shorter during the week,
does not perform an activity subject to restrictions (specified in § 23)
- The auditor may not perform other gainful activity having the features of doing business unless this law provides otherwise.
An obstacle to an auditor performing the work of an auditor is not
- the management of one’s own property,
- membership in the supervisory board of an accounting entity,
- scientific, educational, journalistic, literary or artistic activities,
- performing accounting or economic, consulting and organizational activities pursuant to other laws,
- providing tax advice pursuant to other laws
- performing the occupation of an insolvency administrator, visiting insolvency administrator, representative of an insolvency administrator, separate insolvency administrator, special insolvency administrator, or liquidator pursuant to other laws
- the work of an expert
- passed the auditor’s exam
- in the last 10 years was not removed from the list of auditors or had his certificate revoked in connection with the imposition of disciplinary measures or was prohibited in this period from performing auditing activities, except as pursuant to § 7 paragraph 1 letter e)
- fees paid pursuant to § 8 paragraph 7
- is not in 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
- is not in arrears of premiums or penalties for public health insurance, or in premiums or penalties for social security contributions to the state employment policy, except when permission was given to make payments in instalments and is not in arrears with paying these instalments
- has taken the auditor’s oath
Upon request, the Chamber will issue an auditor’s license similarly to a company that meets the following conditions:
- The natural persons who will perform statutory audits in its name are statutory auditors
- An auditing firm or statutory auditors have a simple majority of voting rights in it, whereby the auditor’s license was granted, or they are authorized to perform statutory audits in another Member State
- A simple majority of the members of its statutory body consists of statutory auditors or auditing firms, whereby the auditor’s license was granted, or they are authorized to perform statutory audits in another Member State; if the statutory body of a legal person has two members, it must meet the conditions laid down by at least one of them
- The members of its statutory body are of good character; for assessing good character, § 4 paragraph 2 applies by analogy
- It is not in bankruptcy by the ruling of the court
- It is not in 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 (Act No. 531/1990 Coll., on local financial authorities, as amended)
- It is not in arrears of premiums or penalties for public health insurance, or in premiums or penalties for social security contributions to the state employment policy, except when permission was given to make payments in installments and is not in arrears with paying these installments
- It has a good reputation
Meeting the requirements
- As referred to in paragraph 1 letter a), the applicant shall provide a university degree, diploma supplement or a certified copy thereof, or other similar document certifying the successful completion of a university program abroad
- As referred to in paragraph 1 letter b), the applicant shall provide an identity card, passport or other similar document
- As referred to in paragraph 1 letter d), the applicant shall provide, for example, an employment contract, confirmation from an employer, or an extract from the list of assistant auditors
- As referred to in paragraph 1 letter e), the applicant shall provide an affidavit
In order to demonstrate the good character of the applicant pursuant to paragraph 1 letter c), the Chamber requires, under special legislation12), an extract from the Crime Register; the request for an extract from the Crime Register and the extract from the Crime Register shall be transmitted in electronic form, in a manner allowing remote access.
- A natural person who is authorized to perform statutory audits in another Member State or in Switzerland, under the conditions stipulated by this law, is also authorized to perform the work of an auditor in the Czech Republic under this law. The Chamber shall issue an auditor’s license to this person under the conditions stipulated by this law.
- The Act on the recognition of professional qualifications shall be used for the application of the natural person referred to in paragraph 1 for authorization to perform the work of an auditor in the Czech Republic and for the purposes of recognizing qualifications. The recognition body is the Chamber.
- For the person referred to in paragraph 1, compensatory measures shall be required in the form of passing an aptitude test, unless proof of formal qualifications is submitted demonstrating knowledge of all the areas listed in § 8. The aptitude test is usually held in the Czech language.
- The natural person referred to in paragraph 1 may also perform the work of an auditor, with the exception of statutory audits, in the Czech Republic on a temporary or occasional basis provided he makes written notification of his intention to pursue this activity in the Czech Republic to the Chamber prior to the commencement of any temporary or occasional work as an auditor.
Pursuant to paragraph 4 the notification shall include:
- the name and surname of the auditor
- a mailing address in the territory of the Czech Republic
- copy of the formal qualifications for performing the work of an auditor
- type of auditing activities this person intends to perform
- place of performing auditing activities and
- the anticipated period of performing auditing activities
The Chamber is authorized to verify the professional qualifications of persons authorized to perform the work of auditors in accordance with paragraphs 1 and 4 for checking the management of local governments and voluntary associations of municipalities under other legislation (Act No. 269/1994 Coll., on the Crime Register, as amended); it shall proceed in accordance with the law on the recognition of professional qualifications (Act No. 18/2004 Coll., on the recognition of professional qualifications and other competences of nationals of Member States of the European Union and amending certain laws, as amended).
Type of licence
- Registration in the list of auditors
- Council for Public Oversight by Audit
Control and supervisory bodies
- The Chamber of Auditors of the Czech Republic
Procedure for granting a licence
For a citizen of the Czech Republic to become an auditor, he must first submit an application for registration in the list of assistant auditors and perform three years of compulsory work as an assistant auditor. During this work, the applicant must complete the required number of exams. After meeting these conditions, the applicant shall submit an application for registration in the list of auditors. The Chamber shall invite him to take the oath and will register him in the list of auditors. He will receive authorization to work as an auditor on the day of taking the oath.
Application clearing deadline
The Chamber is required to allow a person who meets the above conditions to take the oath before the president or vice president of the Chamber no later than 30 days after fulfilling the last condition. After taking the oath, the Chamber shall promptly issue the applicant an auditor’s license and register him in the list of auditors.
- Membership fee 2,900 CZK (after 30 June only half is paid – 1,450 CZK)
Validity period of licence
- Registration in the list is not time limited, but the imposition of a punitive action to revoke the license is possible (permanent prohibition on performing the work of an auditor, i.e. removal from the list of auditors)
Combined proceedings (recognising qualifications and granting authorisation)
- Act No. 93/2009 Coll., on auditors
Professional liability insurance
A statutory auditor and auditing firm must be insured against liability for damage caused in connection with the performance of auditing work so that the amount of insurance coverage is commiserate to the damages that can be reasonably expected.
Related legal regulations
Act No. 18/2004 Coll., on the recognition of professional qualifications and other competences of nationals of Member States of the European Union and some other countries and amending certain laws (Act on the recognition of professional qualifications)
Current Community regulations
- Directive 2006/43/EC of 17 May 2006 on statutory audits of annual accounts and consolidated accounts, amending Council Directive 78/660/EEC and 83/349/EEC, and repealing Council Directive 84/253/EEC
- Directive 2008/30/EC of 11 March 2008, which amends Directive 2006/43/EC on statutory audits of annual accounts and consolidated accounts, as regards the implementing powers conferred on the Commission