Amendment to the Act on auditors has already come into effect

As of October, 1st, amendment to the Act on Auditors has come into effect. The amendment applies European directive 2014/56/ effective from June 2014 which transforms the former European directive 2006/43/ES on mandatory audits of yearly and consolidated financial statements together with Regulation (EU) No 537/2014 of the European Parliament and the Council on specific requirements regarding statutory audit of public-interest entities.

The amendment includes especially news about public-interest entities. Therefore we would like to remind who are public-interest entities:

• business corporations - issuers of securities on european regulated market as amended by Act on Accounting No. 563/1991 Coll. , section 19a, vol. 1
• banks
• insurance and reinsurance companies
• pensionary companies
• or health insurance companies.

The most significant changes of the Act on Auditors are:

• increase of influence of Committee of Auditors when selecting new auditor
• restriction of providing other services to audited public-interest entites
• content extension of Auditor's report
• obligatory rotation of Auditor at public-interest entities each 10 respectively 20 years.