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Audit and Oversight Distance Learning Event on Reviewing Auditors in Romania, 1 March 2011

On Tuesday 1 March, the World Bank Centre for Financial Reporting Reform(CFRR) held a Global Development Learning Network (GDLN) event on Romania's approach to reviewing the work of auditors. The event was the latest in a series of workshops organized by the Audit and Oversight Community of Practice (AOCoP) under the Road to Europe: Program of Accounting and Reform and Institutional Strengthening (REPARIS).

Arund 60 participants visited 9 GDLN centres in the REPARIS countries to see Mrs. Carmen Mataragiu and Mr. Silviu Agachi of the Chamber of Financial Auditors of Romania (CFAR) make a presentation live from Bucharest over the GDLN network describing how the Chamber quality reviews auditors and thereafter applies appropriate sanctions and disciplinary measures.

Audit and Oversight Distance Learning Event on Reviewing Auditors in Romania, 1 March 2011

Objectives

The event's main objective was for participants to understand how the CFAR performs quality assurance reviews of auditors and then applies sanctions and disciplinary measures. This would inform participants' ideas for setting up their own sanctions and disciplinary schemes as part of their efforts to implement the EU's Statutory Audit Directive.


To the REPARIS program page

Translate this page (the translation is carried out using Google Translate, the CFRR cannot guarantee the accuracy of the results of such an automatic translation)

Partners of this program

Austrian Development Cooperation

Ministry of Finance, Austria

SECO Switzerland

Ministry of Finance, Luxemburg

Summary


Description

Mrs Mataragiu and Mr Agachi explained that CFAR reviews each registered auditor and audit firm at least once every three years. These reviews cover both auditors' general policies as well as individual audit files. Each auditor is then awarded a rating of A to D.

These ratings have a significant impact on audit firms, for example: firms awarded an A are subject to less frequent reviews than those receiving Bs, Cs or Ds; while some regulators require an A or B grade when authorizing auditors to perform audits of supervised entities. In terms of applied sanctions and disciplinary measures, firms assessed as C receive a notification sanction while those assessed at D receive a warning sanction. These sanctions are only removed after CFAR has identified that the firm is taking concrete measures to deal with the problems that CFAR has identified such measures typically including attending additional professional education courses. In addition, firms can be suspended for severe violations of professional standards.

Results

Participants gained an insight into how the professional body for auditors in Romania performs quality assurance reviews of auditors and applies sanctions and disciplinary measures. The Romanian case has direct relevance for the REPARIS countries as Romania recently joined the EU, and so has direct experience of the challenges that the REPARIS countries are currently facing.

Videos


Videos of Speakers

CFAR Inspection and Monitoring Process
Carmen Mataragiu

Carmen Mataragiu

Carmen Matargiu describes how CFAR approaches the task of reviewing auditors in Romania and ranking them against each other - Videos open in new window.

arrowPlay video in English

arrowPlay video in Bosnian/Serbian

arrowPlay video in Romanian






Questions and Answers

Question and Answer session with Andrei Busuioc

The workshop participants from the GDLN sites ask questions in a session moderated by Andrei Busuioc - Videos open in new window.

arrowPlay video in English

arrowPlay video in Bosnian/Serbian

arrowPlay video in Romanian







Biography


Carmen Mataragiu

Member of the Council of the Chamber of Financial Auditors of Romania (CFAR)

Carmen MataragiuMs. Carmen Mataragiu is a member of the CAFR Council since 2006. She has been involved in the adoption of ISAs and IFAC Code of Ethics by the CAFR. In 2008 she became President of the ISAs Revising Commission of the CAFR and she was also President of the Review Committee of translating the ICAS Procedures for Quality Audit into Romania (guidelines for ISAs compliance - this ICAS Scotland publication has been purchased by CAFR and is now mandatory for all CAFR members).

In January 2010 she was appointed member of the IFAC Professional Accountancy Organization Development Committee (former Developing Nations Committee).

With over 20 years of experience as an accountant and auditor, Ms. Mataragiu has experience as both practitioner and non-practitioner. For a decade she was professor of accounting and finance at the Economic FS Nitti College of Timisoara and a CAFR-approved trainer and contributor to the CPD program. She is also involved in deveolping the annual exams held by the CAFR (access to the professional training exams and aptitude tests).


Venues


Venues

The following countries were invited to participate at the appropriate Venues.

Country, City

Venue

Albania, Tirana

World Bank Office - Tirana

BiH, Sarajevo

E-Net Centre Sarajevo

BiH, Banja Luka

University of Banja Luka

Croatia, Zagreb

Croatian Academic and Research Network (CARNet)

Kosovo, Pristina

British Council Pristina

Macedonia, Skopje

British Council Skopje

Moldova, Chisinau

Academy of Sciences of Moldova (silver meeting room)

Montenegro, Podgorica

World Bank Office - Podgorica

Serbia, Belgrade

British Council Belgrade




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