Transcript 1. dia - ipbr.org

Professional support and auditor’s
control in case of different financial
reports in Hungary
dr. Ferenc Eperjesi
-
Vice President for International
Affairs
dr. Tibor Pál
Vice President for Education
Chamber of Hungarian Auditors
Topics
1) Chamber in numbers
2) Enterprises in Hungary
3) Accounting rules
4) Act on the Chamber, services of
the Chamber
5) Advisory services – opportunities
and restrictions
Chamber in numbers
Years
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Active
Temporary
inactive
3684
3693
3693
3666
3600
3549
3473
3383
3335
3247
3096
2978
1967
2102
2218
2278
2314
2332
2318
2306
2291
2282
2279
2280
Total
5651
5795
5911
5944
5914
5881
5791
5689
5626
5529
5375
5258
Firms
1830
1876
1909
1925
1916
1933
1928
1928
1940
3221
3119
3043
Chamber in numbers
Regional Branches
Active
Temporarily Inactive
Total
Budapest
Other regional branches
1 101
841
1941
(19)
1 858
1 418
3 277
Total
2 959
2 259
5 218
Revenue
2008
Dues revenue
(thousand HUF)
Dues revenue
(thousand EUR)
2009
689 281 707 148
2 298
2 357
2010
2011
2012
2013
2014
2015
702 182
668 060
658 003
616 456
604 693
571 844
2 341
2 227
2 193
2 055
2 016
1 906
Number and distribution of
audit reports
Number of
reports
2009
2010
2011
2012
Big4
3 135
3 011
3 037
3 084
Top5-25
2 670
2 457
2 361
2 264
Other firms
27 612
25 845
25 235
21 186
Sole practitioners
13 327
12 376
10 493
8 411
Total
46 744
43 689
41 126
34 945
Enterprises in Hungary 1
 Relatively large number of SEs –size
categories are different from EU
 Long-term submission deadline, accounting
tasks concentrating at the end
 EU environment – obligation to adapt to EU
regulations
 Need to manage tax problems
Enterprises in Hungary 2
 Hungary is not a eurozone member, a lot of
currency exchange problems
 Enterprises not always employ prepared
financial-accounting experts
 A lot of (more and more) firms are not obliged
to audit – lack of auditor’s support
 Less tax control – no control
Accounting rules 1
 Regulation by laws – continental accounting
practice
 Many are exempted from detailed reporting
obligation
 IFRS are needed only in case of consolidated
accounts of registered firms
 A lot of changes in regulation, a lot of
consequences in accounting – hard to manage
Accounting rules 2
 Standard setting bodies have been established,
but no approved standard in effect yet
 Single interpretation of accounting issues is not
yet on track – interpretive body does not
operate
 Standard on micro entities is ready, but not
independent, it has not been incorporated into
the accounting act
Act on the Chamber,
services by the Chamber
 Capacity of many auditors is not used
 Regulation allows for book-keeping services
(preparation of report)
 Problem: rules for conflicts of interests, ethics
issues
 Difficult to control and prove
Advisory services –
possibilities and restrictions1
 Bigger firms: advisory service: separate business
activity
 Smaller audit entities – continuous presence, pre-
investigations, consultations
 Consequences – compliance with standards
– ethics, conflict of interests
– control by the Chamber,
quality control
Advisory services –
possibilities and restrictions 2
 Consolidated reports – expected to remain the
market of the big firms
 Individual annual reports – big firms in case of
IFRS implementation, open competition in other
cases
 Simplified, micro entities reports (without audit)
– possibility for smaller entities, individual
auditors
Expected (hoped) changes
 Enlarge the group of experts preparing IFRS
reports – growing demand for experts,
auditors
 Increase of the number of IFRS trainings,
exams, qualifications – more prepared expert
group
 Support to prepare reports at a higher level
Thank you for your attention