Independent Financial Audit Act
Bulgarian financial audit act, Certified Public Accountants CPA, registered auditors, (Last amended December 2015 / extract)
Article 1. This Act shall regulate:
1. the objective and the principles of the independent financial audit;
2. the professional standards of organisation, documentation and implementation, as well as the conclusions of the independent financial audit;
3. the acquisition of a diploma and a right to practice and the practicing of the auditor’s profession by the registered auditors;
4. the rights and the obligations of the registered auditors who perform independent financial audits;
5. the statute of the Institute of the Certified Public Accountants;
6. the system of public oversight of registered auditors.
Bulgarian financial audit act – Article 2. The independent financial audit shall be a sum of necessary and inter-related procedures determined by International Auditing Standards, on the basis of which an independent opinion on the credibility in all the aspects of significance of the financial statements prepared in compliance of the Bulgarian accounting legislation.
Bulgarian financial audit act – Art. 3. The independent financial audit shall be implemented by registered auditors Certified Public Accountants CPA, who are members of the Institute of the Certified Public Accountants.
Bulgarian financial audit act – Ar. 5. (1) The objective of the independent financial audit is the expression of an independent auditor’s – Certified Public Accountants CPA, opinion on the truthful presentation of all the aspects of significance in the financial statements of:
1. the financial status of the enterprise;
2. the reported financial result from the activity of the enterprise;
3. the cash flows of the enterprise and the changes in them;
4. the shareholders’ equity of the enterprise and the changes in it.
(2) The independent auditor’s – Certified Public Accountants CPA – opinion under paragraph 1 shall be expressed in respect of the compliance of the financial statements with the applicable accounting standards, as well as with any other nationally accepted accounting base for preparation of the financial statements.
(3) The formation and the expression of the independent auditor’s – Certified Public Accountants CPA – opinion shall be implemented in compliance with the International Auditing Standards.
Bulgarian financial audit act
Bulgarian financial audit act – Art. 6. The independent financial audit shall comprise procedures for determining reasonable security by a check of:
1. the compliance with the principles of accounting;
2. the consistency of the implementation of the announced accounting policy;
3. the methodological justification of the accrual basis of accounting for comprehensive and truthful presentation of the assets, the liabilities and the activity of the enterprise, limited to the achievement of the objectives of the audit;
4. the effectiveness of the internal control, limited to the achievement of the objectives of the audit;
5 the process of the closing of the accounts;
6. the reliability and the necessary for the users comprehensiveness of the information presented in the financial statements;
7. agreement between the information in the financial statements and in the report on the activity and any other information provided by the management bodies of the entity together with the audited report.
Bulgarian financial audit act – Article 7. When performing an independent financial audit, the registered auditors, Certified Public Accountants CPA shall observe the Code of Ethics for Professional Accountants, adopted by the International Federation of Accountants.
Bulgarian financial audit act – Ar. 8. Independent financial audit shall be performed on annual, consolidated, interim and other financial statements, when this is stipulated by a law, upon request of owners, state authorities and other users of financial information.
Bulgarian financial audit act – 12. The management of the enterprise shall make available to the registered auditors, Certified Public Accountants CPA the prepared by the management financial statements ready for the issuing of an audit report. The financial statements shall be provided together with the report on the activity and with any other information that the management provides as an attachment to the audited report, as well as with a signed confirmatory or representation letter by the management according to the International Auditing Standards.
Certified Public Accountants CPA
Article 16. Only persons, who meet the following requirements for mandatory completed higher education and mandatory professional experience in the field of accounting, internal and external financial audit and financial inspection, as well as experience as an employee of the National Revenue Agency, as an inspector at the Commission for Public Oversight of Registered Auditors and/or as an instructor in the field of accounting, control and finance, are eligible to apply for acquiring the right to practice as a certified public accountant:
- accounting – economic education with master’s degree and 4 years of experience;
- accounting – economic education with bachelor’s degree and 5 years of experience;
- another higher economic education and 7 years of experience;
- another higher education and 10 years of experience.
Article 17. (1) The candidates for certified public accountants must have passed examination in the following subjects before acquiring the right to sit for the examinations under Article 18.
- fundamentals of accounting (theory of accounting);
- financial accounting (accounting of the enterprise);
- managerial accounting;
- financial statement analysis;
- financial control and auditing standards, including the International Auditing Standards;
- commercial law;
- labour and insurance law;
- finance of the enterprise;
Bulgarian financial audit act- 21. A person, who obtained in a Member State in the European Union or in a country in the European Economic Space the right to sign audit reports with an opinion on the financial statements shall be registered in the register of registered auditors under this Act, if he has successfully passed examinations in Bulgarian commercial, tax and social insurance law in Bulgarian before the Institute of the Certified Public Accountants. The procedure and the manner of holding the examinations shall be approved by the Commission for Public Oversight of Registered Auditors.
Bulgarian financial audit act, 26. By March 31st of each year the Institute of the Certified Public Accountants shall publish on its official website a list of the registered auditors.
Bulgarian financial audit act, Article 32. When performing their audit obligation, the registered auditors shall have the right to require full cooperation and information from the management of the enterprise, as well as to oversee the inventory taking of the assets and liabilities of the entity.
§ 1. In the context of this Act:
1. “Registered auditor” is a natural person who has acquired the right to sign auditor reports with opinion on the financial statements; or his entity or a specialised audit entity registered in the register of registered auditors of the Institute of the Certified Public Accountants.
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