Oversight of the audit activity - Introduction - Audit control activities carried out in financial year 2014

Annual Report of Activities in 2014

ICAC 2014 Report OVERSIGHT OF THE AUDIT ACTIVITY 17 Introduction Article 27 of the revised text of the Account Audit Law (hereinafter, the TRLAC) attributes ma-nagement of the public supervision system to the ICAC, therefore assigning to the ICAC, among other functions, oversight of the audit activity and international cooperation. In accordance with the provisions set forth in Article 28 of the TRLAC, oversight of the audit activity basically encompasses technical control actions and quality control actions carried out by the Sub-directorate General of Technical Control of the ICAC. During 2014 the Sub-directorate General of Technical Control had 19 civil servants, including the Sub-director General and the secretary of this sub-directorate, engaged in both technical control or investigations into specific works or specific audit aspects, as well as quality control reviews of auditors and audit firms (hereinafter, auditors). Technical control consists in investigating certain audits or aspects of audit activity to determine events or circumstances that could constitute a failure of the conformity of audits in accordance with the terms of audit regulations. Quality control consists of inspection or periodic review of Auditors, and its objective is to impro-ve the quality of audit work, mainly, through the formulation of requirements for improvement. Audit control activities carried out in financial year 2014 During financial year 2013, for the period from 01/10/2012 to 30/09/2013, a total of 60,369 audit assignments were declared, performed by 2,487 auditors and audit firms (1,241 firms and 1,246 individual auditors). These declarations were taken into account for preparing the control plan corresponding to fiscal year 2014, published in BOICAC No 98 of June 2014. The oversight of the audit activity was done either directly by the ICAC itself, with a varying sco-pe based on the characteristics of the job under review; or the ICAC supervised the quality con-trols performed by corporations that represent auditors, by virtue of the cooperation agreements signed on 22 May 2014. Quantitatively, said control actions during fiscal year 2014 were the following: Control actions conducted directly by the ICAC These actions focus on quality control inspections (that include actions on annual transparency reports) and on investigations (which include specific actions on certain audit aspects for protec-ting independence) amounting to a total of 301 actions, with the following details:


Annual Report of Activities in 2014
To see the actual publication please follow the link above