International Finance and Accounting Handbook

(avery) #1

15 • 18


Country

Required to Be Audited

Election of Auditor

Objective or Purpose of Audit

Sources of Auditing Standards

Europe (Continued)United Kingdom

All limited companies above

Appointed/reappointed annu-

An independent examination

The Auditing Practices Board

a specified size limit. Small

ally by shareholders’ majority

and opinion, for sharehold-

(APB) established in 1991 by

companies may request

vote at annual general meet-

ers, on whether the financial

the Consultative Committee

audit; separate requirements

ing; in exceptional circum-

statements give a true and

of Accountancy Bodies

exist for charities; other bod-

stances casual vacancies may

fair view of the state of the

(CCAB) comprising the six

ies/interested parties may

be appointed by Secretary of

company’s affairs as at the

principal accountancy bodies

request “audit” service for a

State for Trade and Industry

balance sheet date and of the

in the United Kingdom and

wide range of enterprises

profit and loss for the year

Republic of Ireland

then ended and have beenproperly prepared in accor-dance with the CompaniesAct 1985.

Italy

In Italy there are two bodies

Proposed by the board of

To ensure that the financial

Auditing standards are issued

charged with auditing: The

directors and elected by the

statements taken as a whole

by the Dottori Commercialisti

Board of Statutory Auditors

general

meeting

of share-

give a true and fair view of

and the Ragionieri

(Collegio Sindacale)

and the

holders

the financial position and

Collegialisti; and approved

Auditing Firm. The first is

result in compliance with

by the National Association

composed of three to five

the civil code.

of Auditors’ Firms (ASSIREVI)

members and it is compul-

and by CONSOB.

Similar to

sory for all companies in the

International Standards on

legal form of Stock Company

auditing.

and for Limited LiabilityCompanies that have a capi-tal above 200 million lira.However, a board is requiredalso if, in two consecutivefinancial years, the companyexceeds two of the followinglimits: a) assets—4.70 millionlira b) earnings from salesand provisions of services—9.500 million lira; average
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