Browse Profiles > Belgium > International Standards on Auditing
  Score Rank
Standards Compliance Index 60.83 out of 100 12
Business Indicator Index 10.98 out of 12 3
Belgium

International Standards on Auditing

Summary
On May 17, 2006, Directive 2006/43/EC of the European Parliament and Council came into force, requiring all statutory audits to be carried out on the basis of International Standards on Auditing (ISAs) as adopted by the European Commission. EU member states shall adopt and publish the provisions necessary to comply with this Directive before June 29, 2008. Member States may impose additional requirements relating to the statutory audits of annual and consolidated accounts for periods expiring on June 29, 2010. Being a member of the European Union, Belgium has to transpose the Directive into national legislation and will therefore adopt ISAs in the required timeframe. According to the self-assessment prepared by the Institute of Public Accountants and Tax Consultants in Belgium (IEC), the Company Code of 2001 requires auditors to use the Belgian Generally Accepted Auditing Standards (GAAS) for statutory audits. Listed companies can be audited either in accordance with the Belgian GAAS or following ISAs. Per the 2007 IEC self-assessment, the IEC together with the Institute of Registered Auditors established a commission with the aim to converge the national auditing standards with ISAs.

    General Overview

    On May 17, 2006, Directive 2006/43/EC of the European Parliament and the Council of the European Union came into force requiring all statutory audits to be carried out on the basis of International Standards on Auditing (ISAs) as adopted by the European Commission (EC). The Directive aims at high-level, though not full, harmonization of statutory audit requirements. EU member states are required to adopt and publish the provisions necessary to comply with the Directive by June 29, 2008. The Directive indicates that, in an effort to achieve a maximum degree of harmonization, EU member states should be allowed to impose additional national audit procedures or requirements, but only if these stem from specific national legal requirements relating to the scope of the statutory audit of annual or consolidated accounts. In other words, specific requirements not covered by the adopted ISAs can be added to the national standards. EU member states could maintain those additional audit procedures until the audit procedures or requirements have been covered by subsequently adopted international auditing standards. Furthermore member states, including Belgium, are allowed to omit components of any ISAs that conflict with specific national requirements related to the scope of the statutory audit. The same Directive indicates that member states may impose these additional requirements relating to the statuary audits of annual and consolidated accounts for periods expiring on June 29, 2010. Being a member of the European Union, Belgium must transpose the Directive into national legislation and will therefore adopt ISAs in the required timeframe.
    A 2005 self-assessment prepared by the Institute of Public Accountants and Tax Consultants (IEC) in Belgium and submitted to the International Federation of Accountants (IFAC) (herein referred to as the IEC 2005 self-assessment) indicates that under the Companies Code of 2001, listed and private companies in Belgium are required to have their financial statements audited in accordance with the Belgian Generally Accepted Auditing Standards (GAAS). In addition, listed companies must comply with Book I, Chapter 7 of the Euronext Rule Book and are required to be audited either in accordance with Belgian GAAS or ISAs. The IEC 2005 self-assessment further notes that, under the Law of July 22, 1953, the Institute of Registered Auditors (IRE) in Belgium, a private professional body, has the responsibility for setting auditing standards. Belgium's audit profession is regulated by the IRE, which is accountable to the Ministry of Economic Affairs and the Supreme Council of Economic Professions (HREB). Members are appointed for three-year terms. The IEC and IRE are full members of IFAC. Per the 2007 IEC self-assessment, the IEC and the IRE together have established a commission with the aim to converge the national auditing standards with ISAs.
    Per the KPMG's 2003 report, public companies, insurance companies, banks, financial institutions, and companies controlled by government institutions that have over 50 employees; annual turnover above €6,250,000; and a balance sheet total exceeding €3,125,000 are required to be audited by a professional auditor. The auditors are appointed by the shareholders for three-year terms, as required by the Company Code of 2001. The Banking, Finance, and Insurance Commission (CBFA) is the regulatory authority over Belgium's financial sector. Only external auditors licensed by the CBFA can audit financial institutions, banks, and insurance companies.


    The Principles

    ISA 200 Objective and General Principles Governing an Audit of Financial Statements (effective 2006)

    There is insufficient publicly available information as to Belgium's compliance with this principle.

    ISA 210 Terms of Audit Engagements (effective 2006)

    There is insufficient publicly available information as to Belgium's compliance with this principle.

    ISA 220R Quality Control for Audits of Historical Financial Information (effective 2005)

    There is insufficient publicly available information as to Belgium's compliance with this principle.

    ISA 230R Documentation (effective 2006)

    There is insufficient publicly available information as to Belgium's compliance with this principle.

    ISA 240 The Auditor’s Responsibility to Consider Fraud in an Audit of Financial Statements (effective 2004)

    There is insufficient publicly available information as to Belgium's compliance with this principle.

    ISA 250 Consideration of Laws and Regulations in an Audit of Financial Statements (effective 2004)

    There is insufficient publicly available information as to Belgium's compliance with this principle.

    ISA 260 Communications of Audit Matters With Those Charged With Governance (effective 2004)

    There is insufficient publicly available information as to Belgium's compliance with this principle.

    ISA 300 Planning an Audit of Financial Statements (effective 2004)

    There is insufficient publicly available information as to Belgium's compliance with this principle.

    ISA 315 Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement (effective 2004)

    There is insufficient publicly available information as to Belgium's compliance with this principle.

    ISA 320 Audit Materiality (effective 2004)

    There is insufficient publicly available information as to Belgium's compliance with this principle.

    ISA 330 The Auditor’s Procedures in Response to Assessed Risks (effective 2006)

    There is insufficient publicly available information as to Belgium's compliance with this principle.

    ISA 402 Audit Considerations Relating to Entities Using Service Organizations (effective 2004)

    There is insufficient publicly available information as to Belgium's compliance with this principle.

    ISA 500 Audit Evidence (effective 2004)

    There is insufficient publicly available information as to Belgium's compliance with this principle.

    ISA 501 Audit Evidence - Additional Considerations for Specific Items (effective 2004)

    There is insufficient publicly available information as to Belgium's compliance with this principle.

    ISA 505 External Confirmations (effective 2004)

    There is insufficient publicly available information as to Belgium's compliance with this principle.

    ISA 510 Initial Engagements — Opening Balances (effective 2004)

    There is insufficient publicly available information as to Belgium's compliance with this principle.

    ISA 520 Analytical Procedures (effective 2004)

    There is insufficient publicly available information as to Belgium's compliance with this principle.

    ISA 530 Audit Sampling and Other Selective Testing Procedures (effective 2004)

    There is insufficient publicly available information as to Belgium's compliance with this principle.

    ISA 540 Audit of Accounting Estimates (effective 2004)

    There is insufficient publicly available information as to Belgium's compliance with this principle.

    ISA 545 Auditing Fair Value Measurements and Disclosures (effective 2004)

    There is insufficient publicly available information as to Belgium's compliance with this principle.

    ISA 550 Related Parties (effective 2004)

    There is insufficient publicly available information as to Belgium's compliance with this principle.

    ISA 560 Subsequent Events (effective 2006)

    There is insufficient publicly available information as to Belgium's compliance with this principle.

    ISA 570 Going Concern (effective 2004)

    There is insufficient publicly available information as to Belgium's compliance with this principle.

    ISA 580 Management Representations (effective 2004)

    There is insufficient publicly available information as to Belgium's compliance with this principle.

    ISA 600 Using the Work of Another Auditor (effective)

    There is insufficient publicly available information as to Belgium's compliance with this principle.

    ISA 610 Considering the Work of Internal Auditing (effective 2004)

    There is insufficient publicly available information as to Belgium's compliance with this principle.

    ISA 620 Using the Work of an Expert (effective 2005)

    There is insufficient publicly available information as to Belgium's compliance with this principle.

    ISA 700 The Auditor’s Report on Financial Statements (effective 2006)

    There is insufficient publicly available information as to Belgium's compliance with this principle.

    ISA 701 Modifications to the Independent Auditor's Report (effective 2006)

    There is insufficient publicly available information as to Belgium's compliance with this principle.

    ISA 710 Comparatives (effective 2004)

    There is insufficient publicly available information as to Belgium's compliance with this principle.

    ISA 720 Other Information in Documents Containing Audited Financial Statements (effective 2004)

    There is insufficient publicly available information as to Belgium's compliance with this principle.

    ISA 800 The Auditor’s Report on Special Purpose Audit Engagements (effective 2006)

    There is insufficient publicly available information as to Belgium's compliance with this principle.

    Jump to other standards


    Sources of Assessment

    Institute of Public Accountants and Tax Consultants, "Assessment of the Regulatory and Standard-Setting Framework," Self-assessment prepared as part of the International Federation of Accountants' Member Body Compliance Program, September 2005. Available from International Federation of Accountants website. Accessed on May 20, 2008. (IEC 2005)

    Institute of Public Accountants and Tax Consultants, "Response to the IFAC Part 2, SMO Self-Assessment Questionnaire," Self-assessment prepared as a part of the International Federation of Accountants' Member Body Compliance Program, May 2007. Available from International Federation of Accountants website. Accessed on May 20, 2008. (IEC 2007)

    Institute of Registered Auditors website. Accessed on May 27, 2008. (IRE website)

    KPMG, "Investment in Belgium," June 2003. Available from KPGM website. Accessed on May 27, 2008. (KPMG 2003)

    Relevant Organizations

    Accounting Standards Committee - Commissie voor Boekhoudkundige Normen - Commission des Normes Comptables (ASC) (in Dutch and French only)

    Audit Committee Institute in Belgium (ACI)

    Banking, Finance, and Insurance Commission - Commissie Voor Het Bank, Financie, En Assurantiewezen - Commission Bancaire, Financière et des Assurances (CBFA)

    Committee of European Securities Regulators (CESR)

    Euronext Stock Exchange (ESE)

    European Accounting Regulatory Committee (ARC)

    European Federation of Accountants - Federation des Experts Comptables Europeens (FEE)

    European Financial Reporting Advisory Group (EFRAG)

    Federal Public Service Finance - Federale Overheidsdienst Financiën - Service Public Fédéral Finances (MoF)

    Institute of Public Accountants and Tax Consultants - Instituut van de Accountants en de Belastingconsulenten - Institut des Experts-Comptables et des Conseils Fiscaux (IEC) (in French only)

    Institute of Registered Auditors - Instituut der Bedrijfsrevisoren - Institut des Reviseurs D'Entreprises (IRE) (in Dutch and French only)

    Ministry of Economic Affairs - Ministerie van Economische Zaken - Ministère des Affaires Économiques (MINECO)

    National Bank of Belgium - Nationale Bank van België - Banque Nationale de Belgique (NBB)

    Supreme Council of Economic Professions - Hoge Raad voor de Economische Beroepen - Conseil Supérieur des Professions économiques (HREB)



    Relevant Legislation/Regulation

    Company Code, 2001 - Wetboek van Vennootschappen, 2001 - Code des Sociétés, 2001 (in French only)

    General Auditing Standards, 2006 - Normes Generales de Revision, 2006

    Law on the Supervision of the Financial Sector and on Financial Services, 2002 - Wet Betreffende het Toezicht op de Financiële Sector en de Financiële Diensten, 2002 - Loi Relative à la Surveillance du Secteur Financier et aux Services Financiers, 2002

    Law on Setting up an Institute of Auditors and Organization of Public Oversight of the Auditing Profession, 1953 - Wet Houdende Oprichting van een Instituut van de Bedrijfsrevisoren en Organisatie van het Publiek Toezicht op het Beroep van Bedrijfsrevisor, 1953 - Loi Créant un Institut des Réviseurs d'Entreprises et Organisant la Supervision Publique de la Profession de Réviseur d'Entreprises, 1953 (as amended April 2007) (in Dutch and French only)

    Royal Decree on Responsibilities of Auditors, 1994 - Koninklijk Besluit Betreffende de Plichten van de Bedrijfsrevisoren, 1994 - Arrêté Royal Relatif aux Obligations des Reviseurs d'Entreprises, 1994 (in Dutch and French only)

    Royal Decree on Supervision, Quality Control, and Code of Conduct of the Audit Profession, 2007 - Koninklijk Besluit Betreffende de Plichten van de Bedrijfsrevisoren - Arrêté Royal Organisant la Surveillance et le Contrôle de Qualité et portant Règlement de Discipline des Réviseurs d'Entreprises, 2007 (in Dutch and French only)

    Royal Decree on Access to the Audit Profession and the repeal of the October 13, 1987 Royal Decree, 2007 - Koninklijk Besluit Betreffende de Toegang tot het Beroep van Bedrijfsrevisor en tot Opheffing van het Koninklijk Besluit van 13 Oktober 1987 Betreffende de Stage van de Kandidaat-bedrijfsrevisoren, 2007 - Arrêté Royal Relatif à l'Accès à la Profession de Réviseur d'Entreprises et Abrogeant l'Arrêté Royal du 13 Octobre 1987 Relatif au Stage des Candidats Réviseurs d'Entreprises, 2007

    Royal Decree on Recognition of Company Auditors and on Public Registry, 2007 - Koninklijk Besluit Betreffende de Erkenning van Bedrijfsrevisoren en het Openbaar Register, 2007 - Arrêté Royal Relatif à l'Agrément des Réviseurs d'Entreprises et au Registre Public, 2007

    Royal Decree on the Internal Regulations of the Institute of Registered Auditors, 2007 - Koninklijk Besluit tot Vaststelling van het Huishoudelijk Reglement van het Instituut van de Bedrijfsrevisoren, 2007 - Arrêté Royal Fixant le Règlement d'Ordre Intérieur de l'Institut des Réviseurs d'Entreprises, 2007

    Royal Decree Protecting the Title and the Profession of Accountants, 1992

    Royal Decree on Accounting Procedures and the Annual Accounts of Companies, 1975

    Royal Decree on Annual Accounts, 1976

    Royal Decree on Standard Accountancy Procedures, 1983

    Royal Decree on the Reform of Auditing Procedures, 1985

    Royal Decree on Foreign Investment Firms, 1995 (consolidated text as of 2001)

    Euronext Rule Book, Book I: Harmonized Rules, 2008 - Règles de Marché d' Euronext, Livre I, 2008

    EU Auditing-Related Directives

    Directive 2006/43/EC of the European Parliament and of the Council of 17 May 2006 on Statutory Audits of Annual Accounts and Consolidated Accounts, Amending Council Directives 78/ 660/EEC and 83/349/EEC and Repealing Council Directive 84/253/EEC, 2006

    Regulation (EC) No 1606/2002 of the European Parliament and of the Council of 19 July 2002 on the Application of International Accounting Standards, 2002



    Supplementary Sources

    Institute of Registered Auditors website. Accessed on June 13, 2008. (IRE website)

    International Federation of Accountants website. Accessed on May 21, 2008. (IFAC website)
    ©  Copyright 2008 Financial Standards Foundation. All Rights Reserved. Terms of Use | Contact