On May 17, 2006, Directive 2006/43/EC of the European Parliament and the 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 (EC). European Union (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 statuary audits of annual and consolidated accounts for periods expiring on June 29, 2010. Under the Bulgarian Independent Financial Audit Law of 2002, audits should be carried out in accordance with ISAs from July 1, 2003 (in practice, for the audits of 2003 financial statements). Auditors are also obliged to comply with the Professional Code of the Institute of Certified Public Accountants of Bulgaria (ICPAB) which is required by law to be based on the International Federation of Accountants (IFAC) Code of Ethics. However, there is no publicly available information as to Bulgaria's compliance with the most recent set of ISAs promulgated by the International Auditing and Assurance Standards Board (IAASB).

General Overview

On May 17, 2006, Directive 2006/43/EC of the European Parliament and the 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 (EC). The Directive aims at high-level -- though not full -- harmonization of statutory audit requirements. European Union (EU) member states shall adopt and publish the provisions necessary to comply with the Directive before June 29, 2008. According to the Directive, in order to achieve a maximum degree of harmonization, Member States should be allowed to impose additional national audit procedures or requirements only if these stem from specific national legal requirements relating to the scope of the statutory audit of annual or consolidated accounts, meaning that those requirements have not been covered by the adopted ISAs. Member States could maintain those additional audit procedures until the audit procedures or requirements have been covered by subsequently adopted international auditing standards. If, however, the adopted ISAs contain audit procedures the performance of which would create a specific legal conflict with national law stemming from specific national requirements related to the scope of the statutory audit, Member States may carve out the conflicting part of the ISA as long as those conflicts exist. Member States may impose these additional requirements relating to the statuary audits of annual and consolidated accounts for periods expiring on June 29, 2010. (EC 2006/43, pp. 2, 3, 12, 21)

The 2002 World Bank Report on the Observance of Standards and Codes (ROSC) - Accounting and Auditing states that under the Independent Financial Audit Law (IFAL 2002), which went into effect on January 1, 2002, audits should be carried out in accordance with ISAs from July 1, 2003 (in practice, for the audits of 2003 financial statements). The IFAL 2002 provides for: (1) the objectives and principles of auditing; (2) the professional standards on auditing applicable in Bulgaria; (3) the obtaining of certified public accountants (CPAs) certificates; (4) rights, obligations and responsibilities of registered auditors; and (5) status of the Institute of Certified Public Accountants of Bulgaria (ICPAB). (WB 2002, p. 7; EY 2006, p. 46)

The IFAL 2002 requires that the ICPAB professional code of ethics should be based on the International Federation of Accountants (IFAC) Code of Ethics. The ICPAB has approved Rules for Quality Assurance of the Auditors' Work and adopted an external quality control review program whereby all members of the ICPAB will be inspected every three years. According to the 2002 ROSC, while reference to the IFAC Code of Ethics is a step in the right direction, the use of the term "based on" rather than "in accordance with" may create confusion and eventually weaken ethical standards. "Based on" may be construed as "based on the IFAC Code of Ethics topped-up to adequately capture issues specific to Bulgaria" or "based on the IFAC Code of Ethics less certain sections removed due to the political clout of certain members of the audit profession." (Petranov & Tchompalov 2004, p. 32; WB 2002, p. 5)

Under both the IFAL 2002 and the Accountancy Act (AA 2002), the financial statements of the following private sector enterprises should be audited by a registered auditor: (1) issuers of securities to the public; (2) other joint stock companies (i.e., unlisted); (3) partnerships limited by shares; (4) other banking and insurance enterprises and financial institutions (i.e., unlisted); (5) other large enterprises that prepare consolidated financial statements (i.e., unlisted); and (6) other large enterprises (i.e., unlisted). Small and medium limited liability companies need not have their financial statements audited when an enterprise does not meet at least two of the following criteria: (1) total assets greater than 500,000 Bulgarian leva (US$260,000); (2) operating revenue greater than 1 million Bulgarian leva (US$520,000); or (3) more than 30 full-time equivalent employees. (WB 2002, p. 3; ICPAB 2005)

The profession of auditors is characterized by self-regulation and independence within the limits set by the IFAL 2002 and professional standards. The ISAs require that an auditor issues an independent opinion on whether the financial statements of a company present fairly, in all material respects, its financial position and the results of its operations and changes in cash flows in compliance with Bulgarian accounting legislation. A statutory audit may be performed by a Bulgarian CPA or by a specialized audit firm registered with the ICPAB. A specialized audit firm is a company registered under the Commercial Code (CC 1991),with financial statement auditing being its main object of activities, and which is: (1) a general partnership where more than half of the partners are registered CPAs; (2) a limited partnership where more than half of the unlimited liability partners are registered CPAs; and (3) a limited liability company where more than half of the votes in the General Meeting of Shareholders belong to registered CPAs and the General Manager (the majority of General Managers) of which is a registered CPA. (EY 2006, p. 46)

The IFAL 2002 requires that the ICPAB regulates the performance of the profession in the interest of the whole society. Liability of registered auditors is unlimited, but, as of 2004, there have been no legal cases against auditors. Auditors are required by law to take out professional indemnity insurance and the ICPAB is required to determine the minimum amount of such insurance. ICPAB is authorized to impose sanctions for auditor's misconduct and violations. These sanctions can be pecuniary (varying from 300 to 3,000 BGN) or administrative (individuals can be barred from auditing for a period up to three years). (Petranov & Tchompalov 2004, p. 31)

The IFAL 2002 requires from ICPAB to perform a wide variety of activities including specific regulatory functions since it is recognized as a self-regulatory body for the auditing profession. More specifically the ICPAB should organize and conduct professional examinations; register auditors, maintain and publish special registers of auditors (individual persons and specialized audit firms); organize training for auditors; approve internal control systems of members' activity and compliance with professional ethical standards; develop a professional code of ethics for its members; develop, if necessary, professional audit rules and techniques; control the quality of audit activity and professional conduct of its members. (Petranov & Tchompalov 2004, pp. 31-32)

As of 2004, there have been attempts to establish a governmental regulatory body for auditor oversight. These attempts have been unsuccessful due to the widespread understanding within the profession that it should be independent, including independent from government supervision. It will be prudent for the government to take into account the weaknesses of the pure self-regulation discovered in other countries and to initiate public discussion about the optimal system of auditor oversight. (Petranov & Tchompalov 2004, p. 31)

The IFAL 2002 provides that the external auditors express independent opinion on the authenticity of the financial statements in all their essential aspects. The formation and presentation of the independent audit opinion shall be made in accordance with ISAs. (Petranov & Tchompalov 2004, p. 25)

The IFAL 2002 requires full independence of the auditor from the company's board, management and controlling shareholders. In particular, the IFAL 2002 provides for the principles that bind auditors, which include: (1) independence - non-alignment of auditors, also through their partners and personnel, with the company subject to audit, its managers or related persons in material, personal or any other aspect; (2) objectivity, impartiality and absence of bias, conflict of interest or other influence, which may compromise the real judgment of the auditor. Also, it is expressly prohibited for an auditor to perform an audit to a company in the following cases: (1) if s/he has signed labor contract with the company; (2) if s/he is related person to the company; (3) if s/he is directly or indirectly bound with or participate in dealings with the company and these dealings violate his/her independence as auditor or cause conflict of interests; (4) if s/he is engaged with accounting services on the current financial statements of the company or participates in taking managing decisions on the financial statements, or provides services related to the evaluation of assets for the purposes of the financial statements of the company. (Petranov & Tchompalov 2004, pp. 24-25, 36)

The ICPAB is a member of the IFAC. (IFAC website)

The Principles

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

II

On May 17, 2006, Directive 2006/43/EC of the European Parliament and the 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 (EC). European Union (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 statuary audits of annual and consolidated accounts for periods expiring on June 29, 2010. Under the Bulgarian Independent Financial Audit Law of 2002, audits should be carried out in accordance with ISAs from July 1, 2003 (in practice, for the audits of 2003 financial statements). The objective of the audit is to express an independent opinion on the fair presentation of the financial position, results, cash flows, and changes in equity in accordance with applicable accounting standards. (EC 2006/43, pp. 2, 21; WB 2002, p. 3) However, there is no publicly available information as to Bulgaria's compliance with the most recent set of ISAs promulgated by the International Auditing and Assurance Standards Board (IAASB).

ISA 200 Objective and General Principles Governing an Audit of Financial Statements is effective for audits of financial statements for periods beginning on or after June 15, 2006. (IAASB 2007, p. 1)

ISA 210 Terms of Audit Engagements (effective 2006)

II

On May 17, 2006, Directive 2006/43/EC of the European Parliament and the 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 (EC). European Union (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 statuary audits of annual and consolidated accounts for periods expiring on June 29, 2010. Under the Bulgarian Independent Financial Audit Law of 2002, audits should be carried out in accordance with ISAs from July 1, 2003 (in practice, for the audits of 2003 financial statements). (EC 2006/43, pp. 2, 21; WB 2002, p. 3) However, there is no publicly available information as to Bulgaria's compliance with the most recent set of ISAs promulgated by the International Auditing and Assurance Standards Board (IAASB).

ISA 210 Terms of Audit Engagements is effective for audits of financial statements for periods beginning on or after December 15, 2006. (IAASB 2007, p. 1)

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

II

On May 17, 2006, Directive 2006/43/EC of the European Parliament and the 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 (EC). European Union (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 statuary audits of annual and consolidated accounts for periods expiring on June 29, 2010. Under the Bulgarian Independent Financial Audit Law of 2002, audits should be carried out in accordance with ISAs from July 1, 2003 (in practice, for the audits of 2003 financial statements). (EC 2006/43, pp. 2, 21; WB 2002, p. 3) However, there is no publicly available information as to Bulgaria's compliance with the most recent set of ISAs promulgated by the International Auditing and Assurance Standards Board (IAASB).

ISA 220 Quality Control for Audits of Historical Financial Information is effective for audits of historical financial information for periods commencing on or after June 15, 2005. (IAASB 2007, p. 1)

ISA 230R Documentation (effective 2006)

II

On May 17, 2006, Directive 2006/43/EC of the European Parliament and the 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 (EC). European Union (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 statuary audits of annual and consolidated accounts for periods expiring on June 29, 2010. Under the Bulgarian Independent Financial Audit Law of 2002, audits should be carried out in accordance with ISAs from July 1, 2003 (in practice, for the audits of 2003 financial statements). (EC 2006/43, pp. 2, 21; WB 2002, p. 3) However, there is no publicly available information as to Bulgaria's compliance with the most recent set of ISAs promulgated by the International Auditing and Assurance Standards Board (IAASB).

ISA 230 Documentation is effective for audits of financial information for periods beginning on or after June 15, 2006. (IAASB 2007, p. 1)

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

II

On May 17, 2006, Directive 2006/43/EC of the European Parliament and the 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 (EC). European Union (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 statuary audits of annual and consolidated accounts for periods expiring on June 29, 2010. Under the Bulgarian Independent Financial Audit Law of 2002, audits should be carried out in accordance with ISAs from July 1, 2003 (in practice, for the audits of 2003 financial statements). (EC 2006/43, pp. 2, 21; WB 2002, p. 3) However, there is no publicly available information as to Bulgaria's compliance with the most recent set of ISAs promulgated by the International Auditing and Assurance Standards Board (IAASB).

ISA 240 The Auditor's Responsibility to Consider Fraud in an Audit of Financial Statements is effective for audits of financial statements for periods beginning on or after December 15, 2004. (IAASB 2007, p. 1)

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

II

On May 17, 2006, Directive 2006/43/EC of the European Parliament and the 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 (EC). European Union (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 statuary audits of annual and consolidated accounts for periods expiring on June 29, 2010. Under the Bulgarian Independent Financial Audit Law of 2002, audits should be carried out in accordance with ISAs from July 1, 2003 (in practice, for the audits of 2003 financial statements). (EC 2006/43, pp. 2, 21; WB 2002, p. 3) However, there is no publicly available information as to Bulgaria's compliance with the most recent set of ISAs promulgated by the International Auditing and Assurance Standards Board (IAASB).

ISA 250 Consideration of Laws and Regulations in an Audit of Financial Statements is effective for audits of financial statements for periods beginning on or after December 15, 2004. (IAASB 2007, p. 1)

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

II

On May 17, 2006, Directive 2006/43/EC of the European Parliament and the 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 (EC). European Union (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 statuary audits of annual and consolidated accounts for periods expiring on June 29, 2010. Under the Bulgarian Independent Financial Audit Law of 2002, audits should be carried out in accordance with ISAs from July 1, 2003 (in practice, for the audits of 2003 financial statements). (EC 2006/43, pp. 2, 21; WB 2002, p. 3) However, there is no publicly available information as to Bulgaria's compliance with the most recent set of ISAs promulgated by the International Auditing and Assurance Standards Board (IAASB).

ISA 260 Communications of Audit Matters With Those Charged With Governance is effective for audits of financial statements for periods beginning on or after December 15, 2004. (IAASB 2007, p. 2)

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

II

On May 17, 2006, Directive 2006/43/EC of the European Parliament and the 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 (EC). European Union (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 statuary audits of annual and consolidated accounts for periods expiring on June 29, 2010. Under the Bulgarian Independent Financial Audit Law of 2002, audits should be carried out in accordance with ISAs from July 1, 2003 (in practice, for the audits of 2003 financial statements). (EC 2006/43, pp. 2, 21; WB 2002, p. 3) However, there is no publicly available information as to Bulgaria's compliance with the most recent set of ISAs promulgated by the International Auditing and Assurance Standards Board (IAASB).

ISA 300 Planning an Audit of Financial Statements is effective for audits of financial statements for periods beginning on or after December 15, 2004. (IAASB 2007, p. 2)

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

II

On May 17, 2006, Directive 2006/43/EC of the European Parliament and the 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 (EC). European Union (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 statuary audits of annual and consolidated accounts for periods expiring on June 29, 2010. Under the Bulgarian Independent Financial Audit Law of 2002, audits should be carried out in accordance with ISAs from July 1, 2003 (in practice, for the audits of 2003 financial statements). (EC 2006/43, pp. 2, 21; WB 2002, p. 3) However, there is no publicly available information as to Bulgaria's compliance with the most recent set of ISAs promulgated by the International Auditing and Assurance Standards Board (IAASB).

ISA 315 Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement is effective for audits of financial statements for periods beginning on or after December 15, 2004. (IAASB 2007, p. 2)

ISA 320 Audit Materiality (effective 2004)

II

On May 17, 2006, Directive 2006/43/EC of the European Parliament and the 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 (EC). European Union (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 statuary audits of annual and consolidated accounts for periods expiring on June 29, 2010. Under the Bulgarian Independent Financial Audit Law of 2002, audits should be carried out in accordance with ISAs from July 1, 2003 (in practice, for the audits of 2003 financial statements). (EC 2006/43, pp. 2, 21; WB 2002, p. 3) However, there is no publicly available information as to Bulgaria's compliance with the most recent set of ISAs promulgated by the International Auditing and Assurance Standards Board (IAASB).

ISA 320 Audit Materiality is effective for audits of financial statements for periods beginning on or after December 15, 2004. (IAASB 2007, p. 2)

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

II

On May 17, 2006, Directive 2006/43/EC of the European Parliament and the 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 (EC). European Union (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 statuary audits of annual and consolidated accounts for periods expiring on June 29, 2010. Under the Bulgarian Independent Financial Audit Law of 2002, audits should be carried out in accordance with ISAs from July 1, 2003 (in practice, for the audits of 2003 financial statements). (EC 2006/43, pp. 2, 21; WB 2002, p. 3) However, there is no publicly available information as to Bulgaria's compliance with the most recent set of ISAs promulgated by the International Auditing and Assurance Standards Board (IAASB).

ISA 330 The Auditor's Procedures in Response to Assessed Risks is effective for audits of financial statements for periods beginning on or after June 15, 2006. (IAASB 2007, p. 2)

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

II

On May 17, 2006, Directive 2006/43/EC of the European Parliament and the 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 (EC). European Union (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 statuary audits of annual and consolidated accounts for periods expiring on June 29, 2010. Under the Bulgarian Independent Financial Audit Law of 2002, audits should be carried out in accordance with ISAs from July 1, 2003 (in practice, for the audits of 2003 financial statements). (EC 2006/43, pp. 2, 21; WB 2002, p. 3) However, there is no publicly available information as to Bulgaria's compliance with the most recent set of ISAs promulgated by the International Auditing and Assurance Standards Board (IAASB).

ISA 402 Audit Considerations Relating to Entities Using Service Organizations is effective for audits of financial statements for periods beginning on or after December 15, 2004. (IAASB 2007, p. 2)

ISA 500 Audit Evidence (effective 2004)

II

On May 17, 2006, Directive 2006/43/EC of the European Parliament and the 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 (EC). European Union (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 statuary audits of annual and consolidated accounts for periods expiring on June 29, 2010. Under the Bulgarian Independent Financial Audit Law of 2002, audits should be carried out in accordance with ISAs from July 1, 2003 (in practice, for the audits of 2003 financial statements). (EC 2006/43, pp. 2, 21; WB 2002, p. 3) However, there is no publicly available information as to Bulgaria's compliance with the most recent set of ISAs promulgated by the International Auditing and Assurance Standards Board (IAASB).

ISA 500 Audit Evidence is effective for audits of financial statements for periods beginning on or after December 15, 2004. (IAASB 2007, p. 2)

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

II

On May 17, 2006, Directive 2006/43/EC of the European Parliament and the 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 (EC). European Union (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 statuary audits of annual and consolidated accounts for periods expiring on June 29, 2010. Under the Bulgarian Independent Financial Audit Law of 2002, audits should be carried out in accordance with ISAs from July 1, 2003 (in practice, for the audits of 2003 financial statements). (EC 2006/43, pp. 2, 21; WB 2002, p. 3) However, there is no publicly available information as to Bulgaria's compliance with the most recent set of ISAs promulgated by the International Auditing and Assurance Standards Board (IAASB).

ISA 501 Audit Evidence - Additional Considerations for Specific Items is effective for audits of financial statements for periods beginning on or after December 15, 2004. (IAASB 2007, p. 2)

ISA 505 External Confirmations (effective 2004)

II

On May 17, 2006, Directive 2006/43/EC of the European Parliament and the 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 (EC). European Union (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 statuary audits of annual and consolidated accounts for periods expiring on June 29, 2010. Under the Bulgarian Independent Financial Audit Law of 2002, audits should be carried out in accordance with ISAs from July 1, 2003 (in practice, for the audits of 2003 financial statements). (EC 2006/43, pp. 2, 21; WB 2002, p. 3) However, there is no publicly available information as to Bulgaria's compliance with the most recent set of ISAs promulgated by the International Auditing and Assurance Standards Board (IAASB).

ISA 505 External Confirmations is effective for audits of financial statements for periods beginning on or after December 15, 2004. (IAASB 2007, p. 2)

ISA 510 Initial Engagements — Opening Balances (effective 2004)

II

On May 17, 2006, Directive 2006/43/EC of the European Parliament and the 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 (EC). European Union (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 statuary audits of annual and consolidated accounts for periods expiring on June 29, 2010. Under the Bulgarian Independent Financial Audit Law of 2002, audits should be carried out in accordance with ISAs from July 1, 2003 (in practice, for the audits of 2003 financial statements). (EC 2006/43, pp. 2, 21; WB 2002, p. 3) However, there is no publicly available information as to Bulgaria's compliance with the most recent set of ISAs promulgated by the International Auditing and Assurance Standards Board (IAASB).

ISA 510 Initial Engagements -- Opening Balances is effective for audits of financial statements for periods beginning on or after December 15, 2004. (IAASB 2007, p. 2)

ISA 520 Analytical Procedures (effective 2004)

II

On May 17, 2006, Directive 2006/43/EC of the European Parliament and the 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 (EC). European Union (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 statuary audits of annual and consolidated accounts for periods expiring on June 29, 2010. Under the Bulgarian Independent Financial Audit Law of 2002, audits should be carried out in accordance with ISAs from July 1, 2003 (in practice, for the audits of 2003 financial statements). (EC 2006/43, pp. 2, 21; WB 2002, p. 3) However, there is no publicly available information as to Bulgaria's compliance with the most recent set of ISAs promulgated by the International Auditing and Assurance Standards Board (IAASB).

ISA 520 Analytical Procedures is effective for audits of financial statements for periods beginning on or after December 15, 2004. (IAASB 2007, p. 2)

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

II

On May 17, 2006, Directive 2006/43/EC of the European Parliament and the 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 (EC). European Union (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 statuary audits of annual and consolidated accounts for periods expiring on June 29, 2010. Under the Bulgarian Independent Financial Audit Law of 2002, audits should be carried out in accordance with ISAs from July 1, 2003 (in practice, for the audits of 2003 financial statements). (EC 2006/43, pp. 2, 21; WB 2002, p. 3) However, there is no publicly available information as to Bulgaria's compliance with the most recent set of ISAs promulgated by the International Auditing and Assurance Standards Board (IAASB).

ISA 530 Audit Sampling and Other Selective Testing Procedures is effective for audits of financial statements for periods beginning on or after December 15, 2004. (IAASB 2007, p. 2)

ISA 540 Audit of Accounting Estimates (effective 2004)

II

On May 17, 2006, Directive 2006/43/EC of the European Parliament and the 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 (EC). European Union (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 statuary audits of annual and consolidated accounts for periods expiring on June 29, 2010. Under the Bulgarian Independent Financial Audit Law of 2002, audits should be carried out in accordance with ISAs from July 1, 2003 (in practice, for the audits of 2003 financial statements). (EC 2006/43, pp. 2, 21; WB 2002, p. 3) However, there is no publicly available information as to Bulgaria's compliance with the most recent set of ISAs promulgated by the International Auditing and Assurance Standards Board (IAASB).

ISA 540 Audit of Accounting Estimates is effective for audits of financial statements for periods beginning on or after December 15, 2004. (IAASB 2007, p. 3)

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

II

On May 17, 2006, Directive 2006/43/EC of the European Parliament and the 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 (EC). European Union (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 statuary audits of annual and consolidated accounts for periods expiring on June 29, 2010. Under the Bulgarian Independent Financial Audit Law of 2002, audits should be carried out in accordance with ISAs from July 1, 2003 (in practice, for the audits of 2003 financial statements). (EC 2006/43, pp. 2, 21; WB 2002, p. 3) However, there is no publicly available information as to Bulgaria's compliance with the most recent set of ISAs promulgated by the International Auditing and Assurance Standards Board (IAASB).

ISA 545 Auditing Fair Value Measurements and Disclosures is effective for audits of financial statements for periods beginning on or after December 15, 2004. (IAASB 2007, p. 3)

ISA 550 Related Parties (effective 2004)

II

On May 17, 2006, Directive 2006/43/EC of the European Parliament and the 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 (EC). European Union (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 statuary audits of annual and consolidated accounts for periods expiring on June 29, 2010. Under the Bulgarian Independent Financial Audit Law of 2002, audits should be carried out in accordance with ISAs from July 1, 2003 (in practice, for the audits of 2003 financial statements). (EC 2006/43, pp. 2, 21; WB 2002, p. 3) However, there is no publicly available information as to Bulgaria's compliance with the most recent set of ISAs promulgated by the International Auditing and Assurance Standards Board (IAASB).

ISA 550 Related Parties is effective for audits of financial statements for periods beginning on or after December 15, 2004. (IAASB 2007, p. 3)

ISA 560 Subsequent Events (effective 2006)

II

On May 17, 2006, Directive 2006/43/EC of the European Parliament and the 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 (EC). European Union (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 statuary audits of annual and consolidated accounts for periods expiring on June 29, 2010. Under the Bulgarian Independent Financial Audit Law of 2002, audits should be carried out in accordance with ISAs from July 1, 2003 (in practice, for the audits of 2003 financial statements). (EC 2006/43, pp. 2, 21; WB 2002, p. 3) However, there is no publicly available information as to Bulgaria's compliance with the most recent set of ISAs promulgated by the International Auditing and Assurance Standards Board (IAASB).

ISA 560 Subsequent Events is effective for audits of financial statements for periods for periods beginning on or after December 31, 2006. (IAASB 2007, p. 3)

ISA 570 Going Concern (effective 2004)

II

On May 17, 2006, Directive 2006/43/EC of the European Parliament and the 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 (EC). European Union (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 statuary audits of annual and consolidated accounts for periods expiring on June 29, 2010. Under the Bulgarian Independent Financial Audit Law of 2002, audits should be carried out in accordance with ISAs from July 1, 2003 (in practice, for the audits of 2003 financial statements). (EC 2006/43, pp. 2, 21; WB 2002, p. 3) However, there is no publicly available information as to Bulgaria's compliance with the most recent set of ISAs promulgated by the International Auditing and Assurance Standards Board (IAASB).

ISA 570 Going Concern is effective for audits of financial statements for periods beginning on or after December 15, 2004. (IAASB 2007, p. 3)

ISA 580 Management Representations (effective 2004)

II

On May 17, 2006, Directive 2006/43/EC of the European Parliament and the 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 (EC). European Union (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 statuary audits of annual and consolidated accounts for periods expiring on June 29, 2010. Under the Bulgarian Independent Financial Audit Law of 2002, audits should be carried out in accordance with ISAs from July 1, 2003 (in practice, for the audits of 2003 financial statements). (EC 2006/43, pp. 2, 21; WB 2002, p. 3) However, there is no publicly available information as to Bulgaria's compliance with the most recent set of ISAs promulgated by the International Auditing and Assurance Standards Board (IAASB).

ISA 580 Management Representations is effective for audits of financial statements for periods beginning on or after December 15, 2004. (IAASB 2007, p. 3)

ISA 600 Using the Work of Another Auditor (effective)

II

On May 17, 2006, Directive 2006/43/EC of the European Parliament and the 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 (EC). European Union (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 statuary audits of annual and consolidated accounts for periods expiring on June 29, 2010. Under the Bulgarian Independent Financial Audit Law of 2002, audits should be carried out in accordance with ISAs from July 1, 2003 (in practice, for the audits of 2003 financial statements). (EC 2006/43, pp. 2, 21; WB 2002, p. 3) However, there is no publicly available information as to Bulgaria's compliance with the most recent set of ISAs promulgated by the International Auditing and Assurance Standards Board (IAASB).

ISA 600 Using the Work of Another Auditor has no effective date and is deemed to be effective. (IAASB 2007, p. 3)

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

II

On May 17, 2006, Directive 2006/43/EC of the European Parliament and the 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 (EC). European Union (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 statuary audits of annual and consolidated accounts for periods expiring on June 29, 2010. Under the Bulgarian Independent Financial Audit Law of 2002, audits should be carried out in accordance with ISAs from July 1, 2003 (in practice, for the audits of 2003 financial statements). (EC 2006/43, pp. 2, 21; WB 2002, p. 3) However, there is no publicly available information as to Bulgaria's compliance with the most recent set of ISAs promulgated by the International Auditing and Assurance Standards Board (IAASB).

ISA 610 Considering the Work of Internal Auditing is effective for audits of financial statements for periods beginning on or after December 15, 2004. (IAASB 2007, p. 3)

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

II

On May 17, 2006, Directive 2006/43/EC of the European Parliament and the 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 (EC). European Union (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 statuary audits of annual and consolidated accounts for periods expiring on June 29, 2010. Under the Bulgarian Independent Financial Audit Law of 2002, audits should be carried out in accordance with ISAs from July 1, 2003 (in practice, for the audits of 2003 financial statements). (EC 2006/43, pp. 2, 21; WB 2002, p. 3) However, there is no publicly available information as to Bulgaria's compliance with the most recent set of ISAs promulgated by the International Auditing and Assurance Standards Board (IAASB).

ISA 620 Using the Work of an Expert is effective for audits of financial statements for periods beginning on or after June 15, 2005. (IAASB 2007, p. 3)

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

II

On May 17, 2006, Directive 2006/43/EC of the European Parliament and the 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 (EC). European Union (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 statuary audits of annual and consolidated accounts for periods expiring on June 29, 2010. Under the Bulgarian Independent Financial Audit Law of 2002, audits should be carried out in accordance with ISAs from July 1, 2003 (in practice, for the audits of 2003 financial statements). (EC 2006/43, pp. 2, 21; WB 2002, p. 3) However, there is no publicly available information as to Bulgaria's compliance with the most recent set of ISAs promulgated by the International Auditing and Assurance Standards Board (IAASB).

ISA 700 The Auditor's Report on Financial Statements is effective for auditors' reports' dated on or after December 31, 2006. (IAASB 2007, p. 3)

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

II

On May 17, 2006, Directive 2006/43/EC of the European Parliament and the 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 (EC). European Union (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 statuary audits of annual and consolidated accounts for periods expiring on June 29, 2010. Under the Bulgarian Independent Financial Audit Law of 2002, audits should be carried out in accordance with ISAs from July 1, 2003 (in practice, for the audits of 2003 financial statements). (EC 2006/43, pp. 2, 21; WB 2002, p. 3) However, there is no publicly available information as to Bulgaria's compliance with the most recent set of ISAs promulgated by the International Auditing and Assurance Standards Board (IAASB).

ISA 701 Modifications to the Independent Auditor's Report is effective for audits of financial statements for periods beginning on or after December 31, 2006. (IAASB 2007, p. 3)

ISA 710 Comparatives (effective 2004)

II

On May 17, 2006, Directive 2006/43/EC of the European Parliament and the 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 (EC). European Union (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 statuary audits of annual and consolidated accounts for periods expiring on June 29, 2010. Under the Bulgarian Independent Financial Audit Law of 2002, audits should be carried out in accordance with ISAs from July 1, 2003 (in practice, for the audits of 2003 financial statements). (EC 2006/43, pp. 2, 21; WB 2002, p. 3) However, there is no publicly available information as to Bulgaria's compliance with the most recent set of ISAs promulgated by the International Auditing and Assurance Standards Board (IAASB).

ISA 710 Comparatives is effective for audits of financial statements for periods beginning on or after December 15, 2004. (IAASB 2007, p. 3)

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

II

On May 17, 2006, Directive 2006/43/EC of the European Parliament and the 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 (EC). European Union (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 statuary audits of annual and consolidated accounts for periods expiring on June 29, 2010. Under the Bulgarian Independent Financial Audit Law of 2002, audits should be carried out in accordance with ISAs from July 1, 2003 (in practice, for the audits of 2003 financial statements). (EC 2006/43, pp. 2, 21; WB 2002, p. 3) However, there is no publicly available information as to Bulgaria's compliance with the most recent set of ISAs promulgated by the International Auditing and Assurance Standards Board (IAASB).

ISA 720 Other Information in Documents Containing Audited Financial Statements is effective for audits of financial statements for periods beginning on or after December 15, 2004. (IAASB 2007, p. 3)

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

II

On May 17, 2006, Directive 2006/43/EC of the European Parliament and the 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 (EC). European Union (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 statuary audits of annual and consolidated accounts for periods expiring on June 29, 2010. Under the Bulgarian Independent Financial Audit Law of 2002, audits should be carried out in accordance with ISAs from July 1, 2003 (in practice, for the audits of 2003 financial statements). (EC 2006/43, pp. 2, 21; WB 2002, p. 3) However, there is no publicly available information as to Bulgaria's compliance with the most recent set of ISAs promulgated by the International Auditing and Assurance Standards Board (IAASB).

ISA 800 The Auditor's Report on Special Purpose Audit Engagements is effective for auditors' reports' dated on or after December 31, 2006. (IAASB 2007, p. 3)