Cabinet of Ministers Regulations No 136 in Riga March 7, 2017 (pr. No § 11 9) rules on audit quality control requirements and authorised representatives requirements of qualification Issued in accordance with the law of the audit service of the fourth paragraph of article 35.1 i. General questions 1. determines the order in which the Ministry of finance authorized representative (authorized representative) audit services quality control requirements for those certified auditor and sworn auditors commercial companies that provide audit services to public-interest entities authorised representatives, qualification requirements, the test report shall be included, as well as the content of programmes. 2. the terms used in the rules comply with the following European Parliament and Council Regulation (EU) No 537/2014 regarding special requirements for statutory audits of public-interest bodies and repealing Commission decision 2005/909/EC (hereinafter Regulation No 537/2014) contains terms: 2.1. audit services quality control compliance-the term "inspection" Regulation No 575/2014 article 26, paragraph 1, "a", within the meaning of subparagraph; 2.2. the authorized representative – the term "Inspector" Regulation No 575/2014 article 26, paragraph 1, point "b".
II. Audit services quality control compliance testing 3. Authorised representative carried out routine or emergency services of audit quality control compliance checking (hereinafter examination): 3.1 the current test is carried out at least every three years, according to the Ministry of finance prepared and approved inspection program to verify: 3.1.1 or sworn auditor or certified auditor company has provided audit services to public interest entities under audit services law and Regulation No 575/2014 requirements pursuant to Latvia recognised international auditing standards; 3.1.2. or sworn auditor and certified auditor company adhere to internal quality control policies and procedures developed under the certified auditor practice size and complexity of the activities; 3.2. Emergency inspections shall be carried out in the following cases: 3.2.1. If the current test, the sworn auditor or certified auditor company is assigned a category 3 or 4; 3.2.2. If the Ministry of finance, in considering an application for Chartered Auditors or certified auditor commercial companies audit services provided by the public-interest body, there is a reasonable suspicion of the audit services, regulation of the law no 575/2014 or Latvia recognised international standards of audit irregularities; 3.2.3. If it is necessary for certain public-interest entity audit services provided to the inspection or audit services, the regulation of the law no 575/2014 or Latvia recognised international auditing standard compliance test. 4. The authorized representative shall carry out this rule 3.1. checks referred to in Regulation No 537/2014 article 26, paragraph 6, to the extent set out in, including check: 4.1 or sworn auditor or certified auditor company was created by, and comply with, the size and complexity of the activities of appropriate systems of internal control and audit the service quality of the internal control system; 4.2. or sworn auditor certified auditor or company comply with the Audit Service Act article 25, first and third subparagraphs, and article 26 of the independence and the impartiality requirements laid down in article 27 of the confidentiality requirements and the requirements laid down in article 37.7 non-audit service fees, as well as Regulation No 537/2014 4. Article requirements for audit fees; 4.3. or sworn auditor certified auditor or company comply with the law on the Organization of work, resource planning, document management, registry and use requirements making sworn auditors and sworn auditor commercial companies;
4.4 or sworn auditor has continued his education and professional qualifications of the Latvian Council of sworn auditors association recognized continuing education process. 5. Authorized Representative a check: familiarize yourself with the test 5.1 sworn auditors or certified auditor commercial companies audit working papers; 5.2. obtain the necessary information through a survey, and find out the facts (for example, is there a certified auditor rotation, or respected as a sworn auditor in charge or certified auditor independence from commercial customers); 5.3. heard the Certified Auditor Certified Auditor of the company or authorised representative. 6. After checking the authorized representative provides sworn auditors or certified auditor company assessment and included in the test report. 7. Certified Auditor Certified Auditor or company internal quality control system is assessed according to the following categories: 7.1.  category 1 – working well: no deficiencies or minor defects are found that do not affect checked certified auditor commercial companies or sworn auditor's internal quality control system; 7.2. category 2 – works, but requires separate developments: some shortcomings were detected, which is a medium impact on proven certified auditor commercial companies or sworn auditor's internal quality control system. Recommendations are made to improve the system and certified auditor or a Chartered auditor company has developed an action plan for the implementation of the recommendation; 7.3. category 3 – works partially, requires significant developments: the systematic deficiencies identified that have impact on proven certified auditor commercial companies or sworn auditor's internal quality control system. Provides recommendations for system development, and certified auditor or a Chartered auditor company has developed an action plan for the implementation of the recommendation; 7.4.4. category-not working: deficiencies that are found, show that the proven certified auditor commercial companies or sworn auditor's internal quality control system is not working. Provides recommendations for system development, and certified auditor company or chartered the auditor has developed an action plan for the implementation of the recommendation. 8. For each inspection the authorised representative shall check the equipment case. Test cases include the results obtained in the test or prepare documents. 9. The authorized representative in the month following the end of the verification test prepares the draft Protocol and the deficiencies of the draft plan, which includes recommendations and their implementation deadlines of the deficiencies found in a check, and send them a check for sworn auditor or certified auditor company. 10. The authorized representative of the provisions referred to in paragraph 9 of the recommendation of the time limit shall be determined taking into account the impact of the lack of a proven certified auditor certified auditor or company internal quality control system and the implementation of the priority recommendations. That period does not exceed 12 months from the date of approval of the verification protocol. 11. Check the sworn auditor or certified auditor company 10 working days after this rule in paragraph 9 of this disclosure shall prepare and electronically submit to the authorized representative with the following information: 11.1. comments and objections based on a test report and recommendations. If possible, the basic documentary; 11.2. the measures to be identified and for the implementation of the recommendations, indicating the implementation of recommendations of the responsible person. 12. If there are circumstances which objectively impossible this provision the information referred to in paragraph 11 for 10 working days, after the deadline for the submission of information agreed to in writing by the Ministry of finance may be extended for additional information for the preparation of the required time, however not more than 10 working days. 13. If this provision of the information referred to in paragraph 11 of these rules has been received in the 11 or 12 above. time limits shall be deemed the sworn auditor verified or certified auditor of the company acknowledge verification protocol to be justified. 14. The authorized representative shall evaluate these rules referred to in paragraph 11 comments, their justification and the measures to be identified and to prepare recommendations for the implementation of the test protocol and adds the remedial plan. 15. If the authorised representative has received this rule the information referred to in paragraph 11, but after the evaluation has changed the substance of the recommendations is coordination meeting with the audited or certified auditor certified auditor of the company, which does not agree with the recommendations. If no agreement is reached and suggestions are not coordinated or authorised representative not to get evidence to change the recommendation, test report corresponding deficiency prevention plan recommendations identified as mismatched. 16. the inspection protocol and remedial plan signed by the authorized representative, who performed the test, and approved by the responsible officer of the Ministry of Finance on the examination proceedings. The approved test protocol and remedial plan authorized representative sends the sworn auditor tested or certified auditor of the company. 17. the implementation of the recommendation of the responsible person referred to in paragraph 11.2 of these regulations, is responsible for preventing the measures included in the plan are implemented this provision limits referred to in paragraph 9. Certified Auditor of the company or sworn auditor within 10 working days following the deadline for the implementation of the recommendation, inform the Ministry of Finance on the implementation of the recommendation by submitting documentary proof. 18. The Ministry of Finance monitors the implementation of recommendations and provided within 10 working days after this provision in paragraph 17 of this disclosure assess how recommendations are implemented, if necessary, request additional information and (or) shall decide on emergency inspection to assess the implementation of recommendations. 19. If this provision in paragraph 17 that the examined period sworn auditor certified auditor or company not taken measures for internal quality control system, the Ministry of Finance: 19.1. in the month following that rule 18. expiry of the period referred to in paragraph 1 shall publish on its tīmekļvietn for the sworn auditor verified or certified auditor company internal quality control system deficiencies and inform in writing the Latvian certified auditor of the Association; 19.2. in recommendation not implemented assess the impact on the sworn auditor verified or certified auditor company internal quality control system and, if necessary, shall take a decision on the emergency inspection. 20. in the case of the inspection and verification of the documents stored in the archives of the Ministry of finance. 21. The Ministry of Finance shall prepare a description of internal procedures, determining the order in which the test plan: 21.1, on the basis of a risk approach; 21.2. carry out checks when determining the inspection also check page; 21.3. summarize the results of the test in the sworn auditor provided or certified auditor company assessment and draw up a verification protocol.
III. The test report shall be included in News 22. The test report shall include the following: 22.1. checklist of dialing location, date and time; 22.2. the authorized representative's name and title, who carried out the inspection; 22.3. the document properties (identification data), in accordance with the mandate to carry out the verification received; 22.4. details of inspection: 22.4.1. inspection time; 22.4.2. examination of the essence; 22.4.3. findings of the investigation; 22.5. deficiencies in the plan, which includes recommendations and their implementation deadlines for examination the deficiencies found.
IV. Authorised representatives qualifications 23. the authorised representative may appoint a person who: is a citizen of Latvia 23.1.; 23.2. can the national language at the highest level; 23.3. the Republic of Latvia or abroad won Professional (excluding first level) education or academic education, economic, management or finance; 23.4. are of impeccable reputation – not subject to one of the audit services mentioned in article 9 of the law; 14.6. has won no less than three years of professional experience in the preparation of the financial statements and the report of the audit (inspection); 23.6. after listening to the Ministry of finance have organized inspection training course.
V. inspection programme content inspection program includes 24 measures required to: 24.1. ensure that inspections shall be made not less frequently than every three years, the certified auditor and sworn auditors commercial companies that provide audit services to public-interest entities; 24.2. the inspection carried out pursuant to the Audit Service Act, this regulation and Regulation No 537/2014 article 26. 25. the inspection program specifies the following information about the current year planned inspections: inspections time 25.1.; 25.2. the tasks and carrying out inspections; 25.3. subject to inspection by sworn auditors and sworn auditor commercial companies. 26. the inspection program is not available to the public and authorized representatives.
Vi. Report on the provision of quality control 27. Ministry of finance each year up to January 31, collects in the preceding calendar year, the results of the inspections carried out, details of all the year the findings of inspections carried out and the recommendations-and publish them on your website in the internet. 28. The Ministry of finance not later than one month following that rule referred to in paragraph 27 of the publication of your website on the internet report on quality control. The report shall include Regulation No. 537/2014 article 28 referred to the "c" and indicate the measures, including recommendations and related planned control measures, without mentioning the specific tested and certified auditor certified auditor of the company, as well as information on quality control effectiveness and usefulness to audit the quality of the service. Two weeks after a report of the Ministry of finance publishes it on its home page on the internet.
VII. Closing questions 29. This provision is referred to in paragraph 21 of the internal procedures of the Ministry of finance prepares to 2017 September 1. 30. Be declared unenforceable in the Cabinet of Ministers of 17 June 2009. Regulation No 536 "rules on audit quality control of services, verification of compliance with the requirements" (Latvian journal, 2009, 2011, 97. nr. 178. nr.;). Prime Minister Māris kučinskis financial Minister Dana Reizniec-oak