The regulation aims to increase the guarantee and security to interpret and execute the provisions established in the Law
The new regulation develops, among other issues, aspects related to the duty of independence, the measures to safeguard it as well as the internal organization of the auditors
The Institute of Accounting and Audit of Accounts (ICAC) has opened today the process of public hearing of the draft Royal Decree for the approval of the Regulation that develops the Law on Audit of Accounts (LAC).
The main objective of this regulatory development is to increase the guarantee and security to interpret and execute the provisions established in the Law. This increase in legal certainty will result in a better execution and performance of the audit work, in the best compliance with the rights and obligations established in the standard and, consequently, in a greater reliability of the information that is audited.
The new regulation seeks to protect the public interest function performed by the audit of accounts by strengthening its quality. To this end, aspects related to the duty of independence and the measures that auditors must adopt to safeguard it are developed, among others, and the rules that limit the concentration of fees with respect to an audited entity are specified.
Likewise, the principles that must be followed by the internal procedures and systems of auditors and audit companies are developed so that they have a solid internal organization. This ensures the effective application of the principle of proactive responsibility that incorporates the Law that is developed.
Finally, the new regulation also develops specific provisions for smaller auditors in compliance with the ratings contained in the Law.
For its elaboration, numerous meetings have been held with representatives of the representative corporations of the auditors, their articles being discussed in detail.
The modifications will take effect, in general, from July 1.
Those interested can consult the text on the Institute's website: www.icac.meh.es.
