Auditors

Audit shall be carried out by audit firms in which:

– three quarters of the voting rights are held by audit firms or certified auditors satisfying the conditions or audit firms or auditors certified in one of the Member States, i.e. the European Economic Area and

– a majority, up to a maximum of three quarters of the management board members are certified auditors satisfying the conditions, or audit firms or auditors certified in one of the Member States. If the management board consists of only two members, one of them must be the certified auditor.

Audit is carried out by independent auditors, who are at the same time certified auditors.

 

Audit firms from third countries may provide audit services in Croatia based on the principle of reciprocity between the Republic of Croatia and third countries.

 

Certified auditor shall be an independent professional to whom the Croatian Audit Chamber (the Chamber) has granted the certificate of certified auditor.

 

Independent auditor shall be a certified auditor carrying out audit as a self-employed activity and enrolled in the register of independent auditors kept with the Chamber. Independent auditor is also a sole trader in accordance with the provisions of the Companies Act. A certified auditor may establish only one audit office where he/she shall be employed.

 

Joint Audit Office may be established by two or more certified auditors for the purpose of providing audit services. Mutual rights and obligations of certified auditors shall be regulated by a contract. Certified auditors establishing a joint audit office shall be obliged to submit the application for the establishment of a joint audit office to the Chamber. Upon the approval by the Chamber, the established joint office shall be enrolled in the register of joint audit offices kept with the Chamber.

 

Audit firm shall be established as a company .The audit firm’s management board may have one or more members, the majority members of the management board shall be fluent in the Croatian language. The management of an audit firm may only be influenced on the basis of the shareholder rights in the firm. A person against whom a final unsuspended sentence of more than three years in prison has been imposed in the previous five years for a criminal act against the payment transaction safety and operation may not be appointed a management board member in an audit firm.

 

Requirements

In order to be granted the certificate, the natural person / candidate should have fulfil the following conditions:

  1. university degree
  2. minimum of three years’ audit experience, at least two years of which under the supervision of a certified auditor or an auditor certified in another EU Member State
  3. passed the examination for auditor certification
  4. evidence of not having been convicted of a criminal offence against the safety of payment transactions and operations by a final judgment, and must be a person of good repute

 

After obtaining the certified auditor certificate, a certified auditor shall have the right and obligation to take part in a programme of continuing professional education set up by the Chamber.

A certified auditor may be a citizen of the Republic of Croatia or a foreign citizen. An EU auditor or a third-country auditor has to be   formally recognized and approved by the Chamber as statutory auditor. The foreign professional qualifications of an EU auditor or a third-country auditor shall be formally recognized and approved after the tasting of candidate’s knowledge of the legislation of the Republic of Croatia, required for carrying out audits. The test shall cover the knowledge of the legislation in the fields of accounting and audit, companies, taxation, and labour relations. The programme for the testing of knowledge of the legislation of the Republic of Croatia shall be determined by the Chamber and shall be conducted in Croatian.

Documents

Croatian Audit Chamber maintains following registers:

  1. Register of audit firms
  2. Register of independent auditors
  3. Register of joint audit offices
  4. Register of certified auditors
  5. Register of assistants employed in audit firms, joint audit offices and independent auditor.

 

The application for the enrolment in the corresponding register to the Chamber

Audit firm shall be enrolled to the register on the basis of submitted application form and resolution of the competent commercial court. Independent auditors and joint audit offices shall be enrolled to the register on the basis of submitted application form.

 

Same documentation accompanied with the application for issuing licence to the audit firm and independent auditor shall be submitted with the application form.

The application for the enrolment of legal person in related register in two identical copies shall submit person authorised to represent audit firm or independent auditor or person authorised to represent joint audit office.

 

The enrolment to the register of assistants is carried out on the basis of application (free form) of person authorised to represent audit firm or independent auditor or joint audit office in which assistant is employed.

Following document shall be accompanied together with the application form:

  • university agree,
  • certificate on employment (audit firm or independent auditor) – duration at least one year
  • certificate regarding carrying out audit under the supervision of mentor.

 

Issuing licence for carrying out audit

The application for issuing licence for carrying out audit is submitted to the Chamber

 

The application (for audit firms) must be accompanied by the following documentation

  1. articles of association of the company or other appropriate act on the establishment, in accordance with the provisions of the Company Act
  2. evidence that persons establishing the company (unless these persons are enrolled in the Register of the Chamber) are certified auditors
  3. for audit firms and independent auditors from the EU Member States, or other countries, the opinion of the competent auditing authority (institute, chamber, association, etc.), which shall include the following:

– contents of regulations of the respective country, which govern the conditions for carrying out audit and audit quality control

– statement of the competent auditing authority that the audit firm or certified auditor in the Member State, or in another country, has a right to provide audit services or that there are possible restrictions on providing these services

– statement of the competent auditing authority that it will notify the Chamber of all the measures of audit quality control imposed on the audit firm or certified auditor from the Member State, or another country.

 

The application for independent auditors must be accompanied by the:

  1. confirmation on impunity for crimes against security of payment and business operation
  2. certificate on satisfying the condition laid down in Article 4 and 7 of the Audit Act..

 

Fee

70 HRK – for issuing licence for carrying out audit

40 HRK – for issuing excerpts and confirmations from the registers

 

Competent authority and regulations

Ministry of Finance

Directorate for Macroeconomic Analyses, Economy, Financial System, EU and International Financial Relations,

Sector for Financial System

Katančićeva 5, 10000 Zagreb

Tel.: +385 4591-333

ufs@mfin.hr

 

Croatian Audit Chamber

Radnička cesta 52/V, 10000 Zagreb

Tel.: +385 (0) 1 4649-618

hrk@revizorska-komora.hr

 

Audit Act (NN 146/05, 139/08, 144/12)

Statute of the Croatian Audit Chamber (NN 43/10, 131/13, 76/14)

Ordinance on keeping Registers of audit firms, independent auditors, joint audit offices and certified auditors (NN 32/07)

Ordinance on the recognition of foreign professional qualifications for auditing (Oficial Gazette 67/16)

 

Authorisation

Certificate of certified auditor

Licence for carrying out audit

 

Remedy

On the basis of a complete and documented application, the Chamber shall grant the license for carrying out audit to an audit firm and independent auditor, within 30 days from the date of application receipt.

 

Against the decision of the Chamber issued in the process of granting the license for carrying out audit, the applicant may initiate administrative dispute.

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