International cooperation

Cooperation between public oversight systems at the level of the European Union

(1) The regulatory arrangements concluded by ASPAAS with public oversight bodies in the other Member States of the European Union/European Economic Area allow effective cooperation on public oversight of statutory audit.

(2) ASPAAS is the authority responsible for ensuring effective cooperation at European Union level on public oversight of statutory audit.

Mutual recognition of regulatory arrangements between Member States

(1) The arrangements concluded by Romania with the other Member States of the European Union/European Economic Area on regulation and public oversight respect the principle of home-country control by the Member State in which the statutory auditor or audit firm is approved and in which the audited entity has its registered office.

(2) Without prejudice to paragraph (1), audit firms approved in a Member State that provide audit services in Romania under Article 4 of Law No 162/2017 are subject to quality assurance review in the home Member State and to ASPAAS oversight for statutory audit engagements carried out in Romania.

(3) Audit engagements carried out by Romanian audit firms in another Member State are subject to oversight by the competent body of that Member State.

(4) In the case of a statutory audit of consolidated annual financial statements, the Romanian authorities requiring that audit may not impose on the statutory auditor or audit firm carrying out the statutory audit of a subsidiary established in another Member State of the European Union/European Economic Area additional requirements, beyond those of that Member State, concerning registration, quality assurance review, auditing standards, ethics and independence.

(5) In the case of entities having their registered office in another Member State of the European Union/European Economic Area whose securities are admitted to trading on a regulated market in Romania, the Romanian authorities may not impose on the statutory auditor or audit firm carrying out the audit of those entities’ annual or consolidated annual financial statements additional requirements concerning registration, quality assurance inspections, auditing standards, ethics and independence.

(6) A statutory auditor or audit firm is subject to the oversight, quality assurance, investigation and sanction systems of Romania if:

a) the statutory auditor or audit firm is registered in Romania following approval in accordance with Article 3 or 66 of Law No 162/2017; and b) the statutory auditor or audit firm issues audit reports on annual or consolidated annual financial statements on a regulated market in Romania, as referred to in Article 67(1) of Law No 162/2017.

ASPAAS may allow the transfer to the competent authorities of a third country of audit working papers or other documents held by statutory auditors or audit firms approved in Romania, and of inspection or investigation reports relating to the audit concerned, under the conditions of Article 70 of Law No 162/2017.