Financial Crime World

Belgium Tackles Financial Reporting and Auditing Standards Reform

Belgium has undergone a series of legislative reforms aimed at strengthening financial transparency and accountability in the accountancy and auditing sectors. The country’s accounting profession is now governed by several laws, including:

  • Accounting Act of 1953, as amended in 2015
  • Law of 2019 Concerning the Accountancy and Tax Professions
  • Act Regarding the Organization and Supervision of Statutory Auditors of 2016

Requirements for Accountants

To practice as an accountant, individuals must:

  • Register with the Institute for Tax Advisors and Accountants (ITAA)
  • Obtain a license after completing a three-year internship or gaining seven years of practical experience
  • Pass an initial admission test
  • Complete a degree recognized by the Flemish, French, or German-speaking Community
  • Meet continuing professional development requirements

The ITAA is responsible for:

  • Implementing these requirements
  • Providing training and licensing examinations
  • Maintaining a registry for accountants and tax consultants
  • Conducting investigations and disciplinary actions
  • Keeping members informed of revised accounting and ethical standards

Accounting Standards

The Belgian Accounting Standards Board (BASB) sets accounting standards in accordance with the Accounting Act of 1953.

Requirements for Auditors

To practice as an auditor, individuals must:

  • Be a EU citizen
  • Be less than 65 years old
  • Be free of criminal convictions
  • Possess a master’s degree from a Belgian university or equivalent foreign diploma
  • Complete three years of practical training in auditing
  • Pass theoretical training exams and final examinations
  • Take the auditor’s oath at the Court of Appeal

Auditors are regulated by the:

  • Audit Act of 2016
  • The law outlines the roles of:
    • Belgian Institute of Registered Auditors (IBR-IRE)
    • Belgian Audit Oversight Board (BAOB)
    • Ministry of Economy

The IBR-IRE is responsible for:

  • Approving and registering statutory auditors and audit firms
  • Providing continuing professional development
  • Drafting auditing and ethical standards

The BAOB is responsible for:

  • Approving and endorsing audit standards with the Minister of Economy
  • Conducting quality assurance reviews
  • Investigating auditors who fail to meet standards

Goals of the Reforms

The reforms aim to enhance financial transparency, accountability, and professionalism in Belgium’s accountancy and auditing sectors. By strengthening standards and oversight, the country is better equipped to:

  • Protect investors, taxpayers, and other stakeholders from financial misconduct
  • Ensure the integrity of its financial markets