Financial Crime World

French Statutory Auditors: A Key Player in the Country’s Economy

The French statutory audit profession plays a vital role in ensuring the transparency and reliability of financial statements in France. With over 13,625 auditors registered with the National Council of Certified Accountants (CNCC), this profession is a crucial component of the country’s economic landscape.

International Standards Shape French Professional Standards

French professional standards are established by the CNCC based on international auditing standards (ISA). This ensures that French statutory auditors adhere to the same quality standards as their international counterparts, providing an equal playing field for auditors across borders.

Code of Ethics: A Fundamental Principle

French statutory auditors are bound by a national Code of Ethics, established by the Ministry of Justice and endorsed by decree. The code sets out fundamental principles governing professional behavior and ethics, ensuring that auditors maintain the highest standards of integrity and objectivity.

Statutory Audit Engagement: A Key Service

The statutory audit engagement is the core service provided by French statutory auditors. This involves issuing an opinion on the financial statements of the audited entity, as well as providing other services directly related to the engagement, such as:

  • Issuing opinions on interim financial statements
  • Carrying out agreed-upon procedures

French statutory auditors can provide directly related services (DDL) at the request of clients. These services include:

  • Due diligence in the context of acquisitions
  • Agreed-upon procedures
  • Consultations on accounting matters

Public Interest Entities: A Focus Area

The Haut Conseil du Commissariat aux Comptes (H3C), the French oversight body, has identified public interest entities as a key area of focus. These entities include companies whose securities and bonds are traded on regulated markets, such as:

  • Insurance undertakings
  • Banks
  • Other specific entities

Economic Modernisation Act: A Simplified Approach

The Economic Modernisation Act, adopted in 2008, introduced a simplified approach for the statutory audit of financial statements of certain small entities. Since January 1, 2009, French statutory auditors have been required to comply with a specific standard (Norme PE) when carrying out their statutory audit engagements in these entities.

Contact Information

For more information on the French statutory audit profession, please contact:

  • National Council of Certified Accountants (CNCC)