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Romania Makes Progress on International Standards, but Gaps Remain

Bucharest, Romania - Recent Review Highlights Achievements and Areas for Improvement

The International Federation of Accountants (IFAC) has published its latest review of international standards implementation in Romania, revealing significant progress in adopting and implementing various international standards. However, the review also identifies areas where improvements are still needed.

Adoption of International Financial Reporting Standards (IFRS)

Romania has successfully adopted IFRS with some slight modifications. The country’s Ministry of Public Finances is responsible for transposing EU regulations into national law, and all listed companies are required to apply IFRS in their annual financial statements.

Implementation of International Public Sector Accounting Standards (IPSAS)

Romania has made progress in implementing IPSAS, although the current application of partial accrual national standards will be gradually replaced by full accrual- basis standards by 2025. The Chamber of Financial Auditors of Romania reports that the implementation process will follow the requirements of the Statistical Office of the European Communities.

Investigative and Disciplinary System

Romania has established an investigative and disciplinary system for statutory auditors and audit firms, with the Statutory Audit Public Oversight Authority (ASPAAS) responsible for oversight. However, there are still areas where development is needed, including:

  • Investigation processes
  • Composition of disciplinary committees
  • Procedures for making results public

Gaps in Implementation and Internal Control Systems

Romania’s implementation of international standards remains partial in areas such as investigation and discipline, IPSAS, and internal control systems. The country’s accounting profession has also identified gaps in its auditing practices.

Roadmap for Improvement

While Romania has made significant progress in implementing international standards, there is still much work to be done to ensure full compliance. The IFAC review highlights the need for further development in several areas, including:

  • Investigation and discipline
  • IPSAS
  • Internal control systems

Commitment to Improvement

In a statement, the Chamber of Financial Auditors of Romania acknowledged the importance of implementing international standards and committed to continuing its efforts to improve the country’s accounting profession.

“We are committed to maintaining high-quality auditing and accounting practices that meet international standards,” said [Name], President of the Chamber of Financial Auditors of Romania. “We will continue to work with our stakeholders to identify areas for improvement and implement changes necessary to ensure compliance.”

Conclusion

The IFAC review is a critical assessment of member countries’ progress in implementing international standards, providing valuable insights into areas where improvements are needed. The Chamber of Financial Auditors of Romania remains committed to improving the country’s accounting profession and ensuring full compliance with international standards.