Slovakia Strengthens Auditing and Accountancy Framework

Enhancing Transparency and Accountability

The Slovakian government has taken significant steps to improve its auditing and accountancy framework, aligning it with international standards.

Risk-Based Approach for Audits

According to the latest SMO Action Plan, Slovakia has implemented a risk-based approach for audits of Public Interest Entities (PIEs) and large companies. These entities will undergo a Quality Assurance (QA) review every three years, while smaller entities will be reviewed every six years.

Strengthened Investigation and Disciplinary System

The country’s investigation and disciplinary system has been strengthened with the establishment of an independent Disciplinary Commission that can impose sanctions on auditors who breach professional standards. The commission is overseen by the Slovakian Auditing and Accounting Oversight Board (SAAOB), which ensures that all complaints received are investigated and reported to the relevant authorities.

Adoption of International Financial Reporting Standards

Slovakia has adopted International Financial Reporting Standards (IFRS) for its consolidated financial statements, following EU directives. This will ensure greater transparency and comparability of financial reporting across the region.

Investigation and Disciplinary System for Auditors

The SAABO operates an investigation and disciplinary system for its members under the supervision of the Ministry of Finance. This system ensures that auditors who breach professional standards are held accountable.

Minister’s Commitment to Transparency

“We are committed to maintaining high standards in auditing and accountancy,” said [Name], Minister of Finance. “Our latest SMO Action Plan demonstrates our commitment to transparency, accountability, and best practices in financial reporting.”

International Recognition

Slovakia’s efforts have been recognized by international organizations, including the International Federation of Accountants (IFAC), which has praised the country’s progress in implementing international standards.

“We commend Slovakia for its efforts to strengthen its auditing and accountancy framework,” said [Name], IFAC representative. “We look forward to continuing our collaboration with the Slovakian government to ensure that high-quality financial reporting is maintained.”

Expected Outcomes

The implementation of these measures is expected to enhance investor confidence, improve transparency, and promote economic growth in Slovakia.

About SMO Action Plans

SMO (Standard-Setting Organization) Action Plans are designed to help countries implement international standards for auditing, accounting, and related professions. The plans provide a roadmap for governments to strengthen their regulatory frameworks, increase transparency, and enhance investor confidence.