Czech Republic : Accounting and Auditing

World Bank

Washington, DC

关键词: ACCOUNTING;    ACCOUNTING POLICIES;    ACCOUNTING PRINCIPLES;    ACCOUNTING STANDARDS;    ACCOUNTING TREATMENT;   

RP-ID  :  35024

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

Financial reporting and auditingrequirements in the Czech Republic are currently intransition from complying with national standards tocomplying with International Accounting Standards (IAS),International Standards on Auditing (ISA), and the EuropeanUnion (EU) Directives.By law, the Czech Republic seeks toattain maximum compliance with the EU Fourth and SeventhDirectives and the EU Regulation on the use of IAS, and tocreate an environment for implementing IAS for the financialstatements of public interest entities by 2005. Small- andmedium-size enterprises prepare their financial statementsin accord with Czech Accounting Standards, which are largelybased on the EU Directives and IAS. In practice, compliancewith certain complex EU Directives and IAS requirements,including those dealing with consolidation and deferred tax,has been delayed. Presently, compliance with IAS is noteffectively enforced. The transition to full IAS compliancefor public interest entities will require extensiveeducation in a different style and philosophy of accountingrequirements. The transition to full IAS will require aculture shift to reduce the influence of tax accounting ongeneral-purpose financial statements.By law, the CzechRepublic seeks to comply with the EU Eighth Directive andISA. There are, however, serious issues because CzechStandards on Auditing remain less robust than ISA, theChamber of Auditors in the Czech Republic (CACR) has notadopted the International Federation of Accountants Code ofEthics, and certain EU Recommendations on auditor'sindependence and quality assurance have not yet beenendorsed. While the Chamber of Auditors is aware of thechallenges it faces, the transition to full ISA auditsrequires extensive education and strict enforcement ofstandards.This report draws upon recent internationalexperience in developed economies and accession countries,as well as expected amendments to EU Directives, andrecommends that the current self-regulation of the auditprofession be reviewed and an adequate oversight mechanism established.