{"id":"circulars/faq-faqs-on-the-recognition-of-reviseurs-dentreprises-agrees-approved-statutory-audi","title":"FAQ on the recognition of “réviseurs d’entreprises agréés” (approved statutory auditors)","type":"circular","date":"2014-01-01","kind":"faq","html":"

FAQ on the recognition of “réviseurs d’entreprises agréés” (approved statutory auditors) is a CSSF FAQ, published 1 January 2014.

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Relevant for: AIFMs, AISPs, Central Securities Depositories (CSDs), Credit institutions, Data Reporting Service Providers (DRSPs), E-money institutions, Investment firms, Investment fund managers, Investment funds and vehicles, Management companies - Chapter 15, Management companies - Chapter 16, Mortgage credit intermediaries, Other specific authorisations, registrations and information, Part II UCIs, Payment institutions, Payment institutions/electronic money institutions/AISPs, Pension funds, Public Oversight of the Audit Profession, Securitisation undertakings, SICARs, SIFs, Specialised PFS, Support PFS, UCITS.

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Keywords: Approved statutory auditor (réviseur d'entreprises agréé), Authorisation.

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FAQ regarding the recognition, professional experience and the quality of work of réviseurs d'entreprises agréés (approved statutory auditors) (REA) in the framework of the prudential supervision of the financial sector VERSION 2 – DECEMBER 2021

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FAQ REGARDING THE RECOGNITION, PROFESSIONAL EXPERIENCE AND THE QUALITY OF WORK OF RÉVISEURS D'ENTREPRISES AGRÉÉS (APPROVED STATUTORY AUDITORS) (REA) IN THE FRAMEWORK OF THE PRUDENTIAL SUPERVISION OF THE FINANCIAL SECTOR

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FAQ regarding the recognition, professional experience and the quality of work of réviseurs d'entreprises agréés (approved statutory auditors) (REA) in the framework of the prudential supervision of the financial sector TABLE OF CONTENTS 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13.

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Who must have the REA, chosen to carry out the statutory audit, recognised by the CSSF? 3 Who must be recognised by the CSSF, the audit firm or the statutory auditor, and what does this recognition mean? 4 What are the rules for filing a request for recognising a REA? 5 How does the CSSF proceed after having received a request for recognising a REA: full procedure or simplified procedure? 6 How is the full procedure for the first recognition carried out? 6 When and how does the CSSF apply the simplified recognition procedure? 6 What does the recognition procedure relate to? 7 How does the CSSF assess the concept of “adequate professional experience” of the REA? 7 What are the specific conditions applicable to specific areas of activity of the financial sector? 8 Who shall be informed of the decision of recognition? 9 What is the status of a decision of approval or refusal of recognition? 10 How is the monitoring following the approval of recognition of the REA (ex post assessment of the quality of the audit work for a supervised entity) carried out? 11 What means of action are available to the CSSF in case of poor quality of the documents submitted by the REA for a supervised entity? 12

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FAQ REGARDING THE RECOGNITION, PROFESSIONAL EXPERIENCE AND THE QUALITY OF WORK OF RÉVISEURS D'ENTREPRISES AGRÉÉS (APPROVED STATUTORY AUDITORS) (REA) IN THE FRAMEWORK OF THE PRUDENTIAL SUPERVISION OF THE FINANCIAL SECTOR

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Who must have the REA, chosen to carry out the statutory audit, recognised by the CSSF? The entities of the financial sector subject to the prudential supervision of the CSSF in accordance with Article 2(1) of the Law of 23 December 1998 establishing a financial sector supervisory commission (“Commission de surveillance du secteur financier”) (“CSSF Law”) must, pursuant to the applicable sectoral law, entrust the statutory audit of their annual accounting documents (individual or consolidated accounts) to one or several REAs 1 which can show that they possess adequate professional experience. These sectoral laws provide that the supervised entities are required to have the REA of their choice recognised beforehand by the CSSF in order to enable the CSSF to ensure that this REA possesses adequate professional experience, adapted to the profile of the supervised entity. Similarly, any subsequent change of the REA must be authorised in advance by the CSSF. As the decisions taken by the CSSF in this context are considered as administrative decisions, the CSSF laid down a formal recognition procedure for REAs which defines the rules to be complied with for a recognition request, the reference criteria for the assessment of the adequate professional experience and the follow-up regime once the recognition has been granted (assessing the quality of the audit work).

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1 In the subsequent text and as set out in the answer to question 2, reference is made to réviseur d'entreprises agréé (approved statutory auditor) (REA) to designate a cabinet de révision agréé (approved audit firm) (CRA). However, in certain cases, a distinction shall be made between a CRA which is a REA being a legal person, and a REA being a natural person.

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The text above is the opening of the document; the PDF carries the whole.

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Document page, PDF. Source: Commission de Surveillance du Secteur Financier (CSSF), reproduced with the CSSF's consent. The French text prevails.

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