Financial Services and Markets Authority (FSMA)
The BAOB works closely with the Financial Services and Markets Authority (FSMA). The relations between the FSMA and the BAOB are governed by the memorandum of understanding of 18 October 2017. It provides for example that the FSMA shall act as the Secretariat-General of the BAOB and that the BAOB – as provided for by law – shall call on the Central Inspection Team of the FSMA to carry out the quality assurance reviews of PIE auditors and audit firms. The BAOB also works closely with the FSMA for all IT and technology support.
In the context of its oversight, the BAOB may decide to refer a matter to the Sanctions Committee of the FSMA. In that case, the BAOB initiates proceedings which may give rise to the imposition of administrative measures, ranging from a warning to the withdrawal of the status of registered auditor, and the imposition of pecuniary sanctions. The administrative measures and pecuniary sanctions that the Sanctions Committee may impose are set out in Article 59 of the Law of 7 December 2016.
National Bank of Belgium (NBB)
The BAOB works very closely with the NBB. The cooperation agreement of 14 June 2019 governs the cooperation in the performance of the two bodies’ respective tasks as well as the procedures for mutual information exchange.
Institute of Registered Auditors (Instituut van de Bedrijfsrevisoren - L’Institut des Réviseurs d’Entreprises - IBR/IRE)
The Law of 7 December 2016 on the organization of the profession and the public supervision of auditors delegates the following tasks to the IBR/IRE:
- granting and withdrawing the capacity of auditor;
- enrolment and registration, as well as maintaining and updating, the public register; and
- organizing continuing professional development.
Ultimate responsibility for the supervision and performance of the tasks delegated to the IBR/IRE lies with the BAOB.
The IBR/IRE is also responsible for drawing up the standards to supplement the framework of laws and international standards. The BAOB supervises compliance with that framework.
High Council for the Economic Professions (Hoge Raad voor de Economische Beroepen – Conseil supérieur des Professions économiques, HREB/CSPE)
In terms of national dialogue, the BAOB regularly exchanges views with the High Council for Economic Professions (Hoge Raad voor de Economische Beroepen – Conseil supérieur des Professions économiques, HREB/CSPE). The High Council for Economic Professions will request the BAOB’s advice on draft standards prepared by the Institute of Registered Auditors (Instituut van de Bedrijfsrevisoren - L’Institut des Réviseurs d’Entreprises - IBR/IRE), the BAOB will request advice on other matters relating to the standards, or there may be an exchange of views on developments in the sector. In accordance with Article 31, § 1, fourth paragraph of the Law of 7 December 2016, the BAOB may submit its remarks within six weeks of the request sent by the High Council for Economic Professions.
In the context of the analysis of a draft standard, the BAOB ascertains, inter alia, whether the content of the standard is accessible and foreseeable, so that everyone – and in particular the registered auditor – can correctly apply and understand the standard and so that the BAOB can take enforcement measures where appropriate.
Consultative assembly for public supervision of the profession of statutory auditors
The consultative assembly for public oversight of the profession of registered auditors is held annually. The consultative assembly deals with general issues concerning the public oversight of the profession. It is composed of the Chair of the BAOB Committee, two representatives of the BAOB, two representatives of the High Council for Economic Professions (Hoge Raad voor de Economische Beroepen – Conseil supérieur des Professions économiques, HREB/CSPE), four representatives of the Institute of Registered Auditors (Instituut van de Bedrijfsrevisoren - L’Institut des Réviseurs d’Entreprises - IBR/IRE), and two representatives of the FPS Economy, SMEs, Self-Employed and Energy.
The Chair of the Committee of the BAOB convenes, chairs and organizes the meetings of the Consultative Assembly with the assistance of the General Secretariat.