Belgian Audit Oversight Board

Constantly improving the audit quality

National cooperation

Financial Services and Markets Authority (FSMA)

The BAOB works very closely with the FSMA. The Memorandum of Understanding between the FSMA and the BAOB dated 18 October 2017 defines the relations between the two independent bodies. The FSMA provides the general secretariat of the BAOB and the BAOB can call on the FSMA’s central inspection team to conduct quality controls at PIE auditors and audit firms.

In the course of its supervision, 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 auditor and the imposition of administrative fines. The administrative measures and fines the Sanctions Committee can impose are defined in Article 59 of the Law of 7 December 2016 on the organization of the profession and the public supervision of auditors.

  • Memorandum of Understanding between the FSMA and the BAOB (only available in Dutch - French)

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.

  • Cooperation agreement between the NBB and the BAOB (available in Dutch - French only)

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)

The BAOB and the HREB/CSPE conduct regular consultations and deliberations.

The BAOB consults the HREB/CSPE on the inspection guidelines published by the BAOB which it uses for conducting its quality controls. The HREB/CSPE asks the BAOB for advice on a range of draft standards.

As part of the analysis of a draft standard, the BAOB ascertains, inter alia, whether the content of the standard is predictable and accessible, so that everyone, and in particular the auditor, can correctly apply and understand the standard, and that the BAOB can, where applicable, enforce it.

Consultative assembly for public supervision of the profession of statutory auditors

The consultative assembly for public supervision of the profession of statutory auditors is an advisory forum without legal personality. The consultative assembly meets regularly and at least once a year to exchange views on general matters concerning public supervision of the profession.

The BAOB, the Chair and members of the Committee and the staff of the FSMA who contribute to the performance of the BAOB’s tasks are all bound, vis-à-vis the other members of the consultative assembly, by professional secrecy.

In addition to the Chair of the Committee of the BAOB, the consultative assembly is composed of two representatives of the BAOB, two representatives of the HREB/CSPE, four representatives of the IBR/IRE and two representatives of the FPS Economy.

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.