The BAOB conducts quality reviews, at least every three years, of auditors who audit one or more public interest entities that individually fulfil more than one criterion as referred to in Article 1:26 of the Code on Companies and Associations (“PIE auditors”).
A public interest entity is defined in Article 1:12 of the Code on Companies and Associations as “listed companies whose shares, bonds or certificates linked to these shares are admitted to trading on a regulated market, companies whose securities as referred to in Article 2, 31°, b) and c), of the Law of 2 August 2002 on the supervision of the financial sector and on financial services are admitted to trading on a regulated market, credit institutions, insurance or reinsurance undertakings and settlement institutions and equivalent institutions”.
For the list of PIE auditors/audit firms: click here
Quality reviews of PIE auditors are conducted by the Central Inspection Team of the FSMA, with the potential assistance of external inspectors chosen via a public procurement process. The BAOB may appoint one or more inspectors to carry out the quality review.
The inspectors conduct quality reviews based on the methodology defined by the BAOB. For quality reviews of PIE auditors, the inspectors appointed by the BAOB use inspection programmes that are adapted to and structured in line with the Common Audit Inspection Methodology (CAIM). This methodology is increasingly used by members of the CEAOB.