The BAOB performs its tasks in the public interest
Auditors play a major role in ensuring that financial reporting gives a true and fair view of a company. The auditor thereby contributes significantly to the credibility of published financial statements.
The BAOB is independent of auditors’ professional bodies and performs its tasks solely in the public interest. It ensures that audit tasks are performed in a qualitative, objective and independent manner. In this way, the BAOB contributes to building public confidence in companies’ financial information.
The BAOB supervises compliance with the provisions of the applicable laws and regulations
The BAOB’s supervision is based in the first instance on the Law of 7 December 2016 on the organization of the profession and the public supervision of auditors. This law implements Directive (EU) 2006/43/EC of the European Parliament and of the Council of 17 May 2006 on statutory audits of annual accounts and consolidated accounts, amending Council Directives 78/660/EEC and 83/349/EEC and repealing Council Directive 84/253/EEC.
The BAOB also bases its supervision on the International Standards on Auditing (ISA). These are the international supervisory standards, and the associated Statements and Standards, insofar as these are relevant to the statutory audit of annual accounts.
The BAOB performs its oversight on the basis of the applicable legal provisions, the ISAs and International Standard on Quality Management 1 and 2 as well as on the basis of the professional standards approved by the Minister of the Economy on the proposal of the Institute of Registered Auditors (Instituut van de Bedrijfsrevisoren - L’Institut des Réviseurs d’Entreprises - IBR/IRE) and on the advice of the High Council for Economic Professions (Hoge Raad voor de Economische Beroepen – Conseil supérieur des Professions économiques, HREB/CSPE).
The BAOB is ultimately responsible, in particular, for:
- overseeing the granting of the capacity of auditor and the enrolment and registration in the public register, as well as maintaining and updating the latter;
- supervising continuing professional development;
- supervising auditors’ systems of quality management; and
- supervising compliance with the anti-money laundering legislation.
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.