Auditing Oversight Authority

What it means

The Auditing Oversight Authority is the state body that supervises statutory auditors and audit firms in Slovakia. It keeps their register, reviews the quality of audits, checks compliance with independence rules and imposes sanctions for breaches.

The Authority was established as part of the European system of public oversight of auditing, intended to strengthen trust in audited financial statements. It cooperates with oversight bodies in other countries and with the professional chamber of auditors, which runs exams and training.

On the Authority's website a company can check whether an auditor or audit firm is listed in the register and may carry out an audit. The register also shows the address, licence and any sanctions, which helps when choosing an auditor.

How it works in practice

When choosing an auditor for its financial statements, a company should check the auditor's entry in the Authority's register. An audit opinion issued by someone without a valid licence would be invalid, and the statements would not be considered audited.

The Authority carries out quality reviews of auditors, examining selected audits and internal procedures. A client company rarely deals with the Authority directly but may be asked to cooperate if its audit is selected for review.

Stricter rules apply to audits of public interest entities, such as listed companies, banks and insurers, and to the consolidated financial statements of large groups. Here the Authority oversees matters such as auditor rotation and limits on non-audit services.

What to watch out for

If a company has doubts about an auditor's conduct, for example their independence or the quality of their work, it can file a complaint with the Authority. The complaint should be specific and substantiated, since the Authority assesses compliance with rules and standards, not commercial disputes about fees or deadlines.

Sanctions imposed on an auditor can affect their clients too, for example if the auditor loses their licence mid-audit. Large accounting entities should therefore have a fallback plan and check their auditor regularly, not just once at selection.