Financial audit in Romania facing the European legislation

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Abstract:
President of the Chamber of Financial Auditors of Romania, Mr. Ion Mihãilescu, PhD. Participated in a seminar on Company Law organized by the Chamber of Commerce and Industry of Bucharest with the support of TAIEX from the European Commission. TAIEX represents the Technical Assistance Instrument and Information Exchange for Institutional Capacity Building from the Enlargement General Directorate of the European Commission. The purpose of this instrument is to provide the new member states, to the candidate states and to the administrative entities from the Western Balkan area, short term technical assistance in line with the general objectives of the European Union, on the approximation, application and implementation of the European Union legislation.\r\n\r\nIn this seminar also participated guests from European Union Member States, as well as Romanian specialists.\r\n\r\nMike Edbury, Department for Trade and Industry, United Kingdom: It is about 25 Member States, with different opinions and also European Commission has a different opinion. For this reason, all the directives applicable to the commercial companies face a codecisional procedure involving the European Parliament also. For this reason, every time when we look at the European legislation, it reflects some tensions resulting from different political interests.\r\n\r\nMrs. Georgeta Petre, Ministry of Public Finance, Department for Accounting Regulations: Until now, all the issues related to the accounting regulations were at MFP, including here those related to development of the professional guidance. This would create the impression that this guidance has authoritative power in implementing the legislation. About IFRS, the Ministry will not issue implementation guidance. We intend to create as part of the Council for Accountancy and Financial Reporting a working group on IFRS issues. These individuals will be very good experts in IFRS, but also with excellent skills in English language to master the detailed interpretations, but also with practical experience in IFRS.\r\n\r\nMr. Ion Mihãilescu, PhD, President of the Chamber of Financial Auditors of Romania: In the Country report of October 2005 the European Commission stated its opinion on the audit activity saying that it is operational and that the Eighth Directive ahs been implemented into Romanian legislation. We will focus now on implementing the new Eighth Directive with what it is new, on introducing the public oversight body in order to strengthen the control over the accounting professionals in general and on financial auditors in special, in order to be able to respond to all the requirements when this is applied.

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