Certified public accountants
in Austria
Index
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16
CERTIFIED PUBLIC ACCOUNTANTS
AS RELIABLE PARTNERS IN BUSINESS
4
HOW TO BECOME A CERTIFIED PUBLIC ACCOUNTANT
18
Competence & experience
Confidence & security
4
5
ACTIVITIES OF CERTIFIED PUBLIC ACCOUNTANTS
6
Course of studies
Internships
Professional experience
Professional examination for certified public accountants
Requirements
Preparation
Examination
Taking the professional oath
Registration as auditor
18
18
19
19
19
19
20
20
20
PROFESSIONAL ASSOCIATIONS
21
Chamber of Public Accountants
Institute of Austrian Certified Public Accountants
Expert committee for company law and auditing
installed at the Chamber of Public Accountants
Akademie der Wirtschaftstreuhänder GmbH
International memberships
IFAC – International Federation of Accountants
FEE – Fédération des Experts Comptables Européens
21
22
GLOSSARY
26
Audit of financial statements
Limitations of auditing
Quality assurance in the audit of financial statements
Business consulting
Provision of evaluation services
Provision of expert advice
Trusteeship
Tax consulting
Consulting on selected legal issues
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HISTORICAL DEVELOPMENT OF THE PROFESSION OF
CERTIFIED PUBLIC ACCOUNTANTS IN AUSTRIA
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8
9
10
11
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11
11
12
THE AUDITOR’S CONTRIBUTION
TO GOOD CORPORATE GOVERNANCE
12
Austrian Corporate Governance Code
Role of the auditor
Strengthening independence
Way of appointment
Future areas of development
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13
14
15
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23
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24
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25
“No transparency, no trust; no trust, no credit; no credit, no investment; no investment, no growth!
So there is a simple logic: financial reporting is an essential building block for financial intermediation,
foreign investment and sustainable economic development.“
Mag. Martin Grüll, CFO Raiffeisen International Bank-Holding AG
financial statements in accordance with specified regulations and to have them
audited by independent experts. This audit is the main activity of certified public
accountants. With their opinion on the legal compliance of the financial statements,
they support the supervisory board in its monitoring function and report to shareholders and the public.
Certified public accountants
as reliable partners in business
The work of certified public accountants demands a high level of professional expertise.
Certified public accountants are constantly faced with new challenges arising from changes in law, jurisdiction, information technology, and international accounting regulations
and auditing standards. The performance of their work requires great commitment, flexible thinking, and a willingness to embrace innovation. That is what makes them respected
partners in business: a survey among Austrian supervisory board members and CFOs
confirmed that certified public accountants increase business confidence and are of great
importance to Austrian companies.
In Austria, the profession of certified public accountants is part of the liberal
professions. Like tax consultants, it belongs to the public accounting professions.
Certified public accountants undergo comprehensive training: they must have a university
degree and at least three years work experience as trainee auditors in an audit firm or
pass the professional examination for tax consultants and have at least two years of
full-time professional experience in auditing. Only then are they allowed to take the
professional examination. Throughout their career, they must continuously complete
further training.
Due to the comprehensive training, certified public accountants find job opportunities in top positions in the economy, join large partnerships, work independently
and hold executive positions in companies. Certified public accountants also find
opportunities in cooperative auditing associations and in the auditing associations of
savings banks.
COMPETENCE & EXPERIENCE
The basis of a free market economy is private enterprise. Despite their private character,
companies bear a social responsibility as the well-being of other companies, staff,
customers and suppliers depends on the companies‘ economic success. The
public has a vital interest that companies, especially large ones, conduct their business
properly and professionally. In order to ensure this, the legislator requires joint stock
corporations and other large companies to prepare their annual and consolidated
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CONFIDENCE & SECURITY
Certified public
accountants
are independent
experts.
In their role as auditors, certified public accountants are persons of public trust. They
are impartial, independent, diligent and bound to secrecy. Through their auditing work,
certified public accountants protect the interests of all those who trust in the acuracy of
the accounting and financial reporting of a company, such as shareholders, customers,
suppliers and the public. Their work is governed by the strict rules of the Wirtschaftstreuhandberufsgesetz (WTBG or Public Accountants’ Statute of Professional Practice)
and the Abschlussprüfungs-Qualitätssicherungsgesetz (A-QSG or Audit Quality
Assurance Act).
In order to audit companies properly, certified public accountants must recognize
which economic processes are reflected in the figures of a company. Therefore, they
also qualify as consultants on general business issues, for instance, when structures
or processes of a company can be optimized. To prevent the overlapping of audit and
consulting activities, certified public accountants are obliged to strictly separate the two
areas of activities.
The independence and impartiality of certified public accountants in their work
as auditor are key prerequisites for a credible and confidence-building assessment
of the financial reporting of companies. National and international regulations provide
a comprehensive regulatory framework. According to this legal framework, auditors must
make sure to avoid self-interest and all risks to their independence. They must disclose
to the supervisory bodies of a company all circumstances that might give rise to bias or
exclusion. The supervisory board or (at very large companies) its audit committee must
continuously monitor the independence of its auditor.
When auditors are involved in non-audit services at a company, this often has a
positive impact on the quality of the audit since the auditor’s knowledge of the company
is enhanced. The audited companies, in turn, benefit from the expertise and experience
of the auditor. Therefore, the Austrian Corporate Governance Code expressly requires
the submission of all advice and recommendations of the auditor also to the supervisory
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board. The same goes for the report of the auditor on the assessment of the integrity of
the risk management system. The advisory activity has its limitations where auditors audit
situations in which they were heavily involved (self-audit).
Activities of
certified public accountants
Certified public accountants may assume various roles and functions. Their primary
duty is to audit financial statements at corporations and comparable organizations.
However, certified public accountants may also contribute their expertise in business
consulting, work as evaluators or experts, assume trustee duties and consult on
certain legal issues.
AUDIT OF FINANCIAL STATEMENTS
Pursuant to Section 268 UGB (Unternehmensgesetzbuch or Austrian Business Code),
a certified public accountant must perform the statutory audit of individual and
consolidated financial statements of companies and other institutions. Upon conclusion
of the audit, the certified public accountant issues an opinion on whether:
•
•
•
•
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the individual or consolidated financial statements comply with the statutory
provisions and the supplementary provisions of the memorandum or articles of
association;
generally accepted accounting principles have been complied with;
the published financial statements present a true and fair view of the company’s
financial situation and financial performance;
the management report is consistent with the financial statements and the
disclosures made in it on the accounting-related internal control and risk management are appropriate.
Certified public
accountants
are independent
auditors.
The management of a company must submit the financial statements and management
report to the auditor. They must allow him to examine the books and documents of the
company and the assets and liabilities. The auditor may request all evidence considered
necessary for a thorough audit.
The auditor reports in writing on the result of the audit. The report must state
whether the accounting, financial statements, management report, consolidated financial
statements and group management report comply with the statutory provisions and whether the legal representatives have provided the required information and evidence.
If the auditor establishes any facts that might jeopardize the company’s ability to
continue as a going concern or might adversely affect its future development, or that indicate a serious breach of law or of the company’s articles of association, the auditor must
immediately report them. The same applies if a need for reorganization in accordance
with the Austrian Reorganization Act (Unternehmensreorganisationsgesetz, URG) is
assumed. In addition, the auditor must disclose any material weaknesses in the internal
control of the accounting process (reporting obligation).
The auditor must sign the report and submit it to the legal representatives and the
members of the supervisory board. If the auditor’s judgment is positive, the auditor issues
an unqualified audit opinion, the so called “auditor’s report”. If any facts indicate a serious
breach of law or raise doubts about the company’s ability to continue as a going concern,
the auditor may not disclose this to the public due to his duty of secrecy, but must notify
the boards. If the auditor cannot agree with the financial statements submitted by the
management and the presentation of the company’s position provided therein, the public
learns about it through a qualified or adverse opinion.
The statutory audit of financial statements is not a complete audit of all business
processes of a company in the past year. Instead, the certified public accountant, based
on experience and knowledge of the business activity of the company, independently
determines the extent and scope of work in the individual audit areas. This is called a riskoriented audit approach. In the determined areas, the correct presentation of the business activity is then examined on the basis of random samples. Focusing on high-risk
areas and using random samples renders the audit feasible since it reduces resources,
costs, and time.
Since only random samples are examined, the inclusion of the internal accounting
and control system in the audit work is of crucial importance, as it contains all procedures
and records of the processing of business transactions in accounting and the compliance
with Austrian and international accounting principles.
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“The work of certified public accountants provides important information and security for the shareholder and the supervisory board regarding proper financial reporting. But not only that: In the performance of their duties, the auditors also contribute their expertise and experience regarding the
economic development of a company beyond compliance with legal requirements, and thereby
support the supervisory board in its function and responsibility in the best way possible!“
Dr. Hannes Androsch, Entrepreneur
QUALITY ASSURANCE IN THE AUDIT OF FINANCIAL STATEMENTS
LIMITATIONS OF AUDITING
Certified public
accountants
are sought-after
consultants.
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Based on their risk analysis, certified public accountants must audit areas in which a
material misstatement in the financial statements of a company may be possible. Since
the audit of the financial statements is not a full audit, the residual risk remains, however,
that the audited financial statements might contain errors. These might have arisen either
intentionally or unintentionally. Certified public accountants must always consider the
possibilities of misstatement by the company and falsification of financial statements. If,
based on their risk analysis, they identify a potential risk of intentional misstatement, they
launch a more comprehensive examination, intensify the approach or broaden the scope
of the audit – an audit of all business transactions is not, however, feasible, even in cases
of suspicion due to the above mentioned reasons. Accounting fraud is characterized by
the fact that “falsifiers” will do anything to avoid attention.
Therefore, even if there are indications – “red flags” – for increased risk of falsification, it can nevertheless be difficult in specific cases to identify whether, where and
how a falsification was committed.
The audit of financial statements is not an audit of financial management, either, as
commonly performed by an internal audit department or the Austrian Court of Audit in
the case of public institutions. Errors in financial management are reflected in the financial
statements, but it is not the duty of the auditor to judge whether a business decision was
right or whether the financial management of the management board complies with certain principles of efficiency, effectiveness, etc. It must, however, be examined whether the
business transactions are completely and correctly included in the financial statements.
A key aspect in the preparation of the financial statements is the future development of a company. The accounting is based on the assumption that the company will be
able to continue as a going concern. However, in the preparation of financial statements,
management must examine whether it is likely that the company will continue as a going
concern in the foreseeable future. Assessing this is difficult particularly in economically
difficult times and in cases of distressed companies. The certified public accountant diligently assesses whether the conclusions of the management are reasonable. The auditor
does not, however, make a prediction about the company’s ability to continue as a going
concern. The fact that an unqualified audit opinion is issued is therefore no guarantee that
the company will be able to continue as a going concern.
In the performance of their profession, certified public accountants are subject to strict
rules of professional conduct that justify the great confidence in the profession. These
principles are set out in the Wirtschaftstreuhandberufsgesetz (WTBG or Public Accountants’ Statute of Professional Practice), in the Wirtschaftstreuhandberufs-Ausübungsrichtlinie (WT-ARL or directive on the practice of the public accounting professions) and
the provisions of the Abschlussprüfungs-Qualitätssicherungsgesetzes (A-QSG or Audit
Quality Assurance Act). The principles relate to the independence, impartiality, diligence,
personal accountability, confidentiality, objectivity, ethical conduct and the compliance
with and monitoring of certain quality standards in practicing the profession. In addition,
there are provisions for the auditor in various laws, such as in Sections 268ff UGB or Sections 20f Privatstiftungsgesetz (PSG or Austrian Private Foundation Act). The professional
environment is complemented by national and international auditing standards that also
must be adhered to.
Since 2005, certified public accountants that perform audits of financial statements are obliged by law not only to ensure high audit quality in their professional
practice, but also to have it reviewed regularly. The measures primarily include a profound
training and a continuing education, which is mandated by law not only for certified public
accountants themselves, but also for all professional employees, and which is reviewed
annually. Further measures include non-engagement-related procedures, as well as
engagement-related procedures in a professional practice for the performance of highquality audits.
In order to ensure that the quality assurance measures taken are appropriate,
the auditor (or the auditing companies, resp.) must undergo an external quality audit. In
general, this must take place every six years, or every three years for auditors of public
interest companies. Experienced certified public accountants and auditors who have
at least five years of auditing experience and who can provide proof of special trainings
or relevant experience in the area of quality assurance act as quality auditors. The
quality auditor issues a report, concluding with an unqualified or qualified final assessment, depending on whether the quality assurance system of the reviewed audit firm
is appropriate or has weaknesses. If the quality assurance measures turn out to be
inadequate, this will result in a negative assessment by the quality auditor.
Based on the audit report of the quality auditor, the working committee for external
quality audits (AeQ, Arbeitsausschuss für externe Qualitätsprüfungen) issues a certificate on the successful participation in the quality assurance system, specifies additional
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“The contribution of certified public accountants in their role as auditor is crucial for the super vision
of a well-functioning company and thus constitutes an important pillar of corporate governance.“
DI Dr. Robert Schenz, Chairman of the Austrian Working Committee for Corporate Governance,
Commissioner for Capital Market Development and Corporate Governance
PROVISION OF EVALUATION SERVICES
requirements or refuses to issue the certificate. The certification is a prerequisite for the
performance of an audit of financial statements.
The quality audit process is overseen by the Austrian Auditors Supervisory Authority (ASA), which is independent of the profession and composed of experts in the areas
of accounting, finance and science. This authority is independent of the profession. No
members of the Chamber of Public Accountants or auditors may be employed by it. The
ASA also acts as the authority of appeal in quality assurance proceedings and can, if
necessary, claim jurisdiction over quality assurance proceedings.
Based on their economic competence, certified public accountants are respected evaluators of business and tax issues. They evaluate companies or parts of companies, they
do the credit analysis on a company and they do other evaluations for compensation and
ascertainment of damages.
PROVISION OF EXPERT ADVICE
BUSINESS CONSULTING
Due to their practical training, their role in modern business life and their intimate knowledge of business structures, certified public accountants have extensive business
knowledge, which makes them sought-after consultants. The audit of financial statements does not relate to the risk management system and the internal control system
(ICS); however, both areas are addressed by the auditor in the planning of audits. That is
why he is a strong business partner and respected consultant in this area. Key consulting
areas of a certified public accountant include supporting companies in establishing and
advancing the company-related risk management, as well as the examination, analysis
and improvement of the internal control system.
Many certified public accountants also provide consulting how modern information
technologies can be improved and integrated into the accounting of companies or into
corporate controlling systems. They act as strategic consultants in setting up business,
and support managers and entrepreneurs in establishing efficient business systems,
processes and structures.
As auditors, certified public accountants are not allowed to take a leading role in
the implementation of accounting information systems; however, consulting in current
business operations, reviewing compliance with certain standards and assisting in the
documentation of existing systems are allowed.
Due to his professional activity, the auditor has ample knowledge of business
processes and their presentation in the accounting of a company. Thus, with regard to
business reorganization consulting, certified public accountants are optimally prepared to
prepare forecasts of companies‘ ability to continue as a going concern.
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Certified public
accountants
are independent
experts.
Certified public accountants may also be called on as experts in the areas of bookkeeping and accounting, as well as in those areas where an assessment requires expertise in accounting and business administration.
TRUSTEESHIP
Certified public accountants also act as trustees. In this function, they manage thirdparty assets, take care of loan securities, hold stakes in companies, exercise shareholder
rights, and are authorized to make out-of-court settlements. Occasionally, certified public
accountants also act as insolvency or settlement administrators, temporary managing
directors and liquidators. Certified public accountants are authorized, even outside
trusteeships, to assume the management of third-party assets, with the exception of
buildings. In doing so, the strict principles of professional ethics for certified public
accountants are particularly relevant, which demand the selfless performance of the
assigned tasks.
TAX CONSULTING
Like tax advisors, certified public accountants may also provide consulting services in all
tax matters. This includes preparing financial statements and tax returns, developing tax
structure proposals and representing tax and fiscal penal proceedings before the competent authorities.
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•
CONSULTING ON SELECTED LEGAL ISSUES
Certified public accountants may also advise their clients on legal issues directly related
to their other duties.
The auditor’s contribution
to good corporate governance
•
•
•
AUSTRIAN CORPORATE GOVERNANCE CODE
Certified public
accountants
are highly trained
economic experts.
Principles of good corporate governance constitute a framework for the management
and supervision of companies. The Austrian Corporate Governance Code refers to internationally accepted standards for good governance, and also emphasizes the important
regulations of the Austrian Stock Corporation Act. The consistent implementation of a
responsible management and supervision of companies and groups that is focused on
sustainability and value creation serves the interests of all those whose well-being is
related to the success of a company. In addition to internal monitoring and control
measures, the audit of the financial statements ensures effective oversight for external
stakeholders and owners.
The cooperation of the auditor with all those responsible for the management and
supervision of a company is indispensable for the successful development of commercial enterprises. The system of Austrian corporate governance sets out key rules to that
effect:
•
•
•
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The recommendation and the selection of an auditor must be made by the supervisory board, supported by the audit committee.
The appointment of the auditor is decided at the shareholders’ meeting.
The audit contract is subsequently concluded by the supervisory board as internal
control body with the appointed auditor (external control body).
Monitoring of and ongoing communication with the auditor at the meetings of the
audit committee are key elements of the cooperation between the auditor and the
supervisory board.
If the auditor establishes any facts that cast serious doubt on the company’s
ability to continue as a going concern, identifies significant breaches of the law
by management or employees or identifies material weaknesses of the internal
control, the auditor must immediately report to the boards responsible for management and supervision.
The statutory audit report or the reports at the audit committee and supervisory
board meetings strengthens the monitoring and reliability of the financial reporting
process.
The auditor’s report addressed to the public provides assurance that financial
reports published by the company comply with applicable accounting and
reporting standards and give a true and fair view of the economic position of
the company.
ROLE OF THE AUDITOR
The work of certified public accountants as auditors, in addition to the statutory provisions of the commercial law and company law, is set out in detail primarily in various expert
opinions of the expert committee for company law and auditing and in guidelines and
statements of the Institute of Austrian Certified Public Accountants (iwp) on the performance of audits of financial statements.
The expert opinion KFS /PG1, issued by the expert committee for company law and
auditing, is the basic standard regulating the principles and procedures for all audits of
financial statements of companies and comparable organizations. Thus:
•
The objective of the audit of financial statements is to obtain reasonable assurance
that, under generally accepted accounting principles, the financial statements of
the company comply in all material respects with the legal regulations; that the
articles of association properly complement these regulations; and that, based
on the applicable accounting standards, the financial statements provide a true
and fair view of the financial position and performance of the company and the
management report is consistent with the financial statements.
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•
•
•
•
•
•
•
The audit of financial statements is therefore primarily a compliance audit stating
whether the financial statements have been prepared properly, meaning in
accordance with the relevant legal regulations and generally accepted accounting
principles.
The audit of the financial management or efficiency of expenses is therefore not
the subject of an audit of financial statements since, despite the reporting obligation of the auditor, it is not the purpose of an audit to assess the responsibility of
the managing bodies of the audited company with regard to the management of
the assets transferred to them.
It is not the purpose of the audit of financial statements to detect criminal acts or
intentional errors.
An auditor’s report does not contain a binding judgment on the economic viability
and the ability of the audited company to continue as a going concern.
STRENGTHENING INDEPENDENCE
In issuing his opinion, the independence and objectivity of the auditor is associated with
a regular rotation of both the certified public accountant responsible for the audit and the
auditing firm.
To protect the public interest for listed and very large companies, the Austrian
legal regulations (in accordance with EU regulations) provide for a rotation after five years
(personnel rotation) of the persons primarily responsible for an audit. This regulation is
designed to ensure the objectivity and impartiality of the certified public accountants
responsible for the planning, execution and reporting on audits of financial statements.
By international comparison, regularly changing the entire audit firm has not turned
out to be useful, which is why, with few exceptions, it has not been implemented. The
main reason for this is the importance of the audit firm‘s experience and knowledge for
the company resulting from years of audit activities.
In the past years, the risk of a possible negative impact over time on the objectivity
of an auditor has been prevented by the adoption of strict and comprehensive regulations on the oversight of auditors. These are the same internationally and mainly
relate to:
Certified public
accountants
are objective
controlling bodies.
•
•
detailed and very strict regulations for services which a certified public accountant
may render in addition to his duty as auditor (with corresponding sanctions for
infringements);
introduction of grounds for bias and exclusion of auditors who are members in a
network;
involvement of those charged with governance (supervisory board or the audit
committee established there) in the conclusion of the audit contract and in the
monitoring of the activity of the auditor;
introduction of an external quality audit of all audit firms that perform statutory
audits;
establishment, strengthening and expansion of the competencies of the public
oversight of auditors.
WAY OF APPOINTMENT
The appointment of the auditor is made by the owner (shareholder). This is in line with
the provisions of the corresponding directive of the European Commission. The audit of
the financial statements and the reporting on the due and proper preparation of financial
statements are addressed primarily to the owners/shareholders, whose invested money is
managed by the management board/managing director. The activity of the auditor is the
primary basis for an assessment of the current position of the company and the business
risks the owners/shareholders took with their engagement. An only somewhat different
appointment of the auditor (for instance by authorities or courts) would in this sense not
be compatible with an open, free-market economic structure.
Consequently, the auditor is paid out of the funds of these owners/shareholders.
The fee of the auditor is agreed with the body responsible for concluding the audit contract (as a rule, the supervisory board) and is based on the qualification requirement for
the assigned auditors and the complexity of the work. The fee must be reasonable considering the complexity and scope of the audit work. Fees for audits of financial statements
and audit contracts may not be influenced by the provision of additional services and may
not be tied to any conditions. Pure contingency fees are not permitted.
“Starting your career in a small firm, after passing the professional examination for certified public
accountants, is interesting because in audits of smaller companies you are in direct contact with the
business entrepreneurs and get to know their way of thinking. You learn to understand quickly how
economic relations are assessed and strategies developed as a result.“
Charlotte Preilinger, Audit Manager in a smaller practice
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FUTURE AREAS OF DEVELOPMENT
Certified public
accountants are
professional and
loyal partners.
In the future, the duties of certified public accountants will shift towards verifications of
other company reports and presentations, which up to now have not been assessed by
independent experts. In particular for the public, the oversight authorities and other institutions that are recipients of company reports, the quality and reliability of the information
received is of crucial importance. Thus, efforts are currently underway to have future
company reports on the following topics assessed at least in part by an independent
certified public accountant:
•
•
•
•
risk management and equity capitalization (solvency) to supervisory authorities;
compliance with corporate governance standards;
sustainability in accordance with international standards;
the scope and extent of greenhouse gas emissions.
The standards required for that, if they do not yet exist, will be created in the near future.
Historical development
of the profession of certified public
accountants in Austria
For centuries, the economic landscape of the Austro-Hungarian Monarchy was characterized by small and medium-sized businesses, so the tax system and control mechanisms
were simple.
Starting in 1862, uniform regulations for merchants ensured that supervisory
boards in public limited companies had to review the balance sheets and proposals for
the appropriation of profit (optional) and be accountable for that to the general meeting.
Later on, the “Aktienregulativ” (administrative regulation on joint-stock companies) of 1899
contained more detailed provisions, such as the requirement for an audit of the annual
statements of companies by the supervisory board or by two externally appointed auditors. Although this did not constitute a formal statutory audit, rules on the term of office
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and certain impartiality principles were laid down in the “Regulativ”. In addition to
the bankruptcy act, special laws were instituted at the turn of the century regarding the
auditing of insurance companies, cooperative societies, industrial and provident
societies as well as private limited companies. In Austria, the annual statutory audit was
not introduced prior to the annexation to National Socialist Germany; an audit of the
financial statements of public limited companies became mandatory only with the
adoption of the German Stock Corporation Act.
The system of chartered accountants, as was common in England, was considered ideal already at the time of the monarchy; however, commercial school teachers
and bank officials also worked in this area. In order to ensure that account books,
balance sheets, etc. were audited by experts, the “Gremium der Buchsachverständigen“
(panel of accounting experts) was founded in Vienna in 1904. In order to become
a member, a candidate had to demonstrate extensive expertise and pass a difficult
exam. This panel and subsequently established professional associations formed the
“Österreichischen Reichsverband der Bücherrevisoren” (Austrian National Association
of Auditors) in 1920.
With the annexation of Austria to the “German Reich”, the activities of the Austrian
professional associations ceased, as Austria was subject to German legislation, also with
regard to commercial and trade law.
After the Second World War, the former “Reichskammern” (National Chambers) of
tax advisors and public accountants were transformed into the “Provisorische Kammer
der Wirtschaftstreuhänder” (Temporary Chamber of Public Accountants). In 1947, the
“Wirtschaftstreuhänder-Kammergesetz” (Public Accountants’ Chamber Act) entered into
effect; the professional aspects, however, were regulated in the “WirtschaftstreuhänderBerufsordnung (WTBO)” (Public Accountants’ Rules of Professional Practice) only in 1955.
As of that time, a distinction was made between three professional groups, which, based
on subsequent amendments to the law, were called “certified public accountants and
tax advisors” (“Wirtschaftsprüfer und Steuerberater“), “auditors [not allowed to audit
large companies] and tax advisors” (“Buchprüfer und Steuerberater”) and “tax advisors”
(“Steuerberater”). With the reorganization of the legal basis for public accountants, the
Wirtschaftstreuhandberufsgesetz (WTBG or Public Accountants’ Statute of Professional
Practice) and its amendments, the three professional groups were later reduced to two:
certified public accountants and tax advisors.
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“For a group like us, the auditor is an important additional element
in monitoring and controlling our investments.“
Dr. Walter Rothensteiner, CEO & Director General RZB
PROFESSIONAL EXPERIENCE
How to become
a certified public accountant
COURSE OF STUDIES
The starting point for students who seek to become certified public accountants is generally a study course in economics or law. In Austria, the admission to the professional
examination as certified public accountant requires a relevant degree from a university or
university of applied sciences. Currently, studies at Austrian universities and universities of
applied sciences are regarded as relevant if they take at least six semesters to complete
(=180 ECTS credits) and consist of at least 800 teaching units of 45 minutes each in the
following areas:
•
•
Certified public
accountants
are experienced
experts.
•
•
business accounting, including Austrian and international accounting standards;
Austrian and international tax law;
additional areas of law; and
additional areas of economic sciences.
A student who wants to become a certified public accountant can choose which university or university of applied sciences he wants to attend. But many universities offer
job-related lectures and seminars that specifically deal with auditing and trusteeship.
It therefore pays to first study the lecture and seminar courses offered by the various
universities before selecting a university.
INTERNSHIPS
Those who wish to work in an auditing firm during their studies have the opportunity to
do an internship and thereby gain insight into the profession. In order to facilitate the
difficult search for an appropriate internship, a directory of certified public accountants is
available online, which lists all members of the profession. The directory is accessible on
the website of the Chamber of Public Accountants at www.kwt.or.at.
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Prior to taking the professional examination for certified public accountants, a candidate
must complete his academic studies and three years of professional experience as a
auditor-in-training registered with the Chamber of Public Accountants. This professional
experience must include at least two years at a certified public accountant’s office or an
auditing firm and must primarily relate to auditing activities. Alternatively, also credited is
a three-year training as auditor-in-training at an auditing association of the cooperative
societies and industrial and provident societies, or as audit assistant or auditor authorized
to sign for the auditing agency of the savings banks’ auditing association performing
auditing activities.
PROFESSIONAL EXAMINATION FOR
CERTIFIED PUBLIC ACCOUNTANTS
REQUIREMENTS
Those who wish to become certified public accountants must fulfill the admission requirements pursuant to Section 16 WTBG through professional qualification and experience.
Corresponding proof must be furnished. The performance of the admission procedure
and the subsequent examination procedure is the responsibility of the Chamber of Public
Accountants.
PREPARATION
The scope of the examination is significant since the professional examination for certified
public accountants is one of the most demanding in Austria. Preparation courses at the
Academy of Public Accountants can be attended at different locations in Austria. The
seminar program offerings can be found at www.wt¬akademie.at. The Academy of Public
Accountants (address at the end of the brochure) is the official training institute of the
Chamber of Public Accountants.
18 | 19
Professional associations
CHAMBER OF PUBLIC ACCOUNTANTS
EXAMINATION
The typical way of becoming
a certified public accountant:
Relevant course of study
The professional examination for certified public accountants consists of a written and an
oral part. The written part comprises five tests: accounting, auditing, jurisprudence, business administration and fiscal law. The tests for accounting, auditing and jurisprudence
take four and a half hours, while the tests for business administration and tax law take
seven hours. In addition to the fields already relevant for the written exam, the subjects of
the oral exam include the law of professional practice of public accounts; the principles of
economics, finance, banking, insurance, securities and foreign exchange law; and quality
assurance and risk management.
Tax advisors and other candidates who have already passed the examination for
tax advisors can take the examination for certified public accountants in an abbreviated
form. They are not required to sit for the tests in business administration or tax law, and
can also skip parts of the oral professional examination.
Professional experience
Preparing for examination
Professional examination
Appointment and
taking the professional oath
as certified public accountant
The Chamber of Public Accountants (KWT) is an umbrella organization for tax advisors,
certified public accountants and licensed bookkeepers in Austria. Their members are
experts in tax consultancy, auditing, accounting and financial statements. The KWT
represents the interests of around 8,400 public accountants and around 1,600 independent accountants and licensed bookkeepers. It also serves around 2,500 auditorsin-training.
The function as professional authority – the duties include:
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The function as special interest authority – the duties include:
•
TAKING THE PROFESSIONAL OATH
After passing the examination, a certificate of appointment is issued to the candidate.
Prior to obtaining the certificate, the candidates must take the professional oath before
the Federal Ministry of Economy, Family and Youth or its representative. The wording
of the oath under Section 62 (2) WTBG is: “I swear to always faithfully and steadfastly
uphold the laws of the Republic of Austria, to diligently fulfill the duties and responsibilities
of a certified public accountant, to observe my duty of secrecy, and prepare expert
opinions requested from me diligently and impartially.”
conducting the examinations for tax advisors and certified public accounts;
granting the professional authorization;
public appointment of persons as certified public accountants;
recognizing companies as public accountants;
collecting and recording all professionally relevant data of the members;
performing various professional administrative procedures.
•
•
•
reviewing laws;
promoting advanced professional training;
providing professional information to members, in particular on changes in
the tax law;
providing member services.
Chamber of Public Accountants
Schönbrunnerstraße 222-228 / Staircase No. 1 / 6th Floor, 1120 Vienna
Phone: +43 (0)1 811 73 - 0
Fax: +43 (0)1 811 73 - 100
E-Mail: offi[email protected]
www.kwt.or.at
Performing the profession of
certified public accountant
REGISTRATION AS AUDITOR
Certified public accountants who, in exercising their profession, also intend to act as
auditors, must undergo an external quality audit on the non-engagement related quality
assurance measures in the auditing firm. If, in the external quality audit, the quality auditor
establishes the adequacy of the quality assurance measures in the auditing firm, the
working committee for external quality audits issues a certificate of participation in the
external quality audit pursuant to A-QSG. Based on this certificate, which is a prerequisite
for the performance of statutory audits of financial statements, the registration is made
in the public register of all auditors and auditing companies maintained at the Austrian
Auditors Supervisory Authority (ASA).
“In principle, the profession of certified public accountant is promising, offering great opportunities. It is exciting because you bear responsibility and have to comprehend and assess complex projects
within a short period of time. A large firm offers the opportunity to
be involved in major projects from the very start.“
Hans-Peter Wertmann, Manager with one of the Big 4
www.kwt.or.at
| www.iwp.or.at
20 | 21
sub-working groups – for instance on the issues of consolidated financial statements,
other assurance services and special issues relating to the audit of foundations.
In addition, the expert committee reviews commercial and company draft laws. In
the course of the review procedure, the expert committee draws up professional statements, which are then transmitted to the respective ministries.
All expert opinions and statements, as well as the current working program of the
expert committee for company law and auditing, can be found on the website of the KWT
under Service / Download Center.
INSTITUTE OF AUSTRIAN CERTIFIED PUBLIC ACCOUNTANTS
The Institute of Austrian Certified Public Accountants (iwp) is a voluntary association of
certified public accountants in Austria, with currently around 800 members (natural and
legal persons). It represents the interests of the profession vis-à-vis the legislator, government institutions, oversight authorities and the public, and in recognized international
panels as well as the EU. The iwp supports its members by advocating an independent,
autonomous and high-quality exercise of the profession in the public interest. Utmost
integrity, diligence and objectivity are values to which the members of the iwp commit
themselves in fulfilling their engagements. The following activities serve to achieve the
purpose of the association:
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•
•
•
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providing expert opinions on specialist and professional issues relating to the profession of certified public accountants;
organizing lectures, practice seminars and symposia;
promoting quality assurance;
initiating and maintaining contact with similar institutions in Austria and abroad;
maintaining social contacts between the members;
supporting members in need (to which they have no legal right).
Institute of Austrian Certified Public Accountants
Schwarzenbergplatz 4 (The House of Industry), 1030 Vienna
Phone: +43 (0)1 711 35 - 2623
Fax: +43 (0)1 711 35 - 2625
E-Mail: offi[email protected]
www.iwp.or.at
EXPERT COMMITTEE FOR COMPANY LAW AND AUDITING
INSTALLED AT THE CHAMBER OF PUBLIC ACCOUNTANTS
The expert committee for company law and auditing currently has 68 members. At regular meetings, these members develop relevant expert opinions and statements on issues
from the areas of auditing, company law, accounting and banking/insurance/leasing
mainly for the profession of certified public accountants. There are currently four permanent working groups, divided by subject area, as well as temporary, project-specific
www.kwt.or.at
| www.iwp.or.at
AKADEMIE DER WIRTSCHAFTSTREUHÄNDER GMBH
Certified public
accounts undergo
regular training.
The Academy of Public Accountants (“Akademie der Wirtschaftstreuhänder”) is the official
training institute of the Chamber of Public Accountants. With the establishment of the
Academy in 1922, an important step was made in the training and advanced training of
the profession of public accountants. The advanced training seminars for certified public
accountants and the examination preparation courses for candidates for the professional
examination for certified public accountants are a focus of the Academy’s activities.
Numerous seminars, courses and degree programs are also offered for employees of
auditing firms.
The high quality of the training is guaranteed by the excellent lecturers: certified
public accountants from medium-sized Austrian and internationally operating auditing
firms, university professors, judges of supreme courts and lawyers.
Advanced training seminars are designed to continuously update knowledge on
new legal provisions, modified auditing techniques and new findings from science and
practice. Due to the current efforts to implement international accounting standards and
due to continuously amended laws, 100 training events per year ensure that certified
public accountants keep up-to-date. Certified public accountants have the opportunity
to acquire special expertise in the special course programs of the Academy, which are
designed to increase professional and personal competencies.
A comprehensive range of courses is offered for future certified public accountants,
which comprises all major subject areas of the daily professional practice.
More specifically, 120 teaching units in the examination subject accounting are
provided in the special areas of group accounting, IFRS and special issues relating to
financial statements. The teaching schedule in the examination subject audit of financial
statements includes 90 teaching units in the areas of Austrian generally accepted auditing
22 | 23
“For us as credit insurance companies, audited financial statements are an indispensable instrument
in granting and setting limits for our clients.“
KR Martina Dobringer, CEO Coface Austria Holding AG and Coface Austria Kreditversicherung AG
principles, expert opinions, special audits, audit software and ISA. For the examination
subject jurisprudence, 100 teaching units are provided in the areas of corporations, insolvency law, private foundation law, banking law and economics.
In the auditing practice, the participation of highly qualified staff is indispensible.
Therefore, the Academy offers a comprehensive course and seminar program also for
this target group. They learn from scratch the basics of auditing in a concise and practical
way in the degree program Audit Assistant (“auditor on site”) and subsequently, based on
this, in the degree program Audit Manager (“audit manager on site”).
Apart from that, various iwp practice seminars are offered in cooperation with the
iwp for the continuous advanced training of certified public accountants.
Akademie der Wirtschaftstreuhänder GmbH
Schönbrunner Str. 222-228 / Staircase No. 1 / 6th Floor/Top 3, 1121 Vienna
Phone: +43 (0)1 815 08 50
Fax: +43 (0)1 817 14 37
E-Mail: offi[email protected]
www.wt-akademie.at
FEE - FÉDÉRATION DES EXPERTS COMPTABLES EUROPÉENS
Certified public
accountants work
on a global basis.
The FEE is the interest organization of the profession of accountants at the European level
with 43 member organizations from 32 countries. The member organizations are represented in all 27 EU member states and 3 EFTA countries. The FEE member organizations
represent more than 500,000 accountants in Europe. Around 45% of them work in their
own practice and offer a wide range of services. The remaining 55% work in various functions in industry, commerce, administration and education.
The FEE represents the interests of the European profession in the widest sense
at the European and global levels and strives to improve, harmonize and liberalize the
practice and the regulations in accounting, auditing and financial reporting in the public
and private sectors.
It deals with those developments that may have an impact on accounting, the
audit of financial statements or financial reporting, and promotes European interests, particularly with regard to global developments. The Chamber of Public Accountants and the
Institute of Austrian Certified Public Accountants are members of the FEE.
Here you also find the current course program.
INTERNATIONAL MEMBERSHIPS
Fédération des Experts-comptables Européens
B-1040 Brussels, Avenue d‘Auderghem, 22-28/8
Phone: +32 2 285 40 85, +32 2 285 40 85
Fax +32 2 231 11 12
E-Mail: [email protected]
www.fee.be
IFAC - INTERNATIONAL FEDERATION OF ACCOUNTANTS
IFAC is a global organization for the auditing professions. It promotes the public interest
through the development of high international standards in the areas of auditing, training,
ethics and financial reporting in the public sector. It also supports the interests of the
profession worldwide. IFAC was established on October 7, 1977 in Munich and today
comprises 157 organizations (member organizations, associated members and partners)
in 123 countries with around 2.5 million certified public accountants. The Chamber of
Public Accountants and the Institute of Austrian Certified Public Accountants are members of IFAC.
IFAC
545 Fifth Avenue, 14th Floor New York, NY 10017
Phone: +1 (212) 286-9344
+1 (212) 286-9344
Fax:
+1 (212) 286-9570
www.ifac.org
www.kwt.or.at
| www.iwp.or.at
24 | 25
Glossary
A-QSG
ASA
Audit of financial management
Corporate governance
ECTS
EFTA
Certified public
accountants are
part of international networks.
FEE
ICS
IFAC
IFRS
ISA
iwp
KFS/PG1
KWT
PSG
www.kwt.or.at
| www.iwp.or.at
Stakeholder
Abschlussprüfungs-Qualitätssicherungsgesetz
(Audit Quality Assurance Act)
Austrian Auditors Supervisory Authority
The review of the effectiveness, economy,
efficiency and regularity of the management
of third-party assets.
Principles of corporate management and supervision
European Credit Transfer System / European Credit
Transfer and Accumulation System –
for courses passed at European universities
European Free Trade Association /
Europäische Freihandelsassoziation
Fédération des Experts Comptables Européens /
representative organization for the accountancy
profession in Europe
Internal control system
International Federation of Accountants
International Financial Reporting Standards /
international accounting regulations for companies
International Standards on Auditing
Institut Österreichischer Wirtschaftsprüfer
(Institute of Austrian Certified Public Accountants)
Expert opinion of the expert committee for company
law and auditing of the Institute of Business
Administration, Tax Law and Organization of the
Chamber of Public Accountants on the
performance of audits of financial statements
Kammer der Wirtschaftstreuhänder
(Chamber of Public Accountants)
Privatstiftungsgesetz (Austrian Private Foundation Act)
UGB
URG
WT-ARL
WTBG
WTBO
A natural or legal person that takes an interest in the
process or result of a process
(economic corporate development)
Unternehmensgesetzbuch (Austrian Business Code)
Unternehmensreorganisationsgesetz
(Austrian Reorganization Act)
Wirtschaftstreuhandberufsi-Ausübungsrichtlinie
(directive on the practice of the public accounting
professions)
Wirtschaftstreuhandberufsgesetz
(Public Accountants’ Statute of Professional Practice)
Wirtschaftstreuhänderberufsordnung (1955)
(Public Accountants’ Rules of Professional Practice)
26 | 27
INSTITUTE OF AUSTRIAN CERTIFIED PUBLIC ACCOUNTANTS
Schwarzenbergplatz 4 (The House of Industry), 1030 Vienna
Tel: +43 (0)1 711 35 - 2623
Fax: +43 (0)1 711 35 - 2625
E-Mail: offi[email protected]
www.iwp.or.at
ZVR (Central Association Register) No.: 425636807
CHAMBER OF CERTIFIED PUBLIC ACCOUNTANTS
Schönbrunnerstraße 222-228 / Staircase No. 1 / 6th Floor
1120 Vienna
Tel: +43 (0)1 811 73 - 0
Fax: +43 (0)1 811 73 - 100
E-Mail: offi[email protected]
www.kwt.or.at