Instituut van de Bedrijfsrevisoren - Institut des Réviseurs d'Entreprises

The Belgian Institute of Registered Auditors (IBR-IRE)—the professional accountancy organization for auditors has no legal authority to establish a mandatory quality assurance review system for statutory audits since the Act Regarding the Organization and Supervision of Statutory Auditors of 2016 delegates that authority to the Belgian Audit Oversight Board (BAOB).

IBR-IRE conducted an assessment of the BAOB’s QA review system and reports that it is fully aligned with the main requirements of SMO 1, including the adoption of relevant standards – ISQM 1, 2, and ISA 220 (revised) – which the IBR-IRE translated into Dutch.

It assists its members in undergoing quality assurance reviews by providing training, continuing professional development sessions and issuing implementation guidance. IBR-IRE has also developed ongoing communication with the public oversight body in Belgium.

Current Status: Sustain

For auditors, the Audit Act of 2016 and Royal Decree on the Access to the Profession of 2018 stipulate IPD and CPD requirements. These include holding a master’s degree, completing 3 years’ practical training, passing initial and final examinations, and taking the auditor’s oath at the Court of Appeal [additional details are outlined in the International Education Standards section]. Individuals with equivalent foreign qualifications must pass an examination on company law, accounting law, and professional ethics as described in IBR-IRE’s Procedure for Foreign Professionals (2019).

Auditors must remain members of IBR-IRE and adhere to its rules and regulations to practice. IBR-IRE requires its members to fulfill 120 hours of CPD over a three-year period, which is monitored through the quality assurance review program by the BAOB.

According to IBR-IRE, educational requirements in Belgium are aligned with 2019 revised IES.

IBR-IRE indicates in its SMO Action Plan that supports members by organizing roughly 85 annual conferences and information sessions in French and Dutch to help members fulfill the CPD requirement. It also participates in the work of the Common Content which entails nine of Europe’s accountancy institutes working together to harmonize professional qualifications.

Current Status: Sustain

According to the Audit Act of 2016, audits must be conducted in accordance with the standards set by the Belgian Institute of Registered Auditors (IBR-IRE) and approved by the High Council for the Economic Professions and Minister of Economy.

IBR-IRE reports on its website that ISA have been applicable in Belgium since 2009 and adoption and translation (French and Dutch) of new and revised standards is an ongoing process. As of December 2023, all new and recently revised ISA (e.g., ISA 250, ISA 315, and ISA 540, and ISQM 1, 2, and ISA 220) are effective. The 2022 Handbook has been translated into Dutch and French.

The institute has developed a range of activities to and assist its members with the implementation of the auditing standards via tools such as the “Revidocs” or the “Petites Entités-Kleine Entiteiten” (Pack PE-KE). The Pack PE-KE was developed in 2013 (last updated in 2019) to facilitate the implementation of ISA requirements for small entities. As for Revidocs, which was based on the NBA Netherlands tool “Verklaringengenerator”, it was completed in 2019 to guide auditors in preparing their audit reports.

Amongst others, the IBR-IRE has developed an ISA implementation manual and provides continuing professional development courses on this topic. It also developed auditing standards for small and medium-sized entities which were approved by all relevant stakeholders in 2019.

Lastly, IBR-IRE reports that it regularly meets with Accountancy Europe to provide comments on IAASB Exposure Drafts.

Current Status: Sustain

The Audit Act of 2016 contains the general ethical rules applicable to the registered auditor (with respect to any engagement) as well as the conceptual framework approach. Having no direct responsibility for establishing ethical requirements, the Belgian Institute of Registered Auditors merely enforces ethical requirements for auditors in line with the Audit Act of 2016.

As of the date of the assessment, ethical requirements for auditors are reportedly in line with the 2009 IESBA Code of Ethics following the implementation of the EU audit reform. Additional ethical provisions applicable to the statutory auditor are included in the Belgian Code for Companies and Associations.

IBR-IRE provides input to legislation pertaining to ethical provisions upon request of the government (most recently provided in 2019). It also assists its members with the implementation of ethical requirements by issuing implementation guidance and delivering continuing professional development courses. IBR-IRE reports that it delivered 4 seminars between 2016-2020 pertaining to ethical requirements for registered auditors and disseminated the 2018 IESBA Code of Ethics for reference during the seminars.

Lastly, IBR-IRE contributes to the standard-setting activities of the IESBA by participating in regional consultations.

It is in the public interest that all professional accountants adhere to the latest ethical requirements issued by the IESBA. The 2023 Handbook is in effect including revisions relating to (a) the definition of engagement team, and (b) group audits. IBR-IRE is encouraged to advocate for approval of the revisions to ensure that all its members are required to adhere to the latest ethical requirements. IBR-IRE is also encouraged to support its members by providing relevant translations of the Handbook that are more up-to-date than the 2009 Code—as of the date of this assessment, the 2022 Handbook is available in French.

Current Status: Execute

The Belgian accounting system is on an accrual basis using national standards at the central government level and for the Walloon and Brussels local government, for each component of the financial statements (except for cash flow statement). This is the same at the Flemish local government level, except for changes in net asset that are recorded on a modified accrual basis. The Belgian Institute of Registered Auditors (IBR-IRE) reports that for the Belgian local authorities, regulation was passed in June 2010 which adopts an accounting system that considers IPSAS.

With no direct responsibility for adoption of public sector accounting standards, IBR-IRE focuses its efforts on promoting IPSAS to government officials. IBR-IRE reports that it meets with the government on a regular basis to promote awareness of the standards and has been publishing articles since 2013 to promote the use of IPSAS/ European Public Sector Accounting Standards (EPSAS) by public sector entities.

In 2014, it jointly established the Public Accounting Commission with the Institute of Accountants and Tax Consultants (ITAA) to (i) follow up with government authorities on IPSAS adoption; (ii) contribute to the developments of European Public Sector Accounting Standards (EPSAS) to encourage alignment with IPSAS; and (iii) provide training activities to assist members with the implementation of standards for a smooth transition process from “cash accounting” to “accrual basis accounting”.

In 2012, IBR-IRE established an IPSAS/EPSAS working group to coordinate its activities in promoting the standards to relevant stakeholders. The group comprises registered auditors with a specific knowledge in local and/or international public sector accounting and continues to meet.

As the Belgian government continues to consider adoption of IPSAS and EPSAS, IBR-IRE may further consider how it may be able to proactively provide technical, advocacy, and other forms of support to the government to enhance public financial management in the jurisdiction.

Current Status: Sustain

Under the Audit Act of 2016, investigation and discipline (I&D) of auditors is performed by the Belgian Audit Oversight Board (BAOB) who may conduct investigations and then refer cases for sanctioning to the Financial Services and Markets Authority (FSMA) as needed. The Belgian Institute of Registered Auditors (IBR-IRE) no longer participates in these procedures but maintains communications with the BAOB.

The IBR-IRE maintains its own I&D procedures within the limitations of the law that only allow it to impose sanctions on its members for non-payment of membership fees. IBR-IRE completed a self-assessment of its I&D processes against the SMO 6 requirements and reports some areas for improvement and consideration, such as: having (i) timeframe for disposal of all cases; (ii) tracking mechanisms in place to monitor progress in I&D and related procedures; (iii) a process for the independent review of complaints on which there was no follow-up established; (iv) liaison with outside bodies; and (v) regular review of implementation and effectiveness.

Each year, IBR-IRE analyzes the annual report of BAOB and implements action plans for its members (communication, training, webinars, etc.) to address the issues and findings encountered by BAOB.

IBR-IRE is encouraged to continue maintaining communications with the BAOB and encourage alignment with SMO 6 requirements.

Current Status: Review & Improve

As a member of the European Union (EU), Belgium is subject to the accounting and financial reporting requirements established in EU Regulations and Directives as transposed into national laws and regulations. EU-endorsed IFRS have been adopted as mandatory for companies trading in a regulated market along with credit institutions, insurance companies, and investment firms, while other entities are permitted to use the EU-endorsed IFRS. The Belgian Accounting Standards Board (BASB) is responsible for enacting financial reporting standards in Belgium for all other entities and has issued the Belgian Generally Accepted Accounting Principles.

Since IBR-IRE has no direct responsibility for IFRS adoption, it focuses on supporting its members with implementation and application by offering seminars and continuing professional development courses (CPD) on the standards and developments in the area. It also supports members with information, tools, and professional literature via the Journal de Stage and its website.

IBR-IRE established ongoing processes for monitoring changes to the standards and pronouncements issued by the IASB and promptly raises members’ awareness through its magazine.

Lastly, IBR-IRE reports to provide comments on Exposure Drafts at the national level, as well as the international level (IASB) via its participation in the IFRS subgroup of the national standard-setter.

Current Status: Sustain