Suomen Tilintarkastajat ry

Suomen Tilintarkastajat ry has no direct responsibility for the quality assurance (QA) review system, which is within the authority of the Audit Oversight Unit (AOU) under the Auditing Act (1141/2015). According to the association, the existing QA system fully complies with the requirements of SMO 1.

Suomen Tilintarkastajat ry actively supports its members with implementation of quality control requirements through a wide range of activities such as providing guidance, trainings, and publications. The association publishes a Quality Reviewer’s Handbook which is available in print and on its website. The association has also translated and published the 2018 Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements, including ISQC 1, and is in the process of translating the new set of quality management standards which will be effective in December 2021.

Suomen Tilintarkastajat ry has demonstrated that, within the scope of its authority, it is committed to meet the SMO 1 obligations and has established ongoing processes to maintain compliance.

Current Status: Sustain

Initial professional development (IPD) and continuing professional development (CPD) requirements for auditors, the only segment of the profession regulated in Finland, are established in the Auditing Act (1141/2015) and are further detailed and implemented by the Ministry of Employment and Economy, and the Audit Oversight Unit. The extent of alignment of IPD and CPD requirements with those of the 2019 IES needs to be established.

Suomen Tilintarkastajat ry is involved in the training of auditors through a voluntary examination preparation program that it administers and provision of CPD programming. The association reports that it regularly updates its programming to ensure that it continues to be aligned with the requirements of the IES. However, it is not clear whether the IES in effect as of 2021 have been incorporated.

The institute’s CPD Committee meets periodically to update its program and ensure that its members are fulfilling the requirements. In line with the Auditing Act No. 1141 of 2015, the CPD requirements established in law oblige auditors to complete at least 120 hours CPD activities in a three-year period, with at least 20 hours per year. Half of the required CPD activities must be verifiable. Subsequently, Suomen Tilintarkastajat ry developed a system to provide members with certificates to verify their CPD activities. The CPD Committee also consults with the Board concerning non-compliant members and refers cases to the Disciplinary Commission as needed.

Suomen Tilintarkastajat ry also has its own academic institute, which provides publications and professional training on topics such as accounting, financial reporting, corporate law, and taxation.

Suomen Tilintarkastajat ry is committed to fulfilling its obligations under SMO 2 within the scope of its responsibility. Since the newly revised IES came into effect in January 2021,  Suomen Tilintarkastajat ry is encouraged to develop plans to raise awareness of other stakeholders involved in lifelong development of professional accountants about the new standards and to consider facilitating a comprehensive gap analysis of the overall national requirements against the revised IES in cooperation with other stakeholders. The IES Checklist and the Accountancy Education E-Tool developed by IFAC may be used to conduct an assessment and to consider available implementation support materials. Suomen Tilintarkastajat ry is also encouraged to ensure that its programming is aligned with the IESs.

Current Status: Execute

Although Suomen Tilintarkastajat ry is not formally responsible for the adoption of ISA, it has been actively involved in promoting the use of ISA in Finland as good practice and has been recommending and translating international standards since 2000. As of 2021, the 2018 IAASB Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements has been translated by Suomen Tilintarkastajat ry and is being applied in Finland. The association also first translated the Guide to Using International Standards on Auditing in the Audits of Small- and Medium Sized Entities in 2009, and in 2019 translated and made publicly available the latest edition of the Guide (2018).

The association reports that it assists its members by delivering trainings through its ST-Akatemia, hosting seminars, and providing general implementation support on an ongoing basis such as developing and updating templates, sharing examples, putting forward recommendations, publishing an audit workbook, among other activities, to support auditors in auditing and documenting their work in accordance with good auditing practice.

Suomen Tilintarkastajat ry has demonstrated that, within the scope of its authority, it is committed to meet the SMO 3 obligations and has established ongoing processes to maintain compliance. If deemed feasible and relevant, Suomen Tilintarkastajat ry is encouraged to consider participating in the international standard-setting process by providing inputs on Exposure Drafts and other pronouncements issued by the IAASB.

Current Status: Sustain

Suomen Tilintarkastajat ry, while not legally responsible for adoption of ethical requirements for the profession at the jurisdiction level, requires its members to adhere to the IESBA Code of Ethics and has translated and made publicly available the 2018 version of the IESBA Handbook of the Code of Ethics for Professional Accountants, notifies members of new, proposed and revised amendments to the Code, and supports its implementation through training.

Suomen Tilintarkastajat ry is committed to fulfilling its obligations under SMO 4 within the scope of its responsibility and has established processes to review and improve compliance on an ongoing basis.  Considering that the extent of alignment of the existing ethical requirements in the jurisdictions with those of the IESBA Code is not clear, the association is encouraged to promote to the stakeholders the need to bring national requirements fully in line with the IESBA Code or to consider directly referencing the Code for mandatory application.

Current Status: Review & Improve

Suomen Tilintarkastajat ry has no direct responsibility for the adoption or implementation of public sector accounting standards in Finland, where national public sector accounting standards are set by the Government and are based on an accrual basis of accounting and are mainly in conformity with IPSASs. Nevertheless, IPSASs in their entirety have not been adopted and no plans to incorporate international standards have been reported. Suomen Tilintarkastajat ry indicates in its 2021 SMO Action Plan that it has not taken a stand on whether it supports the adoption of IPSAS or EPSAS.

Suomen Tilintarkastajat ry involvement in public sector matters revolves around good auditing practice in the public sector. A working group for public sector auditing was established, which updated the recommendation on “good audit practice in public sector” in 2020 and made it available on its website.

Recognizing that the primary focus of Suomen Tilintarkastajat ry is auditing and good audit practice in the public sector, the association is encouraged to promote IPSAS as the basis of public sector accounting to relevant authorities at the local and state governments.

Current Status: Execute

Suomen Tilintarkastajat ry has no direct responsibility for investigation & discipline (I&D) in Finland. Nevertheless, Suomen Tilintarkastajat ry established an Ethical Board that monitors compliance with ethical requirements and the constitution of the association.

The Ethical Board handles disciplinary matters and prepares the proposals to the Board of the association. The Board makes the final decisions about the disciplinary actions (remark, warning and termination of the membership). Suomen Tilintarkastajat ry is not obligated to file a report with AOU about the sanctions imposed by the Suomen Tilintarkastajat ry Board, but the Ethical Board may decide not to take actions on the case, which the oversight body is already dealing with.

To support members’ understanding of the I&D processes, Suomen Tilintarkastajat ry regularly provides guidance material via its website and Training Portal.

Current Status: Sustain

Suomen Tilintarkastajat ry has no direct responsibility for the adoption of IFRS, however it supports the implementation of the standards by (i) making available translations of IFRS since 2005; (ii) promoting awareness; (iii) conducting trainings on new and revised standards through ST-Akatemia; (iv) providing implementation guidance to members by publishing examples of financial statements prepared in accordance with IFRS; and (v) periodically facilitating discussions on the application of new and revised standards.

Suomen Tilintarkastajat ry has demonstrated that, within the scope of its authority, it is committed to meet the SMO 7 obligations and has established ongoing processes to maintain compliance.

Current Status: Sustain