Chamber of Financial Auditors of Romania

Since July 2018, the Chamber of Financial Auditors of Romania (CAFR) has been responsible for conducting quality assurance (QA) reviews for financial audit activities other than statutory audit, including internal audit, agreed-upon procedures, review engagements, and other assurance services, while the Statutory Audit Public Oversight Authority (ASPAAS) is responsible for QA reviews of statutory audits at the jurisdiction level.

CAFR continues to maintain and operate a QA framework for activities within its professional remit through its dedicated quality monitoring and professional competence functions. CAFR reports that its QA system is aligned with the best practices of Statement of Membership Obligations 1 and continues to review its framework against evolving international and European Union requirements.

To support members, CAFR continues to disseminate guidance, norms, and practical implementation materials relating to quality control and quality management through its website, professional publications, and technical communications. CAFR also publishes annual reports summarizing the findings of its monitoring and inspection activities and uses these findings to identify common deficiencies and areas requiring additional support.

CAFR continues to provide targeted training and continuing professional development sessions focused on areas commonly identified through inspections, including the implementation of International Standard on Quality Management 1, International Standard on Quality Management 2, and International Standard on Auditing 220 (Revised). These standards are also incorporated into the continuing professional development program for Romanian financial auditors organized by CAFR under ASPAAS oversight.

In addition, CAFR continues to cooperate closely with ASPAAS to support consistent implementation of QA requirements and the exchange of information on inspection findings and regulatory developments affecting statutory audit firms.

These activities demonstrate that CAFR continues to maintain and operate an established and functioning QA system for services within its legal competence and to support members in implementing quality management requirements. Accordingly, fulfillment is assessed as Sustain.

CAFR should continue to support the implementation of quality management standards among its members and continue to work closely with ASPAAS to support full jurisdiction-level alignment of the QA framework with Statement of Membership Obligations 1 requirements, including the timely formal adoption and application of the latest quality management standards and related auditing pronouncements.

Current Status: Sustain

Initial professional development (IPD) and continuing professional development (CPD) requirements for statutory auditors in Romania are established under Law No. 162/2017 and related regulations issued by the Statutory Audit Public Oversight Authority (ASPAAS). Certain operational responsibilities, including examinations and professional development activities, continue to be delegated to the Chamber of Financial Auditors of Romania (CAFR).

CAFR continues to organize the professional competence examination and related qualification activities under ASPAAS rules. The examination framework includes both theoretical and practical components designed to assess professional competence and readiness for practice.

CAFR also continues to operate an annual CPD program for financial auditors. Members are required to complete 40 hours of CPD annually, and CAFR maintains a centralized system for monitoring and recording compliance with CPD obligations.

CAFR continues to review and support alignment with the International Education Standards (IES) through its admission, education, and trainee functions. The institute reports that IES requirements are reviewed, translated, and incorporated into its educational and professional development framework on an ongoing basis.

In addition, CAFR continues to participate in international education benchmarking initiatives, including the Professional Accountancy Education Europe (PAEE) framework, which supports the alignment of professional education programs with international benchmarks.

CAFR also continues to outline in its Statement of Membership Obligations Action Plan how the key requirements of International Education Standards 1 through 8 are addressed by ASPAAS and CAFR for statutory auditors, including the incorporation of revised standards into the education and CPD framework.

These activities demonstrate that CAFR continues to maintain and support an education and professional development framework aligned with the International Education Standards and to use its best endeavors to support implementation at the jurisdiction level. Accordingly, fulfillment is assessed as Sustain.

Current Status: Sustain

Under Law No. 162/2017, statutory audits in Romania are required to be conducted in accordance with International Standards on Auditing (ISA) as adopted by the Statutory Audit Public Oversight Authority (ASPAAS). Operational responsibility for the translation and publication of standards continues to be supported by the Chamber of Financial Auditors of Romania (CAFR) under delegation from ASPAAS.

CAFR continues to play an active role in the translation, dissemination, and implementation support of ISA and related pronouncements. Current official sources indicate that the 2020 Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements remains the most recent full handbook formally adopted for application in Romania. CAFR has also translated subsequent quality management standards and other updated pronouncements and continues to support their implementation among members.

A key focus of CAFR’s activities continues to be implementation support. Through its admission, education, and trainee functions, CAFR regularly updates training themes and professional development programs to reflect new and revised standards issued by the International Auditing and Assurance Standards Board. Recent annual training programs have included topics such as quality management standards, key audit matters, and sustainability-related assurance topics.

CAFR also continues to provide practical implementation tools for members, including digital audit tools and templates, with particular support for small and medium-sized practices. In addition, CAFR has published guidance on internal audit and has translated implementation support materials, including the International Federation of Accountants guide on the use of ISA in the audits of small- and medium-sized entities.

CAFR also continues to participate in national, regional, and international technical events and consultations relating to the implementation and development of ISA, including consultation processes on exposure drafts issued by the International Auditing and Assurance Standards Board.

These activities demonstrate CAFR’s sustained support for the adoption, translation, and implementation of ISA and related pronouncements and its continued use of best endeavors in line with Statement of Membership Obligations 3. Accordingly, fulfillment is assessed as Sustain.

CAFR should continue to work closely with ASPAAS to support the timely formal adoption and application of the latest Handbook of International Quality Management, Auditing, Review, Other Assurance, and Related Services Pronouncements in effect as of the time of the assessment, with the objective of reducing the current lag at the jurisdiction level.

Current Status: Sustain

Under Law No. 162/2017, ethical requirements for statutory auditors and audit firms in Romania are established under the authority of the Statutory Audit Public Oversight Authority (ASPAAS). Operational responsibility for the translation and publication of the Code continues to be supported by the Chamber of Financial Auditors of Romania (CAFR) under delegation from ASPAAS.

As of August 2024, CAFR translated the 2023 International Code of Ethics for Professional Accountants (including International Independence Standards), which was subsequently approved and published by ASPAAS for application in Romania. CAFR continues to work closely with ASPAAS regarding new and revised ethical requirements and supports timely translation and adoption, while ASPAAS retains final regulatory responsibility.

CAFR continues to support the implementation of the Code on an ongoing basis through member communications, website updates, newsletters, and continuing professional development programs. Ethical requirements and the consequences of misconduct continue to be clearly communicated to members.

In addition, CAFR’s admission, education, and trainee functions continue to monitor developments in pronouncements issued by the International Ethics Standards Board for Accountants and update professional education and training curricula accordingly. Ethics topics remain embedded in the annual continuing professional development program.

CAFR also continues to organize technical seminars and professional events on ethical and independence requirements, often in cooperation with national and international professional bodies and major audit firms.

CAFR further supports the international standard-setting process by participating in consultations and submitting comments on exposure drafts issued by the International Ethics Standards Board for Accountants.

These activities demonstrate CAFR’s sustained support for the translation, adoption, and implementation of ethical requirements and its continued use of best endeavors in line with Statement of Membership Obligations 4. Accordingly, fulfillment is assessed as Sustain.

CAFR should continue to work closely with ASPAAS to support the timely formal adoption and application of the latest edition of the International Code of Ethics for Professional Accountants in effect as of the time of the assessment, with the objective of reducing any remaining lag at the jurisdiction level.

Current Status: Sustain

The Ministry of Finance (MoF) is responsible for establishing public sector accounting standards in Romania through Order No. 1917/2005 and its subsequent amendments. The jurisdiction continues to apply partial accrual national standards for public sector entities rather than International Public Sector Accounting Standards (IPSAS) as issued.

Although the Chamber of Financial Auditors of Romania (CAFR) has no direct responsibility for adopting public sector accounting standards at the jurisdiction level, it continues to use its best endeavors to support convergence with accrual-basis IPSAS and broader public sector financial reporting reform.

CAFR continues to advocate for the convergence of Romanian public sector accounting requirements with accrual-basis IPSAS through its engagement with relevant national stakeholders, including the Ministry of Finance and other public sector institutions.

In addition, CAFR remains active in promoting awareness of public sector accounting developments through participation in national and international technical events and professional forums that address public sector financial reporting and reform.

CAFR also continues to support awareness and professional knowledge among members by including public sector accounting and IPSAS-related developments in its professional publications and member communications.

These activities demonstrate CAFR’s continued use of best endeavors in support of Statement of Membership Obligations 5 and therefore the fulfillment rating is assessed as Sustain.

CAFR should continue its advocacy with the Ministry of Finance and other relevant stakeholders to support the transition from partial accrual national standards toward accrual-basis IPSAS or national standards explicitly aligned with IPSAS, in line with international best practice.

Current Status: Sustain

In accordance with Government Emergency Ordinance No. 75/1999 and the related regulatory framework, the Chamber of Financial Auditors of Romania (CAFR) is responsible for establishing and operating investigative and disciplinary (I&D) procedures for professional activities performed by its members other than statutory audits, including assurance engagements, agreed-upon procedures, and related services. The Statutory Audit Public Oversight Authority (ASPAAS), under Law No. 162/2017, is responsible for the I&D framework applicable to statutory auditors and audit firms in relation to statutory audit activities.

CAFR continues to maintain an operational I&D framework for activities within its professional remit. Its Disciplinary Commission is responsible for investigating and resolving violations relating to professional standards, ethical requirements, and continuing professional development obligations. Information from quality reviews, professional monitoring, and education compliance functions continues to feed into the disciplinary process.

CAFR also continues to make disciplinary information publicly available, including through its annual report and a dedicated section of its website, while complying with applicable data protection requirements. The relevant regulations governing the Disciplinary Commission are also publicly available.

In addition, CAFR continues to communicate developments in the jurisdiction’s I&D framework to members through professional publications, seminars, and multi-stakeholder roundtable discussions.

CAFR has conducted self-assessments of its I&D system against the Statement of Membership Obligations 6 benchmark and has identified areas for further strengthening, including the composition of the Disciplinary Commission and the formalization of procedures for liaison with external authorities and other relevant bodies.

These activities demonstrate that CAFR continues to maintain and improve an operational I&D system and to support alignment with jurisdiction-level enforcement mechanisms. However, given that certain components of Statement of Membership Obligations 6 best practices continue to require strengthening, fulfillment is assessed as Review & Improve.

CAFR should continue to strengthen its investigative and disciplinary framework, particularly in relation to disciplinary committee composition, liaison procedures with external enforcement bodies, and alignment with jurisdiction-level Statement of Membership Obligations 6 best practices, and should include clear actions and implementation timelines within its Action Plan.

Current Status: Review & Improve

Accounting standards in Romania are established under Accounting Law No. 82/1991, which designates the Ministry of Finance (MoF) as the national accounting standard-setter responsible for transposing European Union requirements relating to International Financial Reporting Standards (IFRS) Accounting Standards as adopted by the European Union into national law.

Listed companies in Romania are required to apply European Union-endorsed IFRS in their consolidated financial statements, and the framework also permits certain non-listed entities to apply IFRS in consolidated financial statements or Romanian Accounting Standards, as applicable.

Although the Chamber of Financial Auditors of Romania (CAFR) does not have direct responsibility for the legal adoption of IFRS at the jurisdiction level, it continues to play an active role in supporting implementation and high-quality financial reporting.

CAFR continues to support the Ministry of Finance and the broader financial reporting framework through its participation in national advisory and technical forums, including the Council for Accounting and Financial Reporting, which advises on the development and updating of Romanian Accounting Standards.

In addition, CAFR continues to strengthen the knowledge and technical competence of its members in the application of IFRS through training sessions, technical courses, and continuing professional development activities focused on new and revised standards.

CAFR also continues to inform members about proposed, new, and amended IFRS Accounting Standards and broader international reporting developments through professional publications, technical articles, and member communications, including its professional magazine and website.

These activities demonstrate CAFR’s continued use of best endeavors to support the implementation of IFRS Accounting Standards and high-quality financial reporting in the jurisdiction. Accordingly, fulfillment is assessed as Sustain.

Current Status: Sustain