Romanian Cos To Be Fined For Breaking Financial Audit Obligations – Draft

According to a draft ordinance by the Ministry of Finance, which amends the accounting law, the obligation to audit their yearly financial reports will be extended to: central depositories, system/market operators authorized by the National Securities Commission, state-owned companies and organizations managing non-refundable money received from European Union bodies.

Auditing is mandatory for banks, non-bank institutions recorded in the General Registry, insurance companies, brokers, collective investment administrators, pension funds, publicly traded companies, firms which are part of a group headquartered in Romania, required to apply International Financial Reporting Standards.

The draft proposes levying this obligation on Romanian subsidiaries of foreign firms, without legal status in Romania, and on parent companies that are required to draw up yearly consolidated financial reports, as per applicable accounting rules.

On the other hand, the Finance Ministry suggests eliminating statutory auditing in the case of the merger, division and liquidation of firms that are not required to regularly audit their financial results.