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Procedure of Auditing
The third part of the regulation defines how the audit will take
place. The decision to undertake an audit is at the discretion of the
Ministry and it is performed at the registered office of the company, at
the commercial enterprise, and if necessary at a branch office by the
audit personnel of the Ministry. If the technological infrastructure
of the company is significant and the auditing personnel does not deem
an audit at the registered office necessary, the investigation may be
conducted only on files after obtaining the approval of the Ministry.
The Ministry may take the auditing decision ex officio or upon request,
notice, or complaint by shareholders or third parties. However, separate
approval of the Ministry is required for expansion of the audit of
the audit personnel so as to include subsidiaries and affiliated
companies.
An auditor shall conduct the audit compliant to a certain proce-
dure. On the other hand, the audited entities are also imposed certain
obligations. One of these obligations is to facilitate the works auditors.
The second obligation is to make available in a timely manner to the
auditors all kinds of written or electronic documents, even if they are
confidential, upon requests during audit. The audited entities failing to
fulfill this requirement will be warned. If the requested documents do
not arrive on time or are incomplete, the Regulation refers to Article
562 (4) of the New TCC and concludes that such act will result in crim-
inal liability. The sanction in this case is a judicial fine not less than
three hundred days provided the act does not constitute another crime
requiring a higher sanction. Along with the audited entity, state institu-
tions and organizations, professional institutions in the form of public
entities, associations concerning public welfare, notaries, banks, insur-
ance companies and other real persons or legal entities shall provide
any and all documents requested for audit.
Techniques of Auditing
Techniques of auditing are not listed exhaustively in the
Regulation. Auditors decide on the utilization of advised techniques by
themselves, but this authority does not provide an unlimited right of
selection. It is essential to gather adequate evidence following the uti-
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NEWSLETTER 2012