The HAASOB has structured the framework and the quality inspections program aiming to protect the public interest. This procedure is based on specific criteria that concern both the frequency and the methodology of selecting the audited entities.
As to the frequency of conducting quality inspections, the selection criteria for audit firms and / or statutory auditors as defined by Article 39 of Law 3693/2008 are the following:
- At least every three years for audited entities that perform statutory audits on public interest entities (PIES) and
- At least every six years, for audited entities that do not perform statutory audits on public interest entities (non PIES) and
As to the selection criteria of each file, the HAASOB takes the following parameters under consideration:
1) The degree of risk concentration for the public interest in an audited entity. To estimate the concentration of risk the number and /or capitalization of public interest entities that the audited entity audits is taken into account.
2) The degree of risk concentration for the public interest, depending on the market conditions and the entities of public interest that the audited entity audits.
3) The potential of setting the independence of the entity audited at stake because of possible concentration of the income resources of the audited entities to a limited number.
4) Critical accounting and auditing issues.
5) Violations and findings of the inspections noted that the HAASOB has already performed in the past.
6) Recommendations and suggestions to audit firms and statutory auditors after inspections that HAASOB has already performed.
7) Complaints and reports that have been submitted to the HAASOB.
8) Preliminary investigations ordered by prosecutors and judicial authorities.
9) Cases of abnormally low wages, observed from the submitted information in relation to the size of the audited entities.
Quality inspections contain:
a) The assessment of the planning of the internal inspections system that the audited entity is required to maintain, in accordance with Article 24 par. 2 of Law. 3693/2008 and the International Standard on Quality Control 1 (ISQC-1) and the control of effective compliance.
b) The evaluation of the audit work of the statutory auditors that the audited entity undertakes, in accordance with the applicable auditing standards and legislation.
c) The evaluation of the content of the latest Transparency Report, which the audited entity has published in connection with the information specified in article 36 of Law 3693/2008 as regards the minimum content of the Transparency Report.
d) In addition to the above, the content of inspections can also be to evaluate the adequacy of the measures and procedures, that the statutory auditors and audit firms have adopted on the basis of Anti-Money Laundering, Counter-Terrorist Financing, in accordance with the provisions of the existent legislation and no. 004/2009 Regulatory Act of HAASOB, as applicable.