PROFESSIONAL STANDARDS

The Act of 11 May 2017 on Statutory Auditors, Audit Firms and Public Oversight (the Act) provides that the profession of statutory auditor consists of performing financial audit activities, providing assurance services other than financial audit activities that are not reserved exclusively for statutory auditors, and providing related services, in accordance with national professional standards.

The Act defines national professional standards as:

a) national auditing standards,

b) national sustainability reporting assurance standards,

c) national review standards,

d) national standards for assurance services other than audits, sustainability reporting assurance and reviews,

e) national standards for related services.

National auditing standards mean either international auditing standards adopted into European Union law in the form of European Commission regulations or auditing standards adopted by the National Council of Statutory Auditors and approved by the Council of the Agency, insofar as they relate to audits of financial statements.

National sustainability reporting assurance standards mean either sustainability reporting assurance standards adopted into European Union law in the form of a European Commission regulation or sustainability reporting assurance standards adopted by the National Council of Statutory Auditors and approved by the Council of the Agency, insofar as they relate to sustainability reporting assurance.

National quality management standards mean either international quality management standards adopted into European Union law in the form of European Commission regulations or quality management principles adopted by the National Council of Statutory Auditors and approved by the Council of the Agency.

In Poland, the standards adopted by the National Council of Statutory Auditors (KRBR) and approved by the Council of the Agency apply. Pursuant to decisions of the KRBR, national standards are adopted in the wording of the corresponding international standards.

International standards, including the International Standards on Quality Management, International Standards on Auditing, International Standards on Review Engagements, International Standards on Assurance Engagements Other than Audits or Reviews of Historical Financial Information or Sustainability Assurance Engagements, International Standards on Sustainability Assurance, and International Standards on Related Services, are developed by the International Auditing and Assurance Standards Board (IAASB). They are subsequently translated into Polish and incorporated into the Polish legal framework by the KRBR.

International standards are updated and amended as necessary, based on needs identified by the IAASB, including through open public consultations. The form of all proposed amendments is also subject to public consultation. Following amendments to international standards, the KRBR incorporates them, as appropriate, into national standards by adopting resolutions amending the relevant national professional standards, which are subsequently approved by the Council of PANA.

In response to the specific needs of statutory auditors and audit firms arising from the Polish legal framework, certain standards have been developed from the ground up by Polish standard setters. This applies to the following standards:

• National Standard on Assurance Engagements Other than Audits and Reviews 3001PL – Audit of financial statements prepared in the European Single Electronic Format;
• National Standard on Sustainability Reporting Assurance Engagements 3002PL – Limited assurance engagement on sustainability reporting;
• National Standard on Related Services 4401PL – Agreed-upon procedures performed in connection with securities transactions requiring the preparation of a prospectus.