Belgian situation for component auditors to make audit working papers available to principal auditors

9 mars 2011

Under UK law it is a legal requirement for component auditors to make audit working papers available to principal auditors. Is this also the case under Belgian law?

 

In response to the question, the ICCI confirms that there is no legal requirement in Belgium for component auditors to make audit working papers available to principal auditors.

 

Belgian auditors are bound by the rules of professional secrecy as stipulated by article 458 of the Belgian Criminal Code (Code Pénal).  Professional secrecy is an obligation imposed on all persons who obtain secret/confidential information because of their position or profession. Violation of this obligation is punishable by law.

 

Article 458 of the Belgian Criminal Code was made applicable to auditors through article 79 of the Belgian Law of 22 July 1953 creating an Institute of Company Auditors and organising the public supervision of the profession of company auditor, consolidated on 30 April 2007 ^([1]).

 

However, paragraph 2 of article 79 of this law stipulates that principal auditors and component auditors are relieved from their obligation of professional secrecy with respect to any communication (only between themselves) in connection with the audit of the consolidated financial statements by the principal auditor ^([2]). This relief from the professional secrecy obligation only applies between principal and component auditors established in the European Union.  A Belgian component auditor can under no circumstances be relieved from his professional secrecy towards any auditor established outside the European Union.

 

The fact that a Belgian component auditor is relieved from his professional secrecy as explained in the preceding paragraph entails by no means an obligation to make audit working papers available. The decision of making such working papers available (or not) is entirely left to the auditor. It is however recognized under Belgian auditing standards relating to audits of consolidated financial statements that it is good practice for a component auditor to fully cooperate with the principal auditor.

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^([2]) Article 79, § 2 of the law of 22 July 1953 stipulates: “Lorsqu’une personne morale établit des comptes consolidés, le commissaire de la personne morale consolidante et les commissaires des personnes morales consolidées sont, les uns à l’égard des autres, libérés du secret professionnel, dans le cadre du contrôle des comptes consolidés d’une entreprise dont ils sont chargés.  Cette disposition s’applique également à l’égard d’une personne exerçant dans une personne morale de droit d’un pays de l’Union européenne une fonction similaire à celle de commissaire. ».

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