An activity licence must be applied for if you wish to operate in the field of auditing activities. In Estonia, the professional service of a sworn auditor may be provided only by an audit firm. An audit firm is a sworn auditors’ firm or a sworn auditor operating as a sole proprietor.
Legal bases
Auditing activities are regulated by the Auditors Activities Act.
Requirements for applicants
In order to obtain an activity licence, you must comply with the following requirements:
- A sworn auditor shall comply with the bases of professional ethics provided for in the standards for professional practice of a sworn auditor.
- A sworn auditor and an applicant for the qualification of a sworn auditor shall be of good repute and reliable.
- The repute or reliability of a sworn auditor or of an applicant for the qualification of a sworn auditor shall in any case be deemed to be damaged in the case of a person:
- concerning whom it becomes evident from information held in the punishment register that in respect of him or her a conviction for an intentionally committed criminal offence has entered into force;
- who is a bankrupt or who is subject to the prohibition on business or who has been deprived of the right to be an entrepreneur pursuant to law;
- whose previous unlawful act or omission has resulted in the bankruptcy, compulsory dissolution, or revocation of the activity licence of a company and less than three years have passed from the declaration of bankruptcy or appointment of liquidators by the court in the case of compulsory dissolution or revocation of the activity licence or information concerning the punishment has not been expunged from the punishment register pursuant to the Punishment Register Act.
Cross-border operation
If an audit firm holds a valid activity licence in another contracting state, the person entitled to represent the audit firm shall submit an application to the Oversight Board with the data specified in subsection 79 (1) of the Auditors Activities Act, to which is added a certificate issued by a competent authority of another Contracting State, which may not be older than three months and which confirms that the applicant holds a valid activity licence of that Contracting State.
Processing the application
If, upon application for an activity licence, an audit firm submits false information or fails to submit all the required information and documents or the copies thereof, the Oversight Board has the right to request that the applicant for the activity licence eliminate the deficiencies.
The Oversight Board may request the submission of additional information, documents, or the copies thereof if additional data is to be obtained or if other circumstances relating to the audit firm applying for an activity licence need to be verified.
The Oversight Board may refuse to review the application for an activity licence if the audit firm applying for an activity licence has failed to eliminate the deficiencies within the prescribed term or has failed to submit the requested information, documents, or the copies thereof by the end of the term.
Filling in and submitting an application
In order to obtain an activity licence for an audit firm, a person entitled to represent who is entered in the memorandum of association of an audit firm being founded or operating or entered in the registry card of the commercial register shall submit an application to the Oversight Board through the Auditors Activities Register together with the following documents and information:
- a copy of the valid articles of association;
- a list of the shareholders of the audit firm which sets out the registry code or personal identification code of each shareholder or, in the absence thereof, the date of birth and information on the number of shares and votes of each shareholder;
- information on the members of the management board of the audit firm and managing partners of a general or limited partnership, including, for each person, the name and surname, personal identification code or, in the absence thereof, date of birth, place of residence, a complete list of places of employment and posts held and, for the members of the management board and managing partners of a general or limited partnership, a description of their areas of responsibility;
- in the case of an audit firm being founded, a copy of a notarised transcript of the memorandum of association or foundation resolution or partnership agreement.
You can submit an application electronically through the register of auditing activities (authentication is needed) or digitally signed via e-mail at [email protected].
There is no state fee.
Suspension of the operating licence and renouncement of economic activity
If you wish to suspend or terminate your activity as an audit firm, submit a respective application electronically via the register of auditing activities. After submission of the application, the Auditing Activities Oversight Board shall review the application and either revoke the activity licence or request further information from you, if necessary.
Revocation of an activity licence
An activity licence can be revoked by the Auditing Activities Oversight Board.
The Oversight Board may revoke an activity licence based on the conditions listed in section § 87 of the Auditors Activities Act.
If quality control, disciplinary proceeding, proceeding concerning a complaint, misdemeanour proceeding, or investigation has been initiated with regard to an audit firm or a sworn auditor related thereto, the decision concerning the revocation of the activity licence may be made after the termination of the corresponding proceeding.
Before deciding on the revocation of a licence, the Oversight Board grants an opportunity to the audit firm or the representative thereof to be heard.
Supervision
Oversight over the auditing activities is carried out by the Auditing Activities Oversight Board.
Contact details
Substantive information
Marika Taal, Ministry of Finance, e-mail: [email protected]
Registry information and technical questions