The Czech Republic is preparing to implement into Czech law the amended ES 2006/43 regulation. Beside the new regulation regarding companies trading on the stock market, which came into effect last year, it is preparing an amendment to audit law that should influence public interest entities as well as the profession of auditors.
Continuous harmonization of Czech legislation with European legislation poses other calls on reinforcement of internal control mechanisms and corporate governance within public interest entities. "The credibility and financial stability of a company does not only apply to financial ratios calculated at certain historical date, but also to the reliability and efficiency of the internal processes, the internal controls and the quality of the corporate governance of the company as a whole," states Jana Švenková, partner of the audit and advisory firm Mazars.
The last events around the world and in the Czech Republic, especially newly disclosed embezzlements and frauds within companies show the importance of management and control of firms. The newly prepared amendment to audit law should oblige public interest entities to set up an auditors’ committee. Its role should consist, among other things, to assess the efficiency of internal controls and the management of risk system.
About how much attention do managers of the biggest Czech and Slovak companies dedicate to this area? And how reliable are the internal controls within these firms? Mazars will present the collected answers in June 2008, when the results from its specialized study in Czech Republic and Slovakia is published.
Contact information:
Jana Švenková, Mazars
tel.: +420 224 835 730
e-mail: jana.svenkova@mazars.cz