Article IV – of Act No. 504/2009 Coll.

	Act No. 540/2007 Coll. on Auditors, Audit and Oversight of the Audit Performance and on amendments and supplements to Act No. 431/2002 Coll. on Accounting, as amended, shall be amended as follows:

1.	In paragraph (14) of Article 2, the words “health insurance company” shall be inserted behind the words “reinsurance company” in the first sentence and the words “accounting entity which prepares consolidated financial statements pursuant to a separate regulation5a) shall be inserted behind the words “also includes” in the second sentence. 

Footnote to reference 5a shall have the wording as follows:
“5a) Article 22, paragraph (3) of Act No. 431/2002 Coll., as amended.”

2. Paragraph (16) shall be added to Article 2 in the wording as follows: 
“(16) The auditor’s code of ethics is an internal regulation issued by the Chamber of Auditors, which is in line with the Code of Ethics issued by the International Federation of Accountants (IFAC).”.

3. In Article 3, paragraph 5, the words “or a third country auditor” and the words “or a third country” shall be deleted.

4. In Article 3, new paragraph (6) shall be inserted behind paragraph (5) in the wording as follows:
“(6) Based on the principle of reciprocity, the Authority may permit an auditor from a third country who meets the conditions stipulated in paragraph (1)(a) and (b) to perform audit under this Act if the auditor:
a)	presents a valid certificate issued in a third country;
b)	presents a confirmation by the authority which issued the licence or an authority overseeing compliance with the condition of continuing training as a proof of the auditor’s participation in continuing training in the immediately preceding period,
c)	has passed an examination of professional competence referred to in Article 15.”.

Paragraphs (6) to (11) shall be renumbered into paragraphs (7) to (12).

5. In Article 3, paragraph (7) shall have the wording as follows:
“(7) The conditions stipulated in paragraph (1)(a) to (f), paragraph (5)(a) and (b) and paragraph (6)(a) and (b) must be met prior to filing an application for an auditor's examination or examination of professional competence.”.

6. In Article 4, paragraph 1(a), the words “Article 3, paragraph 1 or 5" shall be replaced by the words “Article 3, paragraphs 1, 5 or 6”.

7. In Article 5, paragraph (3), the words “application for registration” shall be replaced by “motion for the registration of data”.

8. In Article 8, paragraph 1(c), the following words shall be appended at the end: „or if they have failed to notify the Authority of having concluded an indemnity insurance contract until the obligation to notify has been met,”.

9. In Article 11, paragraph 2(f), the words “no later than” shall be inserted before the words “upon expiration”.

10. In Article 14, paragraph 2, letter (h) shall have the wording as follows: 
    “h) the Auditor’s Code of Ethics, “.

11. In Article 19, paragraph (2), letter (h), the words “to c)” shall be replaced by “to g), i) and j)”.

12. In Article 19, paragraph (3), the following words shall be inserted behind the words “financial statements” at the end: “in an accounting entity within which the auditor or audit firm perform audit”.

13. In Section 21, paragraph (7) shall have the wording as follows:
“(7) The fees for audit shall in no way be conditional upon, influenced or determined by
a) the provision of non-audit services, or
b) other facts which may compromise the independence, impartiality or quality of the audit performance.”.

14. In Article 24, paragraph (1), letter (a) shall have the wording as follows:
“a) information on the legal form and owners of the audit firm”.

15. In Article 24, paragraph 1, letter (i), the words “separately indicating revenue from services referred to in Article 2 paragraph 1 letter b)” shall be replaced by “revenue for the assurance services and the related audit services”.

16.  In Article 33, paragraph 8(b), the following words shall be appended at the end:  “the requirement of equivalence shall be deemed reasonable if the European Commission so decides”.

17. In Article 41, paragraph 2(f), the following words shall be appended at the end: “or if the auditor, audit firm or an assistant auditor breach the internal regulations of the Chamber of Auditors”.

18. In Article 49, paragraph (5) shall have the wording as follows:
“(5) Members of the Authority’s bodies, except for the Managing Director, shall be entitled to the reimbursement of expenses actually incurred and to compensation for the time spent in performing their duties as members of the Authority’s bodies. The details concerning the reimbursement of expenses and compensation for time shall be laid down in the statutes of the Authority.”.

19.  In Article 59, paragraph (1), letter (a) shall be deleted.

Letters (b) to (f) shall be renumbered into letters (a) to (e).

20. In Article 60, paragraph (1), letter (d), in the introductory sentence, the words “from the relevant list” shall be inserted behind the word “deletion”.

21. In Article 63, paragraph (2), the following sentence shall be appended at the end: “In the respective budgetary year, the contribution referred to in paragraph 1(a) shall be drawn independently of the disbursements under paragraph 1(b) to (g).”.

22. The words “Code of Ethics” in all their forms throughout the text of the Act, except for Article 3, paragraph 12, shall be replaced by the words “Auditor’s Code of Ethics” in the appropriate grammatical form, and the words “Article 3, paragraphs (7) to (9)” shall be replaced by the words “Article 3, paragraphs (8) to (10)” throughout the text of the Act.