540

ACT
of 25 October 2007

on Auditors, Audit and Oversight of the Audit Performance, and on amendments and supplements to Act 431/2002 Coll. on Accounting as amended

The National Council of the Slovak Republic has passed the following Act:

Section I
PART ONE
bASIC PROVISIONS
Article 1
Subject of regulation
This Act regulates:
a)	the terms and conditions for performance of audit;
b)	the status and activities of auditors, audit firms, and assistant auditors; 
c)	the oversight of the performance of audit (hereafter referred to as "Oversight");
d)	powers of the Slovak Chamber of Auditors (hereafter referred to as the "Chamber of Auditors");
e)	the establishment and powers of the Oversight Authority for Audit Performance (hereafter referred to as the "Authority").
Article 2
Definitions
(1)	Audit means a review of individual financial statements or consolidated financial statements and a review of consistency of an individual annual report with individual financial statements or consistency of a consolidated annual report with consolidated financial statements;)
(2)	Auditor means a natural person who is registered in the register of auditors maintained by the Authority and has an authorization to perform audits (hereafter referred to as a "license"), except for an auditor referred to in Article 6.
(3)	Audit firm means a legal entity, regardless of its legal form, which is registered in the register of audit firms maintained by the Authority and has a license, except for an audit firm referred to in Article 6. 
(4)	Assistant auditor is a natural person entered in the list of assistant auditors maintained by the Chamber of Auditors. 
(5)	 EU auditor means a natural person who has a license and is registered in the register of auditors in another member state of the European Union or a state that is a party to the Agreement on the European Economic Area (hereafter referred to as a "member state").
(6)	An audit firm of a member state means a legal entity or another entity, regardless of its legal form, that has a license and is registered in the register of audit firms in another member state.
(7)	A third country auditor means a natural person who owns a License and is entered on the List of Auditors in a state other than a member state.
(8)	A third country audit firm means a legal entity or another entity, regardless of its legal form, that has a license and is registered in the register of audit firms in a state other than a member state.
(9)	Auditor of a consolidated group) means an auditor or an audit firm carrying out an audit of consolidated financial statements and a review of consistency of a consolidated annual report with consolidated financial statements).
(10)	Network means a group of auditors and audit firms aimed at cooperation and to which an auditor or an audit firm belongs, and 
a)	which is clearly aimed at profit- or cost-sharing; or
b)	has common ownership, has control or management, common quality-control policies and procedures, a common business strategy, the use of a common brand-name or a significant part of professional resources.
(11)	Affiliate of an audit firm means any company, regardless of its legal form, which is connected to an audit firm by means of common ownership, control or management. 
(12)	Key audit partner means an auditor designated by an audit firm to carry out a particular audit, who is primarily responsible for carrying out the audit on behalf of the audit firm at the level of the consolidated group or at the level of material subsidiary accounting entities). A key audit partner shall also be the auditor who signs the auditor's report.
(13)	Entity subject to oversight means: 
a)	an auditor and an audit firm;
b)	a third-country auditor and a third-country audit firm registered according to Article 6;
c)	the Chamber of Auditors.

(14)	Public-interest entity means an accounting entity that has issued securities that were permitted to be traded on a regulated market of any member state, the National Bank of Slovakia, a bank, branch of a foreign bank, the Export-Import Bank of the Slovak Republic, an insurance company, branch of a foreign insurance company, a reinsurance company, branch of a foreign reinsurance company, asset management company, branch of a foreign asset management company, pension management company, supplementary pension insurance company, the Stock Exchange, the Central Depository of Securities, the Railroads of the Slovak Republic, and commercial companies that satisfy the conditions laid down in special legislation). A public-interest entity also includes a security trader and a branch of a foreign security trader if they decide to prepare their financial statements according to special legislation).
(15)	
Assurance and related audit services mean the provision of services in accordance with the International audit, assurance services and ethics (hereafter “International Auditing Standards”). Assurance and related audit services can be provided by the Auditor and the Audit Firm. Article 31 shall apply to the assurance and related audit services accordingly. 

PART TWO
Auditor, Audit Firm, and Assistant auditor
Article 3
Terms and Conditions for Audit performance
(1)	Audit performance is conditioned upon holding a certificate of competence to perform an audit (hereafter referred to as a "Certificate") issued by the Authority to a natural person who:
a)	has full legal capacity;
b)	has a good reputation;
c)	has a second-level university degree;
d)	has at least five years of professional experience in accounting;
e)	has participated in continuing education for an assistant auditor;
f)	has submitted to the Authority officially certified copies of certificates and licenses from other member states and third countries that the individual holds, including the name and registration number of the authority that has issued them;
g)	has passed an auditor's examination referred to in Article 14.
(2)	During the execution of professional service pursuant to paragraph 1 letter d), a natural person must complete a minimum of three years’ practical training focused on audit of no less than 3,000 hours, two-thirds of which should be with an auditor or an audit firm that is registered in the register of auditors or the register of audit firms (hereafter referred to as “Relevant register”), with an EU auditor or an audit firm of another member state.
(3)	The period during which the extent of the practical training referred to in paragraph 2 may last is a maximum of six years, including the interruption of practice according to Article 12 paragraph 6. 
(4)	An assistant auditor shall take part in practical training under the supervision of a trainer who: 
a)	performs the activities of an auditor as his main activity throughout the year;
b)	has at least three years of practical experience in the audit profession;
c)	has a good reputation;
d)	has not been subject to disciplinary measures pursuant to Article 44 paragraph 1 and sanctions pursuant to Article 60;
e)	has fulfilled his liabilities towards the Chamber of Auditors. 
(5)	The Authority shall also issue a certificate to an EU auditor or a third-country auditor who satisfies the conditions referred to in paragraph 1 letter a) and letter b) if:
a)	they present a valid certificate issued in another member state or a third country; 
b)	they present confirmation from the authority that has issued the license or the authority overseeing the fulfilment of the condition of continuing education as proof of their participation in continuing education in the immediately preceding period;
c)	has passed an examination of professional competence referred to in Article 15.
(6)	The conditions referred to in paragraph 1 letter a) to f) and paragraph 5 letter a) and b) must be met before filing an application for an auditor's examination or examination of professional competence. 
(7)	For the purpose of this Act, a natural person shall be considered to have a good reputation if he:
a)	has a clean criminal record;
b)	is not in arrears with the payment of health insurance and social insurance contributions for himself and his employees, which he shall prove on the basis of a confirmation from the social insurance company and health insurance companies; the confirmation must not be older than three months;
c)	is not in arrears with the payment of tax, which he shall prove on the basis of confirmation, which must not be older than three months, from the competent tax authority and the tax administrator represented by the municipality; 
d)	did not breach the prohibition of illegal employment according to special legislation) during the preceding five years, which he shall prove on the basis of confirmation from the competent labour inspectorate;
e)	did not breach the obligations related to audit performance or no sanction was imposed on him according to special legislation) during the preceding five years.
(8)	For the purpose of this Act, a person with a clean criminal record shall be one who has not been sentenced for an intentional criminal act. 
(9)	A clean criminal record shall be proved on the basis of an extract from criminal records) that must not be older than three months. If the competent authorities of member states and third countries do not issue such documents, an extract from criminal records shall be substituted by a confirmation issued by the competent oversight authority. 
(10)	Documents issued in a foreign language must be submitted to the Authority in the form of a notarized translation into the official language).
(11)	A natural person who meets the requirements for receiving a certificate shall swear an oath to the chairperson of the Authority Board in the following wording: "I agree to comply with the Constitution of the Slovak Republic and with other generally binding regulations and the International Auditing Standards, to duly fulfil my obligations as an Auditor, and to keep confidential all matters that come into my possession during audit activities and to comply with the Ethical Code for Auditors ".
Article 4
Conditions for Registration in the Register of Auditors
1)	The Authority shall enter in the register of auditors, within two months after the receipt of a written application, a person who:
a)	has a certificate referred to in Article 3 paragraph 1 or 5; 
b)	has sworn the oath;
c)	has not been deleted from the register of auditors in the past or the time limit specified in Article 11 paragraph 8 has expired;
d)	has paid to the Authority a registration fee for registration in the register of auditors.
2)	The Authority shall not enter in the register of auditors an auditor who has been deleted from the register of auditors for the reason specified in Article 11 paragraph 3 letter d), e) or h), even after the expiration of the time limit specified in Article 11 paragraph 8. 
Article 5
Conditions for Registration in the Register of Audit Firms
(1)	The Authority shall enter in the register of audit firms, within two months of the receipt of a written application, a legal entity:
a)	in which a majority of voting rights is held by auditors who meet at least the conditions set out in Article 3 paragraph 1 and 2 or audit firms registered in the relevant register maintained by the Authority or the competent authority of another member state;
b)	in which a majority of the members of the statutory body of the audit firm are auditors who comply at least with conditions of Article 3 paragraph 1 and 2 and who are registered in the register of auditors maintained by the Authority or the competent authority of another member state; if the audit firm has two members of the statutory body, at least one of them must be an auditor registered in the register of auditors;
c)	which has paid to the Authority a registration fee for the registration in the register of audit firms;
d)	in which individuals who perform audits in the name of an audit firm and are registered in the register of auditors maintained by the Authority or the competent authority of another member state, satisfy at least the requirements specified in Article 3 paragraph 1 and 2;
e)	which has a good reputation.
(2)	For the purpose of this Act, an audit firm has a good reputation if:
a)	any member of its statutory body has a clean criminal record; which shall be proved on the basis of an extract from criminal records9) that must not be older than three months; 
b)	it is not in arrears with the payment of health insurance and social insurance contributions for its employees, which shall be proved on the basis of confirmation from the Social Insurance Company and health insurance companies; the confirmation must not be older than three months;
c)	it is not in arrears with the payment of tax, which shall be proved on the basis of confirmation, which must not be older than three months, from the competent tax authority and the tax administrator being the municipality;
d)	did not breach the prohibition of illegal employment according to special legislation7) during the preceding five years, which it shall prove on the basis of confirmation from the competent labour inspectorate;
e)	did not breach the obligations related to the performance of audit or no sanction was imposed on it according to special legislation8) during the preceding five years.
(3)	A legal entity's application for registration in the register of audit firms must be accompanied by the articles of association or memorandum of association, the statutes if issued by the company, and an extract from the Commercial Register if the entity is registered in the Commercial Register at the date of the application, or an application for registration in the Commercial Register; the originals or notarized copies of these documents must be submitted.
(4)	Documents issued in a foreign language must be submitted to the Authority in the form of an official translation into the official state language.
(5)	The Authority shall not enter in the register of audit firms an audit firm that has been deleted from the register of audit firms for the reason specified in Article 11 paragraph 3 letter e) or h) even after the expiration of the time limit specified in Article 11 paragraph 9.
(6)	The Authority shall not enter in the register of audit firms an audit firm in which any member of the management body is an auditor who has been a member of the management body of an audit firm deleted from the register of audit firms according to Article 11 paragraph 3 letter e) or h).
(7)	The Authority shall not enter in the register of audit firms an audit firm in which any member of the management body is a natural person who has been deleted from the register of auditors according to Article 11 paragraph 3 letter d), e) or h).
Article 6
Registration of Third-Country Auditors and Third-Country Audit Firms
(1)	The Authority shall also register in the relevant register a third-country auditor and a third-country audit firm if: 
a)	they submit an auditor's report concerning the financial statements of an accounting entity registered outside the territory of member states, whose transferable securities are permitted to be traded on a regulated market) in the Slovak Republic, except when the accounting entity is an issuer exclusively of debt securities permitted to be traded on a regulated market in the Slovak Republic, the nominal value of which is at least EUR 50,000 per unit or, in case of debt securities denominated in another currency, equivalent, as of the date of issue, to at least EUR 50,000 per unit; an auditor's report concerning financial statements that has been issued by a third-country auditor or a third-country audit firm that is not registered in the relevant register has no legal effect in the Slovak Republic;
b)	they meet requirements that are equivalent to those laid down in Article 3 paragraph 1 and 2 or Article 5 paragraph 1;
c)	the majority of the members of the statutory body of the third-country audit firm meet requirements that are equivalent to those laid down in Article 3 paragraph 1 and 2;
d)	the third-country auditor carrying out the audit on behalf of the third-country audit firm meets requirements that are equivalent to those laid down in Article 3 paragraph 1 and 2 and Article 19;
e)	the audit of the accounting entity referred to in letter a) was performed in accordance with International Auditing Standards and the requirements laid down in Article 19 and Article 21 paragraph 7;
f)	they have published on their website a transparency report for the preceding accounting period, which contains information that is equivalent to that included in the transparency report referred to in Article 24. 
(2)	The Authority shall not register in the relevant register a third-country auditor or a third-country audit firm, unless they prove that they publish a transparency report referred to in paragraph 1 letter f) on their website on an annual basis. 
(3)	The information provided by a third-country auditor or a third-country audit firm according to paragraph 1 shall be signed by the auditor or a statutory representative of the audit firm. If this information is provided in electronic form, an electronic signature must be used.) 
(4)	A third-country auditor and a third-country audit firm are required to notify the Authority without undue delay, within one month at the latest, of any change or expiration of information referred to in paragraph 1.
(5)	A third-country auditor and a third-country audit firm registered according to paragraph 1 shall not be subject to an audit quality assurance review referred to in Article 31 if the system of audit quality assurance reviews in that country has been recognized by the European Commission as being equivalent and the competent authority of the third country or another member state has carried out a quality review of the auditor or audit firm concerned, during the previous three years. 
(6)	A third-country auditor and a third-country audit firm registered according to paragraph 1 shall not be subject to oversight referred to in Article 32 and sanctions referred to in Article 60 if they are included in the system of oversight and disciplinary liability in that third country and this system has been recognized by the European Commission as being equivalent. 
Article 7
License
(1)	The Authority shall issue a license to an auditor as of the date of his/its registration in the register of auditors.
(2)	The Authority shall issue a license to an audit firm as of the date of its registration in the register of audit firms.
(3)	 As of the date of registration in the register of auditors, an auditor shall be entitled to use the designation "certified auditor" and the abbreviation "CA" to describe his profession. 
Article 8
Suspension of a License
(1)	The Authority shall suspend the license of an auditor and an audit firm: 
a)	at their own request; 
b)	if they have carried out an audit in contradiction with the license issued or this Act;
c)	if they have failed to fulfil the obligation to conclude an indemnity insurance contract pursuant to Article 25 paragraph 4; until the date of its conclusion;
d)	if proceedings concerning the restriction or termination of their legal capacity have been initiated against them; until the legally valid termination of the proceedings;
e)	if criminal proceedings for an intentional criminal act have been initiated against them; until the legally valid termination of the proceedings; or
f)	if a sanction has been imposed on them according to Article 60 paragraph 1 letter c); as of the effective date of the decision on the imposition of the sanction. 
(2)	The Authority shall record the suspension of a license in the relevant register without undue delay, at the latest within one month of the date on which it learnt about any fact referred to in paragraph 1. The Authority shall notify about this all parties concerned in writing, without undue delay, however no later than within one month after the execution date.
(3)	The suspension of a license shall expire upon the expiration of the period for which the license has been suspended. 
(4)	After the suspension of the license, the auditor or the audit firm is required to deposit its license with the Authority without undue delay, within one month at the latest. The Authority shall return the license to an auditor after the auditor proves the fulfilment of the requirements specified in paragraph 8 or 9. The Authority shall return the license to an audit firm if it proves that the reason for which its license has been suspended has been removed. 
(5)	During the period of suspension of the license:
a)	the auditor and the audit firm are not allowed to carry out audits;
b)	the membership of the auditor and the audit firm in the Chamber of Auditors shall not expire;
c)	the obligation of the auditor and the audit firm to pay contributions to the Chamber of Auditors shall not be affected; 
d)	the auditor's obligation concerning continuing education referred to in Article 29 shall not be affected;
e)	the obligation of the auditor and the audit firm to maintain confidentiality according to Article 30 shall not be affected;
f)	the disciplinary liability of the auditor and the audit firm referred to in Article 44 shall not be affected; and
g)	the auditor and the audit firm shall be subject to sanctions specified in Article 60.
(6)	If the license of an auditor or an audit firm has been suspended in accordance with paragraph 1 letter b) to f) in another member state or a third country, the Authority shall suspend their license issued according to Article 7 without undue delay, within one month after the date when the Authority learnt about the suspension, at the latest. 
(7)	The Authority shall inform the competent authority of the other member state or the third country in which the license has been issued to the Auditor or the Audit firm about the suspension of the license according to paragraph 1 and the expiration of the suspension. 
(8)	If the license has been suspended for a period exceeding three years, the auditor is required, based on his written request, except as provided in paragraph 9, to undergo a test organized by the Authority based on the Auditor’s application. The test shall be performed in writing. If an auditor fails the test, he may take the test again on the basis of a written application. Only the part of the test in which the auditor has failed shall be taken again. If the auditor does not successfully pass the test on the nearest subsequent date, the entire test must be repeated. 
(9)	An auditor whose license has been suspended on the basis of his own request does not have to undergo a test if he proves that he has participated in continuing education referred to in Article 29 paragraph 6 during the suspension of the license. 
(10)	A fee, the amount being specified in the rules of examination procedure, shall be payable by the Auditor to the Authority for the test and for retaking the test.
Article 9 
Register of Auditors
(1)	The register of auditors is a publicly accessible register maintained by the Authority, which contains a set of information on auditors. The register may be consulted in the seat of the Authority or on the Authority's website. 
(2)	The register of auditors shall contain the following:
a)	the name and seat of the Authority; 
b)	the name and seat of the Chamber of Auditors; 
c)	the name, surname, and permanent residence of the auditor;
d)	the place of business if the auditor performs audits in his own name and at his own account; 
e)	the date of completion of an auditor's examination or an examination of professional competence and the date of issuance of the certificate and its number; 
f)	the date of the test referred to in Article 8 paragraph 8 and its result;
g)	the date of registration in the register of auditors and the license number;
h)	a list of all certificates and licenses issued to the auditor in another member state and a third country, including their registration numbers and the name of the issuing authority;
i)	the identification number and the website address of the audit firm in which the auditor is a shareholder, statutory body or employee or with which the auditor is associated otherwise;
j)	the date and reasons for the suspension of a license, the date and reasons for suspending the license, and the date the license was restored;
k)	a record of a disciplinary measure pursuant to Article 44 and a sanction pursuant to Article 60 being imposed.
(3)	The Authority shall enter a change or expiration of information referred to in paragraph 2 in the register of auditors without undue delay, within one month after the date on which it learnt about it, at the latest. 
(4)	In the register of auditors, the Authority shall specifically indicate third-country auditors registered pursuant to Article 6 who are not authorized to carry out audits according to this Act. 
(5)	Information in the register of auditors shall be kept in the official language. 
Article 10
Register of Audit Firms
(1)	The register of audit firms is a publicly accessible register maintained by the Authority, which contains information about audit firms. The register may be consulted in the seat of the Authority or on the Authority's website.
(2)	The register of audit firms shall contain the following:
a)	the name and seat of the Authority; 
b)	the name and seat of the Chamber of Auditors; 
c)	the business name, registered office, website address, identification number, and contact person of the audit firm; 
d)	the legal form of the audit firm;
e)	the address of each office of the audit firm in the member state;
f)	the date of registration in the register of audit firms and the license number;
g)	a list of all licenses issued to the audit firm in another member state and a third country, including their registration numbers and the name of the issuing authority;
h)	the audit firm's membership in a network and a list of all entities included in the network and affiliated audit firms and their registered offices or an indication of the place where such information is publicly available;
i)	the names, surnames, and permanent residences of auditors employed by the audit firm or being the shareholders in or otherwise associated with the audit firm, including the numbers of their certificates and licenses; 
j)	the names, surnames, and permanent residences, business names and seats of all owners and shareholders of the audit firm; 
k)	the names, surnames, and permanent residences of the members of the statutory body, management body, or supervisory body of the audit firm;
l)	the date and reasons for the suspension of a license, the date and reasons for suspending the license, and the date the license was given back; and 
m)	a record of a disciplinary measure pursuant to Article 44 and a sanction pursuant to Article 60 being imposed.
(3)	The Authority shall enter a change or expiration of information referred to in paragraph 2 in the register of audit firms without undue delay, within one month after the date on which it learnt about it, at the latest. 
(4)	In the register of audit firms, the Authority shall specifically indicate third-country audit firms registered according to Article 6 that are not authorized to carry out audits according to this Act.
(5)	Information in the register of audit firms shall be kept in the official language. 
Article 11
Revocation of a License and Deletion From the Relevant Register
(1)	A license shall be revoked at the date of deletion of an auditor or audit firm from the relevant register.
(2)	The Authority shall delete from the relevant register a person:
a)	who has died; at the date of death;
b)	who has been pronounced legally dead; at the effective date of the court's decision on the pronouncement of the death;
c)	who has been legally incapacitated or whose capacity to perform legal acts has been restricted; at the effective date of the court's decision on the legal incapacitation or at the effective date of the court's decision on restriction of legal capacity; 
d)	on whom a sanction has been imposed according to Article 60 paragraph 1 letter d); at the effective date of the decision on the imposing this sanction;
e)	against whose assets bankruptcy has been declared, restructuring has been permitted, or a bankruptcy petition has been rejected due to insufficient assets for the payment of bankruptcy expenses; at the effective date of the decision on declaration of bankruptcy, permission of restructuring, or rejection of the bankruptcy petition;
f)	who has submitted to the Authority a written application with the notarized signature for deletion from the relevant register; upon expiration of the calendar month following that in which the application for deletion from the relevant register was delivered to the Authority;
g)	on whom a prohibition of activity) consisting of the prohibition from carrying out audits has been imposed; at the effective date of the court's decision imposing this punishment;
h)	who is subject to liquidation; at the date of entry into liquidation.
(3)	The Authority shall also delete from the relevant register: 
a)	an audit firm that has been wound up without liquidation according to special legislation); this shall not apply in the instance of a change of the legal form of an audit firm; 
b)	an audit firm that has ceased to meet the requirements specified in Article 5 paragraph 1 if the audit firm fails to comply with Article 5 paragraph 1 within six months;
c)	an auditor who has ceased to meet the requirements specified in Article 19 paragraph 2 and 3 if the auditor fails to comply with Article 19 paragraph 2 and 3 within six months;
d)	an auditor who has been validly sentenced for an intentional criminal act; as of the effective date of the ruling;
e)	a person who has misused information obtained with respect to the execution of audit; 
f)	an auditor whose license has been suspended and who has not successfully passed the test referred to in Article 8 paragraph 8; 
g)	an auditor or an audit firm that carries out audits of public-interest entities unless they prove that they publish a transparency report referred to in Article 24 on their website on an annual basis;
h)	an auditor or an audit firm whose good repute has been doubted, unless they remove these doubts within six months;
i)	an auditor if any of the requirements laid down in Article 4 paragraph 1 letter a) to c) has not been fulfilled. 
(4)	The Authority shall also decide on the deletion of an auditor or an audit firm from the relevant register if: 
a)	they have failed to remove within the specified time limit the deficiencies due to which their license has been suspended in accordance with Article 60;
b)	they carried out an audit during the period of suspension of the license;
c)	their license has been revoked in another member state or a third country due to a breach of discipline. 
(5)	The Authority shall record the deletion from the relevant register without undue delay, within one month after the decision on deletion from the relevant register becomes legally valid, at the latest. 
(6)	 The Authority shall notify in writing the person concerned without undue delay, at the latest within one month after the record was made according to paragraph 5. At the same time, the Authority shall inform the competent authorities of other member states and third countries, in which a license has been issued to the auditor, of the deletion from the relevant register and the reasons for the deletion.
(7)	After being deleted from the relevant register, the auditor or the audit firm are required to hand over their license to the Authority without undue delay, at the latest within one month after the date of notification. The auditor is also required to hand over his certificate to the Authority.
(8)	An auditor, except for an auditor referred to in paragraph 3 letter d), e) or h), may be reentered in the register of auditors on the basis of a written application after the fulfilment of the requirements specified in Article 3 paragraph 1, at the earliest after the expiration of three years of the date on which the auditor was deleted from the register of auditors. 
(9)	An audit firm, except for an audit firm referred to in paragraph 3 letter e) or h), may be reentered in the register of audit firms on the basis of a written application after the fulfilment of the requirements specified in Article 5 paragraph 1, at the earliest after the expiration of three years of the date on which the audit firm was deleted from the register of audit firms. 
Article 12
List of Assistant Auditors
(1)	Based on a written application, the Chamber of Auditors shall register in the list of assistant auditors any natural person, except for one specified in Article 13 paragraph 1 letter d) and e), who:
a)	has full legal capacity;
b)	has a good reputation as referred to in Article 3 paragraph 7 to 9;
c)	has a second-level university degree;
d)	meets the condition regarding the expiration of three years after a disciplinary measure referred to in Article 44 paragraph 1 letter c) was imposed on him;
e)	has successfully passed an entry test designated to examine the professional level of the applicant's theoretical knowledge before a commission appointed by the Chamber of Auditors. 
(2)	The Chamber of Auditors shall determine the extent and content of an entry test, details regarding the submission of an application for taking an entry test, the amount of the fee, and the method of evaluation of the entry test and a non-attendance at an entry test.
(3)	The Chamber of Auditors shall make an entry in the list of assistant auditors without undue delay, at the latest within one month after the fulfilment of the requirements specified in paragraph 1. 
(4)	The Chamber of Auditors shall issue to the assistant auditors a confirmation of their registration in the list of assistant auditors.
(5)	An assistant auditor is entitled to perform all acts to which he is authorized by the auditor, except for signing the auditor's report pursuant to Article 23.
(6)	An assistant auditor may request the Chamber of Auditors in writing to suspend his practical training as assistant auditor for a period of up to three years. 
(7)	The list of assistant auditors shall contain the following:
a)	the name, surname and permanent residence of the assistant auditor; 
b)	the name, surname and permanent residence of the assistant auditor or the business name and registered seat of the audit firm in which the assistant auditor gets practical training as assistant auditor;
c)	the date of taking the entry test;
d)	the name, surname and permanent residence of the trainer pursuant to Article 3 paragraph 4;
e)	a record of permission of interruption of practical training as assistant auditor;
f)	a record of a disciplinary measure pursuant to Article 44 being taken.
(8)	The Chamber of Auditors shall make a record of any registered information that has been changed or has ceased to exist in the list of assistant auditor without undue delay, at the latest within one month after the date on which it became aware of it. An assistant auditor is required to inform the Chamber of Auditors without undue delay, within one month at the latest, of any registered information that has been changed or has ceased to exist.
(9)	Information entered in the list of assistant auditors shall be publicly available in the seat of the Chamber of Auditors or on its website. 
(10)	An assistant auditor, except for an assistant auditor referred to in Article 13 paragraph 1 letter d) and e), may be re-entered in the list of assistant auditor on the basis of a written application after the fulfilment of the requirements specified in paragraph 1, however, at the earliest after the expiration of three years after the date on which the assistant auditor was deleted from the list of assistant auditors.
Article 13
Deletion From the List of Assistant Auditors
(1)	The Chamber of Auditors shall delete from the list of assistant auditors a person:
a)	who has died; as of the date of death;
b)	who has been pronounced legally dead; at the effective date of the court's decision on the pronouncement of the death;
c)	who has been legally incapacitated or whose capacity to perform legal acts has been restricted; at the effective date of the court's decision on the legal incapacitation or at the effective date of the court's decision on restriction of legal capacity;
d)	who has been validly sentenced for an intentional criminal act; at the effective date of the court's decision;
e)	who has misused information related to the execution of audit, which has been obtain during the performance of practical training as assistant auditor;
f)	on whom a disciplinary measure referred to in Article 44 has been imposed; on the effective date of the decision on the imposition of the measure;
g)	who fails to pay contributions or make other monetary payments prescribed by the Chamber of Auditors for more than one year;
h)	who has not undergone practical training as assistant auditor for a period of three successive years;
i)	who applies to the Chamber of Auditors in writing for deletion from the list of assistant auditors;
j)	who has been registered in the register of auditors; at the date of registration in the register of auditors. 
(2)	After being deleted from the list of assistant auditors, the assistant auditor is required to hand over the confirmation of registration in the list of assistant auditors to the Chamber of Auditors without undue delay, within one month at the latest. 
Article 14
Auditor's Examination
(1)	An auditor's examination serves to prove competence for performing an audit, and to verify the professional level of the applicant's theoretical knowledge and its application in practice. An auditor's examination shall be performed based on the applicant’s written request in the official language before the Examination Commission of the Authority.
(2)	An auditor's examination shall cover the following:
a)	economics, financial management, and financial analysis;
b)	accounting, including management accounting, 
c)	 preparation of individual financial statements and consolidated financial statements;
d)	International Financial Reporting Standards (hereafter “ International Accounting Standards), adopted pursuant to a special regulation) ; 
e)	civil law, commercial law, financial law, labour law, social security law, and other legal areas stipulated in the rules of examination procedure;
f)	management information systems, risk management and internal control, data processing systems, mathematical and statistical methods used during an audit;
g)	audit policies, methods, and procedures, including International Auditing Standards, legislation relating to audit, auditors, and audit firms;
h)	the Code of Ethics for auditors issued by the International Federation of Accountants (IFAC) (hereafter referred to as the "Code of Ethics").
(3)	An auditor's examination shall be taken in writing. 
(4)	An auditor’s examination consists of several partial examinations in the areas referred to in paragraph 2.
(5)	The Examination Commission shall prepare the minutes of the auditor’s examination, which shall primarily contain the following information:
a)	the names and surnames of the members of the Examination Commission; the name and surname of the person taking the examination;
b)	the place and date of the auditor’s examination;
c)	the examination questions;
d)	the decision of the Examination Commission on the result of the auditor’s examination; in the instance of a failure to pass the auditor’s examination, the reasons for the failure shall be stated.
(6)	An applicant who has failed the auditor’s examination may take the auditor’s examination again on the nearest subsequent date on the basis of a written application. The applicant shall only retake the part of the auditor’s examination which he failed. If the applicant does not pass the auditor’s examination within two years at the latest, he shall re-take the entire examination.
(7)	A fee, the amount being specified in the rules of examination procedure, shall be payable by the applicant to the Authority for the auditor's examination and for retaking it. 
Article 15
Examination of Professional Competence
(1)	An examination of professional competence is aimed at reviewing the professional knowledge required for carrying out audits by EU auditors and third-country auditors if they prove that they are authorized to carry out audits in another member state or a third country. An examination of professional competence shall be taken based on the applicant’s written request. The examination of professional competence is taken in writing before the Authority's Examination Commission in the official language or the language determined by the Authority. 
(2)	The examination of professional competence is focused on the following:
a)	economics, to the extent required for audit performance in the Slovak Republic;
b)	civil law, commercial law, financial law, labour law, social security law, and other legal areas to the extent required for audit performance in the Slovak Republic;
(3)	The Authority's Examination Commission shall prepare the minutes of the examination of professional competence, which shall contain the following information:
a)	the names and surnames of the members of the Authority's Examination Commission; the name and surname of the person taking the examination;
b)	the place and date of the examination of professional competence;
c)	the examination questions;
d)	the decision of the Authority's Examination Commission on the result of the examination of professional competence; in the instance of a failure to pass the examination of professional competence, the reasons for the failure shall be stated.
(4)	An applicant who has failed the examination of professional competence may repeat the examination of professional competence on the basis of a written application. An applicant shall only repeat the part of the examination of professional competence which he failed. If the applicant does not pass the examination of professional competence on the nearest subsequent date set by the Authority, he shall retake the entire examination.
(5)	A fee, the amount being specified in the rules of examination procedure, must be paid by the EU auditor or third-country auditor to the Authority for the examination of professional competence and for retaking it.
Article 16 
Rules of Examination Procedure
(1)	The details about the extent and content of the auditor's examination, examination of professional competence and test, the submission of applications, the course and method of evaluating the auditor's examination, examination of professional competence and test, the issue of certificates, the amount of fees, number of members of the Examination Commission and the procedure in the instance of a non-attendance at the auditor's examination, examination of professional competence and test shall be specified in the rules of examination procedure.
(2)	The rules of examination procedure shall be implemented by the Slovak Ministry of Finance (hereafter “the Ministry”) by means of a Decree. The Ministry shall inform about the issue of the Decree in the Slovak Collection of Laws. 
Article 17
Examination Commission of the Authority
The chairperson and members of the Authority's Examination Commission shall be appointed and removed by the Authority Board. The Examination Commission of the Authority shall consist of auditors and other experts in theory and practice, appointed by the Chamber of Auditors, the Authority, or the Ministry. The chairperson of the Authority's Examination Commission must be an employee of the Authority. The deputy chairperson of the Authority's Examination Commission must be the President of the Chamber of Auditors. The term in office of the Authority's Examination Commission shall be three years. The number of members of the Examination Commission shall be specified in the rules of examination procedure. 

PART THREE
Performance of an Audit
Article 18
International Auditing Standards
(1)	An audit of accounting entities having their registered offices in the territory of the Slovak Republic shall be carried out in accordance with the International Auditing Standards issued by the International Federation of Accountants (IFAC), related statements and standards applicable to the performance of audit and under the conditions laid down in this Act. 
(2)	Audit procedures or requirements in addition to the International Auditing Standards may only be applied in performing an audit if these follow from special legislation. It is possible not to apply or, in exceptional cases, leave out certain International Auditing Standards with respect to the national conditions only if this follows from special legislation. 
(3)	The Authority is required to communicate the selective application of a certain part of the International Auditing Standards, application of a different national procedure and the reasons for it to member states and the European Commission at least six months prior to the effective date of the special legislation referred to in paragraph 2. If the reasons for leaving out a certain part of the International Accounting Standards existed at the time of their adoption, the Authority is required to communicate a different national procedure to the member states and the European Commission, at the latest within three months after the adoption of the relevant international auditing standard.
Article 19
Independence
(1)	When carrying out an audit, the auditor and the audit firm shall be impartial and independent of the audited accounting entity). If an auditor carries out an audit on behalf of an audit firm, the owners, shareholders, and members of the statutory bodies, management bodies and supervisory bodies of this audit firm or its affiliate may not intervene in the execution of the audit. 
(2)	An auditor and an audit firm must not carry out an audit of an accounting entity if they take part in its decision-making processes and are not independent of it; impediments to the execution of an audit in the period under review include primarily: 
a)	ownership, co-ownership or membership of the accounting entity or other self-interest, except as provided in paragraph 6;
b)	the auditor's employment contract with the accounting entity;
c)	membership in the statutory bodies, management bodies or supervisory bodies of the accounting entity; 
d)	if the auditor is a close person ) to the persons having a relationship with the accounting entity as specified in letter a) to c);
e)	holding the position of trustee in bankruptcy, liquidator, or forced administrator of the accounting entity according to special legislation);
f)	if the accounting entity failed to pay for the performed audit for more than one year;
g)	the provision of certified expert services to the accounting entity according to special legislation);
h)	the relationship referred to in letter a) to c) between a network and the accounting entity, including the provision of non-audit services according to Article 21 paragraph 4, from which a third party could conclude that the auditor's or audit firm's independence is compromised;
i)	preparation of documents and information necessary for a decision on concluding an agreement related to the sale, merger, or amalgamation of the accounting entity into a separate accounting entity according to special legislation) in two preceding accounting periods;
j)	other impediments that are contrary to the Code of Ethics. 
(3)	In addition to the impediments referred to in paragraph 2, the maintaining of accounting books and the preparation of financial statements also constitute an impediment to the auditor's, audit firm's and network's independence. 
(4)	An auditor and an audit firm are required to take measures in order to mitigate threats affecting their independence. An auditor or an audit firm must not carry out an audit if the significance of these threats compared to the measures taken is such that their independence is compromised. 
(5)	An auditor and an audit firm are required to document in the audit working papers all significant threats to their independence, as well as the measures applied to mitigate those threats. 
(6)	An audit of the financial statements of the Authority or the Chamber of Auditors performed by an auditor or an audit firm shall not constitute an impediment to the performance of an audit.

Article 20
Audit Working Papers
(1)	An auditor and an audit firm shall maintain audit working papers regarding the course of the audit in accordance with the International Auditing Standards. The audit working papers shall also include the contract based on which the audit is performed (hereafter referred to as the "Audit Contract"), as well as the plan and work program of the audit, the audit report, the individual financial statements or consolidated financial statements, the annual report or consolidated annual report, and other documents documenting the course of the audit. 
(2)	Audit working papers may only be accessed by the persons authorized to perform oversight according to special legislation), persons appointed by the Authority to perform the oversight, or persons authorized by the Chamber of Auditors to perform an audit quality assurance review, a court, and the authorities dealing with criminal proceedings if criminal proceedings concern the auditor or the audit firm.
(3)	Audit working papers, reports, and information forming part thereof shall be in the ownership of the auditor or the audit firm, unless the audit contract with the accounting entity provides otherwise. Audit working papers or information forming part of the audit working papers must not be passed on to a third party without the consent of the accounting entity or its successor, except as provided in paragraph 4.
(4)	Audit working papers may be provided to another member state or a third country on the basis of a written application from the oversight authorities of the other member state or the third country only through the Authority, except as provided in Article 22 paragraph 3. These audit working papers shall be transferred without undue delay and in compliance with the confidentiality obligation referred to in Article 30. 
(5)	Audit working papers shall be retained for ten years after the date of completion of the audit. 
(6)	An auditor and an audit firm are not entitled to order that changes or corrections of information presented by an accounting entity be made.
(7)	An auditor is entitled to receive from the accounting entity the requested information, documents and other documentation, information and explanations necessary for the proper execution of an audit in the form requested by the auditor. The obligation to provide the auditor with necessary information, documents, and documentation regarding the accounting entity to which the execution of the audit relates shall also apply to the accounting entity's business partners and legal representatives, with the consent of the accounting entity and based on the auditor's request. An auditor is entitled to request from a bank or a branch of a foreign bank, with the consent of the accounting entity, a report) containing information regarding the accounting entity maintained by the bank or the branch of a foreign bank. 
(8)	An auditor is entitled to be present during the reconciliation procedures regarding the accounting entity's assets and liabilities or to request reconciliation procedures in the area where the auditor has found discrepancies. 

Article 21
(1)	 An auditor shall carry out an audit in his name and on his account, or as a shareholder, statutory body, or employee of an audit firm on its behalf and on its account, or as an auditor's employee on auditor’s behalf and on his account.
(2)	An auditor may only employ another auditor if he himself has not concluded an employment contract or does not perform other paid activities, except for pedagogic, scientific, and publication activities.
(3)	When carrying out an audit, in addition to information referred to in Article 2 paragraph 1, an auditor is also required to review other information prescribed by special legislation).
(4)	An auditor and an audit firm may also provide non-audit services, being primarily understood as services in the area of maintaining accounting books, accounting system analyses, economic and financial consulting, asset valuation, preparation of recommendations and provision of consultations regarding a review and assessment of a business plan, and other non-audit services provided to the extent required by the accounting entity or an ordered pursuant to paragraph 6. 
(5)	An auditor and an audit firm shall carry out an audit for consideration based on the audit contract, unless this Act or special legislation provides otherwise; an audit contract must always be concluded if an auditor or an audit firm has been appointed by lot pursuant to special legislation). The audit fee may not unjustifiably exceed the fee that this auditor usually applies for an audit in similar accounting entities. An auditor and an audit firm are also entitled to reimbursement of reasonable expenses incurred in direct connection with the execution of the audit. 
(6)	An auditor and an audit firm may also conclude an audit contract with an orderer other than the accounting entity to be audited, provided that the accounting entity agrees to this. The consent of the accounting entity is not required if this is in contrary to the special regulation)
(7)	Fees for an audit may not be made conditional upon, influenced or determined in any way by the provision of non-audit services.
Article 22
Auditor of a Consolidated Group
(1)	The auditor of a consolidated group shall be fully responsible for the auditor's report related to the consolidated group. 
(2)	The auditor of a consolidated group is required to review the audit carried out by an auditor or an audit firm, an EU auditor or an audit firm from another member state and a third-country auditor or a third-country audit firm for the purpose of the audit of the consolidated group. The auditor of the consolidated group is required to maintain audit working papers on this review and retain them in accordance with Article 20 paragraph 5. Audit working papers must be kept so as to enable the Chamber of Auditors and the Authority to review the work of the auditor of the consolidated group. 
(3)	If certain accounting entities included in a consolidated group are audited by a third-country auditor or a third-country audit firm that has no agreement on mutual cooperation with the Slovak Republic as referred to in Article 33, the auditor of the consolidated group is required to ensure the submission of audit working papers of the third-country auditor or the third-country audit firm and, when requested, to submit them to the Authority. For this purpose, the auditor of the consolidated group is required to retain a copy of the audit working papers. The auditor of the consolidated group may also agree with the third-country auditor or the third-country audit firm on his unrestricted access to the audit working papers. If legal or other impediments prevent audit working papers from being passed from the third-country auditor or the third-country audit firm to the auditor of the consolidated group, the auditor of the consolidated group must retain all evidence that he has taken all necessary steps in order to gain access to the audit working papers. 
Article 23
Auditor's Report
(1)	The output of an audit is the auditor's report prepared by the auditor. When preparing an auditor's report, the auditor is required to consider all ascertained facts, assessing each finding both individually and in their mutual connection; an auditor must not withhold any finding that may substantially influence the conclusions of the auditor's report regarding the course and results of the audit performed. 
(2)	An auditor's report must contain the following: 
a)	the introduction in which the auditor identifies the financial statements audited, with an indication of:
1.	the name of the accounting entity; 
2.	the date at which the financial statements have been prepared and the accounting period to which the financial statements relate; 
b)	definition of the scope of the audit performed, which shall include the applied International Auditing Standards according to which the audit has been carried out;
c)	the auditor's opinion regarding whether the financial statements give a true and fair view of the financial position and the result of operations in accordance with special legislation) or International Accounting Standards, and the auditor may express:
1.	an unqualified opinion if the auditor concludes that the financial statements give a true and fair view of the financial position and result of operations in accordance with special legislation26)
2.	a qualified opinion if the auditor disagrees with the management body over the selected accounting principles and the methods of their application and the method of presenting information in the financial statements or if the auditor believes that a limitation on the scope of the audit is such that the auditor has not been able to obtain sufficient and appropriate evidence for carrying out the audit, where the disagreement with the management body or the limitation on the scope of the audit is material, but not to the extent that an opinion referred to in point 3 or point 4 should be expressed;
3.	an adverse opinion if the auditor believes that the effect of the disagreement with the management body over the selected accounting principles and the methods of their application and the method of presenting information in the financial statements is so material that the opinion referred to in point 2 would be insufficient; 
4.	a disclaimer of opinion if the auditor believes that a limitation on the scope of the audit is so material that the auditor has not been able to obtain sufficient and appropriate evidence for carrying out the audit and the auditor is therefore unable to express an opinion on the financial statements and the opinion referred to in point 2 would be insufficient;
d)	description of material facts presented in the financial statements, which the auditor considers necessary to emphasize, in particular, compliance with the going-concern principle and other material uncertainties, the resolution of which depends on future events and which may affect the financial statements. 
(3)	The auditor is required to prepare the auditor's report in writing and state his name, surname, license number, the date of completion of the audit, and the signature. On behalf of the audit firm, the auditor's report shall be signed by the auditor who has carried out the audit, stating his name, surname and license number, and the business name, registered office, and license number of the audit firm, the date of completion of the audit, and the signature.
(4)	In exceptional circumstances, information on the auditor referred to in paragraph 3 need not be disclosed to the public if such disclosure could lead to a threat to the security of any person. The auditor must provide reasons for this fact and notify the Authority thereof. 
(5)	An appendix to the auditor's report shall contain the auditor's opinion as to whether the information presented in the annual report is consistent with the financial statements of the audited accounting entity. 

Article 24
Transparency Report
(1)	An auditor and an audit firm that carries out an audit of a public-interest entity are required to publish on their websites, within three months after the end of the accounting period, a transparency report that includes at least the following information: 
a)	their legal form, including information pursuant to Article 5 paragraph 1 letter b) ;
b)	if they belong to a network, description of the network and the organizational and legal structure of the network; 
c)	a description of their management structure;
d)	a description of their internal quality assurance system and a statement by the statutory body on the effectiveness of its functioning;
e)	the date of the last audit quality assurance review pursuant to Article 31;
f)	a list of public-interest entities for which they have carried out an audit during the previous accounting period; if such disclosure could imminently or seriously threaten the security of any person, this list shall not be published in the transparency report;
g)	a statement concerning the auditor's and the audit firm's independence practices, which also confirms that an internal review of independence compliance has been conducted; 
h)	a statement on the policies followed by the auditor and the audit firm concerning the continuing education of auditors;
i)	financial information showing the importance of the auditor and the audit firm, such as the total revenue divided into revenue from the audit, separately indicating revenue from services referred to in Article 2 paragraph 1 letter b), and revenue from non-audit services; if the individual items in the category of non-audit services fundamentally differ, this category needs to be further broken down into subcategories;
j)	information concerning the basis for the partners' remuneration. 
(2)	The transparency report shall be signed by the auditor or a member of the statutory body of the audit firm; if an electronic version of transparency report is provided, it must bear an electronic signature. 
Duties of Auditors, Audit Firms, and Assistant Auditors
Article 25
(1)	An auditor and an audit firm are required to perform an audit with professional care and impartially. 
(2)	An auditor and an audit firm are required to comply with International Auditing Standards, internal regulations issued by the Authority and the Chamber of Auditors, and the Code of Ethics. 
(3)	An auditor and an audit firm shall be liable for damages) caused during an audit of public-interest entities of up to 20 times the fee for the audit, and in other accounting entities of up to 10 times the fee for the audit. 
(4)	An auditor and an audit firm are required to conclude indemnity insurance contract with respect to any damage that may be incurred in connection with the execution of the audit. An auditor and an audit firm are required to inform the Authority in writing of the conclusion of the insurance contract without undue delay, at the latest within one month after the conclusion of the contract. 
(5)	An auditor is not required to conclude an indemnity insurance contract if he performs an audit on behalf of an audit firm and the audit firm's insurance covers this liability, or if his license has been suspended. An audit firm is not required to conclude an indemnity insurance contract if its license has been suspended. 
Article 26
(1)	An auditor and an audit firm that perform an audit of a public-interest entity are required to annually:
a)	confirm to the audit committee) their independence from the public-interest entity to be audited; 
b)	notify the audit committee of any non-audit services provided to the public-interest entity; 
c)	discuss with the audit committee the threats referred to in Article 19 paragraph 2 and 3 and the measures taken to mitigate those threats. 
(2)	An auditor and an audit firm shall report to the audit committee28) on the main conclusions arising from the audit, and in particular on material weaknesses in internal control of the accounting entity in relation to the process of preparation of the financial statements. 
(3)	The auditor or the key audit partner responsible for carrying out an audit of a public-interest entity may carry out an audit of the same public-interest entity for a maximum of five successive years from the date of appointment. He may again carry out an audit of this public-interest entity after a period of at least two years from the last audit. 
(4)	The auditor or the key audit partner must not take up a management position in the audited accounting entity before two years have elapsed since he resigned from the execution of an audit of this accounting entity. 
Article 27
(1)	An auditor and an audit firm are required to inform the competent authority performing oversight for an accounting entity according to special legislation) if:
a)	the accounting entity has violated the legislation regulating the conditions of its activities;
b)	there exist facts having a fundamentally negative impact on its financial management;
c)	the going concern assumption is jeopardized;
d)	there exist facts based on which the auditor and the audit firm may express a disclaimer of opinion or an adverse opinion on the financial statements.
(2)	An auditor and an audit firm are required to notify those who are closely connected) to the accounting entity of the facts referred to in paragraph 1. 
(3)	If an auditor or an audit firm ascertains, during the audit of an accounting entity, any facts referred to in paragraph 1, or other facts assumed to constitute an economic crime, corruption, or a crime against property, they are required to inform in writing and without undue delay the authorities dealing with criminal proceedings), the statutory body and the supervisory body of the accounting entity, the local council if the accounting entity is a municipality, and the council of the higher territorial unit if the accounting entity is a higher territorial unit, and the audit committee, if established. 
Article 28
(1)	Information provided by the auditor and the audit firm to the Authority according to Article 9 paragraph 2 and Article 10 paragraph 2 shall be signed by the auditor or the statutory representative of the audit firm. If this information is provided in electronic form, an electronic signature must be used. 
(2)	An auditor and an audit firm are required to report to the Authority without undue delay, within one month at the latest, any information entered in the relevant register that has been changed or has ceased to exist. 
(3)	An auditor and an audit firm are required to inform the Authority in writing about their dismissal or resignation during the performance of audit, without undue delay, however no later than within one month after the date of dismissal or resignation. They also must notify the National Bank of Slovakia about their dismissal or resignation during an audit, provided that they carry out an audit in an accounting entity in which the National Bank of Slovakia performs oversight according to special legislation21). They are also required to give the Authority an adequate explanation of the reasons for their dismissal or resignation. 
(4)	An auditor and an audit firm are required to provide to the Authority, at the latest within three months after the end of the accounting period, a list of accounting entities for which they have carried out audits during the preceding accounting period. 
(5)	An auditor and an audit firm are required to inform the Authority in writing within 15 days of the establishment and termination of an employment contract of an auditor they employ. 
(6)	An auditor and an audit firm are required to create conditions for an assistant auditor that enables him to prepare himself properly for the audit profession. In particular, an assistant auditor must be enabled to take part in continuing education, prepare properly for an auditor's examination, and take this examination.
(7)	A trainer referred to in Article 3 paragraph 4 is required to prepare an evaluation for an assistant auditor regarding the extent of his involvement in audits and the specific activity performed by the assistant auditor. 
Article 29
Continuing Education
(1)	Continuing education is the continuing acquisition, renewal, maintenance, and deepening of theoretical knowledge and professional capabilities in accordance with the development of the audit profession throughout its performance. 
(2)	An auditor and an assistant auditor are required to take part in continuing education provided by the Chamber of Auditors. The participation of an auditor and an assistant auditor in other forms of education may be included in the defined scope of continuing education with the consent of the Chamber of Auditors, provided that they are comparable with the program of continuing education provided by the Chamber of Auditors in terms of professional expertise, content, and quality, for example, participation in lectures and seminars organized by educational institutions, associated professional organizations, audit firms, or universities. 
(3)	An auditor's independent lecturing in areas related to the audit profession may also be recognized as part of the defined scope of continuing education with the consent of the Chamber of Auditors; the same topic may only be included once in continuing education.
(4)	The criteria and the method of assessment of continuing education of an auditor and an assistant auditor shall be determined by the Chamber of Auditors. The Chamber of Auditors shall control the fulfilment of the continuing education requirements.
(5)	An auditor is required to attend at least 120 hours of educational activities during a three-year cycle, while every year he is required to attend at least 20 hours. An assistant auditor is required to attend at least 200 hours of educational activities during a three-year cycle, while every year he is required to attend at least 35 hours. 
(6)	If an auditor whose license has been suspended is re-entered in the register of auditors, he is required to prove that, in the period during which he did not perform the audit profession, he maintained his professional competence in the amount of 1.5 times the number of hours of annual continuing education. 
(7)	If an auditor or an assistant auditor does not take part in continuing education, the Chamber of Auditors' Commission for Continuing Education shall send a proposal for a disciplinary procedure to the Chamber of Auditors' Disciplinary Commission.
(8)	If an auditor does not take part in continuing education despite a disciplinary measure imposed by the Chamber of Auditors' Disciplinary Commission, the Chamber of Auditors' Commission for Continuing Education shall send a proposal for the imposition of sanctions pursuant to Article 60 to the Authority. 
Article 30
Obligation to Maintain Confidentiality
(1)	Unless this Act provides otherwise, an auditor and an audit firm are required to maintain confidentiality of all information that they have obtained in connection with the execution of an audit; this obligation shall also continue after the end of the execution of the audit, as well as after the deletion from the relevant register. 
(2)	The confidentiality obligation shall also apply to an assistant auditor, all shareholders in an audit firm, their employees, members of the Authority Board, members of the Supervisory Committee of the Authority, members of the Authority committees, employees of the Authority and the Chamber of Auditors, non-practitioners and other persons who have obtained information related to oversight. The confidentiality obligation shall also continue after the end of their performance of office, employment, or other legal relationship with an auditor, an audit firm, the Chamber of Auditors, or the Authority. 
(3)	The confidentiality obligation referred to in paragraphs 1 and 2 may be lifted by the Authority, or by the audited accounting entity in which the audit is performed or its legal successor. 
(4)	The confidentiality obligation shall not apply to instances involving a duty imposed by law or the duty to prevent a crime from being committed.
(5)	The provision of information to the Slovak Intelligence Service for the purpose of the fight against organized crime and terrorism) shall not be regarded as a violation of the confidentiality obligation laid down in paragraphs 1 and 2. The persons who have provided information are required to keep silent about this fact, as well as about the gathering of information to investigate a suspicion of money laundering, legalization, or financing of terrorism. The Slovak Intelligence Service may relieve them of this obligation for the purpose of proceedings before a state authority at the request of this authority.
(6)	If an auditor or an audit firm is replaced by another auditor or audit firm, the former auditor or audit firm is required to provide the incoming auditor or audit firm with access to all relevant information concerning the audited accounting entity. 
(7)	An auditor and an audit firm are required to provide information on an accounting entity in the instances specified in this Act or special legislation). The provision of such information shall not be regarded as a violation of the confidentiality obligation; the auditor and the audit firm will not incur any liability toward the accounting entity as a result of providing such information.
(8)	Information obtained by the Authority from the competent oversight authorities of another member state or a third country may only be used for the purpose of oversight. 

PART FOUR
AUDIT QUALITY ASSURANCE REVIEW, PERFORMANCE OF OVERSIGHT, AND INTERNATIONAL COOPERATION
Article 31
Audit Quality Assurance Review
(1)	Auditors and audit firms shall be subject to an audit quality assurance review carried out by the Chamber of Auditors through reviewers appointed by the Chamber of Auditors. The system of audit quality assurance reviews shall be subject to oversight performed by the Authority. 
(2)	The system of audit quality assurance reviews shall be independent of the reviewed auditors and audit firms and the funding of the audit quality assurance review must be free from any undue influence by auditors and audit firms. 
(3)	Only a natural person who meets the following criteria may be appointed as reviewer:
a)	has full legal capacity;
b)	has a good reputation as referred to in Article 3 paragraph 7 to 9;
c)	has a second-level university degree;
d)	has at least five years of practical experience in the area of carrying out an audit and preparation of financial statements; 
e)	has completed training focused on an audit quality assurance review organized by the Chamber of Auditors. 
(4)	A reviewer must be selected in a manner that prevents a conflict of interest between the reviewer and the auditor and audit firm under review. 
(5)	An audit quality assurance review must be carried out at least:
a)	every three years with respect to an audit of a public-interest entity;
b)	every six years with respect to an audit of other accounting entities. 
(6)	During an audit quality assurance review, the reviewer is required to assess the following, using the files selected from audit working papers: 
a)	compliance with International Auditing Standards, provisions of this Act and the Code of Ethics; 
b)	requirements concerning the auditor's independence; 
c)	the quantity and quality of resources spent, for example, the quantity and quality of audit personnel, the number of audit hours;
d)	adequacy of the audit fees; 
e)	the internal quality control system of the audit firm. 
(7)	The output of an audit quality assurance review shall be a report containing the main conclusions of the audit quality assurance review, recommendations, and reasonable time limits for the removal of deficiencies. The reviewer is required to send this report to the Supervisory Board of the Chamber of Auditors. 
(8)	An auditor and an audit firm are required to prove the fulfilment of the recommendations for the removal of deficiencies to the Supervisory Board of the Chamber of Auditors within the specified time limit. If the auditor and the audit firm fail to follow the recommendations stated in the report referred to in paragraph 7, the chairperson of the Supervisory Board of the Chamber of Auditors shall send to the Disciplinary Commission of the Chamber of Auditors a proposal for a disciplinary procedure. 
(9)	The Chamber of Auditors shall submit to the Authority an overview of the overall results of audit quality assurance reviews for the preceding calendar year by 31 March, at the latest, and publish it on its website, at the latest by 30 April of the current year. The Authority shall publish the overview of the overall results of audit quality assurance reviews on its website without undue delay, at the latest by 31 May of the current year. 
(10)	The Chamber of Auditors shall specify the details regarding audit quality assurance reviews in its internal regulations, which must be submitted to the Authority within 30 calendar days of their issue. The internal regulations shall contain the following: 
a)	the principles of an audit quality assurance review; 
b)	the rules of the selection of reviewers; 
c)	the plan of an audit quality assurance review for a calendar year. 
Article 32
Oversight 
(1)	The Authority shall perform oversight for entities subject to oversight through non-practitioners and auditors (hereafter referred to as the "person performing oversight"); the number of non-practitioners performing oversight must exceed the number of auditors.
(2)	Oversight shall be free from any undue influence by auditors and audit firms.
(3)	The system of oversight approved in other member states shall be considered equivalent to oversight in the Slovak Republic. 
(4)	Non-practitioner means any natural person who, for at least three years before his appointment to the Authority bodies, has not performed audits, has not held voting rights in an audit firm, has not been a member of the statutory body, management body or supervisory body of an audit firm and has not been employed by, or otherwise closely associated with, an audit firm. A non-practitioner may be an employee of the Authority, a member of an Authority body, or a person who performs oversight on the basis of a contract with the Authority, has been authorized to perform oversight, and acts on behalf of the Authority. A non-practitioner must have a second-level university degree and at least three years of practical experience in the area of carrying out audits. 
(5)	The person performing oversight shall ascertain and assess information on the entities subject to oversight and their activities, both on the site of the entity subject to oversight and in the location required for the purpose of oversight. Oversight shall be performed to the extent that is necessary to achieve the objective specified in this Act. 
(6)	Prior to the commencement of the performance of oversight, the Authority shall deliver to the entity subject to oversight written notification on the commencement of oversight. This notification must include the location of the performance of oversight, the date of the commencement of oversight, the subject matter of the oversight, the period subject to oversight, the planned duration of the oversight, the name and surname of the person performing the oversight, the seal of the Authority, the signature of the authorized employee of the Authority and his name, surname, and position. 
(7)	The Authority shall be entitled to commence oversight without the notification referred to in paragraph 6 if there is a threat that accounting documents or other documents will be damaged, destroyed, or altered. 
(8)	A person performing oversight shall be excluded from oversight if there are doubts about his impartiality with respect to his relationship to the subject matter of the oversight, the entity subject to the oversight or its employees. The Authority is required to ensure the proper continuation and completion of the oversight. 
(9)	The person performing oversight, whose impartiality is in doubt, may only perform necessary acts regarding the matter until a decision on his impartiality has been issued.
(10)	The person performing oversight, the entity subject to oversight, and other persons participating in the oversight are required to notify the Managing Director of the Authority without undue delay of the facts referred to in paragraph 8. The Authority shall decide on this notification at the latest within ten working days after its delivery. 
(11)	The exclusion from oversight of a person performing oversight shall be decided by an authorized employee of the Authority, who may also decide on the exclusion at his own discretion. 
(12)	With respect to the person performing oversight, the entity subject to oversight shall be entitled to:
a)	be presented with a service card and a written authorization to perform oversight;
b)	submit evidence proving his statements during the course of the oversight; 
c)	comment on facts ascertained during the oversight, the method of their finding, and/or to propose that his comments on these findings be included in the protocol on the oversight performed (hereafter referred to as the "protocol");
d)	attend meetings with other persons participating in the proceedings, for example, certified experts and witnesses; 
e)	take part in the discussion on the protocol. 
(13)	With respect to the person performing oversight, the entity subject to oversight shall have the following duties: 
a)	to enable the person performing oversight to perform the oversight;
b)	to ensure an appropriate location and conditions for the oversight;
c)	to allow access to the land, seat, and operating premises of the entity subject to oversight and facilitate discussions with its employees;
d)	to provide information, documents, and other written materials in written or technical form or their officially certified translations, if the documentation is in a foreign language, as well as explanations and standpoints on them;
e)	to lend out documents outside the seat or operating premises of the entity subject to oversight or provide extracts from or copies of these documents.
(14)	The person performing oversight shall confirm the receipt of documents referred to in paragraph 13 letter e) with their signature upon their receipt. 
(15)	The person performing oversight shall prepare a protocol on the findings resulting from the oversight, which shall contain the following information: 
a)	the name, surname, and permanent residence if the entity subject to oversight is an individual and the legal name, registered office, and identification number if the entity subject to oversight is a legal entity;
b)	the names, surnames, and positions of the persons taking part in the oversight;
c)	the location of the oversight, the date of commencement and the duration of the oversight;
d)	the subject matter of the oversight and the period subject to the oversight; 
e)	the proven findings; 
f)	the time limit for comments on the protocol;
g)	the date of preparation of the protocol;
h)	the date of the discussion on the protocol;
i)	the name, surname, and handwritten signature of the person performing the oversight;
j)	the handwritten signature of the entity subject to oversight or its authorized representative. 
(16)	The protocol shall be signed after it has been discussed. The person performing oversight shall record the refusal of an entity subject to oversight to sign the protocol and the reason for the refusal, if it is known. The person performing oversight shall give a copy of the protocol to the entity subject to oversight. If the entity subject to oversight refuses to sign or take over the protocol, or if the entity or its authorized representative fails to participate in the discussion on the protocol, the date specified in the invitation to discuss the protocol shall be considered the date on which the protocol was discussed and delivered. 
(17)	Oversight shall be deemed completed as of the date of the discussion on the protocol with the entity subject to oversight. 
(18)	The Authority shall retain the protocol for a period of ten years following the year in which the oversight was completed. 
(19)	State authorities, territorial self-administration authorities, entities subject to oversight, and public-interest entities are required to provide the Authority with information necessary for oversight. If they possess documents that may serve as evidence during oversight, they are required to submit or lend the documents to the Authority, unless this is contrary to special legislation)
Article 33
International Cooperation Regarding Oversight 
(1)	The Authority shall ensure cooperation with competent oversight authorities from other member states and third countries. The Authority is entitled to request that an investigation of the activities of an auditor or audit firm be carried out by the competent oversight authority of another member state or request that its own personnel be allowed to participate in the investigation of the activities of an auditor or audit firm in the other member state. The investigation shall be subject to the control of the member state on whose territory it is conducted. 
(2)	In the case of oversight of consolidated financial statements, additional requirements concerning registration in the relevant register, audit quality assurance review, International Auditing Standards, ethics and independence of the auditor or audit firm carrying out an audit of a subsidiary accounting entity established in another member state may not be imposed.
(3)	If securities of an accounting entity that has its registered office in another member state are traded on a regulated market in the Slovak Republic, the Slovak Republic may not impose any additional requirements concerning registration in the relevant register, audit quality assurance review, International Auditing Standards, ethics and independence of the auditor or audit firm carrying out an audit of this accounting entity. 
(4)	 The Authority shall, upon request, supply any information obtained in relation to oversight to the competent oversight authorities of other member states. If the Authority is unable to comply with the request for providing information, it shall notify the requesting authority thereof and state the reasons without undue delay. This information may be used to the extent defined in this Act and within administrative or judicial proceedings related to the performance of the audit. 
(5)	The provision of information or an investigation referred to in paragraph 1 may be refused for the following reasons: 
a)	supplied information or an investigation might adversely affect the sovereignty, security or public order of the Slovak Republic;
b)	judicial proceedings have already been initiated with respect to the same actions and against the same auditors and audit firms before the competent authorities of the Slovak Republic; 
c)	final judgment has already been passed with respect to the same actions and on the same auditors or audit firms by the competent authorities of the Slovak Republic. 
(6)	If the Authority possesses provable information that activities contrary to this Act or the Code of Ethics are being or have been carried out on the territory of another member state, it shall notify the competent authority of the other member state thereof. 
(7)	 If the Authority obtains information referred to in paragraph 6, it is required to take action and inform the competent oversight authority of the other member state thereof. 
(8)	The Authority may, upon request, supply audit working papers to the competent oversight authorities of a third country if: 
a)	the audited accounting entity has issued securities in that third country or forms part of a consolidated group and prepares consolidated financial statements in that third country; 
b)	the competent oversight authority of the third country meets the requirement of equivalence of the performance of oversight with respect to the competent oversight authorities of other member states;
c)	an agreement on mutual cooperation exists between the Authority and the competent oversight authority of the third country, which also contains provisions on the mutual exchange of audit working papers; 
d)	the protection of personal data and the use of the obtained information solely for the purpose of oversight have been ensured. 
(9)	 The agreement on mutual cooperation referred to in paragraph 8 letter c) must include the following: 
a)	a requirement regarding justification of the request; 
b)	a provision that employees of the competent oversight authority of the third country must be subject to the confidentiality obligation;
c)	a provision that the competent oversight authority of the third country may use audit working papers only for the purpose of oversight, audit quality assurance, and investigations; 
d)	the possibility of refusing to provide audit working papers where their provision would adversely affect the sovereignty, security, or public order of other member states or where proceedings have already been initiated with respect to the same actions and against the same persons before the competent authorities of the Slovak Republic. 

PART FIVE
CHAMBER OF AUDITORS 
Article 34

(1)	The Chamber of Auditors is an independent self-administrative professional organization that associates auditors and audit firms registered in the relevant register. 

(2)	The Chamber of Auditors is a legal entity having its registered office in Bratislava and exercising its jurisdiction over the entire territory of the Slovak Republic.  

(3)	In order to be able to fulfil its responsibilities, the Chamber of Auditors may establish territorial sections. Details of establishing territorial sections will be stipulated in the Chamber of Auditor’s internal regulations.
Article 35
Tasks of the Chamber of Auditors
The Chamber of Auditors shall primarily carry out the following tasks:
a)	represent, protect, and assert legitimate interests of its members and assistant auditors;
b)	provide methodological guidance to members of the Chamber of Auditors and assistant auditors in the area of audit, accounting, and International Accounting Standards; 
c)	ensure the proper execution of audits and a high professional level of auditors and assistant auditors;
d)	deal with suggestions, proposals, and complaints made by members of the Chamber of Auditors and assistant auditors with regard to their rights and duties arising from this Act; 
e)	issue a confirmation of membership in the Chamber of Auditors and its termination and a confirmation of the payment of a membership fee; 
f)	following an approval by the Assembly, issue the statutes of the Chamber and the internal regulations of the Chamber of Auditors and control their observance; 
g)	select an auditor by drawing lots to audit an accounting entity according to special legislation24); except for an auditor who is an employee of the auditor or audit firm; if an impediment to the execution of an audit according to Article 19 applies to the selected auditor, the drawing shall be repeated;
h)	carry out an audit quality assurance review referred to in Article 31;
i)	ensure and control the continuing education of auditors and assistant auditors;
j)	lead disciplinary procedures and impose disciplinary measures; 
k)	make comments on draft legislation relating to auditors' activities;
l)	cooperate and exchange information with other authorities if special legislation so provides);
m)	cooperate with the Authority regarding oversight; and
n)	other activities if the Chamber’s internal regulations provide for this.

Article 36
Membership in the Chamber of Auditors
(1)	Membership in the Chamber of Auditors commences upon registration in the list of auditors or the list of audit firms. 
(2)	Membership in the Chamber of Auditors is mandatory for all auditors and audit firms. Registration in the list of assistant auditors of the Chamber of Auditors does not establish membership in the Chamber of Auditors for an assistant auditor.
(3)	Membership in the Chamber of Auditors ceases to exist upon deletion of an auditor or audit firm from the list of auditors or audit firms. The Chamber of Auditors shall issue confirmation that membership has ceased to exist. 

Article 37
Rights and Duties of Auditors, Audit Firms, and Assistant Auditors towards the Chamber of Auditors
(1)	An auditor and an audit firm are entitled to elect candidates to the bodies of the Chamber of Auditors. An auditor has the right to be elected to the bodies of the Chamber of Auditors. 
(2)	And auditor and an audit firm are required to:
a)	familiarize themselves and comply with the internal regulations of the Chamber of Auditors;
b)	notify of changes in information concerning an auditor or an audit firm in connection with the execution of an audit;
c)	fulfil tasks arising from their membership in the Chamber of Auditors;
d)	fulfil resolutions adopted by the bodies of the Chamber of Auditors.
(3)	An assistant auditor is required to:
a)	familiarize himself and comply with the internal regulations of the Chamber of Auditors;
b)	announce changes in information concerning him personally in connection with his preparation for the audit profession; 
c)	fulfil resolutions adopted by the bodies of the Chamber of Auditors.
(4)	An auditor, audit firm and assistant auditor are required to pay fees to the Chamber of Auditors and make other monetary payments prescribed by the internal regulations of the Chamber of Auditors. 
Article 38
Bodies of the Chamber of Auditors and Their Powers
(1)	The bodies of the Chamber of Auditors are:
a)	the Assembly; 
b)	the Presidium;
c)	the Supervisory Board; and
d)	the Disciplinary Commission.
(2)	The term in office of members of the bodies of the Chamber of Auditors is four years, unless this Act provides otherwise. The term in office shall begin on the date of approval by the Assembly. The same person may be re-elected as a member of a body of the Chamber of Auditors, but only for a maximum of two successive terms in office.
(3)	Members of the bodies of the Chamber of Auditors are required to prove, before they assume office, at the latest by 31 January of the current year that they meet the good reputation requirement laid down in Article 3 paragraph 7 to 9 for the preceding calendar year. Members of the bodies of the Chamber of Auditors are required to notify of the changes in meeting the good repute requirement on an annual basis pursuant to Article 3 paragraph 7 to 9. 
(4)	Positions in the bodies of the Chamber of Auditors are honorary. For the performance of these positions, auditors shall be entitled to reimbursement of travel and out-of-pocket expenses and to compensation for their time. Details of compensation shall be stipulated in the statute of the Chamber of Auditors. 
(5)	Details of the election to the bodies of the Chamber of Auditors shall be regulated by the Chamber of Auditors in the rules of election procedure.
(6)	Details of the organization of the Chamber of Auditors, its bodies and their powers, the number of members of the Presidium, the Supervisory Board, and the individual commissions shall be stipulated in the statute of the Chamber of Auditors.
(7)	The term in office of the president of the Chamber of Auditors and members of the bodies of the Chamber of Auditors shall cease: 
a)	as of the date of expiration of their term in office;
b)	upon resignation; as of the date of delivery of written notice to the Chamber of Auditors; 
c)	upon a loss of a good reputation referred to in Article 3 paragraph 7 to 9; 
d)	upon expulsion from the Chamber of Auditors; 
e)	upon dismissal;
f)	if they die or are pronounced legally dead. 
(8)	The Chamber of Auditors shall issue internal regulations of the Chamber of Auditors in accordance with this Act. The internal regulations of the Chamber of Auditors shall also contain details about establishment of the Commission for Continuing Education, Commission for Audit Quality Assurance and other commissions the Chamber of Auditors may establish in order to support its activities.
(9)	 Membership in the individual elected bodies of the Chamber of Auditors is mutually incompatible. 

Article 39

Assembly

(1)	The Assembly is the highest body of the Chamber of Auditors. The Assembly consists of auditors and audit firms registered in the relevant registers, including auditors and audit firms whose licenses have been suspended according to Article 8.

(2)	 The Assembly is usually convened by the Presidium once a year. If at least one-third of members of the Chamber of Auditors request so in writing, the Presidium is required to convene the Assembly at the latest within two months of delivery of a written request to the Chamber of Auditors. 

(3)	The Assembly shall: 
a)	elect and remove the president of the Chamber of Auditors;
b)	elect and remove members of the bodies of the Chamber of Auditors; 
c)	approve the statutes of the Chamber of Auditors and amendments thereto;
d)	approve internal regulations of the Chamber of Auditors and amendments thereto, in particular the rules of the election procedure, the rules of the disciplinary procedure, the rules of official procedure, the principles of an audit quality assurance review, the principles of continuing education of auditors and assistant auditors, and the principles of financial management;
e)	approve the amount of registration fees, membership fees, fees for entry tests, and payments for services provided by the Chamber of Auditors;
f)	approve the budget and financial statements of the Chamber of Auditors.

Article 40

Presidium

(1)	The Presidium consists of the president and members of the Presidium. The Presidium is the executive body of the Chamber of Auditors during the period between two meetings of the Assembly and is bound by the resolutions adopted by the Assembly. The Presidium shall fulfil resolutions adopted by the Assembly and is accountable to the Assembly for its activities.
(2)	The number of Presidium members responsible for each territorial section must correspond to the ratio between the number of members of the Chamber of Auditors in the territorial section and the total number of members of the Chamber of Auditors, where each territorial section must be represented by at least one member.
(3)	The president shall represent the Chamber of Auditors towards third parties, act on its behalf on all matters, and manage the employees of the Chamber of Auditors. 
(4)	The Presidium shall:
a)	convene the Assembly and prepare documents for its discussion;
b)	be responsible for publication, documentation, and study activities within the audit profession;
c)	ensure methodological guidelines for auditors and assistant auditors in accordance with Article 35 letter b);
d)	establish the Commission for Continuing Education and the Commission for Audit Quality Assurance, as well as other executive and auxiliary bodies in order to ensure the activities imposed on the Chamber of Auditors by this Act; 
e)	ensure international activities of the Chamber of Auditors with respect to its membership in international institutions;
f)	ensure participation of members of the Chamber of Auditors in activities requiring participation of auditors;
g)	submit documents specified in Article 39 paragraph 3 letter c) to f) to the Assembly for approval.
h)	decides on removals pursuant to Article 44 paragraph 12. 
(5)	The Presidium shall be convened by the president of the Chamber of Auditors as necessary. 

Article 41

Supervisory Board

(1)	The Supervisory Board is the control body of the Chamber of Auditors. 

(2)	The Supervisory Board shall:
a)	control the activities of the bodies of the Chamber of Auditors; 
b)	control the financial management of the Chamber of Auditors; 
c)	examine and process complaints; 
d)	control the fulfilment of recommendations for the removal of deficiencies within the specified time limit in accordance with Article 31 paragraph 8;
e)	send proposals for a disciplinary procedure as referred to in Article 31 paragraph 8;
f)	send proposals for a disciplinary procedure if an auditor, audit firm and assistant auditor fail to pay registration fees, membership fees, fees for entry tests or make other payments; 
g)	control compliance with the good repute requirements referred to in Article 38 paragraph 3;
h)	convene an extraordinary meeting of the Assembly if this follows from the statute of the Chamber of Auditors. 

Article 42

Commission for Continuing Education

The Commission for Continuing Education shall: 
a)	develop the principles and plan of continuing education of auditors and assistant auditors; 
b)	ensure continuing education of auditors and assistant auditors;
c)	control the fulfilment of the continuing education requirements referred to in Article 29;
d)	send proposals for a disciplinary procedure as referred to in Article 29 paragraph 7;
e)	send proposals according to Article 29 paragraph 8 for the procedure referred to in Article 60.

Article 43

Commission for Audit Quality Assurance

(1)	The Commission for Audit Quality Assurance shall work out: 
a)	the principles of an audit quality assurance review; 
b)	the rules of the selection of reviewers;
c)	a plan for a quality assurance review for a calendar year. 

(2)	The Commission for Audit Quality Assurance shall ensure an audit quality assurance review referred to in Article 31 through reviewers. 

Article 44

Disciplinary Measures and Disciplinary Procedure

(1)	The breach of obligations arising from the provisions of this Act, International Auditing Standards, the Code of Ethics, or the internal regulations of the Chamber of Auditors (hereafter referred to as the “breach of discipline”) the Disciplinary Commission shall impose the following disciplinary measures on an auditor, audit firm, or assistant auditor (hereafter referred to as the "person subject to disciplinary action"):
a)	a written admonition for failure to comply with the obligations set out in 
1. Article 24, Article 27, Article 28 paragraph 6 and 7, Article 29, Article 31 paragraph 8 and Article 37 paragraph 2 on an auditor and audit firm;
2. Article 12 paragraph 8, Article 29, Article 37 paragraph 3 and 4 on an assistant auditor;
3. Article 38 paragraph 3 on a member of the Chamber’s body
b)	a penalty of up to SKK 100,000 on an auditor and up to SKK 500,000 on an audit firm for failure to comply with the provisions of: 
1. Article 18, Article 19, Article 20 paragraph 1 to 6, Article 22 paragraph 2, Article 23, Article 25 paragraph 1 and 2, Article 26, Article 30 and Article 37 paragraph 4;
2. Article 24, Article 27, Article 28 paragraph 6 and 7, Article 29, Article 31 paragraph 8 and Article 37 paragraph 2 if imposition of the measure under letter a) did not lead to a remedy and the unlawful situation persists;
c)	deletion of an assistant auditor from the list of assistant auditors for a breach of the obligations stipulated in:  
1. Article 13 paragraph 1 letter d) to h) and Article 30;
2. Article 12 paragraph 8, Article 29, Article 37 paragraph 3 and 4, if imposition a penalty under letter a) did not lead to a remedy and the unlawful situation persists.
(2)	The penalty referred to in paragraph 1 letter b) shall be payable within 30 days of the effective date of the decision on the imposition of the fine. 
(3)	Collected fines referred to in paragraph 1 letter b) shall constitute income of the Chamber of Auditors. 
(4)	When imposing a disciplinary measure, the Disciplinary Commission shall primarily consider the importance and time during which the unlawful situation existed, the extent of consequences, and the possible repeated breach of obligations or the breach of several obligations.  
(5)	Details of a disciplinary procedure shall be stipulated in the rules of disciplinary procedure approved by the Authority. 
(6)	The Disciplinary Commission shall decide on the imposition of a disciplinary measure within a disciplinary procedure, which shall be initiated following a proposal from: 
a)	the chairperson of the Supervisory Board as referred to in Article 41 paragraph 2 letter e) and f);
b)	the chairperson of the Commission for Continuing Education as referred to in Article 42 letter d).
(7)	A proposal for the initiation of a disciplinary procedure may be submitted within six months of the date on which the breach of discipline was ascertained, at the latest within three years of the date when the breach of discipline occurred. 
(8)	The Disciplinary Commission shall issue a decision within three months after the date of delivery of the proposal and, in extremely complicated instances, at the latest within 12 months after the date of delivery of the proposal.
(9)	The participant in a disciplinary procedure shall be entitled to make comments on all facts subject to the disciplinary procedure. He shall have the right to defend himself and bring forward evidence to be submitted within the disciplinary proceeding.
(10)	A written decision on a breach of discipline shall contain a ruling, an explanation, and instructions for appeal. The ruling by which the defendant is found guilty of a breach of discipline shall also include a ruling regarding the obligation to pay to the Chamber of Auditors the fixed costs of the disciplinary procedure in the amount of the minimum monthly wage laid down in special legislation) within 15 days of the effective date of the decision. The written decision shall be delivered, addressed to the attention of the person subject to disciplinary action. 
(11)	The person subject to disciplinary action, the chairperson of the Supervisory Board or the chairperson of the Commission for Continuing Education, may lodge an appeal against the decision of the Disciplinary Commission on the imposition of a disciplinary measure on the person subject to disciplinary action within 15 days after the delivery of the decision. An appeal shall be lodged with the Disciplinary Commission and has a suspensory effect.
(12)	The appeal shall be decided by the Presidium. The Presidium shall review the decision in full and shall uphold, alter or overrule the contested decision, or reverse it and return the matter to the Disciplinary Commission for a new procedure and decision. The Presidium shall issue a ruling within three months after the delivery of the proposal, in very complicated instances within 12 months after the date of delivery of the proposal at the latest. The Disciplinary Commission is bound by the legal opinion of the Presidium.
(13)	The decision of the Presidium regarding the appeal cannot be further appealed. 
(14)	In accordance with special legislation), the court may review the legality of a valid decision issued by the Disciplinary Commission in accordance with this Act. 
(15)	If an auditor and an audit firm are found to have repeatedly committed a breach of duty for the breach of which a disciplinary measure has already been imposed in accordance with paragraph 1 letter b), the Disciplinary Commission shall submit a proposal to the Authority for the imposition of sanctions pursuant to Article 60. 
(16)	The disciplinary measure pursuant to paragraph 1 letter a) point 1 letter b) cannot be imposed if the Authority has already sanctioned the auditor and audit company for the same breach of obligations. 
Article 45
Financial Management of the Chamber of Auditors
(1)	The Chamber of Auditors shall manage its assets. The sources of income of the Chamber of Auditors consist of registration fees, membership fees, fees for entry tests, monetary payments, remuneration for services provided by the Chamber of Auditors, gifts, revenue from fines, and other income. 
(2)	The Chamber of Auditors shall finance expenses incurred to ensure its activities and the development of audit from its income. 
(3)	The Chamber of Auditors shall maintain accounting books in accordance with special legislation26). The Chamber of Auditors' financial statements shall be audited by at least two auditors who are not members of the Presidium or the Supervisory Board. These auditors shall be approved by the Authority following a proposal from the Chamber of Auditors. The auditors shall send a copy of the auditor's report to the Authority. The Chamber of Auditors shall bear the audit expenses. 

PART SIX
AUTHORITY 
Article 46
Establishment of the Authority
The Authority shall be established as a legal entity entrusted with supervision over public administration in accordance with this Act. The Authority shall not be entered in the Commercial Register and shall have its seat in Bratislava. 
Article 47
Scope of Activities of the Authority
(1)	The Authority shall:
a)	organize auditor's examinations (Article 14);
b)	organize examinations of professional competence (Article 15);
c)	organize tests (Article 8 paragraph 8);
d)	issue certificates (Article 3);
e)	issue licenses (Article 7), suspend licenses (Article 8), and revoke licenses (Article 11);
f)	register auditors and audit firms in the relevant registers and maintain the relevant registers;
g)	register third-country auditors and third-country audit firms in the relevant registers;
h)	provide audit working papers and information (Article 33) to other member states or third countries according to Article 20 paragraph 4.
(2)	The Authority shall perform oversight of the following: 
a)	compliance with International Auditing Standards; 
b)	compliance with the Code of Ethics; 
c)	compliance with the provisions of this Act;
d)	the system of audit quality assurance reviews; 
e)	continuing education; 
f)	disciplinary procedures conducted by the Chamber of Auditors. 

(3)	The Authority shall also perform oversight by imposing sanctions referred to in Article 60.
(4)	The Authority shall also carry out the following activities: 
a)	participate in the preparation, updating, and adoption of International Accounting Standards through the competent authorities of the European Union; 
b)	ensure interpretations of International Accounting Standards and their availability to users in the Slovak Republic in the official language;
c)	participate in the preparation, updating, and adoption of International Auditing Standards and the Code of Ethics through the competent authorities of the European Union and ensure their availability to users in the Slovak Republic in the official language; 
d)	cooperate with the Ministry in drafting generally binding legislation in the area of accounting and audit; 
e)	coordinate activities, cooperation, and the exchange of information with the competent oversight authorities of other member states and third countries to the extent and under the conditions laid down in this Act and in accordance with the legal regulations and agreements by which the Slovak Republic is bound;
f)	cooperate and exchange information with other authorities, if special legislation so provides),
g)	continuously inform the Chamber of Auditors of drafts and amendments referred to in letter a) to e);
h)	other activities, if this Act or special legislation so provides. 
(5)	The Authority shall perform oversight impartially and independently of state authorities, territorial self-administration authorities, other public authorities, and other legal entities or individuals. State authorities, territorial self-administration authorities, other public authorities, or other legal entities or individuals must not influence the performance of oversight by the Authority. 
Article 48
The Authority shall submit to the Government of the Slovak Republic (hereafter referred to as the "Government") the following on an annual basis by 30 June for the preceding calendar year:
a)	a report on the activities of the Authority;
b)	an annual report26).

Organization and Management of the Authority
Article 49 
Bodies of the Authority
(1)	The bodies of the Authority are: 
a)	the Board;
b)	the Managing Director; 
c)	the Supervisory Committee;
d)	the following committees: 
1.	the Committee for International Accounting Standards;
2.	the Committee for International Auditing Standards and Ethics; 
3.	the Committee for Audit Quality Assurance; 
4.	the Committee for Investigation and Sanctions. 
(2)	Except for the Managing Director and a Committee member representing the Authority, individuals possessing professional knowledge and experience in the area of accounting or audit, who have full legal capacity and meet the good reputation requirement pursuant to in Article 3 paragraph 7 to 9 can be appointed members of the Board. Before assuming office, at the latest by 31 January of the current year, members of the Authority bodies are required to prove that they meet the good reputation requirement pursuant to Article 3 paragraph 7 to 9 for the preceding calendar year. Members of the Authority bodies are required to report any changes in the fulfilment of the good reputation requirements on an annual basis, pursuant to Article 3 paragraph 7 and 9. A second-level university degree and a minimum of five years' practical experience in the area of accounting or audit, of which a minimum of two year's practical experience in a management, scientific, or pedagogical position, shall be considered professional knowledge and experience. The position of Managing Director requires a second-level university education and a minimum of five years' practical experience in a management position. A natural person meeting the condition of good reputation according to Article 3 paragraphs 7 to 9 can be appointed a Managing Director. The chairperson of the Committee for Investigation and Sanctions must have a second-level university education specialized in law. 
(3)	One member of the Board, except for the Managing Director, shall be proposed by each of the following: the National Bank of Slovakia, the Stock Exchange and the Association of Employers' Federations and Associations of the Slovak Republic and the Chamber of Auditors and two members by the Ministry.
(4)	Members of the Authority bodies are required to act impartially and refrain from any actions by which they would give priority to their personal interests or the interests of the institution that has proposed them for these positions over the public interest. For labour law purposes, the performance of office in the Authority bodies shall be deemed the performance of a public office,) for which leave from work shall be granted. 
(5)	The Ministry, the Chamber of Auditors, and public-interest entities shall be entitled to reimbursement for actual travel expenses, out-of-pocket expenses, and to compensation for time proven spent by their employees in connection with the holding of a position in the Authority bodies. Details of reimbursement for incurred expenses and time compensation shall be stipulated in the Authority statute.
(6)	The majority of Board members, Supervisory Committee, members of the Committee for Audit Quality Assurance and the Committee for Investigation and Sanctions shall be non-practitioners. 
Article 50
The Board
(1)	The Board is the highest body of the Authority. 
(2)	The Board shall:
a)	approve a strategy for the Authority's activities;
b)	approve the annual plan of the Authority's activities;
c)	discuss the budget of the Authority and its drawing and submit it to the Supervisory Committee; 
d)	adopt measures on the basis of findings made by the Supervisory Committee according to Article 54 paragraph 5 and 6;
e)	appoint and remove members of the individual committees of the Authority; 
f)	propose the Managing Director according to Article 53 paragraph 2;
g)	approve the principles of activities of the individual Authority committees and reports on their activities; 
h)	approve a report on activities pursuant to Article 48 letter a) and submit it to the Government;
i)	approve an auditor to audit the Authority's annual financial statements and review compliance of the Authority's annual report with the Authority's financial statements;
j)	approve the Authority's financial statements and submit them to the Government after consistency of the Authority's annual report with the Authority's financial statement is reviewed by an auditor;
k)	approve the statute of the Authority, the Authority's rules of organizational procedure, and other internal regulations of the Authority;
l)	approve the rules of official procedure of the Board and the individual committees;
m)	appoint and remove the chairperson and members of the Authority's Examination Commission (Article 17);
n)	decide on appeals against decisions adopted by the Committee for Investigation and Sanctions;
o)	approve agreements on mutual cooperation, coordination, and provision of information and documents between the Authority and the competent oversight authorities of member states and third countries; 
p)	coordinate and manage the Authority's relations at the national and international level. 
Article 51
Composition of the Board
(1)	The Board consists of seven members, including: 
a)	the chairperson of the Board; 
b)	the deputy chairperson of the Board; 
c)	Managing Director 
d)	other members of the Board.
(2)	Members of the Board shall be appointed and removed by the Finance Minister of the Slovak Republic (hereafter referred to as the "Minister") following a proposal from entities referred to in Article 49 paragraph 3. If membership in the Board ends before the expiration of the term in office for reasons referred to in paragraph 5 letter b), c) and d), a new member of the Board shall be appointed for the remainder of the term in office of the Board member whom the has replaced in office. 
(3)	Membership in the Board is honorary and unremunerated, except for the Managing Director. Membership in the Board is non-substitutable. A member of the Board shall be a member of an Authority committee at the same time. 
(4)	The term in office of a Board member is five years, except for the Managing Director. A member of the Board may be reappointed, but only for a maximum of two successive terms in office. 
(5)	The term in office of a Board member shall cease: 
a)	as of the date of expiration of their term in office;
b)	upon resignation from office at the written request of the Board member; as of the date of its delivery to the chairperson of the Board, unless a later date of resignation is stated in the request;
c)	upon dismissal from office for reasons referred to in paragraph 6; 
d)	if he died or was lawfully pronounced dead.
(6)	The Minister shall remove a Board member following a proposal of entities pursuant to Article 49 paragraph 3 if: 
a)	he has been validly sentenced by court for an intentional criminal act;
b)	he has been validly incapacitated or his capacity to perform legal acts has been restricted;
c)	he loses his good reputation referred to in Article 3 paragraph 7 to 9;
d)	he has not exercised office for at least 12 successive calendar months;
e)	he fails to fulfil his duties as Board member. 
Article 52
Board Meeting
(1)	The Board shall meet at least once in three months. Board meetings shall be convened and chaired by the chairperson of the Board or the deputy chairperson of the Board in the case of the chairperson's absence. The chairperson of the Board is also required to convene a Board meeting on the basis of a written proposal from any Board member within seven days of delivery of the written proposal; if the chairperson of the Board fails to fulfil this obligation, a Board meeting shall be convened by the deputy chairperson of the Board without undue delay, within one month at the latest. 
(2)	The Board constitutes a quorum if a simple majority of all Board members are present at the meeting, and one of them must be the chairperson of the Board or the deputy chairperson of the Board. The adoption of a decision of the Board requires the consent of a simple majority of the Board members present; in the case of a tie, the chairperson, or in the chairperson's absence, the deputy chairperson shall have the casting vote. Each member is entitled to have his negative opinion on the Board's decision indicated in the minutes of the meeting at his request. 
(3)	The Board's activities shall be managed by the chairperson of the Board. The chairperson of the Board shall sign the Board's resolutions. The deputy chairperson of the Board shall substitute for the chairperson of the Board during his absence. 
(4)	Board meetings shall be non-public. Other persons invited by the Board may attend a Board meeting. 
(5)	Minutes of each Board meeting shall be prepared. The minutes of Board meetings shall be published on the Authority's website within five days of the date of the end of the Board meeting in such a way that the provisions of special legislation 34) is not affected.
(6)	Details of Board meetings shall be stipulated in the rules of official procedure approved by the Board.
Article 53
Managing Director
(1)	The Managing Director is the statutory and executive body of the Authority and shall manage its activities. The Managing Director shall decide on all issues concerning the Authority that are not reserved to the exclusive powers of the Board, the Supervisory Committee, or the Authority committees in accordance with this Act. 
(2)	The Managing Director shall be appointed and removed by the Minister according to this Act based on the Board’s proposal. As of the date designated as that on which the Managing Director assumes office, an employment relationship with the Authority shall be established for the Managing Director, unless the Managing Director was employed by the Authority at the time of his appointment. 
(3)	The term of office of the Managing Director is four years. The term of office shall be limited to a maximum of two successive terms. 
(4)	The position of Managing Director is incompatible with membership in or any other position on the management body, supervisory body, or control body of a legal entity carrying out business activities, as well as with any business activity or other economic or gainful activity that may be contrary to the holding of the position of Managing Director. 
(5)	If the Managing Director holds a position or carries out an activity that is incompatible with the position of Managing Director at the time of his appointment, he is required to perform a provable legal act aimed at the termination of each such position or activity without undue delay, within one month at the latest, and to terminate each such position or activity without undue delay. No later than within one month after his appointment to the office, he must inform the Minister whether he meets the requirement of incompatibility of the office of a Managing Director with other positions or activities pursuant to paragraph 4. 
(6)	A representative appointed by the Managing Director shall substitute for the Managing Director in his absence. 
(7)	The Managing Director shall: 
a)	represent the Authority towards third parties and act on its behalf on all matters;
b)	represent the Slovak Republic in international organizations involved in the area of accounting, reporting, and audit; 
c)	provide for the preparation of a strategy for the Authority, the annual plan of the Authority's activities, a report on the Authority's activities pursuant to Article 48 letter a), the Authority's budget, and an assessment of its fulfilment; 
d)	submit the Authority's financial statements and annual report to the Board for approval; 
e)	manage the Authority Administration.
Article 54
Supervisory Committee
(1)	The Supervisory Committee is the control body of the Authority. 
(2)	The Supervisory Committee has three members. Members of the Supervisory Committee are: 
a)	the chairperson;
b)	other members.
(3)	The Supervisory Committee shall: 
a)	control the Authority's financial management;
b)	approve the Authority's budget and the assessment of its drawing;
c)	control compliance with the good reputation requirements referred to in Article 49 paragraph 2;
d)	propose the convention of the Board if it identifies deficiencies that may affect the Authority's financial management; 
e)	approve the rules of official procedure of the Supervisory Committee. 
(4)	The provisions of Article 51 paragraph 2 to 4 shall apply accordingly to the Supervisory Committee. 
(5)	Members of the Supervisory Committee are entitled to ascertain the state and method of the Authority's financial management, in particular to inspect documents and records concerning the Authority's financial management and request necessary explanations from members and employees of the Authority. 
(6)	If the Supervisory Committee identifies during its activities a violation of generally binding legislation with respect to the Authority's activities, it shall inform the Board thereof at the latest within one month after the date of the finding. 
(7)	Meetings of the Supervisory Committee shall take place at least once in six months. 
(8)	Details of Supervisory Committee meetings shall be stipulated in its rules of official procedure approved by the Supervisory Committee. 
(9)	The term in office of a Supervisory Committee member shall cease:
a)	as of the date of expiration of his term in office;
b)	upon resignation from office at his written request; as of the date of its delivery to the Minister, unless a later date of resignation is stated in the request;
c)	upon dismissal from office for reasons referred to in paragraph 10;
d)	if he dies or is pronounced legally dead.
(10)	The chairperson of the Supervisory Committee shall submit to the Minister a proposal for the dismissal of a member of the Supervisory Committee if: 
a)	he has been validly sentenced by court for an intentional criminal act;
b)	he has been validly incapacitated or their capacity to perform legal acts has been restricted;
c)	he loses his good reputation referred to in Article 3 paragraph 7 to 9;
d)	he has not exercised office for at least 12 successive calendar months;
e)	the chairperson of the Supervisory Committee is requested in writing to do so by the entity that has proposed him to this position; 
f)	he fails to fulfil his duties as Supervisory Committee member.
Article 55
Committees 
(1)	Members of the individual committees are: 
a)	the chairperson of the committee;
b)	the secretary of the committee; 
c)	other members of the committee. 
(2)	The committees must have an odd number of members. The number of members of the individual committees shall be determined in the statute of the Authority. Members of the individual committees shall be appointed and removed by the Board on the basis of a proposal referred to in Article 49 paragraph 3. 
(3)	The committees shall meet at least once a month. Committee meetings shall be convened and chaired by the chairperson of the committee or the secretary of the committee in the case of the chairperson's absence. The provisions of Article 52 paragraph 5 and 6 shall apply equally to committee meetings. The Managing Director may attend committee meetings. 
(4)	Committees shall hold discussions on the basis of the rules of an official procedure approved by the Board. 
(5)	The committee chairperson shall submit to the Board a report on the committee's activities on a quarterly basis. 
(6)	The provisions of Article 51 paragraph 3 to 6 shall apply accordingly to members of the Authority committees. 
Article 56
Committee for International Accounting Standards
The Committee for International Accounting Standards shall: 
a)	participate in the preparation, updating, and adoption of International Accounting Standards and application directives; 
b)	ensure interpretations of International Accounting Standards and their availability to users in the Slovak Republic in the official language;
c)	provide consulting on the application of International Accounting Standards with respect to the specifics of the Slovak Republic; and
d)	cooperate with the Ministry and professional organizations in the Slovak Republic and abroad in the area of taxation and accounting. 
Article 57
Committee for International Auditing Standards and Ethics
The Committee for International Auditing Standards and Ethics shall:
a)	participate in the preparation, updating, and adoption of International Auditing Standards and the Code of Ethics; 
b)	ensure availability of translations of International Auditing Standards into the official language; and
c)	cooperate with the Ministry and professional organizations in the Slovak Republic and abroad in the area of accounting, audit, and taxation. 
Article 58
Committee for Audit Quality Assurance
The Committee for Audit Quality Assurance shall: 
a)	oversee:
1. compliance with International Auditing Standards;
2. compliance with the Code of Ethics;
3. compliance with the provisions of this Act; 
4. the audit quality assurance review;
b)	prepare a schedule of oversight and determine entities subject to oversight;
c)	appoint and manage persons performing oversight;
d)	oversee continuing education; 
e)	assess notifications from public-interest entities and notifications from auditors and audit firms regarding the dismissal or resignation of an auditor and an audit firm during the execution of an audit;
f)	inform the Committee for Investigation and Sanctions of serious findings without undue delay and make proposals for the initiation of a procedure referred to in Article 60.
Article 59
Committee for Investigation and Sanctions
(1)	The Committee for Investigation and Sanctions:
a)	shall approve the rules of disciplinary procedure of the Chamber of Auditors;
b)	may review a disciplinary procedure conducted by the Chamber of Auditors; 
c)	based on serious findings referred to in Article 58 letter f), it shall initiate a procedure pursuant to Article 60;
d)	shall impose sanctions on auditors, audit firms, and the Chamber of Auditors according to Article 60;
e)	shall investigate proposals sent according to Article 29 paragraph 8 and Article 44 paragraph 15 by the Disciplinary Commission of the Chamber of Auditors and impose sanctions in accordance with Article 60.
f)	decides on relieving an entity from the confidentiality obligation pursuant to Article 30 paragraph 3. 
(2)	Two members of the Committee for Investigation and Sanctions must be auditors registered in the register of auditors. 
Article 60
Sanctions 
(1)	If the Authority ascertains deficiencies during the performance of oversight according to Article 47 paragraph 2 letter a) to e), or if it received proposal from Chamber of Auditors in accordance with Article 44 paragraph 15, it shall impose the following sanctions: 
a)	a written admonition for failure to meet the obligations set out in Article 8 paragraph 4, Article 11 paragraph 7, Articles 21, Article 24, Article 27, Article 28 paragraph 1 to 5 for an auditor and audit firm; ;
b)	a fine of up to: SKK 500,000 on an auditor; SKK 1,000,000 on an audit firm for the failure to meet the obligations set out in:
1.	Article 9 paragraph 2, Article 10 paragraph 2, Articles 18, Article 19, Article 20 paragraph 1, 4 and 5, Article 22, Article 23, Article 25 paragraph 1 and 2, Article 26;
2.	Articles 6, Article 8 paragraph 4, Article 11 paragraph 7, Article 21, Article 24, Article 27, Article 28 paragraph 1 to 5 if he failed to meet the obligation despite a written admonition 
3.	if the Authority received a request for action from the Chamber of Auditors pursuant to Article 44 paragraph 15,
c)	suspension of the license of an auditor and audit firm, if
1.	the sanction imposed pursuant to letter a) or letter b) above did not lead to remedy and the unlawful state persists 
2.	the Authority received a proposal from the Chamber of Auditors pursuant to Article 44 paragraph 15 ;
d)	deletion of an auditor and an audit firm for the failure to meet the obligations 
1.	the sanction imposed pursuant to letter b) or letter c) above did not lead to remedy and the unlawful state persists 
2.	the Authority received a proposal from the Chamber of Auditors pursuant to Article 44 paragraph 15 ;
(2)	If, during the performance of oversight the Authority, discovers serious deficiencies in the activities of the Chamber of Auditors while the provisions of this Act have been complied with, it may impose a fine of up to SKK 1,000,000 on the Chamber of Auditors, for the failure to meet the obligations set out in Article 12 paragraph 1 to 4, 7 to 10, Article 13 paragraph 1, Article 31 paragraph 3 to 7 and 9 to 10, Article 38 paragraph 8 and Article 40 paragraph 2, Article 44 paragraph 4 to 8, 10, 12 and 15 and Article 67 paragraph 7, 10 and 12.
(3)	The Authority shall not impose a sanction pursuant to paragraph 1 letter a) and letter b) first and second points on an Auditor or Audit firm for the same breach of discipline for which a disciplinary measure was imposed by the Chamber of Auditors 
(4)	A fine referred to in paragraph 1 letter b) and paragraph 2 shall be payable within 30 days of the effective date of the decision on the imposition of the fine. 
(5)	Revenue from fines referred to in paragraph 1 letter b) and paragraph 2 shall constitute income of the Authority.
(6)	 In imposing sanctions, the Committee shall consider particularly the seriousness, the length of time the unlawful act lasted, the scope of its consequences, a possible repeated breach of obligations or a breach of several obligations.
(7)	The Committee for Investigation and Sanctions shall decide on the imposition of a sanction in a procedure initiated following a proposal from the chairperson of the Committee for Investigation and Sanctions or the chairperson of the Committee for Audit Quality Assurance. 
(8)	 The procedure on imposing sanctions pursuant to paragraph 1 can be started no later than within one year after the Authority became aware of the breach of obligations, however, no later than within three years after the date that the breach occurred. 
(9)	The Committee for Investigation and Sanctions shall issue a decision within three months of the date of delivery of the proposal and, in extremely complicated cases, at the latest within 12 months. 
(10)	A written decision on the imposition of a sanction shall include a ruling, an explanation, and instructions for appealing. The decision shall also contain a ruling regarding the obligation to pay to the Authority the fixed costs of the procedure in the amount of the minimum monthly wage laid down in special legislation36) within 15 days after the effective date of the decision. The written decision shall be delivered into own hands of the person in question.
(11)	A participant in the procedure may lodge an appeal against the decision of the Committee for Investigation and Sanctions within 15 days after the date of delivery of the decision. An appeal shall be lodged with the Committee for Investigation and Sanctions and has a suspensory effect.
(12)	The appeal shall be decided by the Board. The Board shall review the decision in full and shall uphold, alter or overrule the contested decision, or reverse it and return the matter to the Committee for Investigation and Sanctions for a new procedure and decision. The Committee for Investigation and Sanctions is bound by the legal opinion of the Board.
(13)	The general regulation on administrative procedure) shall apply to the procedure, unless this Act provides otherwise. 
Article 61
Financial Management of the Authority
(1)	The Authority shall manage its assets. When managing its assets, the Authority is required to ensure economical and effective use of these assets. 
(2)	The Authority may not carry out any business activities.
(3)	The Authority may not accept or provide loans, conclude agreements on silent partnership, issue securities, or accept or receive promissory notes. 
(4)	The Authority's funds may only be used for the specified purposes and to the extent necessary for ensuring the Authority's activities.
Article 62
Budget of the Authority
(1)	The Authority shall prepare a budget of revenue and expenses for the relevant budgetary year. Expenses related to the activities of the Board, the Authority Administration, the Supervisory Committee, and the individual committees shall be separately budgeted in the Authority's budget. 
(2)	The Authority's budget for the following year shall be approved by the Supervisory Committee usually by 31 October of the current year. If the Authority's budget for the following calendar year is not approved by 31 December of the current year, during the period from 1 January of the following year until the approval of the Authority's budget, the Authority shall use a provisional budget represented by the Authority's budget approved by the Supervisory Committee for the preceding year.
(3)	The Authority shall publish the approved budget on its website without undue delay, at the latest within one month of its approval. 
(4)	The distribution of the Authority's financial result shall be decided by the Board. If an accounting period ends with a profit, it shall serve as the source of financing the Authority in the subsequent accounting period. 
(5)	The Authority shall maintain its accounting books in accordance with special legislation26). The financial statements and consistency of the Authority's annual report with the financial statements shall be reviewed by two auditors who are not members of the Authority bodies and have been drawn by the Chamber of Auditors. The Authority shall publish its annual report on its website without undue delay after it is approved by the Board and discussed by the Government, at the latest within one month after it is discussed by the Government. 
(6)	In addition to mandatory information,) the annual report includes an assessment of the fulfilment of the set objectives and the effective and efficient utilization of resources.
Article 63
Income of the Authority
(1)	The sources of income of the Authority consist of:
a)	a contribution from the state budget in accordance with the Act on the State Budget; 
b)	annual contributions;
c)	revenue from fines (Article 60); 
d)	compensation of costs of a procedure (Article 60;
e)	default interest (Article 65);
f)	fees for examinations (Article 14, 15) and tests (Article 8 paragraph 10);
g)	fees for acts performed by the Authority. 
(2)	The Authority is linked to the state budget by means of a contribution referred to in paragraph 1 letter a) through the budget chapter of the Ministry. 
Article 64
Annual Contribution 
(1)	An annual contribution shall be paid to the Authority by public-interest entities. An annual contribution shall be paid in accordance with Appendix No. 2.
(2)	An annual contribution shall be paid to the Authority as a one-off payment within three months after the beginning of the accounting period to the Authority's account, and the Authority shall publish information about this contribution on its website. 
(3)	A public-interest entity whose accounting period is shorter than 12 calendar months shall pay a proportional part of the annual contribution. 
(4)	A public-interest entity established during the course of a calendar year shall use its share capital, permanently granted funds, or tied-up financial resources at the date of its establishment to calculate the annual contribution. 
Article 65
If payments prescribed by this Act are not made duly and timely, an auditor, an audit firm, the Chamber of Auditors, or a public-interest entity is required to pay to the Authority default interest of 0.01% of the amount due for each day late. 
Common, Transitional, and Final Provisions
Article 66
(1)	Employees of the Authority shall be subject to the provisions of special legislation39).
(2)	The Ministry shall inform the European Commission of the status and scope of activities of the Chamber of Auditors and the Authority according to this Act. 
(3)	Before the European Commission adopts a decision on the equivalence of the systems of audit quality assurance and oversight of third countries, the Authority shall assess equivalence in accordance with Article 6 paragraph 1 letter e). The Authority's assessment may rely on the assessments of equivalence carried out by other member states.
(4)	The Authority shall communicate to the European Commission its assessment of the equivalence of the systems of audit quality assurance and oversight of third countries, including the rules according to which the equivalence has been recognized. 
(5)	Additional requirements relating to audit as referred to in Article 18 paragraph 2 may be applied until 29 June 2010.
(6)	National auditing standards may be applied as long as the European Commission has not adopted International Auditing Standards covering the same area. 

Article 67
(1)	Auditors registered in the register of auditors and audit firms registered in the register of audit firms maintained by the Slovak Chamber of Auditors according to the previous Act shall be considered auditors and audit firms according to this Act.
(2)	Licenses issued according to the previous Act shall be considered licenses issued according to this Act.
(3)	Auditors registered in the register of auditors maintained by the Slovak Chamber of Auditors according to the previous Act shall be entitled to use the designation "certified auditor" and the abbreviation "CA" from the effective date of this Act.
(4)	Assistant auditors registered in the list of assistant auditors maintained by the Slovak Chamber of Auditors according to the previous Act shall be considered assistant auditors according to this Act.
(5)	The extent of practical experience of an assistant auditor according to the previous Act shall be included in the extent of practical training of an assistant auditor according to Article 3 paragraph 2.
(6)	The number of hours of education of auditors and assistant auditors provided by the Slovak Chamber of Auditors according to the previous Act shall be included in the extent of continuing education according to this Act.
(7)	The Chamber of Auditors shall submit to the Authority a declaration on the conclusion of an indemnity insurance contract within three months of the establishment of the Authority on behalf of auditors and audit firms insured through the Chamber of Auditors. 
(8)	Auditors and audit firms shall submit to the Authority a declaration on the conclusion of an indemnity insurance contract within three months after the establishment of the Authority, unless they are insured as referred to in paragraph 7.
(9)	The Slovak Chamber of Auditors referred to in the previous Act shall be considered the Chamber of Auditors according to this Act. 
(10)	The Chamber of Auditors shall submit to the Authority the register of auditors and the register of audit firms, as well as suspended licenses, within three months after the establishment of the Authority; the register of auditors and the register of audit firms referred to in the previous Act shall be binding until they are submitted to the Authority. 
(11)	Disciplinary procedures initiated by the Slovak Chamber of Auditors prior to 1 January 2008 shall be completed by the Chamber of Auditors according to the previous legislation. 
(12)	Successfully passed partial examinations under the previous act shall be regarded as partial examinations passed under this Act. 
(13)	Two-thirds of members of the bodies of the Slovak Chamber of Auditors referred to in the previous Act, who held office for two successive terms prior to 1 January 2008, may not be elected to the bodies of the Chamber of Auditors at the nearest meeting of the Assembly convened after 1 January 2008. Other members of the bodies of the Slovak Chamber of Auditors referred to in the previous Act, who remain in office, may be elected to the bodies of the Chamber of Auditors at the nearest general meeting convened after 1 January 2008 for a maximum of two years.
(14)	The time limit referred to in Article 26 paragraph 3 set for an auditor and a key audit partner appointed prior to 1 January 2008 shall commence on the date of their appointment.
(15)	The Authority shall ensure that the register of auditors referred to in Article 9 and the register of audit firms referred to in Article 10 are fully operational by 29 June 2009 at the latest. 
(16)	In the first term, the first meeting of the Board shall be convened by the Managing Director. In the first meeting, the Board shall constitute a quorum if a simple majority of all its members is present. In this meeting, the Board shall elect its chairman and vice-chairman in a secret ballot.
(17)	Upon establishment of the Authority in accordance with this Act, the Managing Director shall be appointed by the Minister.
(18)	An audit that commenced prior to 1 January 2008 shall be completed in accordance with the previous act. 
Article 68
This Act incorporates the legal acts of the European Communities and the European Union referred to Appendix No. 1.
Article 69
Act No. 466/2002 Coll. on Auditors and the Slovak Chamber of Auditors shall be repealed.
Section II
Act No. 431/2002 Coll. on Accounting as amended by Act No. 562/2003 Coll., Act No. 561/2004 Coll., Act No. 518/2005 Coll., Act No. 688/2006 Coll., and Act No. 198/2007 Coll. shall be amended as follows:

1. In Article 18 paragraph 6 letter a), reference 22c shall be inserted above the word "auditors". 

Footnote 22c shall have the following wording:
"22c) Article 2 paragraph 2) of Act No. 540/2007 Coll. on Auditors, Audit, and Oversight of Audit and on Amendments and Supplements to Act No. 431/2002 Coll. on Accounting as amended. 

2. Footnote 24a shall have the following wording:
"24a) Article 18 of Act No. 540/2007 Coll.".

3. The following sentence shall be added to the end of Article 19 paragraph 2:
"An accounting entity is required to inform the Oversight Authority for Audit Performance on the dismissal or resignation of an auditor or an audit firm during the course of execution of an audit and explain the reasons leading to the resignation." 

4. Footnote 26a shall have the following wording:
"26a) Article 2 paragraph 1 and Article 21 paragraph 4 of Act No. 540.../2007 Coll.".

5. Footnote 28b shall have the following wording:
"28b) Article 23 of Act No. 540/2007 Coll.".

6. Article 22 paragraph 11 shall have the following wording: 
"(11) A parent accounting entity that has issued securities that were permitted to be traded on a regulated market of a member state or a state of the European Economic Area, or if any of its subsidiary accounting entities has issued securities that were permitted to be traded on a regulated market of a member state or a state of the European Economic Area, is required to prepare consolidated financial statements; the provisions of paragraph 10 shall not apply to the preparation of consolidated financial statements in this case. Paragraph 8 shall not apply to a parent accounting entity that is at the same time a subsidiary accounting entity and has issued securities that were permitted to be traded on a regulated market of a member state or a state of the European Economic Area."

7. In Article 31 shall be inserted paragraph 6 in the following wording:
"(6) An accounting entity is required, at the request of an auditor, to provide accounting records in the form requested by the auditor if it maintains accounting records in this requested form.".
Section III
This Act shall enter into force on 1 January 2008.

APPENDIX No. 1 to Act No. 540/2007 Coll.

LIST OF INCORPORATED LEGAL ACTS OF THE EUROPEAN COMMUNITIES AND THE EUROPEAN UNION

This Act incorporates the following legal acts:
1. Directive 2006/43/EC of the European Parliament and of the Council of 17 May 2006 on statutory audits of annual accounts and consolidated accounts, amending Council Directives 78/660/EEC and 83/349/EEC and repealing Council Directive 84/253/EEC (Official Journal of the European Union L 157/87, 9 June 2006).
2. Directive 2003/51/EC of the European Parliament and of the Council of 18 June 2003 amending Directives 78/660/EC, 83/349/EEC, 86/635/EEC and 91/674/EEC on the annual and consolidated accounts of certain types of companies, banks and other financial institutions and insurance undertakings (Special edition of the Official Journal of the European Union 17/1; Official Journal of the European Union L 178, 17 July 2003).

APPENDIX No. 2 to Act No. 540/2007 Coll.

ANNUAL CONTRIBUTION
Information in column 2 as of the balance sheet date shall form the basis for the calculation of an annual contribution. 

a) National Bank of Slovakia	SKK 40,000
	
b) Bank	0.01% of the amount of share capital; a maximum of SKK 200,000
	
c) Branch of a foreign bank	0.01% of the amount of permanently granted funds; a maximum of SKK 100,000
	
d) Export-Import Bank of the Slovak 
  Republic	0.01% of the amount of share capital; a maximum of SKK 200,000
	
e) Asset management company	0.01% of the amount of share capital; a maximum of SKK 100,000
	
f) Branch of a foreign asset management
  company	SKK 20,000	

g) Insurance company and reinsurance
  company	
0.01% of the amount of share capital; a maximum of SKK 200,000	

h) Branch of a foreign insurance company 
  and branch of a foreign reinsurance 
  company 	
0.01% of the amount of deposited and tied-up funds; a maximum of SKK 100,000	

i) Pension management company and 
  supplementary pension insurance company	
0.01% of the amount of share capital; a maximum of SKK 100,000	

j) Stock Exchange	
SKK 20,000
	
k) Central Depository of Securities 	SKK 20,000
	
 l) Railroads of the Slovak Republic	0.01% of the amount of share capital; a maximum of SKK 200,000	

m) Companies not referred to in (a) to (l) if 
   they proceed according to special 
   legislation5)	
0.01% of the amount of share capital; a 
maximum of SKK 200,000

n) Securities trader that is not a bank if it 
  proceeds according to special legislation6)	0.01% of the amount of share capital; a maximum of SKK 20,000
	
o) Branch of a foreign securities trader that is 
  not a bank if it proceeds according to 
  special legislation6)	0.01% of the amount of share capital; a maximum of SKK 10,000