ORDER OF THE GOVERNMENT REPUBLIC OF MOLDOVA

of December 22, 2015 No. 875

About approval of the Regulations on procedure for selection of subjects of audit and the sphere of powers for carrying out audit of individual financial statements of the state/municipal companies and joint-stock companies in which the share of the state exceeds 50 percent of the authorized capital

Based on part (2) article 11 of the Law No. 246/2017 on the state and municipal companies (The official monitor of the Republic of Moldova, 2017, Art. No. 441-450, 750), with subsequent changes and amendments, and parts (1) article 89 of the Law No. 1134-XIII of April 2, 1997 on joint-stock companies (repeated publication: The official monitor of the Republic of Moldova, 2008, Art. No. 1-4, 1), with subsequent changes and amendments, DECIDES: the Government

Approve Regulations on procedure for selection of subjects of audit and the sphere of powers for carrying out audit of individual financial statements of the state/municipal companies and joint-stock companies in which the share of the state exceeds 50 percent of the authorized capital it (is applied).

Approved by the Order of the Government of the Republic of Moldova of December 22, 2015 No. 875

Regulations on procedure for selection of auditor societies and the sphere of powers for carrying out audit of annual financial reports of the state companies and joint-stock companies in which the share of the state exceeds 50 percent of the authorized capital

Chapter I. Procedure for selection of auditor societies

Part 1. General provisions

1. Regulations on procedure for selection of auditor societies and the sphere of powers for carrying out audit of annual financial reports of the state companies and joint-stock companies in which the share of the state exceeds 50 percent of the authorized capital (further – the Provision), establishes procedure for submission of the letter on promotion of the offer, sentence structure, assessment and selection of auditor societies, the purpose and content of the sphere of powers, carrying out audit, creation and submission of the letter to persons given the leading authority and management, indicators according to the analysis of economic activity and financial performance, and also creation and representation of audit opinion.

2. For the purpose of this provision the concepts determined in the Law No. 271/2017 on financial records audit and in International standards of audit are used.

3. At least, 3 auditor societies which are registered in the Public register of subjects of audit according to the procedure established by the Law No. 271/2017 on financial records audit shall participate in tender on selection for carrying out audit of annual financial reports of the state companies and joint-stock companies in which the share of the state exceeds 50 percent of the authorized capital (further – subjects).

If less than 3 subjects of audit take part in tender on selection, tender repeats. If after repeated carrying out tender less than 3 subjects of audit also participated in it, competition is held according to the procedure established in the Provision.

4. Auditor society which participates in tender on selection for carrying out audit of annual financial reports of subjects shall conform to the minimum requirements relatively:

a) procedure and the term of submission of the letter on promotion of the offer, according to Item 6 of this provision;

b) sentence structures.

5. Information on the beginning of tender will be promulgated by the subject in accordance with the established procedure by means of publication and the official web page.

6. Auditor society represents the letter on promotion of the offer on participation in tender in time, specified by the subject in information on the beginning of tender which cannot be less than 30 days. In case the letter arrives after the specified term, it is rejected without consideration.

Part 2. Sentence structure

7. The offer on participation in tender is constituted on the letterhead of auditor society, in state language, accurately, with reference number and date, in duplicate (one – for the subject, another – for auditor society) and contains the following information:

a) name and address of auditor society, contact telephone numbers, e-mail address, bank details;

b) the short description of activities of auditor society with representation of experience of the employed auditors;

c) number of tasks on audit and types of auditiruyemy subjects for the last accounting period, and also, as necessary, the amount of the material damage caused to them;

d) the period of carrying out audit with adherence to deadlines, specified by the subject;

e) the term of submission of the letter to persons given the leading authority and management;

f) term of representation of audit opinion;

g) the minimum number of auditors who will book statutory audit of annual financial reports;

h) use, as necessary, works of the expert, in view of field of activity of the subject;

i) procedure for insurance of audit risk according to provisions of article 26 of the Law No. 271/2017 on financial records audit;

j) lack of the relations of affiliation with the subject and/or persons holding responsible posts of the subject, the subject's founder, except for the states;

k) auditor remuneration;

l) signature of the head.

Paragraph two of ceased to be valid.

Part 3. Assessment and selection of auditor societies

8. Assessment and selection of auditor societies is performed by administrative board of the state company / council of joint-stock company in transparent procedure according to Item q provisions) parts (7) article 8 of the Law No. 246/2017 on the state and municipal companies and Articles 41, 65 and 69 Laws No. 1134-XIII of April 2, 1997 on joint-stock companies, in view of information stated in the offer, cumulatively in view of:

a) period of carrying out audit;

b) the term of submission of the letter to persons given the leading authority and management;

c) term of representation of audit opinion;

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