Published: 05.09.2020.

According to Latvian regulatory enactments the profession of sworn auditor is regulated. The profession is regulated by the Law On Audit Services, Law on Regulated Professions and Recognition of Professional Qualification and related Regulations of the Cabinet of Ministers.

Only sworn auditors and commercial companies of sworn auditors are entitled to perform the professional activity that is manifested as audit services and sustainability assurances services.

A sworn auditor and a commercial company of sworn auditors who provides audit services and sustainability assurances services to public interest entities (PIEs) are obliged to publish information (a transparency report) about the sworn auditor and commercial company of sworn auditors on its website no later than within four months after the end of its reporting year.

Laws and Regulations:

EU Directives un Regulations

In carrying out the audit of financial statements sworn auditors must follow the International Standards on Auditing issued by the International Federation of Accountants and approved for application in Latvia by the Latvian Association of Sworn Auditors, the Code of Ethics for Professional Accountants and the provisions of an audit services contract.

In carrying out the sustainability assurance engagement sworn auditors must follow the International Standard on Assurance Engagements 3000 (ISAE 3000 Revised). The assurance standards to be used by assurance providers until the EU Commission has adopted the assurance standards (for limited assurance on sustainability information by October 2026). ISAE 3000 Revised is expected to be replaced in Q4 2024 by the International Standard for Sustainability Assurance 5000 (ISSA 5000). The Committee of European Auditing Oversight Bodies (CEAOB) has adopted guidelines to support auditors and assurance providers with limited assurance engagements on sustainability reports. The guidelines do not constitute a standard and should be used in conjunction with any national rules on sustainability-related assurance. The CEAOB guidelines have been issued with the intention “facilitating the harmonization of the assurance of sustainability reporting across Member States” in the interim period before this EU standard is adopted.