LU
Règlement CSSF N° 22-01 du 11 janvier 2022 relatif
Table des dispositions (8)
Texte législatif (8 Articles)
N° 44 du 27 janvier 2022
Règlement CSSF N° 22-01 du 11 janvier 2022 relatif
1) à l’adoption des normes d’audit dans le domaine du contrôle légal des comptes dans le cadre de
la loi du 23 juillet 2016 relative à la profession de l’audit ;
2) à l’adoption des normes relatives à la déontologie et au contrôle interne de qualité respectivement
à la gestion de la qualité dans le cadre de la loi du 23 juillet 2016 relative à la profession de l’audit.
La Direction de la Commission de Surveillance du Secteur Financier,
Vu l’article 108bis de la Constitution ;
Vu la loi du 23 décembre 1998 portant création d’une commission de surveillance du secteur financier et
notamment son article 9, paragraphe 2 ;
Vu la loi du 23 juillet 2016 relative à la profession de l’audit, et notamment son article 33 et son article 36,
paragraphe 3, lettres b) ;
Vu l’avis du Comité consultatif de la profession de l’audit ;
Arrête
Chapitre 1 : Adoption des normes d’audit dans le domaine du contrôle légal des comptes
Art. 1
er.
Sont obligatoires, dans le cadre des activités de contrôle légal des comptes visées par l’article 1
er, point 6 de la
loi du 23 juillet 2016 relative à la profession de l’audit, les parties « Introduction » , « Objective », « Definitions »
et « Requirements » des normes internationales d’audit telles qu’établies par l’International Auditing and
Assurance Standards Board (IAASB) dans leur version publiée dans le « Handbook of International Quality
Control, Auditing, Review, Other Assurance, and Related Services Pronouncements – 2020 Edition » de
l’International Federation of Accountants (IFAC) ainsi que les compléments luxembourgeois à ces normes
internationales repris en annexe 2 à ce règlement.
La liste des normes d’audit contenues dans l’Annexe 1 et les compléments luxembourgeois à ces normes
contenus dans les Annexes 2 et 3 font partie intégrante du présent chapitre.
Chapitre 2 : Adoption des normes relatives à la déontologie et des normes relatives au contrôle
interne de qualité respectivement à la gestion de la qualité par les cabinets de révision agréés
(1) Sont obligatoires la norme internationale de contrôle qualité respectivement les normes internationales
de gestion de la qualité telles qu’établies par l’International Auditing and Assurance Standard Board
(IAASB) dans leurs versions publiées dans le « Handbook of International Quality Control, Auditing, Review,
Other Assurance, and Related Services Pronouncements – 2020 Edition » de l’International Federation of
Accountants (IFAC), ainsi que les compléments luxembourgeois à ces normes.
JOURNAL OFFICIEL du Grand-Duché de Luxembourg
MÉMORIAL A - 44 du 27 janvier 2022
(2) Est obligatoire le code de déontologie de la profession de l’audit à Luxembourg, qui correspond au code
d’éthique tel qu’émis par l’International Ethics Standards Board for Accountants (IESBA) dans sa version
publiée dans le « Hanbook of the International Code of Ethics for Professional Accountants – 2021 Edition »
de l’International Federation of Accountants (IFAC) , ainsi que son complément luxembourgeois.
Les normes contenues dans les Annexes 4 à 11 font partie intégrante du présent chapitre.
Chapitre 3 : Dispositions communes
Le Règlement CSSF N° 19-02 relatif 1) à l’adoption des normes d’audit dans le domaine du contrôle légal
des comptes dans le cadre de la loi du 23 juillet 2016 relative à la profession de l’audit ; 2) à l’adoption des
normes relatives à la déontologie et au contrôle interne de qualité dans le cadre de la loi du 23 juillet 2016
relative à la profession de l’audit, y compris ses annexes, est abrogé.
Le présent règlement sera publié au Journal officiel du Grand-Duché de Luxembourg et sur le site Internet
de la CSSF. Il entre en vigueur à sa date de publication.
Luxembourg, le 11 janvier 2022.
Commission de Surveillance du Secteur Financier
Claude WAMPACH
Directeur
Marco ZWICK
Directeur
Jean-Pierre FABER
Directeur
Françoise KAUTHEN
Directeur
Claude MARX
Directeur général
JOURNAL OFFICIEL du Grand-Duché de Luxembourg
MÉMORIAL A - 44 du 27 janvier 2022
Annexe 1
Adoption des normes d’audit dans le domaine du contrôle légal des comptes en vertu de l’article 33,
paragraphe 2 de la loi du 23 juillet 2016 relative à la profession de l’audit.
Les présentes normes d’audit sont applicables et obligatoires dans le domaine du contrôle légal des comptes
200–299 GENERAL PRINCIPLES AND RESPONSIBILITIES
ISA 200, Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with
International Standards on Auditing
ISA 210, Agreeing the Terms of Audit Engagements
ISA 220, Quality Control for an Audit of Financial Statements
ISA 220 (Revised) Quality management for an audit of financial statements (Effective for audits of financial
statements for periods beginning on or after December 15, 2022)
ISA 230, Audit Documentation
ISA 240, The Auditor's Responsibilities Relating to Fraud in an Audit of Financial Statements
ISA 250 (Revised), Consideration of Laws and Regulations in an Audit of Financial Statements
ISA 260 (Revised), Communication with Those Charged with Governance
ISA 265, Communicating Deficiencies in Internal Control to Those Charged with Governance and
Management
300–499 RISK ASSESSMENT AND RESPONSE TO ASSESSED RISKS
ISA 300, Planning an Audit of Financial Statements
ISA 315 (Revised), Identifying and Assessing the Risks of Material Misstatement through Understanding the
Entity and Its Environment
ISA 315 (Revised 2019) Identifying and assessing the risks of material misstatement (Effective for audits of
financial statements for periods beginning on or after December 15, 2021)
ISA 320, Materiality in Planning and Performing an Audit
ISA 330, The Auditor’s Responses to Assessed Risks
ISA 402, Audit Considerations Relating to an Entity Using a Service Organization
ISA 450, Evaluation of Misstatements Identified during the Audit
500–599 AUDIT EVIDENCE
ISA 500, Audit Evidence
ISA 501, Audit Evidence—Specific Considerations for Selected Items
ISA 505, External Confirmations
ISA 510, Initial Audit Engagements—Opening Balances
ISA 520, Analytical Procedures
ISA 530, Audit Sampling
ISA 540 (Revised), Auditing Accounting Estimates and Related Disclosures
ISA 550, Related Parties
ISA 560, Subsequent Events
ISA 570 (Revised), Going Concern
ISA 580, Written Representations
600–699 USING THE WORK OF OTHERS
ISA 600, Special Considerations—Audits of Group Financial Statements (Including the Work of Component
Auditors)
ISA 610 (Revised 2013), Using the Work of Internal Auditors
ISA 620, Using the Work of an Auditor’s Expert
JOURNAL OFFICIEL du Grand-Duché de Luxembourg
MÉMORIAL A - 44 du 27 janvier 2022
700–799 AUDIT CONCLUSIONS AND REPORTING
ISA 700 (Revised), Forming an Opinion and Reporting on Financial Statements
ISA 701, Communicating Key Audit Matters in the Independent Auditor’s Report
ISA 705 (Revised), Modifications to the Opinion in the Independent Auditor’s Report
ISA 706 (Revised), Emphasis of Matter Paragraphs and Other Matter Paragraphs in the Independent
Auditor’s Report
ISA 710, Comparative Information—Corresponding Figures and Comparative Financial Statements
ISA 720 (Revised), The Auditor’s Responsibilities Relating to Other Information in Documents Containing
Audited Financial Statements
JOURNAL OFFICIEL du Grand-Duché de Luxembourg
MÉMORIAL A - 44 du 27 janvier 2022
Annexe 2
Compléments luxembourgeois aux normes d’audit dans le domaine du contrôle légal des comptes
en vertu de l’article 33, paragraphe 2 de la loi du 23 juillet 2016 relative à la profession de l’audit.
Les présents compléments aux normes d’audit sont applicables et obligatoires dans le domaine du contrôle
légal des comptes
Remarque
Les amendements provenant du règlement UE n° 537/2014 relatif aux exigences spécifiques applicables au
contrôle légal des comptes des entités d'intérêt public sont généralement marqués par un « R » après le
numéro du paragraphe et ne s’appliquent de fait qu’au contrôle légal des comptes d’entités d’intérêt public.
Les amendements provenant de la loi audit respectivement de la directive audit sont généralement marqués
par un « D » après le numéro du paragraphe et s’appliquent de fait à tous les contrôles légaux des comptes.
Les amendements qui ne sont ni marqués par la lettre « D » ou « R » sont des amendements qui viennent
soit compléter le paragraphe de la norme (indiqué par […]) soit le modifier et s’appliquent à tous les contrôles
légaux des comptes.
1. LUXEMBOURG SUPPLEMENT TO INTERNATIONAL STANDARD ON AUDITING 200 OVERALL
OBJECTIVES OF THE INDEPENDENT AUDITOR AND THE CONDUCT OF AN AUDIT IN
ACCORDANCE WITH INTERNATIONAL STANDARDS ON AUDITING
Introduction
An Audit of Financial Statements
3. […] The scope of an audit shall not include assurance on the future viability of the audited entity or on the
efficiency or effectiveness with which the management or administrative body has conducted or will conduct
the affairs of the entity. [AL/ Article 26]
Requirements
Professional Skepticism
15. […] The auditor shall maintain professional skepticism throughout the audit, recognising the possibility
of a material misstatement due to facts or behaviour indicating irregularities, including fraud, or error,
notwithstanding the auditor's past experience of the honesty and integrity of the entity's management and of
those charged with governance. [AL/Article 18(2)]
23. […] Where the ISA requirements reflect the provisions prescribed by the Audit Law or the Audit Regulation,
the auditor shall not depart from such relevant requirement.
2. LUXEMBOURG SUPPLEMENT TO INTERNATIONAL STANDARD ON AUDITING 220 QUALITY
CONTROL FOR AN AUDIT OF FINANCIAL STATEMENTS
Definitions
7. For purposes of the ISAs, the following terms have the meanings attributed below: […]
(d)
Engagement team – All partners and staff performing the engagement, and any individuals engaged
by the firm or a network firm who perform audit procedures on the engagement. This excludes an
auditor’s external expert engaged by the firm or by a network firm
1 and internal auditors who provide
direct assistance on an engagement.
ISA 620, Using the Work of an Auditor’s Expert, paragraph 6(a), defines the term ‘‘auditor’s expert.’’
The use of internal auditors to provide direct assistance is prohibited in an audit conducted in accordance with ISAs – see Luxembourg supplement to ISA 610 (Revised
June 2013), paragraph 5-1.
JOURNAL OFFICIEL du Grand-Duché de Luxembourg
MÉMORIAL A - 44 du 27 janvier 2022
(g)
Listed entity – is, as defined in the Luxembourg supplement to the International Ethics Standards Board
for Accountants’ International Code of Ethics for Professional Accountants (including International
Independence Standards) (IESBA Code), entities governed by Luxembourg law whose securities are
admitted to trading on a recognized market.
(n)
Relevant ethical requirements – Ethical requirements to which the engagement team and engagement
quality control reviewer are subject when undertaking an audit engagement, which ordinarily comprise
the provisions of the IESBA Code related to an audit of financial statements, together with national
requirements that are more restrictive.
In Luxembourg, the firm and its personnel are subject to ethical requirements from three sources
the IESBA Code including the Luxembourg supplement, the Audit Regulation (for Public-Interest
entities) and the Audit Law (thereafter the “Luxembourg ethical requirements” or “Luxembourg ethical
standards”).
7D-1. The following terms have the meanings attributed below
(a) Audit Regulation [AR] – refers to Regulation (EU) No 537/2014 of the European Parliament and of the
Council of 16 April 2014.
(b) Audit Law [AL] – refers to Law of July 23
rd, 2016 related to the audit profession.
(c) Competent authority – is defined in Article 1(2) of the Audit Law as “the authorities designated by law that
are in charge of the regulation and/or oversight of statutory auditors and audit firms or of specific aspects
thereof.” In Luxembourg the competent authority is the CSSF.
(d) Key audit partner – is defined in the Audit Law [AL/Article 1(1)] as
(i)
the statutory auditor(s) designated by an audit firm for a particular audit engagement as being
primarily responsible for carrying out the statutory audit on behalf of the audit firm; or
(ii)
in the case of a group audit, at least the statutory auditor(s) designated by an audit firm as being
primarily responsible for carrying out the statutory audit at the level of the group and the statutory
auditor(s) designated as being primarily responsible at the level of material subsidiaries; or
(iii)
the statutory auditor(s) who sign(s) the audit report.
(e) Public-interest entity – is as defined in Article 1(20) of the Audit Law.
(f) Statutory audit – is defined in Article 1(6) of the Audit Law as an audit of annual financial statements or
annual consolidated financial statements in so far as required by Union law or by national law.
Requirements
Engagement Performance
15D-1. For statutory audits of financial statements, the key audit partner(s) shall be actively involved in the
carrying-out of the audit, devoting sufficient time to the engagement. [AL/Article 25(1)(2)]
19R-1 For statutory audits of financial statements of public-interest entities, the engagement partner shall […]
(c) not date the auditor’s report and the additional report to the audit committee
3 until the completion of the
engagement quality control review.
21R-1. For statutory audits of financial statements of public-interest entities, the engagement quality control
reviewer, on performing an engagement quality control review required by ISQC 1
4, shall at least assess the
following elements
(a) The independence of the firm from the entity;
(b) The significant risks which are relevant to the audit and which the key audit partner(s) has identified during
the performance of the audit and the measures that the key audit partner(s) has taken to adequately
manage those risks;
(c) The reasoning of the key audit partner(s), in particular with regard to the level of materiality and the
significant risks referred to in paragraph 21R-1(b);
ISA 260 (Revised) Communication with those charges with governance, paragraph 16R-1
ISQC 1, paragraph 36 R-1
JOURNAL OFFICIEL du Grand-Duché de Luxembourg
MÉMORIAL A - 44 du 27 janvier 2022
(d) Any request for advice to external experts and the implementation of such advice;
(e) The nature and scope of the corrected and uncorrected misstatements in the financial statements that
were identified during the carrying out of the audit;
(f) The subjects discussed with the audit committee and the management and/or supervisory bodies of the
entity;
(g) The subjects discussed with competent authorities and, where applicable, with other third parties; and
(h) Whether the documents and information selected from the file by the engagement quality control reviewer
support the opinion of the key audit partner(s) as expressed in the draft of the auditor’s report
5 and the
additional report to the audit committee
6. [AR/Article 8.5]
21R-2. For statutory audits of financial statements of public-interest entities, the engagement quality control
reviewer shall discuss the results of the review, including the elements assessed in paragraph 21R-1, with
the key audit partner(s). [AR/Article 8.6]
Documentation
24D-1. For statutory audits of financial statements, the auditor shall include in the audit documentation
(a) All significant threats to the firm’s independence as well as the safeguards applied to mitigate those
threats; and [AL/Article 22]
(b) Those matters it is required to assess before accepting or continuing a statutory audit engagement in
accordance with ISQC 1
7. [AL/Article 25(5)]
25R-1. For statutory audits of financial statements of public-interest entities, the engagement quality control
reviewer shall also record
(a) The oral and written information provided by the key audit partner(s) to support the significant judgements
as well as the main findings of the audit procedures carried out and the conclusions drawn from those
findings, whether or not at the request of the engagement quality control reviewer; and [AR/Article 8.4(a)]
(b) The opinions of the key audit partner(s), as expressed in the draft of the reports required by ISA 260
(Revised) and ISA 700 (Revised). [AR/Article 8.4(b)]
25R-2. For statutory audits of financial statements of public-interest entities, the auditor shall keep a record
of the results of the engagement quality control review, together with the considerations underlying those
results in the audit documentation. [AR/Article 8.7] / [AL/Article 25(5)]
3. LUXEMBOURG SUPPLEMENT TO INTERNATIONAL STANDARD ON AUDITING 220 (REVISED)
QUALITY MANAGEMENT FOR AN AUDIT OF FINANCIAL STATEMENTS (effective for audits of
financial statements for periods beginning on or after December 15, 2022)
Definitions
12. For purposes of the ISAs, the following terms have the meanings attributed below: […]
(d)
Engagement team – All partners and staff performing the engagement, and any individuals engaged
by the firm or a network firm who perform audit procedures on the engagement. This excludes an
auditor’s external expert engaged by the firm or by a network firm
8 and internal auditors who provide
direct assistance on an engagement.
(k)
Relevant ethical requirements – Principles of professional ethics and ethical requirements that
are applicable to professional accountants when undertaking a statutory audit. Relevant ethical
requirements ordinarily comprise the provisions of the International Ethics Standards Board for
Accountants’ International Code of Ethics for Professional Accountants (including International
ISA 700 (Revised), “Forming an Opinion and Reporting on Financial Statements.”
ISA 260 (Revised), “Communication with Those Charged with Governance,” paragraph 16R-1
ISQC 1, paragraph 27D-1 and 27R-2
ISA 620, Using the Work of an Auditor’s Expert, paragraph 6(a), defines the term ‘‘auditor’s expert.’’
The use of internal auditors to provide direct assistance is prohibited in an audit conducted in accordance with ISAs – see Luxembourg supplement to ISA 610 (Revised
June 2013), paragraph 5-1.
JOURNAL OFFICIEL du Grand-Duché de Luxembourg
MÉMORIAL A - 44 du 27 janvier 2022
Independence Standards) (IESBA Code) related to an audit of financial statements, together with
national requirements that are more restrictive.
In Luxembourg, the firm and its personnel are subject to ethical requirements from three sources
the IESBA Code including the Luxembourg supplement, the Audit Regulation (for Public-Interest
entities) and the Audit Law (thereafter the “Luxembourg ethical requirements” or “Luxembourg ethical
standards”).
12D-1. The following terms have the meanings attributed below
(a) Audit Regulation [AR] – refers to Regulation (EU) No 537/2014 of the European Parliament and of the
Council of 16 April 2014.
(b) Audit Law [AL] – refers to Law of July 23
rd, 2016 related to the audit profession.
(c) Competent authority – is defined in Article 1(2) of the Audit Law as “the authorities designated by law that
are in charge of the regulation and/or oversight of statutory auditors and audit firms or of specific aspects
thereof.” In Luxembourg the competent authority is the CSSF.
(d) Key audit partner – is defined in the Audit Law [AL/Article 1(1)] as
(i)
the statutory auditor(s) designated by an audit firm for a particular audit engagement as being
primarily responsible for carrying out the statutory audit on behalf of the audit firm; or
(ii)
in the case of a group audit, at least the statutory auditor(s) designated by an audit firm as being
primarily responsible for carrying out the statutory audit at the level of the group and the statutory
auditor(s) designated as being primarily responsible at the level of material subsidiaries; or
(iii)
the statutory auditor(s) who sign(s) the audit report.
(e) Public-interest entity – is as defined in Article 1(20) of the Audit Law.
(f) Statutory audit – is defined in Article 1(6) of the Audit Law as an audit of annual financial statements or
annual consolidated financial statements in so far as required by Union law or by national law.
Requirements
Leadership Responsibilities for Managing and Achieving Quality on Audits
13D-1. For statutory audits of financial statements, the key audit partner(s) shall be actively involved in the
carrying-out of the audit, devoting sufficient time to the engagement. [AL/Article 25(1)(2)]
Engagement Performance
36R-1 For statutory audits of financial statements of public-interest entities, the engagement partner shall […]
(d) not date the auditor’s report and the additional report to the audit committee
10 until the completion of the
engagement quality control review.
Documentation
41D-1. For statutory audits of financial statements, the auditor shall include in the audit documentation all
significant threats to the firm’s independence as well as the safeguards applied to mitigate those threats.
(Ref: Para. A120-1) [AL/Article 22]
4. LUXEMBOURG SUPPLEMENT TO INTERNATIONAL STANDARD ON AUDITING 230 AUDIT
DOCUMENTATION
Requirements
Documentation of the Audit Procedures Performed and Audit Evidence Obtained
Form, Content and Extent of Audit Documentation
8D-1. For statutory audits of financial statements, the auditor shall retain any other data and documents that
are important in supporting the auditor’s report as part of the audit documentation. [AL/Article 25(5)]
ISA 260 (Revised) Communication with those charges with governance, paragraph 16R-1
JOURNAL OFFICIEL du Grand-Duché de Luxembourg
MÉMORIAL A - 44 du 27 janvier 2022
Departure from a relevant requirement
12 […]. Where the ISA requirements reflect the provisions prescribed by the Audit Law or the Audit Regulation,
the auditor shall not depart from such relevant requirement.
Assembly of the Final Audit File
14D-1. For statutory audits of financial statements, the auditor shall retain any other data and documents
that are of importance for monitoring compliance with ISAs and other applicable legal requirements. [AL/
Article 25(5)]
14D-2. For statutory audits of financial statements, the audit file shall be closed no later than 60 days after
the date of signature of the auditor’s report. [AL/Article 25(5)]
5. LUXEMBOURG SUPPLEMENT TO INTERNATIONAL STANDARD ON AUDITING 240 THE AUDITORS
RESPONSIBILITIES RELATING TO FRAUD IN THE AUDIT OF FINANCIAL STATEMENTS
Requirements
Communications to Management and with Those Charged With Governance
41R-1. For statutory audits of financial statements of public-interest entities, when an auditor suspects or
has reasonable grounds to suspect that fraud with regard to the financial statements of the entity, may occur
or have occurred, the auditor shall (unless prohibited by law or regulation) inform the entity and invite it to
investigate the matter and take appropriate measures to deal with such irregularities and to prevent any
recurrence of such irregularities in the future. (Ref: Para. A63-1) [AR/Article 7]
Communications to Regulatory and Enforcement Authorities
43R-1. For statutory audits of financial statements of public-interest entities, where the entity does not
investigate the matter referred to in paragraph 41R-1, the statutory auditor or the audit firm shall inform the
authorities responsible for investigating such fraud. (Ref: Para. A65-1) [AR/Article 7]
6. LUXEMBOURG SUPPLEMENT TO INTERNATIONAL STANDARD ON AUDITING 250 (REVISED)
CONSIDERATION OF LAWS AND REGULATIONS IN AN AUDIT OF FINANCIAL STATEMENTS
Requirements
Communicating and Reporting Identified or Suspected Non-Compliance
Communicating Identified or Suspected Non-Compliance with Those Charged with Governance
23R-1. For statutory audits of financial statements of public-interest entities, when an auditor suspects or has
reasonable grounds to suspect that irregularities with regard to the financial statements of the audited entity,
may occur or have occurred, the auditor shall (unless prohibited by law or regulation) inform the audited entity
and invite it to investigate the matter and take appropriate measures to deal with such irregularities and to
prevent any recurrence of such irregularities in the future [AR/ Article 7]
Reporting Identified or Suspected Non-Compliance to an Appropriate Authority outside the entity
29R-1. For statutory audits of financial statements of public-interest entities, the auditor shall
(a) Report promptly to the competent authorities any information concerning that public interest entity of
which the auditor has become aware while carrying out the audit and which may bring about any of the
following
(i)
A material breach of the laws, regulations or administrative provisions which lay down, where
appropriate, the conditions governing authorization or which specifically govern pursuit of the
activities of such public-interest entity; or
(ii)
A material threat or doubt concerning the continuous functioning of the public-interest entity; or
JOURNAL OFFICIEL du Grand-Duché de Luxembourg
MÉMORIAL A - 44 du 27 janvier 2022
(iii)
A refusal to issue an audit opinion on the financial statements or the issuing of an adverse or
qualified opinion.
(b) Report any information referred to in paragraph 29R-1(a)(i)-(iii) of which the auditor becomes aware in
the course of carrying out the audit of an undertaking having close links
11 with the public-interest entity
for which they are also carrying out the audit. [AR/Article 12.1]
29R-2. For statutory audits of financial statements of public-interest entities, where the entity does not
investigate the matter referred to in paragraph 23R-1, the statutory auditor or the audit firm shall inform the
authorities responsible for investigating such irregularities. (Ref: Para. A33-1) [AR/Article 7]
7. LUXEMBOURG SUPPLEMENT TO INTERNATIONAL STANDARD ON AUDITING 260 (REVISED)
COMMUNICATION WITH THOSE CHARGED WITH GOVERNANCE
Definitions
10. For purposes of the ISAs, the following terms have the meanings attributed below: […]
(c) Listed entity - is as defined in the Luxembourg supplement to the IESBA Code, entities governed by
Luxembourg law whose securities are admitted to trading on a recognized market
Requirements
Those Charged with Governance
11R-1. For statutory audits of financial statements of public-interest entities, if an entity which does not fall
under the exemption criteria set in article 52 paragraph 5) of the law dated 23 July 2016 on the audit profession
does not have an audit committee, the additional report to the audit committee required by paragraph 16R-1
shall be submitted to the body performing equivalent functions within the entity. [AR/Article 11(1)]
Matters to Be Communicated
Significant Findings from the Audit
16R-1. For statutory audits of financial statements of public-interest entities, the auditor shall submit an
additional report to the audit committee of the entity explaining the results of the audit carried out and shall
at least
(a) Include the declaration of independence required by paragraph 17R-1(a);
(b) Identify each key audit partner(s)
12 involved in the audit;
(c) Where the auditor has made arrangements for any of the auditor’s activities to be conducted by another
firm
13 that is not a member of the same network, or has used the work of external experts, the report shall
indicate that fact and shall confirm that the auditor received a confirmation from the other firm and/or the
external expert regarding their independence;
(d) Describe the nature, frequency and extent of communication with the audit committee or the body
performing equivalent functions within the entity, the management body and the administrative or
supervisory body of the audited entity, including the dates of meetings with those bodies;
(e) Include a description of the scope and timing of the audit;
(f) Where more than one auditor has been appointed, describe the distribution of tasks among the auditors;
(g) Describe the methodology used, including which categories of the balance sheet have been directly
verified and which categories have been verified based on system and compliance testing, including an
explanation of any substantial variation in the weighting of system and compliance testing when compared
to the previous year, even if the previous year's audit was carried out by another firm;
(h) Disclose the quantitative level of materiality applied to perform the audit for the financial statements as a
whole and where applicable the materiality level or levels for particular classes of transactions, account
‘Close links’ shall have the meaning assigned to that term in point (38) of Article 4(1) of Regulation (EU) No 575/2013 of the European Parliament and of the Council.
“Key audit partner” is defined in paragraph 7D-1(d) of the Luxembourg supplement to ISA 220.
“Firm” is defined in ISA 220 as a sole practitioner, partnership or corporation or other entity of professional accountants.
JOURNAL OFFICIEL du Grand-Duché de Luxembourg
MÉMORIAL A - 44 du 27 janvier 2022
balances or disclosures, and disclose the qualitative factors which were considered when setting the
level of materiality;
(i) Report and explain judgements about events or conditions identified in the course of the audit that may
cast significant doubt on the entity's ability to continue as a going concern and whether they constitute
a material uncertainty, and provide a summary of all guarantees, comfort letters, undertakings of public
intervention and other support measures that have been taken into account when making a going concern
assessment;
(j) Report on any significant deficiencies in the entity's or, in the case of consolidated financial statements,
the parent undertaking's internal financial control system, and/or in the accounting system. For each such
significant deficiency, the additional report shall state whether or not the deficiency in question has been
resolved by management;
(k) Report any significant matters involving actual or suspected non-compliance with laws and regulations
or articles of association which were identified in the course of the audit, in so far as they are considered
to be relevant in order to enable the audit committee to fulfil its tasks;
(l) Report the valuation methods applied to the various items in the annual or consolidated financial
statements including any impact of changes of such methods;
(m) In the case of an audit of consolidated financial statements, explain the scope of consolidation and the
exclusion criteria applied by the entity to the non-consolidated entities, if any, and whether those criteria
applied are in accordance with the financial reporting framework;
(n) Where applicable, identify any audit work performed by in relation to an audit of consolidated financial
statements other than by members of the same network to which the auditor of the consolidated financial
statements belongs;
(o) Indicate whether all requested explanations and documents were provided by the entity;
(p) Report
(i)
Any significant difficulties encountered in the course of the audit
(ii)
Any significant matters arising from the audit that were discussed or were the subject of
correspondence with management; and
(iii)
Any other matters arising from the audit that in the auditor's professional judgement, are significant
to the oversight of the financial reporting process.
Where more than one auditor has been engaged simultaneously, and any disagreement has arisen between
them on auditing procedures, accounting rules or any other issue regarding the conduct of the audit, the
reasons for such disagreement shall be explained in the additional report to the audit committee. [AR/Article
11(1) (2) (3)]
Auditor Independence
17R-1. For statutory audits of financial statements of public-interest entities, the auditor shall
(a) Disclose to the audit committees when the total fees received from a public-interest entity in each of the
last three consecutive financial years are more than 15% of the total fees received by the statutory auditor
or the audit firm. [AR/Article 4(3)]
(b) Confirm annually in writing to the audit committee that the statutory auditor, the audit firm and partners,
senior managers and managers, conducting the statutory audit are independent from the audited entity;
and
(c) Discuss with the audit committee the threats to the auditor’s independence and the safeguards applied
to mitigate those threats. [AR/Article 6(2)]
The Communication Process
Forms of Communication
20R-1. For statutory audits of financial statements of public-interest entities
(a) The additional report to the audit committee
14 shall be in writing. [AR/Article 11.2]
Paragraph 16R-1 deals with the auditor’s responsibilities to prepare an additional report to the audit committee.
JOURNAL OFFICIEL du Grand-Duché de Luxembourg
MÉMORIAL A - 44 du 27 janvier 2022
(b) The additional report to the audit committee shall be signed and dated by the engagement partner. [AR/
2(c)]
Auditor’s Responsibilities for the Audit of the Financial Statements
40. The Auditor’s Responsibilities for the Audit of the Financial Statements section of the auditor’s report
also shall: […]
(c) For audits of financial statements of public-interest entities state that, from the matters communicated
with those charged with governance, the auditor determines those matters that were of most significance
in the audit of the financial statements of the current period and are therefore the key audit matters. The
auditor describes these matters in the auditor’s report unless law or regulation precludes public disclosure
about the matter.
(d) For audits of financial statements of entities other than public-interest entities for which key audit matters
are communicated in accordance with ISA 701, state that, from the matters communicated with those
charged with governance, the auditor determines those matters that were of most significance in the
audit of the financial statements of the current period and are therefore the key audit matters. The auditor
describes these matters in the auditor’s report unless law or regulation precludes public disclosure about
the matter or when, in extremely rare circumstances, the auditor determines that a matter should not be
JOURNAL OFFICIEL du Grand-Duché de Luxembourg
MÉMORIAL A - 44 du 27 janvier 2022
communicated in the auditor’s report because the adverse consequences of doing so would reasonably
be expected to outweigh the public interest benefits of such communication.
40R-1. For audits of financial statements of public-interest entities, the auditor’s report shall
(a) State by whom or which body the auditor(s) was appointed; [AR/Article 10.2(a)]
(b) Indicate the date of the appointment and the period of total uninterrupted engagement including previous
renewals and reappointments of the firm; [AR/Article 10.2(b)]
(c) Explain in the “Auditor’s Responsibilities for the Audit of the Financial Statements” section to what extent
the audit was considered capable of detecting irregularities, including fraud; [AR/Article 10.2(d)]
(d) Confirm that the audit opinion is consistent with the additional report to the audit committee
18. Except as
required by this paragraph, the auditor’s report shall not contain any cross-references to the additional
report to the audit committee. [AR/Article 10.2(e)]
(e) Declare that the non-audit services prohibited by the Luxembourg ethical standards were not provided
and that the firm remained independent of the entity in conducting the audit; and [AR/Article 10.2(f)] (Ref
Para A52-1)
(f) Indicate any services, in addition to the audit, which were provided by the firm to the entity and its
controlled undertaking(s), and which have not been disclosed in the management report or financial
statements. [AR/Article 10.2(g)]
Other Reporting Responsibilities
43.ESEF. For entities that are required to prepare their financial statements in compliance with the relevant
statutory requirements set out in the ESEF regulation
19, the auditor shall in the auditor’s report
(a) State, in the section “Report on Other Legal and Regulatory Requirements”, whether, based on the
work undertaken in the course of the audit, the financial statements comply with the relevant statutory
requirements set out in the ESEF Regulation;
(b) Explain the related management’s responsibilities in the section “Responsibilities of Management and
Those Charged with Governance for the Financial Statements”;
(c) Explain the related auditor’s responsibility in the section “Auditor’s Responsibilities for the Audit of the
Financial Statements”;
Name of the Engagement Partner
46. The name of the engagement partner shall be included in the auditor’s report on financial statements.
[AL/Article 35(4)]
Signature of the statutory auditor
47D-1 The audit report shall be signed and dated by the statutory auditor. Where an audit firm carries out
the statutory audit, the audit report shall bear the signature of at least the statutory auditor(s) carrying out the
statutory audit on behalf of the audit firm. [AL/Article 35(4)]
Auditor’s address
48D-1. For statutory audits of financial statements, the auditor’s report shall identify the place of establishment
of the firm. [AL/Article 35.2(g)]
15. LUXEMBOURG
SUPPLEMENT
TO
INTERNATIONAL
STANDARD
ON
AUDITING
COMMUNICATING KEY AUDIT MATTERS IN THE INDEPENDENT AUDITOR’S REPORT
Scope of this ISA
5. For the purposes of the Luxembourg, this ISA applies to audits of complete sets of general-purpose
financial statements of public interest entities and circumstances when the auditor otherwise decides to
ISA 260 (Revised), “Communication with Those Charged with Governance,” paragraph 16R-1.
Delegated Regulation 2019/815 on European Single Electronic Format (“ESEF Regulation”)
JOURNAL OFFICIEL du Grand-Duché de Luxembourg
MÉMORIAL A - 44 du 27 janvier 2022
communicate key audit matters in the auditor’s report. This ISA also applies when the auditor is required by
law or regulation to communicate key audit matters in the auditor’s report.
Definition
8. For the purposes of the Luxembourg supplement to ISAs, the following term has the meaning attributed
below
Key audit matters – Those matters that, in the auditor’s professional judgment, were of most significance
in the audit of the financial statements of the current period. Key audit matters are selected from matters
communicated with those charged with governance. (Ref: Para. A.8-1.). For statutory audits of financial
statements of public-interest entities, key audit matters include the most significant assessed risks of material
misstatement, including assessed risks of material misstatement due to fraud. [AR/Article 10.2(c)]
Requirements
Communicating Key Audit Matters
11 (a) Key audit matters are those matters that, in the auditor’s professional judgment, were of most
significance in the audit of the financial statements [of the current period] and include for statutory audit of
financial statements of public-interest entities, the most significant assessed risks of material misstatement
(whether or not due to fraud) identified by the auditor. [AR/Article 10.2(c)]
Description of Individual Key Audit Matters
13R-1. For statutory audit of financial statements of public-interest entities, in describing each of the key audit
matters in accordance with paragraph 13, the auditor’s report shall provide, in support of the audit opinion
a) A description of the most significant assessed risks of material misstatement (whether or not due to fraud);
b) A summary of the auditor’s response to those risks; and
c) Where relevant, key observations arising with respect to those risks.
Where relevant to the above information provided in the auditor’s report concerning each significant assessed
risk of material misstatement (whether or not due to fraud), the auditor’s report shall include a clear reference
to the relevant disclosures in the financial statements. [AR/Article 10.2(c)]
13R-2. In describing why the matter was determined to be a key audit matter in accordance with paragraph
13R-1, the description shall indicate that the matter was one of the most significant assessed risks of material
misstatement (whether or not due to fraud) identified by the auditor.
Circumstances in Which a Matter Determined to Be a Key Audit Matter Is Not Communicated in the Auditor’s
Report
14R-1 For statutory audits of financial statements of public interest entities the auditor shall describe each
key audit matter in the auditor’s report unless law and regulation preclude public disclosures about the matter.
16. LUXEMBOURG SUPPLEMENT TO INTERNATIONAL STANDARD ON AUDITING 705 (REVISED)
MODIFICATIONS TO THE OPINION IN THE INDEPENDENT AUDITOR’S REPORT
Form and Content of the Auditor’s Report When the Opinion Is Modified
Consideration When an Auditor Disclaims an Opinion on the Financial Statements
29R-1. For statutory audits of financial statements of public-interest entities, when the auditor disclaims an
opinion on the financial statements, the auditor’s report shall include a Key Audit Matter section in accordance
with ISA 701. [AR/Article 10.2(c)]
17. LUXEMBOURG SUPPLEMENT TO INTERNATIONAL STANDARD ON AUDITING 720 (REVISED)
THE AUDITOR’S RESPONSIBILITIES RELATING TO OTHER INFORMATION
Introduction
JOURNAL OFFICIEL du Grand-Duché de Luxembourg
MÉMORIAL A - 44 du 27 janvier 2022
Scope of this ISA
1-1. For statutory audits of financial statements, this Luxembourg supplement to ISA 720 deals with the
obligation imposed by the Luxembourg law on the auditor to report on other statutory information based on
the work undertaken in the course of the audit.
Definitions
12 (d). Other statutory information – For statutory audits of financial statements, those documents or reports
that are required to be prepared and issued by the entity in relation to which the auditor is required to
report publicly in accordance with law or regulation. In Luxembourg, the other statutory information are the
management report and the corporate governance statement.
Requirements
Reading and Considering the Other Information
14D-1. For entities that are required to prepare other statutory information, the auditor shall read it, and in
doing so shall consider, based on the work undertaken in the course of the audit, whether the other statutory
information appears to be materially misstated. (Ref: Para. A36-1-A36-4)
14D-2. For entities that are required to prepare other statutory information, as the basis for the consideration
required by paragraphs 14(a), 14(b) and 14D-1, the auditor shall perform such procedures as are necessary
in the auditor’s professional judgment to identify
(a) Any material inconsistencies between the other statutory information and the financial statements;
(b) Any material inconsistencies between the other statutory information and the auditor’s knowledge
obtained in the audit, in the context of audit evidence obtained and conclusions reached in the audit; and
(c) Whether the other statutory information appears to be materially misstated in the context of the auditor’s
understanding of the legal and regulatory requirements applicable to the other statutory information.
Reporting
Management’s report
22D-1. For entities that are required to prepare a management report, the auditor shall in the auditor’s report
(a) State whether based on the work undertaken in the course of the audit
(i)
The information given in the management report for the financial year for which the accounts are
prepared is consistent with those accounts; and
(ii)
The management report has been prepared in accordance with applicable legal requirements;
(b) State whether, in the light of the knowledge and understanding of the company and its environment
obtained in the course of the audit, the auditor has identified material misstatements in the management
report; and
(c) If applicable, give an indication of the nature of each of the misstatements referred to in paragraph
22D-1(b).
[AL / Article 35(2)e)]
Corporate governance statement
22D-2. For entities that are required to prepare a Corporate governance statement in respect of a financial
year, the auditor shall in the auditor’s report
• State whether based on the work undertaken in the course of the audit
(i)
the information required by article 68ter (1) c) and d) of the accounting of the law of December
19, 2002 on the register of commerce and companies and the accounting and annual accounts of
undertakings, as amended, given in the corporate governance statement is consistent with those
accounts; and
JOURNAL OFFICIEL du Grand-Duché de Luxembourg
MÉMORIAL A - 44 du 27 janvier 2022
(ii)
the information required by article 68ter (1) c) and d) of the law of December 19, 2002 on the register
of commerce and companies and the accounting and annual accounts of undertakings, as amended,
given in the corporate governance statement has been prepared in accordance with applicable legal
requirements;
• State whether, in the light of the knowledge and understanding of the company and its environment
obtained in the course of the audit, the auditor has identified material misstatements in the corporate
governance statement referred to in paragraph 22D-2(a); and
• If applicable, give an indication of the nature of each of the misstatements referred to in paragraph 22D-2
(b).
JOURNAL OFFICIEL du Grand-Duché de Luxembourg
MÉMORIAL A - 44 du 27 janvier 2022
Annexe 3
Luxembourg guidelines on the auditors’ involvement on financial statements in European Single
Electronic Format (ESEF)
(effective for audits of financial statements for periods beginning on or after December 15, 2020)
Objective
The European Commission Interpretative Communication 2020/C379/01 states that Union law requires
statutory auditors (hereafter “auditors”) to provide an audit opinion on whether the financial statements
included in the annual financial reports comply with the relevant statutory requirements
20 laid down in the
ESEF Delegated Regulation,
21 i.e. with the provisions of the ESEF Delegated Regulation that apply to financial
statements
22.
In the absence of auditing standard(s) dealing specifically with ESEF reporting applicable in the whole
European Union, the objectives of these guidelines are to describe the expectations of the CSSF
23 regarding
- the procedures to be performed by the auditors to assess whether the financial statements included in the
annual financial report comply with the ESEF requirements,
- the consequences of any misstatements identified by the auditors, and
- the form and content of the audit report regarding whether the financial statements comply with the ESEF
requirements.
These guidelines highlight specifications to be complied with by auditors in addition to the provisions of
auditing standards. The guidelines refer to and do not replace the other requirements on auditing and ethics,
including independence, applicable to auditors in Luxembourg.
Procedures to be performed by auditors on financial statements in ESEF
I - Planning of the auditors’ work
1. The auditors shall plan the procedures to be performed considering the following aspects
- the characteristics of the financial statements prepared in ESEF format,
- the deadlines to be met for carrying out the procedures on financial statements in ESEF, and
- the process put in place by the entity to prepare the financial statements in ESEF (ref. paragraph 2).
II - Understanding the process for preparing the financial statements in ESEF and related controls
2. Regarding the preparation of the financial statements in ESEF, the auditors shall obtain an understanding,
in particular, of the following
- the process for preparing the financial statements in ESEF including the use of technical (for example
IT tools) and human resources and whether the entity outsources partially or totally this preparation to
a service provider or uses a management’s expert, and
- the controls designed and implemented by the entity to prevent, detect or correct misstatements in the
preparation of the financial statements in ESEF.
III - Procedures related to the XHTML format
3. The auditors shall verify that all financial statements included in the annual financial report are prepared
in XHTML format.
The ‘relevant statutory requirements’ are set out in the Question 2.2 of the Commission Interpretative Communication 2020/C379/01
Commission Delegated Regulation (EU) 2019/815 on ESEF
Please refer to the CSSF Circular Annex 2 for the ESEF provisions
The term « shall » is used in the guidelines to present the expectations agreed within the CSSF.
No materiality in this regard
JOURNAL OFFICIEL du Grand-Duché de Luxembourg
MÉMORIAL A - 44 du 27 janvier 2022
4. In cases where the entity provides financial statements that are not yet prepared in accordance with the
ESEF requirements to the auditors for the audit purposes and, later on, provides the financial statements
in ESEF, the auditors shall check the reconciliation between those two sets of information (financial
statements in XHTML and audited version) to verify their full alignment.
IV - Procedures related to the marking up
5. The auditors shall perform procedures to obtain sufficient appropriate evidence that the requirements on
marking up defined by the ESEF Delegated Regulation have been complied with.
Materiality
6. The auditors shall use an appropriate materiality level when
- planning and determining the extent of procedures to be performed on marked-up information specified
in paragraph 10,
- evaluating the effect of identified misstatements pursuant to procedures on marked-up information, and
- forming the opinion to be included in the audit report regarding the compliance of the marked-up
information with the ESEF requirements.
7. In determining the materiality for the purposes identified above, auditors shall use as a starting point the
materiality defined for the audit of financial statements and take into account quantitative and qualitative
aspects that result from the specificities of the marked-up information and the needs and expectations
users may have regarding marked up information.
Assessment of risks of material misstatement and responses to those risks
8.
The auditors shall identify and assess the risks of material misstatement in the financial statements
presented in ESEF taking into account
- the internal control elements relevant for the preparation of financial statements in ESEF, and
- the risks
25 of incompleteness and inaccuracy attached to the marked-up information.
9.
The auditors shall verify that all numbers referred to in Annex II paragraph 1 of the ESEF Delegated
Regulation have been marked-up.
10. For information
27 required to be marked-up according to ESEF Delegated Regulation or for voluntary
mark-ups, the auditors shall verify that
- the XBRL mark-up language is used,
- the elements of the core taxonomy (specified in Annex VI of the ESEF Delegated Regulation) with the
closest accounting meaning are used, unless an extension taxonomy element is created, and
- extension taxonomy elements created, if any, comply with Annex IV of the ESEF Delegated Regulation,
and
- the mark-ups comply with the common rules on mark-ups set out in Annex III (on applicable Inline XBRL
specifications) and Annex IV (on the marking up and filing rules) of the ESEF Delegated Regulation.
11. The mark-ups to be checked according to paragraph 10
28 shall be selected depending on the risks of
material misstatement assessed by the auditors.
29 The auditors may decide to rely, to a certain extent,
on relevant controls put in place by the entity, after having obtained sufficient and appropriate evidence
on the operating effectiveness of the relevant controls to reduce the extent of substantive procedures.
V - Reporting on compliance with ESEF in the audit report
12.
After performance of the procedures and communication with management and those charged with
governance, the auditors shall consider the implications of material misstatements or non-compliance,
if any, identified on the audit report.
Please refer to the CSSF circular Annex 2 for examples of risks
No materiality in this regard
This information includes also the numbers referred to in paragraph 9
See paragraph 6 regarding materiality
Refer to paragraph 8 regarding the identification and assessment of the risks of material misstatement in the financial statements presented in ESEF
JOURNAL OFFICIEL du Grand-Duché de Luxembourg
MÉMORIAL A - 44 du 27 janvier 2022
13.
The audit report shall include
30
- An opinion on whether the presentation of the financial statements included in the annual financial
report
○either complies, in all material aspects, with the ESEF,
○either complies with the ESEF, with the exception of material misstatement (s) or non-
compliance clearly explained in a specific paragraph and mentioned in the opinion,
○either does not comply with the ESEF because of the pervasive effect of material
misstatement(s) or non-compliance clearly explained in a specific paragraph and mentioned
in the opinion,
- or a statement of the auditors’ inability to conclude on the compliance of the presentation of the financial
statements in ESEF, in cases where the auditors were unable to obtain sufficient appropriate evidence
in this regard. The auditors shall provide the reasons for this inability in the audit report.
VI – Other aspects
Independence
14.
When performing procedures on financial statements in ESEF, the auditors shall remain alert to
independence rules applicable and shall not perform any non-audit service prohibited under Article 5
of the Regulation (EU) n°537/2017 of the European Parliament and the Council.
31 The auditors shall
also remain alert to any self-review threats related to ESEF.
Engagement letter
15.
The auditors shall include specific arrangements in relation to ESEF in the engagement letter.
Use of an expert
16.
When the auditors decide to use the work of an expert, the provisions on the use of experts for an audit
of financial statements shall apply equally in this regard.
Communication
17.
Before issuing the audit report, the auditors shall communicate to management and, where appropriate,
those charged with governance,
32 any misstatements identified or non-compliance, other than those
that are clearly trivial.
Written representation
18.
The auditors shall request specific provisions in relation to ESEF in the written representation.
The auditors may determine that it is appropriate to request specific written representation from
management to cover specificities of ESEF, or to include such specificities in the written representation.
Documentation
19.
General provisions for documentation in an audit of financial statements shall apply to procedures
performed on financial statements in ESEF.
Refer to paragraph 43. ESEF of Luxembourg Supplement to ISA 700 (revised) Forming an opinion and reporting on financial statements
For example, refer to paragraph c of Article 5 of the Regulation (EU) n° 537/2014 No 537/2014 of the European Parliament and of the Council regarding bookkeeping and
preparing accounting records and financial statements
Including the persons who are responsible for financial statements presented in ESEF
JOURNAL OFFICIEL du Grand-Duché de Luxembourg
MÉMORIAL A - 44 du 27 janvier 2022
Annexe 4
Adoption des normes relatives au contrôle interne de qualité respectivement à la gestion de la qualité
par les cabinets de révision agréés, en vertu de l’article 36, paragraphe 3, lettre b) de la loi du 23 juillet
2016 relative à la profession de l’audit.
Les présentes normes sont applicables et obligatoires dans le domaine du contrôle interne de qualité
respectivement de la gestion de la qualité par les cabinets de révision agréés
• International Standard on Quality Control (ISQC) 1, Quality Controls for Firms that Perform Audits and
Reviews of Financial Statements, and Other Assurance and Related Services Engagements (applicable
until December 15, 2022)
• Complément luxembourgeois à la norme ISQC 1 (applicable jusqu’au 15 décembre 2022) (Annexe 5)
• Complément luxembourgeois à la norme ISQC1 en matière de conservation des documents de travail du
réviseur d’entreprises agréé (applicable jusqu’au 15 décembre 2022) (Annexe 6)
• International Standard on Quality Management (ISQM) 1, Quality management for firms that perform audits
or reviews of financial statements, or other assurance or related services engagements, effective as of
December 15, 2022.
• Complément luxembourgeois à la norme ISQM 1, effectif à compter du 15 décembre 2022 (Annexe 7)
• Complément luxembourgeois à la norme ISQM1 en matière de conservation des documents de travail du
réviseur d’entreprises agréé, effectif à compter du 15 Décembre 2022 (Annexe 8)
• International Standard on Quality Management (ISQM) 2, Engagement Quality Reviews, effective for
audits of financial statements for periods beginning on or after December 15, 2022.
• Complément luxembourgeois à la norme ISQM 2, effectif pour les audits d’état financiers pour les périodes
ouvertes à compter du 15 décembre 2022 (Annexe 9)
JOURNAL OFFICIEL du Grand-Duché de Luxembourg
MÉMORIAL A - 44 du 27 janvier 2022
Annexe 5
Complément luxembourgeois de la norme relative au contrôle interne de qualité des cabinets de
révision agréés.
LUXEMBOURG SUPPLEMENT TO INTERNATIONAL STANDARD ON QUALITY CONTROL 1 QUALITY
CONTROL FOR FIRMS THAT PERFORM AUDITS AND REVIEWS OF FINANCIAL STATEMENTS, AND
OTHER ASSURANCE AND RELATED SERVICES ENGAGEMENTS (applicable until December 15,
2022)
Definitions
12. In this ISQC 1, the following terms have the meanings attributed below: […]
(f)
Engagement team – All partners and staff performing the engagement, and any individuals engaged
by the firm or a network firm who perform procedures on the engagement. This excludes an auditor’s
external experts engaged by the firm or by a network firm and internal auditors who provide direct
assistance on an engagement.
33.
(i)
Listed entity – is, as defined in the Luxembourg supplement to the International Ethics Standards Board
for Accountants’ International Code of Ethics for Professional Accountants (including International
Independence Standards) (IESBA Code), entities governed by Luxembourg law whose securities are
admitted to trading on a recognized market.
(q)
Relevant ethical requirements – Ethical requirements to which the engagement team and engagement
quality control reviewer are subject when undertaking an audit engagement, which ordinarily comprise
the provisions of the IESBA Code related to an audit of financial statements, together with national
requirements that are more restrictive.
In Luxembourg, the firm and its personnel are subject to ethical requirements from three sources
the IESBA Code including the Luxembourg supplement, the Audit Regulation (for Public-Interest
entities) and the Audit Law (thereafter the “Luxembourg ethical requirements” or “Luxembourg ethical
standards”).
12D-1. In Luxembourg, the following terms have the meanings attributed below
(a) Audit Regulation [AR] – refers to Regulation (EU) No 537/2014 of the European Parliament and of the
Council of 16 April 2014.
(b) Audit Law [AL] – refers to Law of July 23
rd, 2016 related to the audit profession.
(c) Competent authority – is defined in Article 1(2) of the Audit Law as “the authorities designated by law that
are in charge of the regulation and/or oversight of statutory auditors and audit firms or of specific aspects
thereof”. In Luxembourg, the competent authority is the CSSF.
(d) Key audit partner – is defined in Article 1(1) of the Audit Law as
(i)
The statutory auditor designated by an audit firm for a particular audit engagement as being
primarily responsible for carrying out the statutory audit on behalf of the audit firm; or
(ii)
In the case of a group audit, at least the statutory auditor designated by an audit firm as being
primarily responsible for carrying out the statutory audit at the level of the group and the statutory
auditor(s) designated as being primarily responsible at the level of material subsidiaries; or
(iii)
The statutory auditor who sign(s) the audit report.
(e) Public-interest entity – is as defined in Article 1(20) of the Audit Law.
(f) Statutory audit – is defined in Article 1(6) of the Audit Law as an audit of annual financial statements or
annual consolidated financial statements in so far as required by Union law or by national law.
Requirements
Applying, and Complying with, Relevant Requirements
15D-1. The firm shall: [AL/Article 24(2)]
The use of internal auditors to provide direct assistance is prohibited in an audit conducted in accordance with ISAs – see Luxembourg supplement to ISA 610 (Revised
June 2013), paragraph 5-1.
JOURNAL OFFICIEL du Grand-Duché de Luxembourg
MÉMORIAL A - 44 du 27 janvier 2022
(a) Take into consideration the scale and complexity of the firm’s activities when complying with the applicable
requirements set out in paragraphs 16D-1, 16D-2, 20D-1, 21D-1, 29D-1, 29D-2, 32D-1 and 48D-1 of this
ISQC 1; and
(b) Be able to demonstrate to the competent authority that the policies and procedures designed to achieve
such compliance are appropriate given the scale and complexity of activities of the firm.
Elements of a System of Quality Control
16D-1. The firm shall establish appropriate policies and procedures to ensure that its owners or shareholders,
as well as the members of the administrative, management and supervisory bodies of the firm, or of a network
firm, do not intervene in the carrying out of a statutory audit in any way which jeopardizes the independence
and objectivity of the engagement team. [AL/Article 24(1)a)
16D-2. The firm shall have
(a) Sound administrative and accounting procedures;
(b) Internal quality control mechanisms that shall be designed to secure compliance with decisions and
procedures at all levels of the firm’s working structure;
(c) Effective procedures for risk assessment; and
(d) Effective control and safeguard arrangements for the firm’s information processing systems. [AL/Article
24(1)b)]
Relevant Ethical Requirements
20D-1. The firm shall establish appropriate and effective organizational and administrative arrangements for
dealing with and recording incidents which have, or may have, serious consequences for the integrity of the
firm’s activities. [AL/Article 24(1)i)]
Independence
21D-1 The firm shall establish appropriate and effective organizational and administrative arrangements to
prevent, identify, eliminate or manage and disclose any threats to the firm’s independence required by the
Luxembourg ethical standards. [AL/Article 24(1)e)]
Acceptance and continuance of Client Relationships and Specific Engagements
27D-1. Before accepting or continuing an engagement for a statutory audit engagement, the firm shall assess
the following
(a) Whether the firm complies with relevant independence and objectivity requirements in the Luxembourg
ethical standards;
(b) Whether there are threats to the firm’s independence, and the safeguards applied to mitigate those
threats;
(c) Whether the firm has the competent personnel, time and resources needed in order to carry out the audit
in an appropriate manner; and
(d) Whether the key audit partner is approved as statutory auditor in Luxembourg. [AL/Article 22]
27R-2. Before accepting or continuing an engagement for a statutory audit engagement of a public-interest
entity, the firm shall assess, in addition to the requirements in paragraph 27D-1, the following
(a) Whether the firm complies with the audit fees and the prohibition of the provision of non-audit services
requirements in the Luxembourg ethical standards;
(b) Whether the conditions for the duration of the audit engagement in accordance with the Audit Regulation
are complied with; and
(c) Without prejudice to Luxembourg anti-money laundering requirements,
34 the integrity of the members of
the supervisory, administrative and management bodies of the public-interest entity. [AR/Article 6.1]
Implemented pursuant to Directive 2015/849/EU of the European Parliament and of the Council of 20 May 2015.
JOURNAL OFFICIEL du Grand-Duché de Luxembourg
MÉMORIAL A - 44 du 27 janvier 2022
28D-1. For audits of financial statements, where the auditor ceases to hold office as statutory auditor, or
ceases to be eligible for appointment as a statutory auditor, the firm shall provide the successor statutory
auditor with access to all relevant information concerning the entity, including information concerning the
most recent audit. [AL/Article 28(5)]
Human Resources
29D-1. For statutory audits of financial statements, the firm shall
(a) Establish appropriate policies and procedures to ensure that the firm’s employees and any other natural
persons whose services are placed at the firm’s disposal or under the firm’s control, and who are directly
involved in the audit activities, have appropriate knowledge and experience for the duties assigned; and
[AL/Article 24(1)c)]
(b) Have in place adequate remuneration policies, including profit sharing policies, providing sufficient
performance incentives to secure audit quality. In particular, the amount of revenue that the firm derives
from providing non-audit services to the audited entity shall not form part of the performance evaluation
and remuneration of any person involved in, or able to influence the carrying out of, the audit. [AL/Article
24(1)j)]
Outsourcing
29D-2. For statutory audits of financial statements, the firm shall establish appropriate policies and
procedures to ensure that outsourcing of important audit functions is not undertaken in such a way as to
impair the quality of the firm’s internal quality control and the ability of the competent authorities to supervise
the firm's compliance with the obligations laid down in the Audit Law and, where applicable, in the Audit
Regulation. Any outsourcing of audit functions shall not affect the responsibility of the firm towards the audited
entity. [AL/Article 24.1(d)]
Assignment of Engagement Teams
30D-1. For each statutory audit of financial statements, the firm shall
(a) Designate at least one key audit partner [AL/Article 25(1)]
(b) Apply as its main criteria in selecting such a key audit partner
i.
Securing audit quality;
ii.
independence; and
iii.
competence. [AL/Article 25(1)]
31D-1. For statutory audits of financial statements, the firm shall provide the key audit partner(s) with sufficient
resources and with personnel that have the necessary competence and capabilities to carry out the firm’s
duties appropriately. [AL/Article 25(1)]
Engagement Performance
32D-1. For statutory audits of financial statements, the firm shall
(a) Establish an internal quality control system to ensure the quality of the audit which shall at least cover
the policies and procedures required by paragraph 32D-1(c); [AL/Article 24(1)g)]
(b) Ensure that responsibility for the internal quality control system lies with a person who is qualified as a
statutory auditor; [AL/Article 24(1)g)]
(c) Establish adequate policies and procedures for carrying out audits, coaching, supervising and reviewing
employees’ activities and organizing the structure of the audit file
35; and [AL/Article 24(1)f)]
(d) Use appropriate systems, resources and procedures to ensure continuity and regularity in the carrying
out of the firm’s audit activities. [AL/Article 24(1)h)]
Engagement Quality Control Review
ISA 230, paragraph 14 sets out the requirement to assemble the audit documentation in an audit file. Paragraph 57D-1 of this ISQC 1, paragraphs 24D-1(b) and 25R-2 of
ISA 220, paragraphs 8D-1 and 14D-1 of ISA 230 and paragraph 23D-1 of ISA 260 (Revised) set out requirements in respect of documentation for statutory audits.
JOURNAL OFFICIEL du Grand-Duché de Luxembourg
MÉMORIAL A - 44 du 27 janvier 2022
36R-1. For statutory audits of financial statements of public-interest entities, before the auditor’s report and
the additional report to the audit committee
36 are issued, the firm shall require that an engagement quality
control review shall be performed to assess whether the key audit partner(s) could reasonably have come to
the opinion and conclusions expressed in the draft of these reports. [AR/Article 8.1]
39R-1. For statutory audits of financial statements of public-interest entities, the engagement quality control
review shall be performed by an engagement quality control reviewer who shall
a) Be an approved statutory auditor (“Réviseur d’entreprises agréé”); and
b) Not be involved in the performance of the audit to which the engagement quality control review relates.
[AR/Article 8.2]
Where the audit is carried out by a firm and all the statutory auditors of that firm were involved in the conduct of
the audit, the firm shall arrange for another firm to perform an engagement quality control review. Documents
or information disclosed to the engagement quality control reviewer for this purpose shall be subject to
professional secrecy. [AR/Article 8.3]
Differences of Opinion
43R-1. For statutory audits of financial statements of public-interest entities, the firm shall establish
procedures for determining the manner in which any disagreement between the key audit partner(s) and the
engagement quality control reviewer are to be resolved. [AR/Article 8.6]
Engagement Documentation
Confidentiality, Safe Custody, Integrity, Accessibility and Retrievability of Engagement Documentation
46. For the purpose of Luxembourg, the paragraph 46 is replaced by the following
The firm shall establish policies and procedures designed to maintain the confidentiality, safe custody,
professional secrecy, integrity, accessibility and retrievabiltity of engagement documentation or any
information entrusted to the firm, in accordance with applicable laws and regulations. [AL/Article 28]
Monitoring
Monitoring the firm’s quality control policies and procedures
48D-1. For statutory audits of financial statements, the firm shall
(a) Monitor and evaluate the adequacy and effectiveness of the firm’s systems, internal quality control
mechanisms and arrangements established in accordance with this ISQC 1 and take appropriate
measures to address any deficiencies;
(b) Carry out an annual evaluation of the internal quality control system, referred to in paragraph 32D-1(a);
and
(c) Keep records of the findings of the evaluation required by paragraph 48D-1(a) and any proposed measure
to modify the internal quality control system. [AL/Article 24(1)k)]
External monitoring of Group Audits
48D-2. Where the group auditor is subject to a quality assurance review or an investigation concerning a
group audit, the firm shall be responsible for complying with, and shall establish policies and procedures
which require the group engagement team to comply with, any request by the competent authority
(a) For relevant audit documentation retained by the group engagement team concerning the work performed
by any component auditor for the purposes of the group audit (including any relevant component auditor’s
working papers relevant to the group audit);
ISA 260 (Revised), “Communication with Those Charged with Governance,” paragraph 16R-1 deals with the auditor’s responsibilities to prepare an additional report to
the audit committee.
JOURNAL OFFICIEL du Grand-Duché de Luxembourg
MÉMORIAL A - 44 du 27 janvier 2022
(b) To deliver any additional documentation of the work performed by any component auditor from a non-
EEA member state for the purposes of the group audit, including that component auditor’s working papers
relevant to the group audit, where the competent authority is unable to obtain audit documentation of the
work carried out by that component auditor. [AL/Article 34(4)]
48D-3. The firm shall establish policies and procedures, which require that, in order to comply with any request
under paragraph 48D-2(b), the group engagement team shall either
(a) Retain copies of the documentation of the work carried out by the relevant component auditor for the
purpose of the group audit (including the component auditor’s working papers relevant to the group audit);
or
(b) Obtain the agreement of the relevant component auditor that the group engagement team shall have
unrestricted access to such documentation on request; or
(c) Retain documentation to show that the group engagement team has undertaken the appropriate
procedures in order to gain access to the audit documentation, together with evidence supporting the
existence of any impediments to such access; or
(d) Take any other appropriate action. [AL/Article 34(4)]
Complaints and allegations
55D-1. For statutory audits of financial statements, the firm shall keep records of any complaints made in
writing about the performance of the audits carried out. [AL/Article 25(6)]
Documentation of the System of Quality Control
57D-1. For statutory audits of financial statements, the firm shall retain any other data and documents that
are of importance for monitoring compliance with this ISQC 1 and other applicable legal requirements. [AL/
Article 25(5)]
57D-2. For statutory audits of financial statements, the firm shall document
(a) Whether the firm complies with the independence and objectivity requirements in the Luxembourg ethical
standards;
(b) Whether there are threats to the firm’s independence, and the safeguards applied to mitigate those
threats;
(c) Whether the firm has the competent employees, time and resources needed in order to carry out the
audit in an appropriate manner; and
(d) Whether the key audit partner(s) is approved as a statutory auditor. [AL/Article 22]
58R-1. For statutory audits of financial statements, the firm shall establish policies and procedures that
require retention of audit documentation for a period that is not less than any period necessary to satisfy the
requirements of any applicable laws or regulation relating to data protection and to meet the requirements
for any applicable administrative and judicial proceedings, and that is in any case not less than five years
from the date of the auditor’s report. [AR/Article 15]
59D-1. For statutory audits of financial statements, the firm shall
(a) Keep records of any breaches of professional standards and applicable legal and regulatory
requirements;
(b) Keep records of any consequences of any breach recorded in accordance with paragraph 59D-1(a), the
measures taken to address such a breach and to modify the firm’s internal quality control system; and
(c) Prepare an annual report containing an overview of any measures taken under paragraph 59D-1(b) and
communicate that report internally. [AL/Article 25(3)]
59D-2. For statutory audits of financial statements, the firm shall maintain a client account record which
include in respect of every statutory audit
(a) The audited entity’s name, address and place of business;
(b) The name of the key audit partner or, where there is more than one key audit partner, the names of all
the key audit partners; and
JOURNAL OFFICIEL du Grand-Duché de Luxembourg
MÉMORIAL A - 44 du 27 janvier 2022
(c) The fees charged for the statutory audit and fees charged for other services in any financial year. [AL/
Article 25(4)]
JOURNAL OFFICIEL du Grand-Duché de Luxembourg
MÉMORIAL A - 44 du 27 janvier 2022
Annexe 6
Complément luxembourgeois à la norme ISQC 1 en matière de conservation des documents de travail
du réviseur d’entreprises agréé
LUXEMBOURG SUPPLEMENT TO ISQC 1 ON THE RETENTION OF THE WORKING PAPERS OF THE
RÉVISEUR D’ENTREPRISES AGRÉÉ (APPROVED STATUTORY AUDITOR) (applicable until December
15, 2022)
1. Introduction
The standard ISQC 1 “Quality control for firms that perform audits and reviews of financial statements, and
other assurance and related services engagements” (hereinafter “ISQC 1”) lays down
• paragraph 46: “The firm shall establish policies and procedures designed to maintain the confidentiality,
safe custody, integrity, accessibility and retrievability of engagement documentation.”
• paragraph 47: “The firm shall establish policies and procedures for the retention of engagement
documentation for a period sufficient to meet the needs of the firm or as required by law or regulation.”
Paragraphs A56 to A63 include additional explanatory provisions on these two paragraphs.
The purpose of this supplement which is an integral part of the standard on internal quality control ISQC 1,
is to clarify the specific provisions on the retention of working files in Luxembourg.
This supplement does not apply to the specific issue of the retention of working papers in the framework of
a group audit or where the réviseur d'entreprises agréé (approved statutory auditor) involves other auditors
in the audit of financial statements other than a group audit.
2. General requirements
The policy and procedures established by the réviseur d'entreprises agréé (approved statutory auditor) or
cabinet de révision agréé (approved audit firm) to fulfil the requirements of this standard on internal quality
control depend on a certain number of factors, such as for example the volume of engagements, the nature
of the services as well as its internal organisation. All specific principles laid down in the following sections
shall be taken into account by the réviseur d'entreprises agréé (approved statutory auditor) when defining
his/her policy of retention of files.
The working documentation of the réviseur d'entreprises agréé (approved statutory auditor) or cabinet de
révision agréé (approved audit firm) is composed of physical files, electronic files or a combination of both.
The réviseur d'entreprises agréé (approved statutory auditor) or cabinet de révision agréé (approved audit
firm) shall decide if they keep the physical and/or electronic files themselves or if they delegate these files
to a third party. Whereas the first solution is favoured as it allows the réviseur d'entreprises agréé (approved
statutory auditor) to maintain the control over the implemented procedures, the current regulations do not
prohibit the delegation and the réviseur d'entreprises agréé (approved statutory auditor) or cabinet de révision
agréé (approved audit firm) may make use of the delegation under certain specific conditions listed in Section
3 below.
Section 4 includes additional provisions as regards the duration of the retention of working files.
3. Location for the retention of working files
3.1.
Physical files
The following provisions shall apply to audit engagements referred to in point (34)(a) of Article 1 of the Law
of 23 July 2016 concerning the audit profession (hereinafter the “Audit Law”).
The professional establishment of the réviseur d'entreprises agréé (approved statutory auditor) shall have an
infrastructure suited to the exercised activities, within which a central location for the retention of physical files
JOURNAL OFFICIEL du Grand-Duché de Luxembourg
MÉMORIAL A - 44 du 27 janvier 2022
has been arranged. In accordance with the requirements under the Audit Law, this professional establishment
shall be located in Luxembourg.
During the audit engagement, the transportation of physical working files between the different locations
where they are used shall be limited to a minimum. The réviseur d’entreprises agréé (approved statutory
auditor) shall ensure the working files in the different locations where they are used are safe and restricted,
as far as possible, their access to the sole members of his/her team and the persons who must access the
files according to the standards. In general, the working files cannot be kept, even on a temporary basis,
outside the Luxembourg territory. In case where the réviseur d'entreprises agréé (approved statutory auditor)
must travel abroad with his/her working files, s/he shall ensure their confidentiality, security and integrity. In
the case of an audit team, the signatory partner of the report shall be responsible for deciding on the need
to transport the files abroad and for ensuring their confidentiality, security and integrity.
After the finalisation of the engagement documentation and if the réviseur d'entreprises agréé (approved
statutory auditor) keeps the physical files him/herself, the latter must be stored in the central location for
retention of files. The management of access to this central retention location must be organised so as to
ensure the traceability of all access to the physical files.
The working files may be kept by a third party (which may be the audit client itself) on Luxembourg territory,
insofar as this third party ensures the application of the minimum requirements laid down in paragraphs 46,
47 and A56 to A63 of ISQC1. For reasons of accessibility and confidentiality of the physical files, it is not
permitted to keep the physical files abroad.
3.2.
Electronic files
The IT function varying from one réviseur d'entreprises agréé (approved statutory auditor) to another, the
latter shall ensure the appropriate application of the requirements laid down in paragraphs 46, 47 and A56
to A63 of ISQC1 with respect to electronic files and have internally the necessary IT competences in order
to understand at least the implemented IT retention solution(s).
The electronic files may be kept by a third party (which may be the audit client itself) on Luxembourg territory
and, possibly, outside Luxembourg territory, insofar as this third party ensures the application of the minimum
requirements laid down in paragraphs 46, 47 and A56 to A63 of ISQC 1 and insofar as the conditions under
Section 3.3 are met (except when the third party is the audit client itself).
3.3.
Outsourcing the retention of working files
Outsourcing the retention of working files poses a number of risks, among which in particular the risk to
compromise the confidentiality of data included in the files. The Audit Law provides for the lifting of the
professional secrecy obligation of the réviseur d'entreprises agréé (approved statutory auditor) only in limited
cases laid down in Article 28(3), (4) and (5) of the above-mentioned law. It does not apply to a third party
(even with a PFS status in Luxembourg) or another entity (located in Luxembourg or abroad) of the network
to which the réviseur d'entreprises agréé (approved statutory auditor) belongs.
Consequently, any outsourcing shall be treated with caution and in complete compliance with the following
conditions
1) The réviseur d'entreprises agréé (approved statutory auditor) must inform the CSSF of each outsourcing
project s/he is contemplating with respect to the retention of the working files by describing the main
arrangements.
2) The réviseur d’entreprises agréé (approved statutory auditor) (or the administrative body of the cabinet de
révision agréé (approved audit firm)) must duly document his/her risk analysis of the outsourcing project as
well as the responses to these risks. S/he must notably express his/her views as to the reputation, experience
and reliability of the third party to whom s/he intends to outsource the retention of the working files.
3) Any outsourcing must be laid down in a written service contract which addresses all aspects related to the
retention of the working files laid down in Section 2 of this Luxembourg supplement to ISQC 1. Access by the
JOURNAL OFFICIEL du Grand-Duché de Luxembourg
MÉMORIAL A - 44 du 27 janvier 2022
réviseur d'entreprises agréé (approved statutory auditor) to the kept files must be unrestricted and granted
without undue delay to any authorised person.
Particular attention shall be paid in this respect to aspects such as continuity, revocability of outsourcing
and upholding of the internal and external control integrity. Moreover, the agreement shall provide a clear
description of the responsibilities of both parties.
4) The réviseur d'entreprises agréé (approved statutory auditor) shall assess, in view of possible legal or other
risks, the necessity to inform or not his/her clients of this outsourcing. The risks to consider may originate,
for example, from an incompatibility of the outsourcing with certain contractual clauses towards those third
parties or with certain legal provisions as regards privacy protection.
5) The responsibility of the outsourcing management shall be borne by the réviseur d'entreprises agréé
(approved statutory auditor) or, in case of a cabinet de révision agréé (approved audit firm), by the partner
in charge of the risk management function within the firm.
6) The réviseur d'entreprises agréé (approved statutory auditor) must be able to carry on business as usual in
case of exceptional events, such as an interruption of communication means for an extended period of time.
The réviseur d'entreprises agréé (approved statutory auditor) shall take the necessary measures to be able to
adequately transfer the kept files to a different provider or to take over the retention him/herself whenever one
of the requirements under Section 2 of this Luxembourg supplement to ISQC 1 is likely to be compromised.
7) The electronic files may only be kept in encrypted form and the encryption key must be held by the réviseur
d'entreprises agréé (approved statutory auditor) or, in case of a cabinet de révision agréé (approved audit
firm), by the partner in charge of the risk management function within the firm. This condition shall apply to
the outsourcing of the retention of electronic files in both Luxembourg and abroad. The réviseur d'entreprises
agréé (approved statutory auditor) or, in case of a cabinet de révision agréé (approved audit firm), the
partner in charge of the risk management function within the firm must ensure that the encryption quality
is appropriate. Any other process for the retention of electronic files shall be subject to prior authorisation
of the CSSF.
8) As regards physical files stored with a third party in Luxembourg, no access to the files by a third
party should be possible without informing beforehand the réviseur d'entreprises agréé (approved statutory
auditor).
4. Duration of the retention of working files
For the purposes of the public oversight exercised by the CSSF, réviseurs d'entreprises agréés (approved
statutory auditors) and cabinets de révision agréés (approved audit firms) shall keep the working files of the
audit engagements for 7 years at least, the minimum frequency for quality assurance reviews laid down in
the law being 6 years.
As regards civil professional liability claims, Article 11 of the Audit Law lays down that these claims brought
against a réviseur d'entreprises agréé (approved statutory auditor) or cabinet de révision agréé (approved
audit firm) shall be time-barred after 5 years as from the date of the audit report.
JOURNAL OFFICIEL du Grand-Duché de Luxembourg
MÉMORIAL A - 44 du 27 janvier 2022
Annexe 7
LUXEMBOURG SUPPLEMENT TO INTERNATIONAL STANDARD ON QUALITY MANAGEMENT 1,
QUALITY MANAGEMENT FOR FIRMS THAT PERFORM AUDITS OR REVIEWS OF FINANCIAL
STATEMENTS OR OTHER ASSURANCE OR RELATED SERVICES ENGAGEMENT (effective as of
December 15, 2022)
Definitions
16. In this ISQM 1, the following terms have the meanings attributed below: […]
(j)
Listed entity – is, as defined in the Luxembourg supplement to the International Ethics Standards Board
for Accountants’ International Code of Ethics for Professional Accountants (including International
Independence Standards) (IESBA Code), entities governed by Luxembourg law whose securities are
admitted to trading on a recognized market.
(t)
Relevant ethical requirements – Principles of professional ethics and ethical requirements that are
applicable to professional accountants when undertaking engagements that are statutory audits.
Relevant ethical requirements ordinarily comprise the provisions of the IESBA Code related to a
statutory audit of financial statements, together with national requirements that are more restrictive.
In Luxembourg, the firm and its personnel are subject to ethical requirements from three sources
the IESBA Code including the Luxembourg supplement, the Audit Regulation (for Public-Interest
entities) and the Audit Law (thereafter the “Luxembourg ethical requirements” or “Luxembourg ethical
standards”).
16D-1. In Luxembourg, the following terms have the meanings attributed below
(a) Audit Regulation [AR] – refers to Regulation (EU) No 537/2014 of the European Parliament and of the
Council of 16 April 2014.
(b) Audit Law [AL] – refers to Law of July 23
rd, 2016 related to the audit profession.
(c) Competent authority – is defined in Article 1(2) of the Audit Law as “the authorities designated by law that
are in charge of the regulation and/or oversight of statutory auditors and audit firms or of specific aspects
thereof”. In Luxembourg, the competent authority is the CSSF.
(d) Key audit partner – is defined in Article 1(1) of the Audit Law as
(i)
The statutory auditor designated by an audit firm for a particular audit engagement as being
primarily responsible for carrying out the statutory audit on behalf of the audit firm; or
(ii)
In the case of a group audit, at least the statutory auditor designated by an audit firm as being
primarily responsible for carrying out the statutory audit at the level of the group and the statutory
auditor(s) designated as being primarily responsible at the level of material subsidiaries; or
(iii)
The statutory auditor who sign(s) the audit report.
(e) Public-interest entity – is as defined in Article 1(20) of the Audit Law.
(f) Statutory audit – is defined in Article 1(6) of the Audit Law as an audit of annual financial statements or
annual consolidated financial statements in so far as required by Union law or by national law.
System of Quality Management
19D-1. The firm shall have
(a) Sound administrative and accounting procedures;
(b) Internal quality control mechanisms that shall be designed to secure compliance with decisions and
procedures at all levels of the firm’s working structure;
(c) Effective procedures for risk assessment; and
(d) Effective control and safeguard arrangements for the firm’s information processing systems. [AL/Article
24(1)b)]
Specified Responses
34 (f) The paragraph is completed as follows
(iv). Audits of financial statements of public-interest entities
JOURNAL OFFICIEL du Grand-Duché de Luxembourg
MÉMORIAL A - 44 du 27 janvier 2022
34D-1. The firm shall include the following responses
Relevant Ethical Requirements
(a) The firm shall establish appropriate policies and procedures to ensure that its owners or shareholders,
as well as the members of the administrative, management and supervisory bodies of the firm, or of a
network firm, do not intervene in the carrying out of a statutory audit in any way which jeopardizes the
independence and objectivity of the engagement team. [AL/Article 24(1)a)]
(b) The firm establishes appropriate and effective organizational and administrative arrangements
(i)
For dealing with and recording incidents which have, or may have, serious consequences for the
integrity of the firm’s audit. [AL/Article 24(1)i)]
(ii)
To prevent, identify, eliminate or manage and disclose any threats to the firm’s independence
required by the Luxembourg Ethical Standard. [AL/Article 24(1)e)]
Acceptance and Continuance of Client Relationships and Specific Engagements
(c) Before accepting or continuing an engagement for a statutory audit engagement, the firm assesses
(i)
Whether the firm complies with relevant independence and objectivity requirements in the
Luxembourg Ethical Standard;
(ii)
Whether there are threats to the firm’s independence, and the safeguards applied to mitigate those
threats;
(iii)
Whether the firm has the competent personnel, time and resources needed in order to carry out
the audit in an appropriate manner; and
(iv)
Whether the key audit partner is eligible for appointment as a statutory auditor. [AL/Article 22]
(d) Before accepting or continuing an audit engagement for a statutory audit engagement of a public-interest
entity, the firm shall assess, in addition to the requirements in letter (a), the following
(i)
Whether the firm complies with the audit fees and the prohibition of the provision of non-audit
services requirements in the Luxembourg Ethical Standard;
(ii)
Whether the conditions for the duration of the audit engagement in accordance with the Audit
Regulation are complied with; and
(iii)
Without prejudice to Luxembourg anti-money laundering requirements
37, the integrity of the
members of the supervisory, administrative and management bodies of the public interest entity.
(e) For audits of financial statements, where the auditor ceases to hold office as statutory auditor, or ceases
to be eligible for appointment as a statutory auditor, the firm provides the successor statutory auditor with
access to all relevant information concerning the entity, including information concerning the most recent
audit. [AL/Article 28(5)]
Engagement Performance
(f) For statutory audits of financial statements, the firm
(i)
Establishes an internal quality control system to ensure the quality of the audit which covers at
least the policies and procedures required by paragraph 34D-1(f)(iii) [AL/Article 24(1)g)];
(ii)
Ensures that operational responsibility for the internal quality control system lies with a person who
is qualified as a réviseur d’entreprises agréé (approved statutory auditor) [AL/Article 24(1)g)];
(iii)
Establishes appropriate policies and procedures for carrying out audits, coaching, supervising and
reviewing the activities of the firm’s personnel and organizing the structure of the audit file
38 [AL/
Article 24(1)f)]; and
(iv)
Uses appropriate systems, resources and procedures to ensure continuity and regularity in the
carrying out of the firm’s audit activities [AL/Article 24(1)h)].
Engagement Performance – Differences of Opinion
Implemented pursuant to Directive 2015/849/EU of the European Parliament and of the Council of the 20 May 2015
ISA 230, paragraph 14 sets out the requirement to assemble the audit documentation in an audit file. Paragraph 58D-1 (a)-(b) of this Luxembourg supplement to ISQM
1, paragraphs 30R-2(a) of ISQM2, paragraphs 8D-1 and 14D-1 of ISA 230 and paragraph 23D-1 of ISA 260 (Revised) set out requirements in respect of documentation
for statutory audits.
JOURNAL OFFICIEL du Grand-Duché de Luxembourg
MÉMORIAL A - 44 du 27 janvier 2022
(g) For statutory audits of financial statements of public-interest entities, the firm shall establish procedures
for determining the manner in which any disagreement between the key audit partner(s) and the
engagement quality control reviewer are to be resolved. [AR/Article 8.6]
Engagement Performance— External Monitoring of Group Audits
(h) Where the firm is subject to a quality assurance review or an investigation concerning a group audit, the
firm shall be responsible for complying with, and shall establish policies and procedures which require
the group engagement team to comply with, any request by the competent authority
(i)
For relevant audit documentation retained by the group engagement team concerning the work
performed by any component auditor for the purposes of the group audit (including any relevant
component auditor’s working papers relevant to the group audit);
(ii)
To deliver any additional documentation of the work performed by any component auditor for the
purposes of the group audit, including that component auditor’s working papers relevant to the group
audit, where the competent authority is unable to obtain audit documentation of the work carried out
by that component auditor. [AL/Article 34(4)]
(i) The firm shall establish policies and procedures, which require that, in order to comply with any request
under paragraph 34D-1(h)(ii), the group engagement team shall either
(i)
Retain copies of the documentation of the work carried out by the relevant component auditor for
the purpose of the group audit (including the component auditor’s working papers relevant to the
group audit); or
(ii)
Obtain the agreement of the relevant component auditor that the group engagement team shall
have unrestricted access to such documentation on request; or
(iii)
Retain documentation to show that the group engagement team has undertaken the appropriate
procedures in order to gain access to the audit documentation, together with evidence supporting
the existence of any impediments to such access; or
(iv)
Take any other appropriate action. [AL/Article 34(4)]
Resources—Human Resources
(j)
The firm
(i)
Establishes appropriate policies or procedures that ensure that the firm’s personnel and any other
individuals whose services are placed at the firm’s disposal or under the firm’s control, and who
are directly involved in audit activities, have appropriate knowledge and experience for the duties
assigned [AL/Article 24(1)c)]; and
(ii)
Has in place adequate remuneration policies, including profit-sharing policies, providing sufficient
performance incentives to secure audit quality, including provision that the amount of revenue that
the firm derives from providing non-audit services to the audited entity shall not form part of the
performance evaluation and remuneration of any person involved in, or able to influence the carrying
out of, the audit [AL/Article 24(1)j)].
(k) For each statutory audit of financial statements, the firm
(i)
Designates at least one key audit partner; [AL/Article 25(1)]
(ii)
Applies as its main criteria in selecting such a key audit partner the need to secure
a. The quality of the audit; and
b. The firm’s independence and competence in carrying out the audit [AL/Article 25(1)];
(iii)
Ensures the key audit partner is actively involved in carrying out the audit.
(l)
For statutory audits of financial statements, the firm provides the key audit partner(s) with sufficient
resources and with personnel that have the necessary competence and capabilities to carry out the firm’s
duties appropriately [AL/Article 25(1)].
Resources—Service Providers
(m)
The firm establishes appropriate policies or procedures that ensure that outsourcing of important audit
functions is not undertaken in such a way as to impair the quality of the firm’s internal quality control and
the ability of the competent authority to supervise the firm's compliance with the obligations laid down
in the Audit Law and, where applicable, in the Audit Regulation. Any outsourcing of audit functions shall
not affect the responsibility of the firm towards the audited entity. [AL/Article 24.1(d)]
JOURNAL OFFICIEL du Grand-Duché de Luxembourg
MÉMORIAL A - 44 du 27 janvier 2022
Information and Communication
(n)
The firm shall establish policies or procedures designed to maintain the confidentiality, safe custody,
professional secrecy, integrity, accessibility and retrievability of engagement documentation or any
information entrusted to the firm, in accordance with applicable laws and regulations. [AL/Article 28]
34D-2. When complying with the requirements set out in paragraphs 19D-1, 34D-1, 35D-1, 56D-1 and
58D-1(d)(ii) the firm shall
(a) Take into consideration the scale and complexity of the firm’s activities; and
(b) Be able to demonstrate to the competent authority that the firm’s policies and procedures designed
to achieve compliance with the applicable requirements of this Luxembourg supplement to ISQM1 are
appropriate given the scale and complexity of the firm’s activities.
Monitoring and Remediation Process
35D-1. For statutory audits of financial statements, the firm shall monitor and evaluate the adequacy and
effectiveness of the firm’s systems, internal quality control mechanisms and arrangements established in
accordance with this Luxembourg supplement to ISQM1 and take appropriate measures to address any
deficiencies.
Evaluating the System of Quality Management
56D-1. For statutory audits of financial statements, the firm shall carry out an annual evaluation of the internal
quality control system, referred to in paragraph 34D-1(f)(i).
Documentation
58D-1. For statutory audits of financial statements, the firm shall
(a) Retain engagement documentation that is important for monitoring compliance with this Luxembourg
supplement to ISQM1 and other applicable legal requirements [AL/Article 25(5)];
(b) Document
(i)
Whether the firm complies with the independence and objectivity requirements as set out in the
relevant ethical requirements;
(ii)
Whether there are any threats to the firm’s independence, and the safeguards applied to mitigate
those threats;
(iii)
Whether the firm has the competent personnel, time and resources needed in order to carry out
the audit in an appropriate manner; and
(iv)
Whether the key audit partner(s) is eligible to be appointed as a statutory auditor. [AL/Article 22]
(c) Maintain a client account record which includes in respect of every statutory audit
(i)
The audited entity’s name, address and place of business;
(ii)
The name of the key audit partner or, where there is more than one key audit partner, the names
of all the key audit partners; and
(iii)
The fees charged for the statutory audit and for other services in any financial year [AL/Article
25(4)].
(d) Keep records of
(i)
Any complaints made in writing about the performance of the audit engagements carried out [AL/
Article 25(6)];
(ii)
The findings of the evaluation required by paragraph 56D-1 and any proposed measure to modify
the internal quality control system [AL/Article 24(1)k)];
(iii)
Any breaches (other than breaches which the firm reasonably considers to be minor breaches) of
professional standards and applicable legal and regulatory requirements; and
(iv)
Any consequences of any breach recorded in accordance with paragraph 58D-1(d)(iii), the
measures taken to address such a breach and to modify the firm’s internal quality control system;
and
(e) Prepare an annual report containing an overview of any measures taken under paragraph 58-1(d)(iv) and
communicate that report internally.
JOURNAL OFFICIEL du Grand-Duché de Luxembourg
MÉMORIAL A - 44 du 27 janvier 2022
60R-1. For statutory audits of financial statements, the firm shall establish policies and procedures that
require retention of audit documentation for a period that is not less than any period necessary to satisfy the
requirements of any applicable laws or regulation relating to data protection and to meet the requirements for
any applicable administrative and judicial proceedings, and that is in any case not less than six years from
the date of the auditor’s report. [AR/Article 15]
JOURNAL OFFICIEL du Grand-Duché de Luxembourg
MÉMORIAL A - 44 du 27 janvier 2022
Annexe 8
LUXEMBOURG SUPPLEMENT TO ISQM 1 ON THE RETENTION OF THE WORKING PAPERS OF THE
RÉVISEUR D’ENTREPRISES AGRÉÉ (APPROVED STATUTORY AUDITOR) (effective as of December
15, 2022)
1. Introduction
The Luxembourg supplement to ISQM 1 “Quality management for firms that perform audits or reviews of
financial statements, or other assurance or related services engagements” (hereinafter “ISQM 1”) lays down
• paragraph 34D-1(n): “The firm shall establish policies or procedures designed to maintain the
confidentiality, safe custody, professional secrecy, integrity, accessibility and retrievability of engagement
documentation or any information entrusted to the firm, in accordance with applicable laws and regulations.
[AL/Article 28].”
• paragraph 60R-1: “The firm shall establish policies and procedures that require retention of audit
documentation for a period that is not less than any period necessary to satisfy the requirements of any
applicable laws or regulation relating to data protection and to meet the requirements for any applicable
administrative and judicial proceedings, and that is in any case not less than six years from the date of
the auditor’s report. [AR/Article 15]”
The purpose of this supplement which is an integral part of the standard on quality management ISQM 1, is
to clarify the specific provisions on the retention of working files in Luxembourg.
This supplement does not apply to the specific issue of the retention of working papers in the framework of
a group audit or where the réviseur d'entreprises agréé (approved statutory auditor) involves other auditors
in the audit of financial statements other than a group audit.
2. General requirements
The policy and procedures established by the réviseur d'entreprises agréé (approved statutory auditor) or
cabinet de révision agréé (approved audit firm) to fulfil the requirements of the Luxembourg supplement to
ISQM 1 depend on a certain number of factors, such as for example the volume of engagements, the nature
of the services as well as its internal organisation. All specific principles laid down in the following sections
shall be taken into account by the réviseur d'entreprises agréé (approved statutory auditor) when defining
his/her policy of retention of files.
The working documentation of the réviseur d'entreprises agréé (approved statutory auditor) or cabinet de
révision agréé (approved audit firm) is composed of physical files, electronic files or a combination of both.
The réviseur d'entreprises agréé (approved statutory auditor) or cabinet de révision agréé (approved audit
firm) shall decide if they keep the physical and/or electronic files themselves or if they delegate these files
to a third party. Whereas the first solution is favoured as it allows the réviseur d'entreprises agréé (approved
statutory auditor) to maintain the control over the implemented procedures, the current regulations do not
prohibit the delegation and the réviseur d'entreprises agréé (approved statutory auditor) or cabinet de révision
agréé (approved audit firm) may make use of the delegation under certain specific conditions listed in Section
3 below.
Section 4 includes additional provisions as regards the duration of the retention of working files.
3. Location for the retention of working files
3.1.
Physical files
The following provisions shall apply to audit engagements referred to in point (34)(a) of Article 1 of the Law
of 23 July 2016 concerning the audit profession (hereinafter the “Audit Law”).
The professional establishment of the réviseur d'entreprises agréé (approved statutory auditor) shall have an
infrastructure suited to the exercised activities, within which a central location for the retention of physical files
JOURNAL OFFICIEL du Grand-Duché de Luxembourg
MÉMORIAL A - 44 du 27 janvier 2022
has been arranged. In accordance with the requirements under the Audit Law, this professional establishment
shall be located in Luxembourg.
During the audit engagement, the transportation of physical working files between the different locations
where they are used shall be limited to a minimum. The réviseur d’entreprises agréé (approved statutory
auditor) shall ensure the working files in the different locations where they are used are safe and restricted,
as far as possible, their access to the sole members of his/her team and the persons who must access the
files according to the standards. In general, the working files cannot be kept, even on a temporary basis,
outside the Luxembourg territory. In case where the réviseur d'entreprises agréé (approved statutory auditor)
must travel abroad with his/her working files, s/he shall ensure their confidentiality, security and integrity. In
the case of an audit team, the signatory partner of the report shall be responsible for deciding on the need
to transport the files abroad and for ensuring their confidentiality, security and integrity.
After the finalisation of the engagement documentation and if the réviseur d'entreprises agréé (approved
statutory auditor) keeps the physical files him/herself, the latter must be stored in the central location for
retention of files. The management of access to this central retention location must be organised so as to
ensure the traceability of all access to the physical files.
The working files may be kept by a third party (which may be the audit client itself) on Luxembourg territory,
insofar as this third party ensures the application of the minimum requirements laid down in paragraphs
34D-1(n) and 60R-1 of the Luxembourg supplement to ISQM 1. For reasons of accessibility and confidentiality
of the physical files, it is not permitted to keep the physical files abroad.
3.2.
Electronic files
The IT function varying from one réviseur d'entreprises agréé (approved statutory auditor) to another, the
latter shall ensure the appropriate application of the requirements laid down in paragraphs 34D-1(n) and
60R-1 of the Luxembourg supplement to ISQM 1 with respect to electronic files and have internally the
necessary IT competences in order to understand at least the implemented IT retention solution(s).
The electronic files may be kept by a third party (which may be the audit client itself) on Luxembourg territory
and, possibly, outside Luxembourg territory, insofar as this third party ensures the application of the minimum
requirements laid down in paragraphs 34D-1(n) and 60R-1 of the Luxembourg supplement to ISQM1 and
insofar as the conditions under Section 3.3 are met (except when the third party is the audit client itself).
3.3.
Outsourcing the retention of working files
Outsourcing the retention of working files poses a number of risks, among which in particular the risk to
compromise the confidentiality of data included in the files. The Audit Law provides for the lifting of the
professional secrecy obligation of the réviseur d'entreprises agréé (approved statutory auditor) only in limited
cases laid down in Article 28(3), (4) and (5) of the above-mentioned law. It does not apply to a third party
(even with a PFS status in Luxembourg) or another entity (located in Luxembourg or abroad) of the network
to which the réviseur d'entreprises agréé (approved statutory auditor) belongs.
Consequently, any outsourcing shall be treated with caution and in complete compliance with the following
conditions
1) The réviseur d'entreprises agréé (approved statutory auditor) must inform the CSSF of each outsourcing
project s/he is contemplating with respect to the retention of the working files by describing the main
arrangements.
2) The réviseur d’entreprises agréé (approved statutory auditor) (or the administrative body of the cabinet de
révision agréé (approved audit firm)) must duly document his/her risk analysis of the outsourcing project as
well as the responses to these risks. S/he must notably express his/her views as to the reputation, experience
and reliability of the third party to whom s/he intends to outsource the retention of the working files.
3) Any outsourcing must be laid down in a written service contract which addresses all aspects related to the
retention of the working files laid down in Section 2 of this Luxembourg supplement to ISQM1. Access by the
JOURNAL OFFICIEL du Grand-Duché de Luxembourg
MÉMORIAL A - 44 du 27 janvier 2022
réviseur d'entreprises agréé (approved statutory auditor) to the kept files must be unrestricted and granted
without undue delay to any authorised person.
Particular attention shall be paid in this respect to aspects such as continuity, revocability of outsourcing
and upholding of the internal and external control integrity. Moreover, the agreement shall provide a clear
description of the responsibilities of both parties.
4) The réviseur d'entreprises agréé (approved statutory auditor) shall assess, in view of possible legal or other
risks, the necessity to inform or not his/her clients of this outsourcing. The risks to consider may originate,
for example, from an incompatibility of the outsourcing with certain contractual clauses towards those third
parties or with certain legal provisions as regards privacy protection.
5) The responsibility of the outsourcing management shall be borne by the réviseur d'entreprises agréé
(approved statutory auditor) or, in case of a cabinet de révision agréé (approved audit firm), by the partner
in charge of the risk management function within the firm.
6) The réviseur d'entreprises agréé (approved statutory auditor) must be able to carry on business as usual in
case of exceptional events, such as an interruption of communication means for an extended period of time.
The réviseur d'entreprises agréé (approved statutory auditor) shall take the necessary measures to be able to
adequately transfer the kept files to a different provider or to take over the retention him/herself whenever one
of the requirements under Section 2 of this Luxembourg supplement to ISQM 1 is likely to be compromised.
7) The electronic files may only be kept in encrypted form and the encryption key must be held by the réviseur
d'entreprises agréé (approved statutory auditor) or, in case of a cabinet de révision agréé (approved audit
firm), by the partner in charge of the risk management function within the firm. This condition shall apply to
the outsourcing of the retention of electronic files in both Luxembourg and abroad. The réviseur d'entreprises
agréé (approved statutory auditor) or, in case of a cabinet de révision agréé (approved audit firm), the
partner in charge of the risk management function within the firm must ensure that the encryption quality
is appropriate. Any other process for the retention of electronic files shall be subject to prior authorisation
of the CSSF.
8) As regards physical files stored with a third party in Luxembourg, no access to the files by a third
party should be possible without informing beforehand the réviseur d'entreprises agréé (approved statutory
auditor).
4. Duration of the retention of working files
For the purposes of the public oversight exercised by the CSSF, réviseurs d'entreprises agréés (approved
statutory auditors) and cabinets de révision agréés (approved audit firms) shall keep the working files of the
audit engagements for 7 years at least, the minimum frequency for quality assurance reviews laid down in
the law being 6 years.
As regards civil professional liability claims, Article 11 of the Audit Law lays down that these claims brought
against a réviseur d'entreprises agréé (approved statutory auditor) or cabinet de révision agréé (approved
audit firm) shall be time-barred after 5 years as from the date of the audit report.
JOURNAL OFFICIEL du Grand-Duché de Luxembourg
MÉMORIAL A - 44 du 27 janvier 2022
Annexe 9
LUXEMBOURG SUPPLEMENT TO INTERNATIONAL STANDARD ON QUALITY MANAGEMENT 2,
ENGAGEMENT QUALITY REVIEWS (effective for audits of financial statements for periods beginning
on or after December 15, 2022)
Definitions
13. In this ISQM 2, the following terms have the meanings attributed below: […]
(c) Relevant ethical requirements – Principles of professional ethics and ethical requirements that are
applicable to a professional accountant when undertaking the engagement quality review. Relevant
ethical requirements ordinarily comprise the provisions of the International Ethics Standards Board
for Accountants’ International Code of Ethics for Professional Accountants (including International
Independence Standards) (IESBA Code) related to statutory audits of financial statements, together with
national requirements that are more restrictive. In Luxembourg, the firm and its personnel are subject
to ethical requirements from three sources: the IESBA Code including the Luxembourg supplement,
the Audit Regulation (for Public-interest entities) and the Audit Law (thereafter the “Luxembourg ethical
requirements” or “Luxembourg ethical standards”).
13D-1. In Luxembourg, the following terms have the meanings attributed below
(a) Audit Regulation [AR] – refers to Regulation (EU) No 537/2014 of the European Parliament and of the
Council of 16 April 2014.
(b) Audit Law [AL] – refers to Law of July 23
rd, 2016 related to the audit profession.
(c) Competent authority – is defined in Article 1(2) of the Audit Law as “the authorities designated by law that
are in charge of the regulation and/or oversight of statutory auditors and audit firms or of specific aspects
thereof”. In Luxembourg, the competent authority is the CSSF.
(d) Key audit partner – is defined in Article 1(1) of the Audit Law as
(i)
The statutory auditor designated by an audit firm for a particular audit engagement as being
primarily responsible for carrying out the statutory audit on behalf of the audit firm; or
(ii)
In the case of a group audit, at least the statutory auditor designated by an audit firm as being
primarily responsible for carrying out the statutory audit at the level of the group and the statutory
auditor(s) designated as being primarily responsible at the level of material subsidiaries; or
(iii)
The statutory auditor who sign(s) the audit report.
(e) Public-interest entity – is as defined in Article 1(20) of the Audit Law.
(f) Statutory audit – is defined in Article 1(6) of the Audit Law as an audit of financial statements or
consolidated financial statements in so far as required by Union law or by national law.
Requirements
Appointment and Eligibility of Engagement Quality Reviewers
18R-1. For statutory audits of financial statements of public-interest entities, the engagement quality review
shall be performed by an engagement quality reviewer who shall
a) Be an approved statutory auditor (réviseur d’entreprise agréé); and
b) Not be involved in the performance of the audit to which the engagement quality review relates. [AR/Article
8.2]
Where the audit is carried out by a firm and all the statutory auditors of that firm were involved in the conduct
of the audit, the firm shall arrange for another firm to perform an engagement quality review. Documents or
information disclosed to the engagement quality reviewer for this purpose shall be subject to professional
secrecy. [AR/Article 8.3]
19-R-1. For statutory audits of financial statements of public-interest entities, a cooling-off period of 3 years
shall be observed before the key audit partner can assume the role of engagement quality reviewer.
JOURNAL OFFICIEL du Grand-Duché de Luxembourg
MÉMORIAL A - 44 du 27 janvier 2022
Performance of the Engagement Quality Review
24R-1 (b). For statutory audits of financial statements of public-interest entities, before the auditor’s report
and the additional report to the audit committee
39 are issued, the firm shall require that an engagement quality
control review shall be performed to assess whether the key audit partner(s) could reasonably have come to
the opinion and conclusions expressed in the draft of these reports. [AR/Article 8.1]
25R-1. For statutory audits of financial statements of public-interest entities, the engagement quality reviewer,
on performing an engagement quality review required by paragraph 24R-1, shall at least assess the following
elements
(a) The independence of the firm from the entity;
(b) The significant risks which are relevant to the audit and which the key audit partner(s) has identified during
the performance of the audit and the measures that the key audit partner(s) has taken to adequately
manage those risks;
(c) The reasoning of the key audit partner(s), in particular with regard to the level of materiality and the
significant risks referred to in paragraph 25R-1(b);
(d) Any request for advice to external experts and the implementation of such advice;
(e) The nature and scope of the corrected and uncorrected misstatements in the financial statements that
were identified during the carrying out of the audit;
(f) The subjects discussed with the audit committee and the management and/or supervisory bodies of the
entity;
(g) The subjects discussed with competent authorities and, where applicable, with other third parties; and
(h) Whether the documents and information selected from the file by the engagement quality reviewer support
the opinion of the key audit partner(s) as expressed in the draft of the auditor’s report
40 and the additional
report to the audit committee
41. [AR/Article 8.5]
25R-2. For statutory audits of financial statements of public-interest entities, the engagement quality reviewer
shall discuss the results of the review, including the elements assessed in paragraph 25R-1, with the key
audit partner(s). [AR/Article 8.6]
Documentation
30R-1. For statutory audits of financial statements of public-interest entities, the engagement quality reviewer
shall also record
(a) The oral and written information provided by the key audit partner(s) to support the significant judgements
as well as the main findings of the audit procedures carried out and the conclusions drawn from those
findings, whether or not at the request of the engagement quality reviewer; and [AR/Article 8.4(a)]
(b) The opinions of the key audit partner(s), as expressed in the draft of the reports required by ISA 260
(Revised) and ISA 700 (Revised). [AR/Article 8.4(b)]
30R-2. For statutory audits of financial statements of public-interest entities, the auditor shall keep a record
of the results of the engagement quality review, together with the considerations underlying those results in
the audit documentation. [AR/Article 8.7] / [AL/Article 25(5)]
ISA 260 (Revised), “Communication with Those Charged with Governance,” paragraph 16R-1 deals with the auditor’s responsibilities to prepare an additional report to
the audit committee.
ISA 700 (Revised), “Forming an Opinion and Reporting on Financial Statements.”
ISA 260 (Revised), “Communication with Those Charged with Governance,” paragraph 16R-1
JOURNAL OFFICIEL du Grand-Duché de Luxembourg
MÉMORIAL A - 44 du 27 janvier 2022
Annexe 10
Adoption de la norme relative à la déontologie, en vertu de l’article 36, paragraphe 3), point b) de la
loi du 23 juillet 2016 relative à la profession de l’audit.
La présente norme est applicable et obligatoire dans le domaine de la déontologie professionnelle
- Code de déontologie de la profession de l’audit à Luxembourg qui se compose du code d’éthique tel
qu’émis par l’International Ethics Standards Board for Accountants (IESBA) dans sa version publiée dans
le « Handbook of the International Code of Ethics for Professional Accountants – 2021 Edition » de
l’International Federation of Accountants (IFAC) et du complément luxembourgeois à cette norme.
JOURNAL OFFICIEL du Grand-Duché de Luxembourg
MÉMORIAL A - 44 du 27 janvier 2022
Annexe 11
Complément luxembourgeois au code d’éthique tel qu’émis par l’International Ethics Standards
Board for Accountants (IESBA) dans sa version publiée dans le « Handbook of the International Code
of Ethics for Professional Accountants – 2021 Edition » de l’International Federation of Accountants
(IFAC) (ci-après « le code d’éthique »)
L’objectif du présent complément luxembourgeois au code d’éthique est de compiler les obligations légales et
réglementaires qui concernent l’éthique et l’indépendance des réviseurs d’entreprises (« RE »), des réviseurs
d’entreprises agréés (« REA »), des cabinets de révision (« CR ») et des cabinets de révision agréés
(« CRA ») telles qu’elles proviennent de la loi du 23 juillet 2016 relative à la profession de l’audit d’une part
et du Règlement UE Nº 537/2014 du parlement européen et du conseil relatif aux exigences spécifiques
applicables au contrôle légal des comptes des entités d’intérêt public (« EIP ») d’autre part et de les rattacher
aux sections du code d’éthique correspondantes.
JOURNAL OFFICIEL du Grand-Duché de Luxembourg
MÉMORIAL A - 44 du 27 janvier 2022
Table of contents
PART 1 - COMPLYING WITH THE CODE, FUNDAMENTAL PRINCIPLES AND CONCEPTUAL
FRAMEWORK
The Fundamental Principles
PART 3 - PROFESSIONAL ACCOUNTANTS IN PUBLIC PRACTICE
Professional appointments
Objectivity of an engagement quality reviewer and other appropriate reviewers
(effective for audits of financial statements for periods beginning on or after
December 15, 2022)
Custody of client assets
PART 4A – INDEPENDENCE FOR AUDIT AND REVIEW ENGAGEMENTS
Applying the conceptual framework to independence for audit and review
engagements
Fees (effective for audits of financial statements for periods beginning before
December 15, 2022)
Fees (effective for audits of financial statements for periods beginning on or after
December 15, 2022)
Gifts and hospitality
Financial interests
Business Relationships
Employment with an audit client
Long association of senior personnel (including partner rotation) with an audit client
- Internal rotation
- External rotation
Provision of non-assurance services to an audit client (effective for audits of
financial statements for periods beginning before December 15, 2022)
- Prohibition to provide non-audit services
- List of prohibited non-audit services
- Prohibited non-audit services provided by an affiliate within the network
to an entity registered in a third-country and under control of the audited
public-interest entity
- Approval of non-audit services by the audit committees
Provision of non-assurance services to an audit client (effective for audits of
financial statements for periods beginning on or after December 15, 2022)
- Prohibition to provide non-audit services
- List of prohibited non-audit services
- Prohibited non-audit services provided by an affiliate within the network
to an entity registered in a third-country and under control of the audited
public-interest entity
- Approval of non-audit services by the audit committees
GLOSSARY
JOURNAL OFFICIEL du Grand-Duché de Luxembourg
MÉMORIAL A - 44 du 27 janvier 2022
PART 1 - COMPLYING WITH THE CODE, FUNDAMENTAL PRINCIPLES AND CONCEPTUAL
FRAMEWORK
SECTION 110
THE FUNDAMENTAL PRINCIPLES
SUBSECTION 115 – PROFESSIONAL BEHAVIOR
Paragraph R115.1 is completed as follows
“The exercise by the réviseur d’entreprises (statutory auditor), the réviseur d’entreprises agréé (approved
statutory auditor), the cabinet de révision (audit firm), the cabinet de révision agréé (approved audit firm) or
the audit firm of one of their respective activities referred to in Article 1(34) of the Audit Law is incompatible
with any activity liable to detract from the principles of independence of the profession.
Where he, she exercises the activities referred to in the previous paragraph, the réviseur d’entreprises
(statutory auditor) or the réviseur d’entreprises agréé (approved statutory auditor) may not enter paid
employment unless it is with a cabinet de révision (audit firm), a cabinet de révision agréé (approved audit
firm) or an audit firm.” (AL/Article 19)
Paragraph R115.2 is completed as follows
“A réviseur d’entreprises agréé (approved statutory auditor) or a cabinet de révision agréé (approved audit
firm) can advertise or solicit new work for services other than audit engagements that are also offered by other
professionals who are not subject to similar standards nor similar ethical rules. Nevertheless, any advertising
or solicitation shall be executed in accordance with the principles mentioned in the current section. Advertising
or solicitation for audit engagements are strictly forbidden. Factual description of services offered by an audit
firm, including audit services, is authorized”.
JOURNAL OFFICIEL du Grand-Duché de Luxembourg
MÉMORIAL A - 44 du 27 janvier 2022
PART 3 – PROFESSIONAL ACCOUNTANTS IN PUBLIC PRACTICE
SECTION 320
PROFESSIONAL APPOINTMENTS
Requirements
Changes in a Professional Appointment
Changes in Audit or Review Appointments
Paragraph R320.8 is completed as follows
“The réviseur d'entreprises agréé (approved statutory auditor) or cabinet de révision agréé (approved audit
firm) being replaced shall provide the successor with free access to all relevant information concerning the
audited entity and the most recent audit of that entity.” [AL/Article 28(5)]
Audit Clients that are Public-Interest Entities
In relation with the handover file in the event of a replacement of an approved statutory auditor (“réviseur
d’entreprises agréé”) or approved audit firm (“cabinet de revision agréé”) by a new approved statutory auditor
(“réviseur d’entreprises agréé”) or approved audit firm (“cabinet de revision agréé”), paragraph R320.8 is
completed as follows
“Subject to the provisions in relation with the safekeeping of audit documentation, the réviseur d’entreprises
agréé (approved statutory auditor) or the cabinet de révision agréé (approved audit firm) shall also provide
the incoming réviseur d’entreprises agréé (approved statutory auditor) or cabinet de révision agréé (approved
audit firm) with the previous years’ additional reports to the audit committee and all information communicated
to competent authorities, in relation with
- article 12 of Regulation (EU) No 537/2014 (“Report to supervisors of public-interest entities”), applicable
in case of (i) a material breach of the laws, regulations or administrative provisions which lay down, where
appropriate, the conditions governing authorization or which specifically govern pursuit of the activities
of such public-interest entity; (ii) a material threat or doubt concerning the continuous functioning of the
public-interest entity; (iii) a refusal to issue an audit opinion on the financial statements or the issuing of
an adverse or qualified opinion and
- article 13 of Regulation (EU) No 537/2014 (“Transparency report”)
The former réviseur d’entreprises agréé, cabinet de révision agréé or audit firm shall be able to demonstrate
to the competent authority that such information has been provided to the incoming statutory auditor or audit
firm [AR/Article 18].”
SECTION 325
OBJECTIVITY OF AN ENGAGEMENT QUALITY REVIEWER AND OTHER APPROPRIATE REVIEWERS
(effective for audits of financial statements for periods beginning on or after December 15, 2022)
General
Paragraph 325.5 A2 is completed as follows
“For statutory audits of financial statements of public-interest entities, the the engagement quality reviewer
shall be an approved statutory auditor (« Réviseur d’entreprises Agréé »)”
Paragraph 325.8 A3 is completed as follows
“For statutory audits of financial statements of public-interest entities, a cooling-off period of 3 years shall be
observed before the key audit partner can assume the role of engagement quality reviewer.”
JOURNAL OFFICIEL du Grand-Duché de Luxembourg
MÉMORIAL A - 44 du 27 janvier 2022
SECTION 350
CUSTODY OF CLIENT ASSETS
Requirements
Before Taking Custody
Paragraph R350.3 is completed as follows
“A réviseur d’entreprises agréé (approved statutory auditor) or a cabinet de révision agréé (approved audit
firm) shall not assume custody of audit client monies. For a client, other than an audit client, the réviseur
d’entreprises agréé (approved statutory auditor) or the cabinet de révision agréé (approved audit firm) shall
inform the concerned credit institution about the nature of the accounts open to hold client monies”.
JOURNAL OFFICIEL du Grand-Duché de Luxembourg
MÉMORIAL A - 44 du 27 janvier 2022
PART 4A – INDEPENDENCE FOR AUDIT AND REVIEW ENGAGEMENTS
SECTION 400
APPLYING THE CONCEPTUAL FRAMEWORK TO INDEPENDENCE FOR AUDIT AND REVIEW
ENGAGEMENTS
Requirements
General
Paragraph R400.11 is completed as follows
“When carrying out a statutory audit, the réviseurs d’entreprises agréés (approved statutory auditors), the
cabinets de révision agréés (approved audit firms), the audit firms, and any natural person in a position to
directly or indirectly influence the outcome of the statutory audit, shall be independent of the audited entity.
They shall not be involved in the decision-taking of the audited entity.
Independence shall be required at least during both the period covered by the financial statements to be
audited and the period during which the statutory audit is carried out.
The réviseurs d’entreprises agréés (approved statutory auditors), the cabinets de révision agréés (approved
audit firms) and the audit firms shall take all reasonable steps to ensure that, when carrying out a statutory
audit, their independence is not affected by any existing or potential conflict of interest or business or other
direct or indirect relationship involving the réviseur d’entreprises agréé (approved statutory auditor), the
cabinet de révision agréé (approved audit firm) or the audit firm carrying out the statutory audit and, where
appropriate, his, her or its network, managers, auditors, employees, any other natural persons whose services
are placed at the disposal or under the control of the réviseur d’entreprises agréé (approved statutory auditor),
cabinet de révision agréé (approved audit firm) or audit firm, or any person directly or indirectly linked to the
réviseur d’entreprises agréé (approved statutory auditor), cabinet de révision agréé (approved audit firm) or
audit firm by control.
The réviseur d’entreprises agréé (approved statutory auditor), the cabinet de révision agréé (approved
audit firm) or the audit firm shall not carry out a statutory audit if there is any threat of self-review, self-
interest, advocacy, familiarity or intimidation created by financial, personal, business, employment or other
relationships between
– the réviseur d’entreprises agréé (approved statutory auditor), the cabinet de révision agréé (approved audit
firm), the audit firm, his, her or its network, and any natural person in a position to influence the outcome
of the statutory audit, and
– the audited entity,
as a result of which an objective, reasonable and informed third party, taking into account the safeguards
applied, would conclude that the independence of the réviseur d’entreprises agréé (approved statutory
auditor), the cabinet de révision agréé (approved audit firm) or the audit firm is compromised.” [AL/Article
20(1)]
Mergers and acquisitions
When a Client Merger Creates a Threat
In paragraph R400.73 (a), the deadline of six months is shortened to three months [AL/Article 20(6)].
JOURNAL OFFICIEL du Grand-Duché de Luxembourg
MÉMORIAL A - 44 du 27 janvier 2022
SECTION 410
FEES
(effective for audits of financial statements for periods beginning before December 15, 2022)
Introduction
Paragraph 410.1 is completed as follows
“The fees for statutory audit cannot be influenced or determined by the provision of additional services to the
audited entity and cannot be based on any form of contingency.” [AL/Article 27]
Requirements
Fees – Relative size
Audit Clients that are Public-Interest Entities
Provisions of paragraph R410.4 and R410.5 are replaced by the following provision
“When the total fees received from a public-interest entity in each of the last three consecutive financial
years are more than 15 % of the total fees received by the réviseur d'entreprises agréé (approved statutory
auditor) or the cabinet de révision agréé (approved audit firm) or, where applicable, by the group auditor
carrying out the statutory audit, in each of those financial years, such a réviseur d'entreprises agréé (approved
statutory auditor) or a cabinet de révision agréé (approved audit firm) or, as the case may be, group auditor,
shall disclose that fact to the audit committee and discuss with the audit committee the threats to their
independence and the safeguards applied to mitigate those threats. The audit committee shall consider
whether the audit engagement should be subject to an engagement quality control review by another statutory
auditor or audit firm prior to the issuance of the audit report”. [AR/Article 4(3)]
Provisions of paragraph R410.6 is replaced by the following provision
“Where the fees received from such a public-interest entity continue to exceed 15% of the total fees received
by such the réviseur d'entreprises agréé (approved statutory auditor) or the cabinet de révision agréé
(approved audit firm) or, as the case may be, by a group auditor carrying out the statutory audit, the audit
committee shall decide on the basis of objective grounds whether the réviseur d'entreprises agréé (approved
statutory auditor) or the cabinet de révision agréé (approved audit firm) or the group auditor, of such an entity
or group of entities may continue to carry out the statutory audit for an additional period which shall not, in
any case, exceed two years.”
Fees – Cap of 70% for non-audit services
Audit Clients that are Public-Interest Entities
The section is completed as followed
“When the réviseur d'entreprises agréé (approved statutory auditor) or the cabinet de révision agréé
(approved audit firm) provides to the audited entity, its parent undertaking or its controlled undertakings, for a
period of three or more consecutive financial years, non-audit services other than those referred to in Article
5(1) of Regulation (EU) No 537/2014, the total fees for such services shall be limited to no more than 70
% of the average of the fees paid in the last three consecutive financial years for the statutory audit(s) of
the audited entity and, where applicable, of its parent undertaking, of its controlled undertakings and of the
consolidated financial statements of that group of undertakings.
For the purposes of the limits specified above, non-audit services (other than those referred to in Article 5(1)
of Regulation (EU) No 537/2014) required by Union or Luxembourg legislation shall be excluded.
On reasoned request, the CSSF may exceptionally relieve the réviseur d'entreprises agréé (approved
statutory auditor) or the cabinet de révision agréé (approved audit firm) from the obligation to comply with
the limits set in the first subparagraph of this paragraph for a maximum period of two financial years”. [AR/
Article 4(2) and AL/Article 49]
JOURNAL OFFICIEL du Grand-Duché de Luxembourg
MÉMORIAL A - 44 du 27 janvier 2022
SECTION 410
FEES
(effective for audits of financial statements for periods beginning on or after December 15, 2022)
Requirements
Level of Audit Fees
Paragraph R410.6 and R410.9 are completed as follows
“The fees for statutory audit cannot be influenced or determined by the provision of additional services to the
audited entity and cannot be based on any form of contingency.” [AL/Article 27]
Total Fees – Proportion of Fees for Services Other than Audit to Audit Fee – Cap of 70% for non-
audit services
For Audit Clients that are Public-Interest Entities, paragraph 410.11A1 to A3 are replaced by the following
provisions
“When the réviseur d'entreprises agréé (approved statutory auditor) or the cabinet de révision agréé
(approved audit firm) provides to the audited entity, its parent undertaking or its controlled undertakings, for a
period of three or more consecutive financial years, non-audit services other than those referred to in Article
5(1) of Regulation (EU) No 537/2014, the total fees for such services shall be limited to no more than 70
% of the average of the fees paid in the last three consecutive financial years for the statutory audit(s) of
the audited entity and, where applicable, of its parent undertaking, of its controlled undertakings and of the
consolidated financial statements of that group of undertakings.
For the purposes of the limits specified above, non-audit services (other than those referred to in Article 5(1)
of Regulation (EU) No 537/2014) required by Union or Luxembourg legislation shall be excluded.
On reasoned request, the CSSF may exceptionally relieve the réviseur d'entreprises agréé (approved
statutory auditor) or the cabinet de révision agréé (approved audit firm) from the obligation to comply with
the limits set in the first subparagraph of this paragraph for a maximum period of two financial years”. [AR/
Article 4(2) and AL/Article 49]
Total Fees – Fee Dependency
Audit Clients that are Public-Interest Entities
Provisions of paragraph R410.18 is replaced by the following provision
“When the total fees received from a public-interest entity in each of the last three consecutive financial
years are more than 15 % of the total fees received by the réviseur d'entreprises agréé (approved statutory
auditor) or the cabinet de révision agréé (approved audit firm) or, where applicable, by the group auditor
carrying out the statutory audit, in each of those financial years, such a réviseur d'entreprises agréé (approved
statutory auditor) or a cabinet de révision agréé (approved audit firm) or, as the case may be, group auditor,
shall disclose that fact to the audit committee and discuss with the audit committee the threats to their
independence and the safeguards applied to mitigate those threats. The audit committee shall consider
whether the audit engagement should be subject to an engagement quality control review by another statutory
auditor or audit firm prior to the issuance of the audit report”. [AR/Article 4(3)]
Provisions of paragraph R410.20, R410.21 and 410.21 A1 are replaced by the following provision
“Where the fees received from such a public-interest entity continue to exceed 15% of the total fees received
by such the réviseur d'entreprises agréé (approved statutory auditor) or the cabinet de révision agréé
(approved audit firm) or, as the case may be, by a group auditor carrying out the statutory audit, the audit
committee shall decide on the basis of objective grounds whether the réviseur d'entreprises agréé (approved
statutory auditor) or the cabinet de révision agréé (approved audit firm) or the group auditor, of such an entity
or group of entities may continue to carry out the statutory audit for an additional period which shall not, in
any case, exceed two years.”
JOURNAL OFFICIEL du Grand-Duché de Luxembourg
MÉMORIAL A - 44 du 27 janvier 2022
Transparency of Information Regarding Fees for Audit Client that are Public Interest Entities
Communication About Fee-related Information with Those Charged with Governance
Fee Dependency
Provisions of paragraphs R410.28 are repealed.
SECTION 420
GIFTS AND HOSPITALITY
Requirements
Paragraph R420.3 is completed as follows
“The réviseurs d’entreprises agréés (approved statutory auditors), the cabinets de révision agréés (approved
audit firms), the audit firms, their key audit partners, their employees, and any other natural person whose
services are placed at the disposal or under the control of such réviseur d’entreprises agréé (approved
statutory auditor), cabinet de révision agréé (approved audit firm) or audit firm and who is directly involved
in statutory audit activities, and persons closely associated with them within the meaning of Article 3(1) point
26 of Regulation (EU) N° 596/2014 of the European Parliament and the council on market abuse of 16 April
2014 (market abuse regulation), shall not solicit or accept pecuniary and non-pecuniary gifts or favours from
the audited entity or any entity related to an audited entity unless an objective, reasonable and informed third
party would consider the value thereof as trivial or inconsequential.” [AL/Article 20(5)]
SECTION 510
FINANCIAL INTERESTS
Requirements
Financial Interests – Other Circumstances
Provisions of paragraph 510.10 A1 to 510.10 A12 are replaced by the following provision
“The réviseurs d’entreprises agréés (approved statutory auditors), the cabinets de révision agréés (approved
audit firms), the audit firms, their key audit partners, their employees, and any other natural person whose
services are placed at the disposal or under the control of such réviseur d’entreprises agréé (approved
statutory auditor), cabinet de révision agréé (approved audit firm) or audit firm and who is directly involved
in statutory audit activities, and persons closely associated with them within the meaning of Article 3(1) point
26 of Regulation (EU) N° 596/2014 of the European Parliament and the council on market abuse of 16 April
2014 (market abuse regulation)
- do not hold or have a material and direct beneficial interest in, or engage in any transaction in any
financial instrument issued, guaranteed, or otherwise supported by, any audited entity within their area of
statutory audit activities, other than interests owned indirectly through diversified undertakings for collective
investment, including managed funds such as pension funds or life insurance.” [AL/Article 20(2)]
- shall not participate in or otherwise influence the outcome of a statutory audit of any particular audited
entity if they
○own financial instruments of the audited entity, other than interests owned indirectly through diversified
undertakings for collective investment;
○own financial instruments of any entity related to an audited entity, the ownership of which may cause,
or may be generally perceived as causing, a conflict of interest, other than interests owned indirectly
through diversified undertakings for collective investment.” [AL/Article 20(4)]
JOURNAL OFFICIEL du Grand-Duché de Luxembourg
MÉMORIAL A - 44 du 27 janvier 2022
SECTION 520
BUSINESS RELATIONSHIPS
Requirements
Firm, Network Firm, Audit Team Member or Immediate Family Business Relationships
'Paragraph R520.4 is completed as follows
“The réviseurs d’entreprises agréés (approved statutory auditors), the cabinets de révision agréés (approved
audit firms), the audit firms, their key audit partners, their employees, and any other natural person whose
services are placed at the disposal or under the control of such réviseur d’entreprises agréé (approved
statutory auditor), cabinet de révision agréé (approved audit firm) or audit firm and who is directly involved
in statutory audit activities, and persons closely associated with them within the meaning of Article 3(1) point
26 of Regulation (EU) N° 596/2014 of the European Parliament and the council on market abuse of 16 April
2014 (market abuse regulation) shall not participate in or otherwise influence the outcome of a statutory audit
of any particular audited entity if they have had an employment, or a business or other relationship with that
audited entity within the period referred in paragraph R400.30 that may cause, or may be generally perceived
as causing, a conflict of interest” [AL/Article 20(4)].
SECTION 524
EMPLOYMENT WITH AN AUDIT CLIENT
Requirements
All Audit Clients
Former Partner or Audit Team Member Restrictions
Paragraph R524.4 is completed as follows
“A réviseur d’entreprises agréé (approved statutory auditor) or a key audit partner who carries out a statutory
audit on behalf of a cabinet de révision agréé (approved audit firm) or an audit firm shall not, before a period
of at least one year, has elapsed since he or she ceased to act as réviseur d'entreprises agréé (approved
statutory auditor) or key audit partner in connection with the audit engagement
- take up a key management position in the audited entity;
- where applicable, become a member of the audit committee of the audited entity or, where such committee
does not exist, of the body performing equivalent functions to an audit committee;
- become a non-executive member of the administrative body or a member of the supervisory body of the
audited entity.
Employees and partners other than key audit partners of a réviseur d’entreprises agréé (approved statutory
auditor) or of a cabinet de révision agréé (approved audit firm) carrying out a statutory audit, as well as
any other natural person whose services are placed at the disposal or under the control of such réviseur
d’entreprises agréé (approved statutory auditor) or cabinet de révision agréé (approved audit firm), shall not,
when such employees, partners or other natural persons are personally approved as réviseurs d'entreprises
agréés (approved statutory auditors), take up any of the duties referred to in the previous paragraph before
a period of at least one year has elapsed since he or she was directly involved in the statutory audit
engagement.” [AL/Article 21]
Audit clients that are Public Interest Entities
Key Audit Partners
Paragraph R524.6 is completed as follows
“A réviseur d’entreprises agréé (approved statutory auditor) or a key audit partner who carries out a statutory
audit of Public Interest Entities on behalf of a cabinet de révision agréé (approved audit firm) or an audit
firm shall not, before a period of at least two years, has elapsed since he or she ceased to act as réviseur
d'entreprises agréé (approved statutory auditor) or key audit partner in connection with the audit engagement
JOURNAL OFFICIEL du Grand-Duché de Luxembourg
MÉMORIAL A - 44 du 27 janvier 2022
- take up a key management position in the audited entity;
- where applicable, become a member of the audit committee of the audited entity or, where such committee
does not exist, of the body performing equivalent functions to an audit committee;
- become a non-executive member of the administrative body or a member of the supervisory body of the
audited entity.” [AL/Article 21]
SECTION 540
LONG ASSOCIATION OF PERSONNEL (INCLUDING PARTNER ROTATION) WITH AN AUDIT CLIENT
Requirements
Audit Clients that are Public-Interest Entities
Paragraph R540.5 is modified as followed
“In respect of an audit of a public interest entity, an individual shall not act in any of the following roles, or a
combination of such roles, for a period of more than seven cumulative years (the “time-on” period)
(a) The engagement partner;
(b) The individual appointed as responsible for performing the engagement quality review; or
(c) Any other key audit partner role.
After the time-on period, the individual shall serve a “cooling-off” period in accordance with the provisions
in paragraphs R540.11 to R540.19.”
Provisions of paragraph R540.7, R.540.8 and R540.9 are repealed.
Cooling-off period
The delay of 2 years as per paragraph R540.13 is extended to 3 years in order to participate again in the
statutory audit of the audited entity. [AR/Article 17(7)]
The section is completed as followed
External rotation
Audit Clients that are Public-Interest Entities
“In relation with statutory audits of Public-Interest Entities
• Neither the initial engagement of a particular réviseur d'entreprises agréé (approved statutory auditor),
cabinet de révision agréé (approved audit firm) or audit firm, nor this in combination with any renewed
engagements therewith shall exceed a maximum duration of 10 years;
• The maximum duration of a statutory audit of a public-interest entity may be of 20 years, where a public
tendering process for the statutory audit is conducted in accordance with paragraphs 2 to 5 of Article 16
of Regulation (EU) No 537/2014.
The maximum duration shall be extended only if, upon a recommendation of the audit committee, the
administrative or supervisory body, proposes to the general meeting of shareholders or members, in
accordance with Luxembourg law, that the engagement be renewed and that proposal is approved.
After the expiry of the maximum duration, the public-interest entity may, on an exceptional basis, request
that the CSSF grant an extension to re-appoint the statutory auditor or the audit firm for a further
engagement where the conditions in points (a) or (b) of paragraph 4 of Regulation (EU) No 537/2014 are
met. Such an additional engagement shall not exceed two years.
• After the expiry of the maximum 10-year duration of engagements (20 years in case of a public tendering
process for the statutory audit is conducted in accordance with paragraphs 2 to 5 of Article 16 of Regulation
(EU) No 537/2014), neither the réviseur d'entreprises agréé (approved statutory auditor), the cabinet de
révision agréé (approved audit firm) or the audit firm nor, where applicable, any members of their networks
within the Union shall undertake the statutory audit of the same public-interest entity within the following
four-year period.
JOURNAL OFFICIEL du Grand-Duché de Luxembourg
MÉMORIAL A - 44 du 27 janvier 2022
For the purposes of this Article, the duration of the audit engagement shall be calculated as from the first
financial year covered in the audit engagement letter in which the statutory auditor or the audit firm (including
other firms that the audit firm has acquired or that have merged with it) has been appointed for the first time
for the carrying-out of consecutive statutory audits for the same public-interest entity.” [AR/Article 17(1)-(6)
and (8) and AL/Article 51]
SECTION 600
PROVISION OF NON-ASSURANCE SERVICES TO AN AUDIT CLIENT
(effective for audits of financial statements for periods beginning before December 15, 2022)
Requirements
General
The section is completed as followed
Audit Clients that are Public-Interest Entities
Prohibition to provide non-audit services
“The réviseur d'entreprises agréé (approved statutory auditor), the cabinet de révision agréé (approved audit
firm) or the audit firm carrying out the statutory audit of a public-interest entity, or any member of the network to
which the réviseur d'entreprises agréé (approved statutory auditor) or the cabinet de révision agréé (approved
audit firm) belongs, shall not directly or indirectly provide to the audited entity, to its parent undertaking or to
its controlled undertakings within the Union any prohibited non-audit services in
• the period between the beginning of the period audited and the issuing of the audit report; and
• the financial year immediately preceding the period referred to in above-mentioned point in relation to the
services listed in point (e) of the below list”. [AR/Article 5 (1)]
List of prohibited non-audit services [AR/Article 5 (1) and AL/Article 50]
(a) tax services relating to
i.
preparation of tax forms (*);
ii.
payroll tax;
iii.
customs duties;
iv.
identification of public subsidies and tax incentives unless support from the statutory auditor or the
audit firm in respect of such services is required by law (*);
v.
support regarding tax inspections by tax authorities unless support from the statutory auditor or the
audit firm in respect of such inspections is required by law (*);
vi.
calculation of direct and indirect tax and deferred tax (*);
vii.
provision of tax advice (*);
(b) services that involve playing any part in the management or decision-making of the audited entity;
(c) bookkeeping and preparing accounting records and financial statements;
(d) payroll services;
(e) designing and implementing internal control or risk management procedures related to the preparation
and/or control of financial information or designing and implementing financial information technology
systems;
(f) valuation services (*), including valuations performed in connection with actuarial services or litigation
support services;
(g) legal services, with respect to
i.
the provision of general counsel;
ii.
negotiating on behalf of the audited entity; and
iii.
acting in an advocacy role in the resolution of litigation;
(h) services related to the audited entity's internal audit function;
JOURNAL OFFICIEL du Grand-Duché de Luxembourg
MÉMORIAL A - 44 du 27 janvier 2022
(i) services linked to the financing, capital structure and allocation, and investment strategy of the audited
entity, except providing assurance services in relation to the financial statements, such as the issuing of
comfort letters in connection with prospectuses issued by the audited entity;
(j) promoting, dealing in, or underwriting shares in the audited entity;
(k) human resources services, with respect to
i.
management in a position to exert significant influence over the preparation of the accounting
records or financial statements which are the subject of the statutory audit, where such services
involve
- searching for or seeking out candidates for such position; or
- undertaking reference checks of candidates for such positions;
ii.
structuring the organisation design; and
iii.
cost control.
(*): by way of derogation the provision of the services are allowed, provided that the following requirements
are complied with
• they have no direct or have immaterial effect, separately or in the aggregate on the audited financial
statements;
• the estimation of the effect on the audited financial statements is comprehensively documented and
explained in the additional report to the audit committee; and
• the principles of independence laid down in the law concerning the audit profession are complied with by
the statutory auditor or the audit firm.
Prohibited non-audit services provided by an affiliate within the network to an entity registered in a third-
country and under control of the audited public-interest entity
“When a member of a network to which the réviseur d’entreprises agréé (approved statutory auditor), the
cabinet de révision agréé (approved audit firm) or the audit firm carrying out a statutory audit of a public-
interest entity belongs provides any of the non-audit services, referred to in the above-mentioned paragraph,
to an undertaking incorporated in a third country which is controlled by the audited public-interest entity, the
réviseur d’entreprises agréé (approved statutory auditor), the cabinet de révision agréé (approved audit firm)
or the audit firm concerned shall assess whether his, her or its independence would be compromised by such
provision of services by the member of the network.
If his, her or its independence is affected, the réviseur d’entreprises agréé (approved statutory auditor), the
cabinet de révision agréé (approved audit firm) or the audit firm shall apply safeguards where applicable in
order to mitigate the threats caused by such provision of services in a third country. The réviseur d’entreprises
agréé (approved statutory auditor), the cabinet de révision agréé (approved audit firm) or the audit firm may
continue to carry out the statutory audit of the public-interest entity only if he, she or it can justify, in accordance
with Article 6 of Regulation (EU) No 537/2014 and Article 22 of the Law of 23 July 2016 concerning the
audit profession, that such provision of services does not affect his, her or its professional judgement and
the audit report."
For the purposes of this paragraph
(a) being involved in the decision-taking of the audited entity and the provision of the services referred to in
points b), c) and e) of the above-mentioned list shall be deemed to affect such independence in all cases
and to be incapable of mitigation by any safeguards.
(b) provision of the services referred to in the above-mentioned list other than points b), c) and e) thereof
shall be deemed to affect such independence and therefore to require safeguards to mitigate the threats
caused thereby.” [AR/Article 5(5)]
Approval of non-audit services by the audit committees
“A réviseur d’entreprises agréé (approved statutory auditor), a cabinet de révision agréé (approved audit firm)
or an audit firm, carrying out statutory audits of public-interest entities, and when the réviseur d’entreprises
agréé (approved statutory auditor), the cabinet de révision agréé (approved audit firm) or the audit firm
belongs to a network, any member of such network may provide to the audited entity, to its parent undertaking
or to its controlled undertakings non-audit services other than the prohibited non-audit services referred to
JOURNAL OFFICIEL du Grand-Duché de Luxembourg
MÉMORIAL A - 44 du 27 janvier 2022
in the current section (refer to the above-mentioned list) subject to the approval of the audit committee after
it has properly assessed threats to independence and the safeguards applied in accordance with Article 22
of Law of 23 July 2016 concerning the audit profession.
The audit committee shall, where applicable, issue guidelines with regard to the authorized services upon
the condition that they have been identified by an asterisk in the above-mentioned list of prohibited non-audit
services”. [AR/Article 5(4)]
SECTION 600
PROVISION OF NON-ASSURANCE SERVICES TO AN AUDIT CLIENT
(effective for audits of financial statements for periods beginning on or after December 15, 2022)
Requirements
General
The section is completed as followed
Audit Clients that are Public-Interest Entities
Prohibition to provide non-audit services
“The réviseur d'entreprises agréé (approved statutory auditor), the cabinet de révision agréé (approved audit
firm) or the audit firm carrying out the statutory audit of a public-interest entity, or any member of the network to
which the réviseur d'entreprises agréé (approved statutory auditor) or the cabinet de révision agréé (approved
audit firm) belongs, shall not directly or indirectly provide to the audited entity, to its parent undertaking or to
its controlled undertakings within the Union any prohibited non-audit services in
• the period between the beginning of the period audited and the issuing of the audit report; and
• the financial year immediately preceding the period referred to in above-mentioned point in relation to the
services listed in point (e) of the below list”. [AR/Article 5 (1)]
List of prohibited non-audit services [AR/Article 5 (1) and AL/Article 50]
(a) tax services relating to
i.
preparation of tax forms (*);
ii.
payroll tax;
iii.
customs duties;
iv.
identification of public subsidies and tax incentives unless support from the statutory auditor or the
audit firm in respect of such services is required by law (*);
v.
support regarding tax inspections by tax authorities unless support from the statutory auditor or the
audit firm in respect of such inspections is required by law (*);
vi.
calculation of direct and indirect tax and deferred tax (*);
vii.
provision of tax advice (*);
(b) services that involve playing any part in the management or decision-making of the audited entity;
(c) bookkeeping and preparing accounting records and financial statements;
(d) payroll services;
(e) designing and implementing internal control or risk management procedures related to the preparation
and/or control of financial information or designing and implementing financial information technology
systems;
(f) valuation services (*), including valuations performed in connection with actuarial services or litigation
support services;
(g) legal services, with respect to
i.
the provision of general counsel;
ii.
negotiating on behalf of the audited entity; and
iii.
acting in an advocacy role in the resolution of litigation;
(h) services related to the audited entity's internal audit function;
JOURNAL OFFICIEL du Grand-Duché de Luxembourg
MÉMORIAL A - 44 du 27 janvier 2022
(i) services linked to the financing, capital structure and allocation, and investment strategy of the audited
entity, except providing assurance services in relation to the financial statements, such as the issuing of
comfort letters in connection with prospectuses issued by the audited entity;
(j) promoting, dealing in, or underwriting shares in the audited entity;
(k) human resources services, with respect to
i.
management in a position to exert significant influence over the preparation of the accounting
records or financial statements which are the subject of the statutory audit, where such services
involve
- searching for or seeking out candidates for such position; or
- undertaking reference checks of candidates for such positions;
ii.
structuring the organisation design; and
iii.
cost control.
(*): by way of derogation the provision of the services are allowed, provided that the following requirements
are complied with
• they have no direct or have immaterial effect, separately or in the aggregate on the audited financial
statements;
• the estimation of the effect on the audited financial statements is comprehensively documented and
explained in the additional report to the audit committee; and
• the principles of independence laid down in the law concerning the audit profession are complied with by
the statutory auditor or the audit firm.
Provisions of paragraphs R600.17 and 600.17A1 are repealed.
Prohibited non-audit services provided by an affiliate within the network to an entity registered in a third-
country and under control of the audited public-interest entity
“When a member of a network to which the réviseur d’entreprises agréé (approved statutory auditor), the
cabinet de révision agréé (approved audit firm) or the audit firm carrying out a statutory audit of a public-
interest entity belongs provides any of the non-audit services, referred to in the above-mentioned paragraph,
to an undertaking incorporated in a third country which is controlled by the audited public-interest entity, the
réviseur d’entreprises agréé (approved statutory auditor), the cabinet de révision agréé (approved audit firm)
or the audit firm concerned shall assess whether his, her or its independence would be compromised by such
provision of services by the member of the network.
If his, her or its independence is affected, the réviseur d’entreprises agréé (approved statutory auditor), the
cabinet de révision agréé (approved audit firm) or the audit firm shall apply safeguards where applicable in
order to mitigate the threats caused by such provision of services in a third country. The réviseur d’entreprises
agréé (approved statutory auditor), the cabinet de révision agréé (approved audit firm) or the audit firm may
continue to carry out the statutory audit of the public-interest entity only if he, she or it can justify, in accordance
with Article 6 of Regulation (EU) No 537/2014 and Article 22 of the Law of 23 July 2016 concerning the
audit profession, that such provision of services does not affect his, her or its professional judgement and
the audit report."
For the purposes of this paragraph
(a) being involved in the decision-taking of the audited entity and the provision of the services referred to in
points b), c) and e) of the above-mentioned list shall be deemed to affect such independence in all cases
and to be incapable of mitigation by any safeguards.
(b) provision of the services referred to in the above-mentioned list other than points b), c) and e) thereof
shall be deemed to affect such independence and therefore to require safeguards to mitigate the threats
caused thereby.” [AR/Article 5(5)]
Approval of non-audit services by the audit committees
“A réviseur d’entreprises agréé (approved statutory auditor), a cabinet de révision agréé (approved audit firm)
or an audit firm, carrying out statutory audits of public-interest entities, and when the réviseur d’entreprises
agréé (approved statutory auditor), the cabinet de révision agréé (approved audit firm) or the audit firm
JOURNAL OFFICIEL du Grand-Duché de Luxembourg
MÉMORIAL A - 44 du 27 janvier 2022
belongs to a network, any member of such network may provide to the audited entity, to its parent undertaking
or to its controlled undertakings non-audit services other than the prohibited non-audit services referred to
in the current section (refer to the above-mentioned list) subject to the approval of the audit committee after
it has properly assessed threats to independence and the safeguards applied in accordance with Article 22
of Law of 23 July 2016 concerning the audit profession.
The audit committee shall, where applicable, issue guidelines with regard to the authorized services upon
the condition that they have been identified by an asterisk in the above-mentioned list of prohibited non-audit
services”. [AR/Article 5(4)]
Audit Client that Later Becomes a Public Interest Entity
Provisions of paragraphs R600.25 (b) are repealed.
JOURNAL OFFICIEL du Grand-Duché de Luxembourg
MÉMORIAL A - 44 du 27 janvier 2022
GLOSSARY
Glossary is modified as followed
« Audit client »: An entity in respect of which a réviseur d’entreprises agréé (approved statutory auditor) or
a cabinet de révision agréé (approved audit firm) conducts a statutory audit in the meaning of article 1 (6) of
the Law of 23 July 2016 concerning the audit profession.
« Key audit partner »: In Luxembourg, it corresponds to the definition of « key audit partner » as per article 1
(1) of the Law of 23 July 2016 concerning the audit profession. The individual responsible for the engagement
quality review must be included in such definition.
« Listed Entity »: In Luxembourg, it means entities governed by the Luxembourg law whose transferable
securities are admitted to trading on a recognized market.
« Network »: In Luxembourg, it corresponds to the definition as per article 1 (32) of the Law of 23 July 2016
concerning the audit profession.
« Professional Accountant »: In the context of the code of ethics of the audit profession in Luxembourg
as adopted by the current regulation, this term corresponds to a natural person or a legal person, which has
obtained the title of “réviseur d’entreprises (statutory auditor)” or “cabinet de révision (audit firm)” as per the
meaning article 3 of the Law of 23 July 2016 concerning the audit profession.
« Professional Accountant in Public Practice »: In the context of the code of ethics of the audit profession
in Luxembourg as adopted by the current regulation, this term corresponds to a natural person or a legal
person that is member of the IRE and employed by a cabinet de révision agréé (approved audit firm) or a
réviseur d’entreprises agréé (approved statutory auditor) exercising as self-employed the audit profession.
« Public-Interest Entity »: This notion shall be understood in Luxembourg as per the definition in article 1
(20) of the Law of 23 July 2016 concerning the audit profession.
Glossary is completed as followed
« Competent authority »: In Luxembourg, the competent authority for the public oversight of the audit
profession is the CSSF.
4]
(c) Upon request by either the statutory auditor or the audit committee, the statutory auditor shall discuss key
matters arising from the audit, referred to in the additional report to the audit committee, and in particular
deficiencies communicated in accordance with paragraph 16R-1(j). [AR/Article 11.2]
(d) Upon request, the statutory auditor shall make available without delay the additional report to the audit
committee to the CSSF. [AR/Article 11.5]
Timing of communications
21R-1. For statutory audits of financial statements of public interest entities, the auditor shall submit the
additional report to the audit committee not later than the date of submission of the auditor’s report. [AR/
Article 11(1)]
Documentation
23D-1. For statutory audits of financial statements of public-interest entities, the auditor shall retain any other
data and documents that are important in supporting the additional report to the audit committee
15. [AL/Article
25(5)]
8. LUXEMBOURG SUPPLEMENT TO INTERNATIONAL STANDARD ON AUDITING 330 THE AUDITOR’S
RESPONSES TO ASSESSED RISKS
Requirements
Audit Procedures Responsive to the Assessed Risks of Material Misstatement at the Assertion Level
Substantive Procedures
19R-1. For statutory audits of financial statements of public interest entities, the auditor shall assess the
valuation methods applied to the various items in the financial statements including any impact of changes
of such methods. (Ref: Para. A51-1). [AR / Article 11.2(l)]
9. LUXEMBOURG SUPPLEMENT TO INTERNATIONAL STANDARD ON AUDITING 510 INITIAL AUDIT
ENGAGEMENTS—OPENING BALANCES
Requirements
Audit Procedures
Required Understanding of Prior Year Responses to Risks
8R-1. For statutory audits of financial statements of public-interest entities, the auditor shall obtain an
understanding of the predecessor auditor’s methodology used to carry out the audit, sufficient to enable the
auditor to communicate with those charged with governance those matters required by paragraph 16R-1(g)
of the Luxembourg supplement to ISA 260 (Revised). [AR/Article 11.2(g)]
8R-2. For statutory audits of financial statements of public-interest entities, the Audit Regulation imposes
a requirement on a predecessor auditor to grant the auditor access to the additional report to the audit
committee in respect of previous years. [AR/Article 18]
Paragraph 16R-1 deals with the auditor’s responsibilities to prepare an additional report to the audit committee.
JOURNAL OFFICIEL du Grand-Duché de Luxembourg
MÉMORIAL A - 44 du 27 janvier 2022
10. LUXEMBOURG SUPPLEMENT TO INTERNATIONAL STANDARD ON AUDITING 570 (REVISED)
GOING CONCERN
Requirements
Evaluating Management’s Assessment
12D-1. In accordance with the supplement to ISA 200,
16 the auditor shall maintain professional skepticism
throughout the audit and in particular when reviewing future cash flow relevant to the entity’s ability to continue
as a going concern. [AL/Article 18]
Additional Audit Procedures When Events or Conditions are Identified
16R-1 For statutory audits of financial statements of public-interest entities, the auditor shall also obtain a
summary of all guarantees, comfort letters, undertakings of public intervention and other support measures
that management have taken into account when making the going concern assessment [AR/Article 11.2.(i)]
11. LUXEMBOURG SUPPLEMENT TO INTERNATIONAL STANDARD ON AUDITING 600 SPECIAL
CONSIDERATIONS—AUDITS OF GROUP FINANCIAL STATEMENTS (INCLUDING THE WORK OF
COMPONENT AUDITORS)
Definitions
9. […]
(n)
Group auditor – Defined in Article 1(8) of the Audit Law as the statutory auditor(s) or audit firm(s)
carrying out the statutory audit of consolidated accounts.
Requirements
Responsibility
11D-1. For statutory audits of group financial statements, the group auditor shall bear the full responsibility
for the auditor’s report on the group financial statements. [AL/Article 34(1)]
Understanding the Component Auditor
19D-1. For statutory audits of group financial statements, the group auditor shall request the agreement of
the component auditor to the transfer of relevant documentation during the conduct of the audit of the group
financial statements, as a condition of the use by the group auditor of the work of the component auditor.
[AL/Article 34(3)]
Evaluating the Sufficiency and Appropriateness of Audit Evidence Obtained
42D-1. For statutory audits of group financial statements, the group auditor shall
(a) Evaluate the work performed by the component auditor for the purpose of the group audit; and [AL/Article
34(2)]
(b) Review the audit work performed by the component auditor for the purpose of the group audit. Where
the group engagement team is unable to do so, the group engagement team shall take appropriate
measures (including carrying out additional work, either directly or by outsourcing such tasks, in the
relevant component) and inform the CSSF. [AL/Article 34(3)]
Communication with Group Management and Those Charged with Governance of the Group
Communication with Those Charged with Governance of the Group
ISA 200, “Overall Objectives of the Independent Auditor and the Conduct of an Audit in Accordance with International Standards on Auditing” paragraph 15.
JOURNAL OFFICIEL du Grand-Duché de Luxembourg
MÉMORIAL A - 44 du 27 janvier 2022
49D-1. For statutory audits of group financial statements of public interest entities, the group auditor shall
bear the full responsibility for the additional report to the audit committee
17. [AL/Article 34(1)]
Documentation
50D-1. For statutory audits of group financial statements, the group auditor shall include in the audit
documentation the nature, timing and extent of the work performed by the component auditor, including,
where applicable, the group auditor’s review of relevant parts of the component auditor’s audit documentation.
[AL/Article 34(2)]
50D-2. The group auditor shall retain sufficient and appropriate audit documentation to enable the CSSF to
review the work of the auditor of the group financial statements. [AL/Article 34(3)]
50D-3. Where
• the group engagement team is subject to a quality assurance review or an investigation concerning the
group audit; and
• the CSSF is unable to obtain audit documentation of the work carried out by any component auditor from
a non-EEA member state; and
• the CSSF requests delivery of any additional documentation of the work performed by that component
auditor for the purpose of the group audit (including the component auditor’s working papers relevant to
the group audit),
the group engagement team shall, in order to properly deliver such documentation in accordance with such
request, either
(a) Retain copies of the documentation of the work carried out by the relevant component auditor for the
purpose of the group audit (including the component auditor’s working papers relevant to the group audit);
or
(b) Obtain the agreement of the relevant component auditor that the group engagement team shall have
unrestricted access to such documentation on request; or
(c) Retain documentation to show that the group engagement team has undertaken the appropriate
procedures in order to gain access to the audit documentation, together with evidence supporting the
existence of any impediments to such access; or
(d) Take any other appropriate action. [AL/Article 34(4)]
12. LUXEMBOURG SUPPLEMENT TO INTERNATIONAL STANDARD ON AUDITING 610 (REVISED
2013) USING THE WORK OF INTERNAL AUDITORS
Introduction
Scope of this ISA
5-1. The use of internal auditors to provide direct assistance is prohibited in a statutory audit of financial
statements conducted in accordance with ISAs. For a group audit this prohibition extends to the work of any
component auditor which is relied upon by the group auditor, including for overseas components. Accordingly,
the requirements set out in paragraphs 27-35 and 37 and related application material set out in paragraphs
A32-A41 in this ISA relating to direct assistance are not applicable.
ISA 260 (Revised), paragraph 16R-1 deals with the auditor’s responsibilities to prepare an additional report to the audit committee.
JOURNAL OFFICIEL du Grand-Duché de Luxembourg
MÉMORIAL A - 44 du 27 janvier 2022
13. LUXEMBOURG SUPPLEMENT TO INTERNATIONAL STANDARD ON AUDITING 620 USING THE
WORK OF AN AUDITOR’S EXPERT
Requirements
The Competence, Capabilities and Objectivity of the Auditor’s Expert
9R-1. For statutory audits of financial statements of public-interest entities, where the auditor uses the work of
an auditor’s external expert, the auditor shall obtain a confirmation from the auditor’s external expert regarding
his independence. [AR/Article 11.2(c)]
Documentation
16D-1. The auditor shall document any request for advice from an auditor’s expert, together with the advice
received. [AL/Article 25(3)]
14. LUXEMBOURG SUPPLEMENT TO INTERNATIONAL STANDARD ON AUDITING 700 (REVISED)
FORMING AN OPINION AND REPORTING ON FINANCIAL STATEMENTS
Introduction
Scope of this ISA
3. For the purpose of the Luxembourg’s statutory audit of financial statements, this ISA applies to an audit of
a complete set of general purpose financial statements and is written in that context. [AL/Article 33(2)]
Requirements
Auditor’s Report
20R-1. The auditor’s report shall be in clear and unambiguous language. [AR/Article 10.3]
24e) For the purpose of Luxembourg’s statutory audit, the Opinion in the auditor’s report shall specify the
date of and the period covered by the financial statements. [AL/Article 35(2)a)]
28c). […] In Luxembourg, auditors are subject to ethical requirements from three sources: the IESBA Code
including the Luxembourg supplement, the Audit Regulation and the Audit Law (thereafter the “Luxembourg
ethical requirements” or “Luxembourg ethical standards”).
Key Audit Matters
30. For statutory audits of complete sets of general purpose financial statements of public-interest entities
the auditor shall communicate key audit matters in the auditor’s report in accordance with ISA 701. [AR/