Objectives and Remits

The Auditor Oversight Commission (AOC) was established according to the Auditor Oversight Law from December 27, 2004.

The legislator`s objective is to submit the German audit profession, i.e. Wirtschaftsprüfer and vereidigte Buchprüfer, under an independent oversight with ultimate responsibility. For this reason, the Chamber of Public Accountants (WPK) who has always been subject to state supervision administered by the Federal Ministry of Economics and Technology is now also subject to public oversight by the AOC. WPK is formed as a corporation under public law and all public accountants are mandatory members. According to the law, WPK is also an element of indirect state administration. With the integration of the AOC in the public oversight regime, the basic principle of professional self-regulation is still preserved.

The installation of the AOC on January 1, 2005 followed national, European and international initiatives to strengthen the quality, independence and integrity of the audit profession and is to this day an element to preserve confidence in the statutory audits performed.

The AOC is supervised by the Federal Ministry of Economics and Technology. It has at least six and at most ten honorary members, appointed by the Ministry. The commissioners shall not have been personal members of WPK, i.e. public accountants, in the past five years prior to their appointment. They are supposed to be or have been active in the fields of accounting, finance, economy, academics or jurisdiction.

The Auditor Oversight Commission is in charge of public professional oversight towards the WPK, as far as WPK accomplishes tasks according to Article 4, paragraph 1, first sentence of the Public Accountant Act, with respect to individual professionals and auditing firms who are entitled to perform statutory audits or who do so de facto without being entitled. The Commission is independent and free of instructions.

The AOC’s remits comprise the professional examination and aptitude tests for foreign auditors, licensing, revocation of licenses and registration, disciplinary oversight, quality assurance and the adoption of professional rules. In cases of professional supervision with cross-border importance the AOC is the contact for authorities from abroad.

The Commission supervises WPK on whether it fulfils its legal obligations in a suitable and adequate manner.

The AOC is the competent authority for the organisation and performance of inspections of audit firms of public interest entities.

The AOC publishes an annual work plan and an annual progress report.

Since its installation the AOC is very much committed to close cooperation of independent audit regulators. The AOC is member of the European Group of Auditors’ Oversight Bodies (EGAOB) and the International Forum of Independent Audit Regulators (IFIAR).