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2022-06-30

Decision No 138 of 30 June 2022 on criteria for audit companies to qualify as internationally renowned

The Executive Board of the National Bank of Moldova issued Decision No 138 to establish cumulative criteria for audit companies seeking qualification as internationally renowned entities under Law No 202/2017. The regulation mandates that qualifying firms must hold valid registration, belong to networks ranked by the IASB based on turnover and client size, and demonstrate specific recent audit experience with public-interest entities and banks. Additionally, the decision requires strict conflict-of-interest checks for all personnel over the past three years and mandates that staff possess specialized valuation certificates from recognized international bodies.

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1 NATIONAL BANK OF MOLDOVA EXECUTIVE BOARD Decision No 138 of 30 June 2022 on criteria applicable to the audit company to qualify as an internationally renowned company Pursuant to Art. 1441 (6) and (7) and Art.1442 (5) of Law No 202/2017 on the activity of banks (Official Monitor of the Republic of Moldova, 2017, No 434-439, Art.727), the Executive Board of the National Board of Moldova DECIDES:

  1. For an audit company to qualify as an internationally renowned company, for the purpose of carrying out the assessment provided for by Art.1441 (6) and Art.1442 (5) of Law No 202/2017 on the activity of banks, the following criteria shall apply cumulatively:
  1. the audit company is registered in the Republic of Moldova under Law No 271/2017 on audits of financial statements or is registered by a competent authority in the field of audit in another state and holds the appropriate license to carry out audit work, if the license is compulsory under the law of that jurisdiction;
  2. the audit company is a party (as subsidiary, member company, partner or under a franchise agreement) in the network of audit companies listed in the relevant international rankings carried out worldwide by the International Accounting Standard Board (IASB), according to the following criteria: a) size of turnover/profits received worldwide, and b) size of the network, and c) number of clients audited internationally;
  3. the audit company has carried out in the last 5years, at least: a) an annual audit mission of individual or consolidated financial statements of public-interest entities, and b) 3 missions of valuation of securities and other financial instruments of public￾interest entities, including 2 missions to banks;

2 4) the audit company, auditors, associates/shareholders and/or members of the management body of the audit company are not/have not been in a conflict of interest with the bank, shareholders and/or former shareholders of the bank and/or with the members of the bank's management body during the last 3 years; 5) the persons who have been an auditor, associate/shareholder and/or member of the management body of the audit company in the last 3 years are not/have not been in a conflict of interest with the bank, shareholders and/or former shareholders of the bank and/or members of the bank's management body in this period; 6) the audit company has staff holding a certificate of qualification in the field of securities valuation issued by a member association of the European Group of Valuers' Associations (TEGoVA) and/or the Board of Directors of the International Valuation Standards Council (IVSC) and/or of the World Association of Valuation Organisations (WAVO), as well as a qualification certificate based on International Financial Reporting Standards (IFRS). 2. This Decision shall enter into force upon its publication in the Official Monitor of the Republic of Moldova.

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