Failure to appoint a statutory auditor

Posted on 30-04-2013

Some 20,000 Belgian companies are legally required to appoint a statutory auditor. The Belgian Institute of Company Auditors (IBR) reports that 800 companies presently fail to comply with this requirement. The IBR is of the opinion that the public prosecutor's office needs to take action in this regard.

One of the criteria for this requirement is the number of employees in a company. Companies with more than 100 employees are legally required to appoint a statutory auditor. Companies that fail to do so, are operating outside the law and are being dishonest. Fines and prison sentences could be imposed, though this scarcely takes place today.

The IBR believes that this should no longer be tolerated by the public prosecutor's offices, and that guilty companies should be prosecuted. Moreover, the IBR believes that it can play a greater role in the societal debate taking place around accountancy and financial issues.