At the ceremony marking his inauguration as President of the OROC, José Azevedo Rodrigues emphasized the need to ensure the growing relevance of the professional practice of certified public accountants in order to foster a culture of rigor and trust and to defend the public interest, in a context marked by a high-risk environment driven by the effects of the crisis and the challenge of attracting talent to the profession.
Lisbon, January 16, 2015 – The role of auditing as the foundation for building trust was central to the message delivered by José Azevedo Rodrigues, who today was sworn in as President of the Order of Certified Public Accountants (OROC) for his second term in office. The public ceremony featured remarks by Maria Luís Albuquerque, Minister of State and Finance.
According to José Azevedo Rodrigues, President of the Order of Certified Public Accountants for the next three-year term, “Despite the difficult circumstances and constraints under which statutory auditors carry out their duties, OROC remains committed to its fundamental goal of ensuring high standards in the practices and conduct of professionals in the sector, in order to foster confidence in the performance of their duties”."
This point was echoed by Maria Luís Albuquerque, who stated that without the proper enforcement of regulations, there can be no confidence in the markets, and that the role of auditors is indispensable in an economy that seeks to be competitive. Recognizing the difficult context in which the current President’s term is beginning, Maria Luís Albuquerque also assured that she knows statutory auditors will rise to the challenges.
The current circumstances present obstacles to the profession that are directly related to the crisis’s impact on the real economy, affecting the level of business activity and leading to price-based competition in the auditing market.
This issue is compounded by public procurement procedures based exclusively on the criterion of selecting the “lowest price” and by the setting of administrative prices without taking into account the level of resources required to perform a high-quality audit service.
Added to this situation are issues related to the legislation governing the activity; we are awaiting the approval and publication of new bylaws, which will serve as a fundamental tool for addressing issues such as increasing international cooperation and opening up access to young graduates, regardless of their undergraduate major.
The European Audit Regulation and the Audit Directive, approved by the European Parliament in May 2014—the former to be adopted and the latter transposed into national law by June 2016—are yet another challenge facing the profession. This transposition should serve as a catalyst for improving consistency among the various regulatory instruments governing the work of auditors, clarifying their mission, scope of action, and responsibilities.
This idea of improving the organization of auditors and auditing firms, as well as their professional practices, has found resonance in the quality control system established by OROC, an essential tool for the advancement of the profession. The President of the Order expresses his conviction that, alongside the requirements imposed on members of the Order, independence, competence, and expertise will be the pillars of future audit oversight in Portugal. Such efforts will thus contribute positively to the cultural and behavioral renewal underlying the current environment of global change, thereby enhancing the role of auditing as a public interest function.