ROAC Registration and Auditor Career Path in Spain

Summary

This document explains how to register in the ROAC, Spain's Official Registry of Account Auditors, outlining the career path from qualification to registration. It also covers the core ethical and professional rules for auditors under the ICAC standards, including independence, liability, confidentiality, fees, advertising, and the basic principles for performing audit work.

Key points

Registration in the ROAC requires a university title, a specific theoretical course, a theoretical exam, 8 years of practical training (five as qualified personnel), and a practical test.
Auditors must maintain absolute independence, integrity, and objectivity, as required by the Second ICAC Rule.
The LAC sets incompatibilities, such as holding management or employment roles in the audited entity, having direct financial interest in it, or keeping its accounting records.
Auditors may face professional/administrative, civil, or criminal liability for breaching their obligations.
Auditors must keep professional secrecy and retain records for 5 years from the date of the audit report.
Fees must be fair and based on official rates, and paying commissions to third parties for professional work is not allowed.
Generally Accepted Auditing Standards require proper planning, assessment of internal control, and sufficient, appropriate audit evidence.

Test yourself

ROAC Registration and Auditor Career Path

Registration in the ROAC (Registro Oficial de Auditores de Cuentas - Official Registry of Account Auditors) - Career Path: Title empowering to college, specific theoretical course, theoretical examination of professional qualification, practical training (8 years, five of them as qualified personnel), practical test of professional qualifications, and registration in the ROAC. Attitude tests are performed in a single call, at the proposal of biennial corporate auditors.

Independence, Integrity, and Objectivity (Second ICAC Rule)

The auditor will maintain a position of absolute independence, integrity, and objectivity. The ICAC is the standard of the duty of independence. To ensure independence, the LAC (Audit of Accounts Act) establishes minimum requirements, indicating the following incompatibilities:

a) Holding by the Statutory Auditor of directorships, administration, employment, or internal oversight in the entity.
b) Having a direct financial interest in the audited entity or indirectly to any party.
c) The existence of ties of consanguinity or affinity to the second degree with entrepreneurs, managers, or officers of the finance department.
d) The keeping or preparation of material accounting records or financial statements of the audited entity.

Professional Diligence (Third Standard) / Responsibility (Fourth ICAC Rule)

The chief auditor is responsible for the established auditing standards and for compliance with them by the audit team. They must respond for damages arising from breach of their obligations.

Three types of liability can be considered:

Professional or administrative
Civil Law
Criminal Law

Professional Secrecy (Fifth Rule)

The auditor must maintain the confidentiality of information obtained in their proceedings. Statutory auditors and audit firms must keep records for 5 years from the date of the audit report.

Fees and Commissions (Sixth ICAC Standard)

Fees have to be a fair price for work done for the client. They are based on official rates and must take into account the knowledge and skills required. Paying commissions to third parties for professional jobs is not allowed.

Advertising (Seventh Rule)

The auditor cannot make advertising that targets clients. The auditor's name can be mentioned at conferences, seminars, etc. Companies can also offer their services through brochures or direct means.

Rules for Performing Audit Work

The Generally Accepted Auditing Standards (GAAS) for the performance of work can be summarized in the following three points:

Audit work should be properly planned. If assistants are used, their work should be adequately supervised.
A study and assessment of the existing internal control system should be conducted to assess reliability and determine the scope, nature, and timing of audit procedures.
Sufficient and appropriate audit evidence must be obtained through the application of auditing procedures to provide a reasonable basis for the opinion on the financial statements under review.

FAQ

What is the ROAC?

The ROAC (Registro Oficial de Auditores de Cuentas) is the Official Registry of Account Auditors in Spain. Registration in it is required to act as an auditor.

How long is the practical training needed to register in the ROAC?

The practical training lasts 8 years, five of which must be as qualified personnel.

How long must auditors keep their records?

Statutory auditors and audit firms must keep records for 5 years from the date of the audit report.

Can an auditor advertise to attract clients?

No, the auditor cannot make advertising aimed at clients. Their name may be mentioned at conferences and seminars, and firms may offer services through brochures or direct means.