RESTRICTED
WORLD TRADE S/WPPS/W/7/Add.24
27January 1997
ORGANIZATION
(97-0340)
Working Party onProfessional Services Original: English
COMMUNICATION FROM POLAND
Response tothequestionnaire ontheaccountancy sector
Thefollowing communication iscirculated attherequest ofPoland.
________
I. GENERAL
1. What aretheprofessional titles ofaccountants inyour country? Arethese professional
titles protected? Please specify how.
Persons exercising aprofession relating withaccountancy arechartered accountants who,
according totheLawonauditing andpublication offinancial statements of19October 1991andLaw
onchartered accountants andtheirself-government (Official Journal 1991no111,item480;Official
Journal 1992 no21,item85;Official Journal 1994 no4,item17),arequalified toaudit financial
statements. Until thisLawentered intoforce certified accountants appointed bytheFinance Minister
hadhadrights toauditfinancial statements. Under theLawthecertified accountants could beincluded
upon application inthelistofchartered accountants.
Since 1January 1995, these matters havebeenregulated bytheLawonchartered accountants
andtheirself-government of13October 1994 (Official Journal 1995 no121,item529), according
towhich auditing offinancial statements maybecarried outexclusively bychartered accountants who
fulfil theconditions enumerated intheLaw.
Thetitleofchartered accountant issubject toprotection. Thisprotection isanissuethatexceeds
thescope oftheLawonchartered accountants andtheirself-government. Thisquestion isregulated
firstofallbytheLawonaccounting of29September 1994 (Official Journal no121,item591).
Article 66(1) ofthisLawstates thatauditing offinancial statement arecarried outbyachartered
accountantwhofulfilsthenecessaryconditionstoformulateanobjectiveandimpartialopinionconcerning
thisstatement, andArticle 66(5) provides thatanyauditing carried outinviolation ofpoint 1orpoint
3is,ipsojure,void.
Itisnotprotection oftheprofessional title,butitisprotection ofactivities restricted forchartered
accountants.
Theprotection ofprofessional titles, meanwhile, isaddressed inother legislation, notonly
fromthediscipline ofcommercial law;theusurpation ofaprofessional title,forexample, isanoffence
under theMisdemeanours Code.S/WPPS/W/7/Add.24
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2. How istheaccountancy sector regulated inyour country: bylaw,professional self-
regulation, acombination ofboth?
Theaccountancy sector isregulated bybalance sheet law-Law onaccounting of
29September 1994 (Official Journal no121,item591)-along withaprofessional body.
3. Arethere anyprovisions toprotect company names, whether national orforeign, inyour
country?
Legal norms ensuring theprotection ofafirm’sname include, among others, theActagainst
unfair competition andtheCommercial Code.
4. What aretheprofessional bodies inyour country? Aretheyrecognised bylawasa
regulatory ordisciplinary body fortheaccountancy profession inyour country, orare
these functions fulfilled byother institutions (please specify)?
Theprofessional bodyknown astheNational Chamber ofChartered Accountants iscomprised
ofchartered accountants andentities entitled toauditfinancial statements. Thisbody’sduties include
ensuring thattheChamber ’smembers provide services ofaprofessional standard andadhere topertinent
codes ofpractice.
There isalsotheAssociation ofAccountants inPoland which, forover90years, hasassociated
persons involved intheaccountancy profession andsupervised itsmembers, ascalled forinthe
Association ’sstatute.
5. Howmany members dothese professional bodies have? What istheestimated proportion
ofthose:
- inpublic practice
- inindustry orcommerce
- inthepublic sector
- ineducation
- unoccupied (retired, etc.)
- other
TheNational Chamber ofChartered Accountants has8,373 members initsregister, outof
which 6,082 chartered accountants arenamed onthelistofchartered accountants exercising the
profession.
6. What isthescope ofactivities regularly practised byaccountants inyour country?
Theactivities ofchartered accountants include:
(1) auditing offinancial statements;
(2) maintaining book ofaccounts;
(3) economic andfinancial studies;
(4) taxconsulting;
(5) consulting withregard toorganisation andautomation ofaccounting;
(6) liquidation andbankruptcy proceedings;
(7) accountancy-related educational andpublishing activity.S/WPPS/W/7/Add.24
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7. Which ofthese activities areregulated inyour country?
Theactivities listed intheanswer toquestion 6above aresubject tonational regulation
(Article 10(3) oftheLawonchartered accountants andtheirself-government).
8. Which ofthese activities arereserved bylawtoaccountants, shared byaccountants with
other professions (please specify), orevenforbidden toaccountants inyourcountry, e.g.
byfullprohibition orbynotallowing cumulation ofcertain activities which areconsidered
incompatible ormutually exclusive?
Theactivities listed intheanswer toquestion 6above donotexclude eachother withthe
exception ofcircumstances mentioned below where, inaccordance withArticle 66(2) oftheLawon
accounting, achartered accountant:
(1) holds shares orotherownership titletotheentity ortotheassociate, parent orsubsidiary
entity, excluding building societies;
(2) isorwasinthecourse ofthelastthree years, alegalrepresentative (plenipotentiary),
member ofsupervisory bodies, oranemployee oftheentity ortheassociate, parent
orsubsidiary entity;
(3) inthecourse ofthelastthreeyears, tookpartinmaintaining bookofaccounts, auditing
offinancial statements being subject ofexamination;
(4) acquired atleastinoneyearduring thepreceding fiveyears over50%ofannual income
fromrendering services totheentity orentities inwhich itholds over20%ofshares
-thisdoesnotapply tothefirstyearofthechartered accountant ’sprofessional activity;
(5) ismarried ordirectly related (tothesecond degree) topersons managing theentity
orsitting initssupervisory bodies orislinked tothem onaccount ofadoption,
guardianship, orfoster ties,orheemploys suchpersons during auditing offinancial
statement;
(6) cannot formulate anobjective andimpartial opinion forother reasons.
When anyofthese circumstances arises, thechartered accountant maynotaudit financial
statement ofthisentity. Among theactivities listed intheanswer toquestion 6above, auditing of
financial statement islimited bylawtochartered accountants.
Theactivities mentioned intheanswer toquestion 6maybecarried outwiththeparticipation
ofother professionals, suchaslawyers orcomputer technicians.S/WPPS/W/7/Add.24
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II. QUALIFICATION REQUIREMENTS
9. What arethequalification requirements forthese activities inyour country interms of
university/higher education degree, practice andprofessional exam? Specify thenumber
ofyears required foreachelement, andthedifferences according totheactivities (audit,
insolvency, tax,etc.)covered bythequalification.
Aperson wishing toobtain qualifications ofachartered accountant must-inaccordance with
Article 5oftheLaw onchartered accountants andtheir self-government -fulfil thefollowing
requirements:
(1) hold thePolish citizenship, enjoy unrestricted public rights, andhave fulllegal
capability;
(2) beofpurecharacter and,through hisactivities todate, guarantee proper discharge
oftheduties ofachartered accountant;
(3) havehigher education;
(4) serve atwo-years professional practice approved bytheExamination Commission;
(5) uponcompletion oftheprofessional practice, serve atwo-years training period under
thesupervisionofacharteredaccountantandapprovedbytheExaminationCommission;
(6) passasetofchartered accountant ’sexaminations administered bytheExamination
Commission;
(7) obtain achartered accountant ’sdiploma.
Therearenoseparateregulationspertainingtoprofessionalactivityinthebankruptciesortaxation
fields.
10. Arethere anypre-conditions tomeet tostarttheprofessional education: minimum age,
particular diploma ortitle,prior education, registration withaprofessional body, payment
ofafee,other (please specify)?
Training isopentoanybody whowishes toimprove hisknowledge. Assuming thatquestion
10refers tothetraining ofpeople wishing tobecome chartered accountants, onemustfulfilthefollowing
requirements inorder tositforachartered accountant ’sdiploma examination:
(1) hold thePolish citizenship, enjoy unrestricted public rights, andhave fulllegal
capability;
(2) beofpurecharacter and,through hisactivities todate, guarantee proper discharge
oftheduties ofachartered accountant;
(3) havehigher education.S/WPPS/W/7/Add.24
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11. What arethesubjects tobecovered bytheeducation: accounting, audit, tax,general
law,economics, ethics, information technology, other (please specify)?
Thefollowing areexamination subjects and,assuch, arelectured during training:
(1) thedatasystem andcomputer technology basics;
(2) financial accountancy andreporting;
(3) costaccountancy, management accountancy;
(4) economics andmanagement;
(5) finance;
(6) civilandcommercial law;
(7) fiscal duties andprocess, indirect taxation, customs duties;
(8) taxes andcharges imposed onrevenues;
(9) auditing offinancial statements andother chartered accountant ’sservices.
III. TECHNICAL STANDARDS AND ETHICS
12. Inrelation towhich activities donational standards exist(audit, accounting, insolvency,
other)? Please specify their main policy objectives.
There arenational standards regarding auditing offinancial statements; these arethenorms
which apply tothechartered accountant profession. Auditing offinancial statement hasasitsobjective
thesecuring ofdatawhich enables entitled body (thechartered accountant acting onitsbehalf) to
unequivocally decide whether thebook ofaccounts withtheaccounting evidences forming thebasis
oftheirentries, aswellastheannual financial statement derived fromthem, conform totherequirements
setforth intheLawonaccounting, i.e.whether theyareproper andwhether thefinancial statement
presents theexamined entity ’sfinancial situation, financial result, andprofitability inadiligent and
transparent fashion. Infulfilling ofthistask-setoutinArticle 65(1) oftheLawonaccounting- the
chartered accountant carries outsuchexamination ashedeems necessary, inthecourse ofwhich he
brings theexamined entity ’sattention toanyaspects ofthebooks ofaccounts and/or annual financial
statement which require amendment orimprovement.
Theresults ofacompleted examination aresetoutbythechartered accountant inawritten
opinion andinareport which justifies it.
13. Which body orinstitution develops these standards andmonitors their implementation?
What aretheconsequences ofabreach ofthestandards (fortheprofessional, forclients,
etc.)?
Thestandards governing theprofessional activities ofchartered accountants aredrafted and
passed bytheNational Council ofChartered Accountants inconsultation withtheFinance Minister;
theirimplementation issupervised bytheNational Chamber ofChartered Accountants. Incaseof
breach ofthese norms orofpertinent laws, theChamber ’smembers -chartered accountants -are
subjected todisciplinary measures which include:
- acaution;
- areprimand;
- suspension inprofessional duties foraperiod ofonetothree years;
- expulsion fromtheprofessional body(seeArt31(2) oftheLawonchartered accountants
andtheirself-government).S/WPPS/W/7/Add.24
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Thisdoesnotprecludepenalliability,namely:acharteredaccountantwhointentionallyprepares
anopinion ofbooks ofaccounts oftheexamined entity andtheannual financial statement derived from
themorofthatentity ’sfinancial situation which donotconform withthefactual stateofaffairs issubject
-according withArticle 78oftheLawonaccounting -touptotwoyears’imprisonment, afine,or
bothofthese penalties. Ifthere isnoelement offaultinthedefendant ’sactions, heissubject toa
finesetbyacommon court.
Aperson responsible foranentity ’saccounting, meanwhile, facescriminal liability ifthisperson
allows thatnobooks arekeptorthattheyarekeptinviolation oftherequirements oftheLaworinclude
untrueinformation;thesameappliestopersonsresponsibleforconductingtheauditoffinancialstatement
conforming totheLawonaccounting. Thepenalty fortheseoffences isuptotwoyears’imprisonment,
afine,orboth(Article 77oftheLawonaccounting).
Criminal sanctions arealsoextended tothose who, inviolation oftheLawonaccounting:
refuses toprovide information toachartered accountant orprovides information, clarifications, and
affidavits which areuntrue, orwhoimpedes achartered accountant inthefulfilment ofhisduties (Article
79(2) oftheLawonaccounting).
14. Aretheinternational standards developed byIFAC (International Education Standards
andGuidelines, International Standards onAuditing) andIASC (International Accounting
Standards) recognised orusedinyourcountry? Ifyes,please explain how. Ifno,please
explain why.
Theinternational standards setoutbyIFAC wereusedasguidelines indrafting thenorms for
professional activity ofcertified auditors; theregulations contained inIASC were alsorelied upon.
Thus, these rules areknown andapplied inPoland.
15. Inrelation towhich activities does aparticular ethical code exist (audit, accounting,
insolvency, other)? Please specify itsmain policy objectives.
Theethical norms forchartered accountants apply toalldisciplines oftheprofession.
Thefounding principles ofthese norms include diligence andimpartiality, professional
competence, objectiveness, maintenance ofconfidentiality, andprofessional independence. Therules
alsoaddressproceduralissues,remuneration,relationsbetweenmembersoftheChamber,andprinciples
fortherendition ofservices abroad.
16. Which body orinstitution develops thiscode andmonitors itsimplementation? What
aretheconsequences incaseofbreach oftheethical codebyaprofessional orafirm?
Ethical norms governing theprofessional activities ofchartered accountants aredrafted and
passed bytheNational Gathering ofChartered Accountants; itsimplementation issupervised bythe
National Chamber ofChartered Accountants. Incaseofbreach ofthese norms, chartered accountants
aresubjected todisciplinary measures which include acaution, areprimand, suspension inprofessional
duties foraperiod ofonetothree years, andexpulsion from theprofessional body (Article 31(2) of
theLawonchartered accountants andtheirself-government).
17. Arethere restrictions onmarketing, solicitation, advertising?
Issues relating tomarketing, canvassing forclients, andadvertising areaddressed intemporary
ethicalprinciplesforcharteredaccountantsinthechapterentitled‘’Promotionalactivityandadvertising’’;
these regulations conform withthegenerally accepted norms.S/WPPS/W/7/Add.24
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18. Arethere restrictions onfee-setting (minimum/maximum levels imposed, indicative scale,
etc.)?
There arenosuchlimitations.
IV. LICENSING REQUIREMENTS AND PROCEDURES
19. Apart from thequalification requirements, what arethelicensing requirements for
individuals inyour country?
Thefollowing areconditions fortheobtaining ofalicense:
(1) membership inaprofessional organisation;
(2) registration bytheNational Chamber ofChartered Accountants;
(3) insuring against civilliability;
(4) making ofavow;
(5) lackofcriminal convictions;
(6) minimum ageof18;
(7) purecharacter and,through activities todate, theguarantee ofproper discharge of
theduties ofachartered accountant;
(8) other (Article 11(1) oftheLawonchartered accountants andtheirself-government) -
inorder tobeentitled toauditfinancial statements, achartered accountant mustwork
as:
(a) aperson engaging ineconomic activity individually andinhisownname;
(b) apartner inacivilpartnership, registered partnership orlimited partnership;
(c) aperson employed byentities ofthekindmentioned ina)andb)above orby
legalentities authorised toaudit financial statement.
20. Arethere anyconditions imposed tobeeligible formembership oftherelevant professional
body(ies)? Please specify.
No.
21. Arethere specific licensing requirements forprofessional firms?
According totheLawonchartered accountant andtheirself-government, before afirmmay
audit financial statement (i.e.before itisaccorded professional rights) itmust:
(1) beincluded onalistofentities entitled toauditfinancial statement, which istantamount
tomembership intheNational Chamber ofChartered Accountants;S/WPPS/W/7/Add.24
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(2) insure against civilliability;
(3) employ certified auditors toaudit financial statement;
(4) haveaboard ofdirectors most ofwhose members arechartered accountants; inthe
event thattheboard consists oftwomembers, oneofthem must beachartered
accountant;
(5) ensure thatchartered accountants haveamajority ofvotes intheentity ’ssupervisory
bodies (supervisory board, audit commission) or,inthecasethatnosuchstructures
exist, amajority ofthevotes among shareholders orpartners.
22. Cananapplication forlicensing befiledatanytimeoftheyearorarethere specific dates
torespect? Howlongdoesittaketocomplete thewhole licensing procedure? Please specify
incaseofdifferences between individuals andfirms.
Theapplication foralicense maybelodged atanytime. Thewaiting period forregistration
isabout onemonth; there arenoprocedural differences.
23. Arethere differences interms oflicensing requirements and/or procedures, according
totheactivities covered bythelicence (audit, insolvency, etc.)? Please specify. What
kindofdocumentation isnecessary/accepted? Aredocuments issued inother countries
acceptable? Please specify.
There arenodifferences. Only firms fulfilling therequirements setoutintheanswer to
question 21above maybeentered onthelistofentities entitled toaudit financial statements.
Inorder tobeentered onthislist,thefollowing documents must bemade available tothe
National Chamber ofChartered Accountants:
(1) persons engaging inindividual economic activity intheirownname andontheirown
account andpartners ofacivilpartnership -application, confirmation ofentry into
theregister ofeconomic activity;
(2) partnersofregisteredpartnershiporoflimitedpartnershipandlegalpersons-application,
notary ’scertificate, entry intothecommercial register (extract).
Documents issued inother countries arenotaccepted.
24. What happens when thelicensing conditions arenolonger respected bytheindividual
orthefirm?
Ifanentity which hasbeenauthorised toauditfinancial statements doesnotconform withthe
requirements oftheLaw(which ithadtomeetinorder tobeincluded inthelistofentities entitled
toauditfinancial statements), theNational Chamber ofChartered Accountants mayinitiate proceedings
aiming tocorrect anyshortcomings ortoremove thefirmfrom thelistofentities entitled toaudit
financial statements. Incasetherequirements arenotmetbyacertified accountant, disciplinary
proceedings areinitiated.S/WPPS/W/7/Add.24
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V. RECOGNITION OFQUALIFICATIONS
25. Arethere anypossibilities fortaking account ofqualifications acquired byforeign
professionals inanother country? Arethere bilateral agreements withother countries
inthisrespect?
There issuchapossibility -foreign nationals whoarechartered accountants maybeentered
onthelistofchartered accountants exercising theprofession upon application provided thattheir
qualifications arerecognised intheEuropean Union countries andthattheypassaPolish-language
examination inPolish commercial lawadministered bytheExamination Commission (Article 15(2)
oftheLawonchartered accountants andtheirself-government).
There arenobilateral agreements inthisrespect.
26. Arethere anyautomatic recognition ormutual recognition agreements between your
professional bodies andtheir counterparts inother countries? Ifso,please specify the
main characteristics ofsuchagreements; ifnot,please explain why.
There arenoprovisions forautomatic recognition, oragreements astomutual recognition,
between thePolish organisation ofchartered accountants anditsforeign counterparts.
27. Where possibilities oftaking account offoreign qualifications exist, isafulllocal
examination oralocaltraining exceeding 12months required? Please specify. Isalocal
licence always necessary topractice aregulated accountancy activity? Please specify when
thisisnotthecase.
Therecognition offoreign qualifications recognised intheEuropean Union heldbyPoles or
other nationals ispossible provided thattheperson inquestion passes aPolish-language examination
inPolish commercial lawadministered bytheExamination Commission. Thisapplies tochartered
accountants, i.e.professionals authorised toexamine financial reports -qualification toengage inthis
profession isalways necessary (Article 15(1) oftheLawonchartered accountants andtheir self-
government).
28. What aretheaccreditation/licensing requirements imposed onforeign professionals
authorised topractice intheirhome country? Maycertain (regulated) activities becarried
outonthebasis ofaforeign licence?
Chartered accountants -foreigners whoholdlicences issued intheircountry oforigin may
auditfinancial statements inPoland uponfulfilling theconditions setoutintheanswer toquestion 27
andbeing entered onthelistofchartered accountants exercising theprofession; auditing offinancial
statements onthebasis ofaforeign license isnotpossible.S/WPPS/W/7/Add.24
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VI. REGULATIONS GOVERNING THE ESTABLISHMENT OFACOMMERCIAL
PRESENCE
29. Arethere anyrestrictions ontheform under which onecanestablish (partnership,
incorporation, other)? Please specify.
Pursuant tothelawof24February 1990 onCounteracting Monopolistic Practices there are
norestrictions ontheformunder which onecanestablish acommercial presence. However, theact
regulations provide foramerger control inthedomain oftaking overshares andstocks ofthebusiness
entities, including newly created ones, inthecasethenumber ofvotes intheconstituting body and
annual salesvalues index ofthebusiness entity exceed adefined threshold. Asaresult ofcontrol a
banonmerger canbeissued ifinconsequence ofsuchamerger theseentities could achieve orstrengthen
theirdominant position onthemarket.
30. Arethere restrictions onforeign direct investment andownership, including restrictions
applying tonotlocally qualified individuals orfirms? Please specify.
Thelawprovidescertainrestrictionsondirectinvestmentswithoutdiscriminationbetweenforeign
orlocalinvestors, important isonlytheimpact suchaction hasoncompetition protection onthelocal
market. Under theLawregulations thereisanobligation ofnotification ofactivities preceding merger
ofbusiness entities toprevent monopolisation ofthemarket.
Interaliaasingle orrepeated purchase ortaking overofthepartofproperty ofonebusiness
entity byanother comes under legal control iftheconsolidated value ofthisproperty exceeds
2million ECU.
There isalimited control overcapital mergers resulting form shares andstocks turnover.
Theobligation ofnotification islimited tocases when defined votes threshold andannual salesofvalue
oftheentities involved areexceeded. Forthetakeoverorpurchase ofstocks andshares theimportant
factor isexceeding annual salesvalue of5million ECU forthecalendar yearpreceding merger. In
caseoftaking overofstocks andshares byfinancial institutions thisindex refers onlytotheentity
tobetaken over. Intheremaining cases consolidated annual sales value includes alsosales ofthe
purchaser.
Incaseofmerger between banks thereisanobligation tonotify suchintention iftheconsolidated
value ofbanks ’ownfunds bytheendofthecalendar yearpreceding intended merger exceeded
50million ECU.
31. Isthere arequirement ofaminimum number orpercentage oflocaldirectors, managers
orstaff(please specify)?
Pursuant totheLawonCounteracting Monopolistic Practices there isnorequirement ofa
minimum number orpercentage oflocaldirectors, managers, orstaff.
32. Arethere restrictions ontheability oflocally established firms todevelop international
relations (membership ofaninternational network, association withforeign firms, etc.)?
Please specify.
Under theLawregulations therearenoparticular restrictions ontheability oflocally established
firms todevelop international relations.S/WPPS/W/7/Add.24
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33. Istheuseofinternational orforeign names restricted forfirms?
Under theLawregulations theuseofinternational orforeign names forfirms isnotrestricted.
VII. REGULATIONSGOVERNINGTHEENTRYANDTEMPORARYSTAYOFNATURAL
PERSONS FOR THE PURPOSE OFSUPPLYING ACCOUNTANCY SERVICES
34. Istheentry andstayofprofessionals subject tolabour market tests oranyother
restrictions? Please specify.
35. Isthere anyprocedure facilitating thetemporary entry andstayofprofessionals tosupply
accountancy services? Please explain.
36. Arethere anyrestrictions onhiring oflocal professionals byforeign firms and
professionals? Please explain.
answers toquestions 34-36
Chartered accountants -foreigners mayengage inprofessional activity inPoland upon being
entered onthelistofchartered accountants exercising theprofession andtaking uppositions inentities
qualified toaudit financial statements.
VIII. NATIONALITY/RESIDENCY REQUIREMENTS
37. Isacondition ofnationality/citizenship imposed topractice certain activities, tostartan
education, toobtain alicence, tobecome member ofaprofessional body, etc.? Please
specify.
38. Isacondition ofestablishment, prior residency orresidency imposed topractice certain
activities, toobtain alicence, tobecome member ofaprofessional body, etc.? Please specify
theconditions andthedefinition ofestablishment, residency, etc.when relevant. Isit
possible tohave aprofessional establishment inmore thanonecountry?
answers toquestions 37-38
Foreign entities qualified toauditfinancial statements which arebased outside ofPoland may
notestablish representative offices orbranches inPoland. Polish entities qualified toaudit financial
statements, inturn, maynotestablish representative offices orbranches abroad.