Skip to content

Where are you from?

Choose your province and we will tell you how the deputies and senators you elected vote, one by one.

 

We remember it in this browser. If you create an account, we keep it there.
Sign in

Type a law, a topic, a person or a province.

What it is

What account auditing is and who can do it

BOE step 7 of 7 · Passed

It is a government bill. Introduced by the Government. It was introduced on 13 October 1987. Introduced by: GOBIERNO.

Official title: Government bill on the Audit of Accounts.

Follow this law

Source: Congreso de los Diputados, file 121/000054· updated 11 Nov

Automatic summary, not yet reviewed

  1. The law defines account auditing as the review and verification of accounting documents to issue a report with effects on third parties. The audit of annual accounts must state whether they give a true and fair view of the company's assets and financial situation.
  2. The audit report must include data such as the identification of the audited company, the standards applied and the auditor's technical opinion on whether the accounts are reliable. It cannot be published partially or in extract form.
  3. Only those registered in the Official Register of Account Auditors can work as auditors. To register, you must be an adult, have Spanish or European Community nationality, have no criminal record for intentional crimes, and pass an aptitude exam, with at least three years of practical training.
  4. Auditors must be independent from the audited companies. There are conflicts of interest rules for executives, employees, shareholders with significant stakes and relatives up to the second degree. Also, they cannot be hired by the same company for less than three years or more than nine.
  5. Auditors are directly and jointly liable for damages caused by failing their duties, must keep secret the information they learn, and must keep the documentation of each audit for five years.
  6. Violations are classified as serious or minor, with penalties ranging from a private warning to permanent removal from the register. A fourth serious violation always means permanent removal. The Instituto de Contabilidad y Auditoría de cuentas Account audit: review and verification of a company's accounting documents to issue a report on their reliability. enforces penalties and provides technical oversight of audits.

Who it affects

  • Companies listed on the stock exchange, issuing bonds in public offerings, doing financial intermediation, insurance or receiving public funds, which must undergo account audits.: Mandatory audit
  • Account auditors and audit firms.: They must register, meet independence requirements and answer for damages they cause.
  • Audited companies and entities.: They must provide all the information needed for the audit.
  • Third parties doing business with the audited company.: They can learn the quality of the accounting information through the auditor's report.

Words worth knowing

Auditoría de cuentas
Account audit: review and verification of a company's accounting documents to issue a report on their reliability.
Imagen fiel
True and fair view: that the accounts truly reflect the company's assets, financial situation and results.
Cuentas consolidadas
Consolidated accounts: accounts that combine the information of a group of companies as if it were one.
Delito doloso
Intentional crime: a crime committed on purpose.
Recurso de alzada
Appeal: a request to a higher body to review a decision made by a lower one.

It summarizes the law as published in the BOE. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries

Where it stands

How far did it get?

It took 7 of 7 steps. It reached BOE, and today it is passed.

  1. Introduced13 October 1987Someone registers the text in the Congreso.
  2. Admitted20 October 1987The Bureau of the Congreso accepts it and, for a members’ bill, the plenary decides whether to consider it.
  3. Amendmentsno dateGroups propose changes.
  4. Committeeno dateA committee goes through the text in detail.
  5. Plenaryno dateAll 350 deputies vote.
  6. Senateno dateThe Senate can pass it, amend it or veto it.
  7. BOEno dateIt is published in the Official State Gazette (BOE) and comes into force.
See the 2 official steps on a timeline
Oct 198711. 13 October 1987: Presentación22. 20 October 1987: Calificación

Was there a plenary vote?

We have no plenary vote linked to this law in the Congreso’s data.

What happens next

What happens now?

It is law, or will be once published in the BOE. It comes into force on the date its own text sets.

It was presented again:

Published in the BOE: Law 19/1988, of July 12, on the Audit of Accounts.

Sources

Where does all this come from?

  • The data comes from the open files of the Congreso, the Senate and the BOE, unaltered.
  • Each deputy’s province is the one of their seat on the day of the vote.
  • We only say “passed” or “rejected” when the majority needed is certain; otherwise we say which side had more votes.

Read the full method · Report an error