At today’s sitting, the Bill that provides for additional rules for preparing the annual report of a local government passed the second reading in the Riigikogu. Under the Bill, when preparing the report on the audit of the annual accounts of a local government, auditors will have to take as a basis the reporting form established for public-interest entities.
The aim of the Bill on Amendments to the Local Government Financial Management Act (525 SE), initiated by the State Budget Control Select Committee, is to ensure that, after administrative reform, sworn auditors would cooperate more efficiently with local governments, in order that municipal councils could obtain a better overview of the problems of the merged local governments.
According to the Bill, the same requirements that apply to public-interest entities will be established for the auditor’s report. The current format of the auditor’s report does not include the information that users wish to obtain, because it does not indicate what has been audited in the major fields of local governments, how it has been verified and what the results are. According to the amendments, the part “main circumstances” of the reporting form established for public-interest entities will have to be submitted also in the report prepared regarding the annual accounts of a local government. This will improve the informative value of the report for its users. Observance of the requirements of the standard ISA (EE) 701 will help significantly increase the informativeness of the report and the transparency of the audit.
Video recordings of the sittings of the Riigikogu can be viewed at https://www.youtube.com/riigikogu
(NB! The recording will be uploaded with a delay.)
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