TRANSPARENCY REPORT    2011 - 2012    Slovakia1
TABLE OF CONTENTSIntroductionI. Mazars’ descriptionII. Mazars’ quality assurance and risk management policyIII. ClientsIV....
INTRODUCTIONProgress driven by collective intelligenceWe are pleased to introduce the 2011/2012 transparency report for Ma...
01    “A unique integrated    partnership model”4
1.2 Mazars at an international levelI. MAZARS’ DESCRIPTION                                                         Since 1...
commitments to investment and technical excellence,         -   Each global or international assignment isbearing risks an...
The management of the member entities of the Mazars       an international and transversal level. The GECorganisation is t...
Other internal and external contributors will be               of Mazars elect the governing bodies (every fourgradually i...
02    “High quality standards     throughout the world”9
II. MAZARS’ QUALITY                                         Accountants (IFAC) standards. They are available              ...
2.1.1 Mazars independence practices                                                              -   An annual declaration...
Two-partner teams and rotation to strengthen both             2.1.2 Statement on the effectiveness of theindependence and ...
increasing responsibilities. Our ability to attract and         main areas identified for improvement. This report,keep ta...
monitored by the IQCC and the head of monitoring of         The Chamber of Auditors performed a quality control in        ...
03      “Listed clients audited by     Mazars across all continents,     spread across more than     60 markets”15
III. CLIENTS3.1.      Service offering and turnover                    Mazars Turnover in Slovakia                        ...
Report period (from September 1, 2011 to August 31,2012):AXA pojišťovna a.s., pobočka poisťovne z inéhočlenského štátuAXA ...
04     “Building sustainable       success requires a talent     management policy       across the whole Group”18
IV. HUMAN RESOURCES                                           4.2.2 Personnel in Slovakia                                 ...
Several countries have also opted for a bonus system       jurisdictions   where   the   transnational    audit   isbased ...
least 20 hours or equivalent learning units in eachyear.Mazars has established its own policy with regards tocontinuing pr...
05     “Serving in the public interest     across the five continents”22
V.COMPANY PRESENCE IN  SLOVAKIA AT 31 AUGUST  2012                    Bratislava                    Považská Bystrica     ...
Bratislava Office Mazars Europeum Business Center Suché mýto 1 SK – 811 03 Bratislava Tel: + 421 2 59 20 47 00 Fax: + 421 ...
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Transparency report 2011/2012


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Mazars in Slovakia is proud to present its transparency report as of August 31, 2012.

We want to help our stakeholders and the marketplace know and understand who we are, as we think that knowing each other is key to successful professional relationships. Below please find more details about us and the transparency.

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Transparency report 2011/2012

  1. 1. TRANSPARENCY REPORT 2011 - 2012 Slovakia1
  2. 2. TABLE OF CONTENTSIntroductionI. Mazars’ descriptionII. Mazars’ quality assurance and risk management policyIII. ClientsIV. Human ResourcesV. Global Presence and company presence in Slovakia2
  3. 3. INTRODUCTIONProgress driven by collective intelligenceWe are pleased to introduce the 2011/2012 transparency report for Mazars in Slovakia.Mazars is a leading and growing international, integrated and independent organisation specialising in audit,accounting, tax, legal and advisory services. As of August 31, 2012, Mazars has offices in 69 countries across theworld with a workforce of more than 13,000 highly qualified professionals.Since its origins, Mazars has constantly been focused on developing the right added value to support its clientswherever they are.In that context, we make our best to contribute actively to all the debates relating to our professional environmentor the standards ruling our activity.Besides we are committed to: Playing an active role in the works conducted by international professional bodies and contributing to evolve standards that rule our activity (IFAC, IESBA …), Recruiting and growing the right talents internally to work in synergy with those of our clients, Continuously evolving our methodologies and service offering to better answer and anticipate our clients needs, Being a responsible player in our society and demonstrating everyday the value of our “Partnership Social Responsibility” strategy. As an example, we do support several projects around the world focusing on protecting our environment or promoting diversity of people and cultures, such as carbon print projects and the creation of a diversity committee.We also have the will to bring our contribution in terms of transparency. First of all with the voluntary publication ofa Group’s annual report including consolidated IFRS financial statements certified by independent auditors since2004/2005.Bratislava, 30 November 2012Mickaël CompagnonManaging Partner]3
  4. 4. 01 “A unique integrated partnership model”4
  5. 5. 1.2 Mazars at an international levelI. MAZARS’ DESCRIPTION Since 1995, Mazars has been building a unique formMazars is an international integrated, transparent and of integrated partnership that remains faithful to theindependent organisation that specializes in audit, values and beliefs professed and defended by itsaccounting, tax, legal and advisory services. founders, and is the basis of a truly democratic organisation.1.1 Mazars in Slovakia The democratic partnership gives each partner the right to vote on the strategic decisions involving theMazars has opened its office in Slovakia in 2000. future of the partnership. This sharing of responsibilityMazars operates in Slovakia through 3 legal entities, is central to Mazars’ principles and practices.all of them fully integrated into Mazars: We established an integrated international partnership Mazars Accounting s.r.o. offers accounting with the principal objective of guaranteeing services, consistency in the quality of our service to clients. Mazars Slovensko, s.r.o specialises in audit services, 1.2.1 Presentation of Mazars SCRL and Mazars Tax k.s. offers tax advisory. Institutional integration1.1.1 Legal structure and ownership ofMazars Slovensko, s.r.o. The Mazars organisation comprises all the member entities who have signed a co-operation agreementMazars Slovensko, s.r.o. (later also „audit company“), with Mazars Scrl. Mazars Scrl is a LimitedIN: 35 793 813 is Limited Liability Company, Responsibility Cooperative Company headquartered inestablished in line with the Slovak legislation and Belgium, which in itself has no professional activity,headquartered in Europeum Business Center on and whose shareholders are partners in the memberSuché mýto 1, 811 03 Bratislava, Slovakia, entities. In this respect, they are the only owners ofincorporated in the Commercial registry of County Mazars’ capital. The mission of Mazars Scrl is toOffice Bratislava I, Section: Sro, Insert No. 22257/B. define the strategic objectives of the organisation, and to coordinate their implementation at member firmThe audit company is owned by Mazars SA, with its level. The organisation also has specific responsibilityheadquarters at 61 rue Henri Regnault, 92 400 for promoting and protecting the Mazars brandCourbevoie, France. Mazars SA has also 100% of throughout the rights in the audit company. Once appointed, all Mazars partners sign a contractThe statutory body of the audit company is the that allows them to transfer their interests only toexecutive, Ing. Alena Sermeková, who is enlisted in parties approved or designated by Mazars Scrl. Thethe auditors list of Úrad pre dohľad nad výkonom shares in member firms can, in principle, only beauditu (Audit Oversight Authority in Slovakia). owned by the partners of Mazars Scrl. The consolidated financial results of Mazars Scrl include those of the member entities and are prepared in1.1.2 Governance structure compliance with IFRS standards (IFRSs) and are jointly audited by two independent auditors, BDO andThe company is managed by 2 partners, based on an Crowe Clark Whitehill.agreement with Mazars Scrl (for more information referto 1.2 Mazars at an international level): The Group Executive Board (GEB), directly elected by the partners, assumes ultimate responsibility for the Mickael Compagnon, Managing Partner, framework of the Mazars organisation. Mazars is not French Certified Accountant is the Procurist of simply a collection of national firms, but an integrated the audit company, organisation of professionals sharing growth goals, Ing. Alena Sermeková, Certified Auditor is the company’s executive.5
  6. 6. commitments to investment and technical excellence, - Each global or international assignment isbearing risks and sharing profits. managed and carried out by an integrated team, coordinated by an engagement partner in chargeOperational integration who takes final responsibility for reporting to the client;In order to serve its clients in the best way at a globallevel, Mazars has developed an international, - Each global business unit is represented in everyhomogenous and integrated approach to the markets country where the organisation operates in orderon which the Group operates. To this end, Mazars is to optimise the coordination of assignments andstructured internationally around: cross border relations between teams;- four Global Business Units (GBUs): two major - Partners and the national member entities in which GBUs are dedicated to our main market sectors - they work are linked by a series of agreements Public Interest Entities (PIE) and Owner Managed intended to achieve maximum consistency within Businesses (OMB) - and two other GBUs are the Group. They all report to the elected dedicated to the Tax and Law respectively, and representatives of the Group. work in close cross-functional mode with the two "client" business units; All the entities of the Mazars integrated international partnership are thus committed to enhance the quality- and four Global Support Units (GSUs) helping the of services provided to large, cross-border groups, in a activities’ development : GSU "Performance and more complex and global environment. Systems"; GSU "Technique and Innovation"; GSU "Talents"; GSU "General Secretariat and 1.2.2 Governance of Mazars Scrl Communications". During the Annual Partners Conference in DecemberAll four PIE, OMB, Tax and Law business units, as well 2011, the Group established a revisited governanceas the four support units, are represented at Group platform for the coming five years to ensure the long-level through Global Business Units (GBUs) and term security and efficiency of the organisation. On theGlobal Support Units (GSUs), but also at national level basis of a combination of generations and balancedthrough Country Business Units (CBUs) and Country allocation of responsibilities, it provides a stableSupport Units (CSUs). foundation for the long-term implementation of the Group’s strategy, thus meeting the major internal andThe main responsibility of the GBUs is to define the external challenges that Mazars has identified:overall market strategic vision, to monitor and supportimplementation at country level and to ensure the - strengthening the Group’s organic growth andGroup’s operational efficiency. In this sense, the managing cross-disciplinary operations with theGBUs are accountable for overall strategic delivery Group Executive Board (GEB) for the key(i.e. growth and profitability). The GSUs support our decisions and the Global Executive Committeebusiness in a joined up way for the benefit of our (GEC) for the daily operational issues;clients in areas such as policies, systems, people andprocesses. - dedicating experienced resources to strategic issues with the Global Strategic Committee (GSC);Mazars is structured in such a way as to ensure thatthe countries, the GBUs, the GSUs and the Group are - introducing independent members within thealigned. It has a management structure which Group Governance Council (GGC) in order tofacilitates the bringing together of Senior Partners or meet the most demanding standards in terms ofManagers of all integrated entities and leaders of supervision;global units in periodic meetings, taking place at leastthree times a year. - and organising the passing of the baton to a new generation of leaders.The integrated international partnership permeatesthrough every aspect of the Mazars organisation:6
  7. 7. The management of the member entities of the Mazars an international and transversal level. The GECorganisation is the responsibility of their respective currently comprises:Country Executives. - GEB members and Senior AdvisorsGroup Executive Board (GEB) - Global Business Units leaders (who are notThe Group Executive Board (GEB) has the overall already GEB members) and Global Support Unitsresponsibility of Mazars operational performance and leaders:organic growth. The GEB works under the supervisionof the Group Governance Council (GGC), which Ton Tuinier, GBU Tax;decides on GEB members remuneration. It comprises Jean-Luc Barlet, GSU Technique and3 to 9 members appointed by the General Assembly of Innovation;Partners for a four-year mandate, according to a 2 step Laurent Choain, GSU Talents;process: election of the Chairman; then Election of the Thierry Colin, GSU Performance and Systems;other members on the basis of the proposition from the Caroline Van Troeyen, GSU Generalelected Chairman. Secretariat and Communications;The Group Executive Board, whose mandate expires - Global Head of Consulting: Miguel de Fontenay;at the end of 2012, currently comprises six members: - Group Chief Financial Officer : Eric Albrand;- Philippe Castagnac, Group CEO, Chairman of the GEB and the GEC - Partner in charge of Country Forums: Loïc- Antonio Bover, co-CEO Wallaert.- Hervé Hélias, co-CEO- Hilton Saven, co-CEO Global Strategic Committee (GSC)- Phil Verity, co-CEO- Victor Wahba, co-CEO In a demanding environment that requires a global player like Mazars to strengthen the strategic tools thatAnd four Senior Advisors (former GEB members): are key to its long-term growth objectives, Mazars calls on the expertise of the Global Strategic Committee- Frédéric Allilaire, in charge of Americas, Middle- (GSC). The Group Executive Board and Group East and North Africa; Governance Council have thus delegated- David Evans, Sponsor of GSU Talents; responsibility to this committee for strategic issues- John Mellows, in charge of the Asia-Pacific region; related to the Group’s development. Its role is to- Jos van Huut, Chairman of the Praxity Alliance. identify and oversee merger and associative growth operations that fulfill the policy of expanding theThe GEB meets on a regular basis with Country Group’s international coverage and service offerings,Executives through the Country Forum, 2 to 3 times a as well as making an active contribution on behalf ofyear. It is supported in its day to day task by: Mazars to organizing the profession and the market. Its proposals are discussed with the GEB and- the Global Executive Committee (GEC), submitted for decision to both the GEB and GGC, then regrouping leaders of Global Business Units ratified by the partners General Assembly. (GBU) and Global Support Units (GSU) ; The GSC comprises four members:- and the Country Executives. - Patrick de Cambourg, Group Chairman, ChairmanGlobal Executive Committee (GEC) of the GSC; - Douglas A. Phillips, Vice-Chairman of the GSC;The Global Executive Committee meets at least every - Philippe Castagnac, Group CEO;other month to report key business issues & progress - Michel Barbet-Massin.status of Global Business Units / Global Support Units(GBUs/GSUs) projects and validate key decisions on7
  8. 8. Other internal and external contributors will be of Mazars elect the governing bodies (every fourgradually invited to participate in the work of the Global years) and approve the major strategic directions andStrategic Committee. operations of the Group, the admission of new partners and the yearly audited financial statements ofGroup Governance Council (GGC) the Group.The Group Governance Council (GGC) exercises a 1.2.3 Mazars’ worldwide presence as ofgeneral supervisory function over the management August 31, 2012actions of the GEB, decides or co-decides on certainmatters (for example: validating merger, acquisition or Mazars serves its clients throughout the world via:sales operations, opinion on projects with significantimpact on the Group…), and reports to the partners - Integrated member entities in 69 countries; andGeneral Assembly. The GGC meets at least onceevery four months. It is composed of 8 to 16 members - Non-integrated entities in 14 countries.appointed by the General Assembly of partners for afour-year mandate, with the introduction in December Within the non-integrated entities are correspondents2011 of 2 external independent members. One GGC or joint-ventures of Mazas SCRL, and country localmember also chairs the Audit Committee. correspondents. Representative desks/offices are often limited in terms of scope of services offered.The GGC currently comprises 11 members: While the member entities constitute the integrated- Patrick de Cambourg, Group Chairman, Chairman partnership, the non-integrated entities constitute the of the GGC; Mazars network. They are all committed to the risk- Douglas A. Phillips, Vice-Chairman of the GGC; management policy as described in section 2 of this- Pierre Sardet, Vice-Chairman of the GGC; report.- Kathryn Byrne;- François de Carbonnel*; Furthermore, Mazars (including all its integrated- Mohamed Ali Elaouani Cherif; entities) is one of the founding members of Praxity, an- Denise K. Fletcher*; international alliance of Independent Firms created in- Patrice de Folleville; 2007 as a non-profit-making International Association- Tim Hudson; regulated under Belgium law (AISBL). Praxity is- Ruud Krouwer; present in 87 countries. Chosen after a thorough self-- Kenneth Morrison. evaluation process, each Praxity participating firm*External members delivers state of the art accounting services and in- depth local knowledge. Participating firms bring theirCountry Executive Committees collective commitment to quality and ethical accounting solutions. In line with the Praxity vision that one sizeCountry Executive Committees have authority to does not fit all, firms join the alliance in one of 3manage the member entities and lead the local classifications: member firm, associate firm andbusiness on a daily basis, within the framework correspondent firm. Mazars is a member firm ofestablished by the Organisation and in terms of the Praxity.strategic and operational coordination they provide.They are elected by the partners of the member entity, Through Praxity, Mazars is able to accompany itstheir candidacy being subject to the agreement of the clients in 17 additional countries.GEB.Partners General AssemblyThe General Assembly of partners is held at least oncea year within six months following the closing of theaccounting period and is the pivotal point in thegovernance and decision making processes of MazarsScrl. It is at this meeting that, collectively, the partners8
  9. 9. 02 “High quality standards throughout the world”9
  10. 10. II. MAZARS’ QUALITY Accountants (IFAC) standards. They are available online and are regularly updated to reflect changes in ASSURANCE AND RISK regulations. MANAGEMENT POLICY Mazars is a member of the Forum of Firms and has declared annually since 2007, based on the results ofThe Group Executive Board of Mazars takes overall the quality control system, that the organisation meetsresponsibility for internal quality control including a the membership criteria as set out by the Forum.periodic review of its effectiveness. To this effect it These criteria are as follows: the implementation of ahas set up a Technique and Innovation Global Support quality control programme coordinated across theUnit (T&I GSU). world and the application of the IFAC Code of Ethics and of ISAs to all transnational audits.This Technique and Innovation Global Support Unit: Formally established in 2002, the Forum of Firms- defines the procedures and the quality assurance quality label, borne by international networks of system that entities and all business and accounting firms that perform audits of financial management units have to implement, in order to statements that are or may be used across national meet the defined principles. These standards are borders, and that commit themselves to promote presented in the Mazars Quality Assurance worldwide auditing best practices in order to raise the Manual and Risk Management Manual, which both standards of the international practice of auditing in the constitute the benchmark for all entities. interest of users of the profession’s services. The Forum of Firms’ positive and structured role is- supervises jointly with the GEB the monitoring of regularly recognised by international stakeholder the quality assurance system. This monitoring is organisations and national and international regulatory organised by an International Quality Control bodies. Committee (IQCC), which relies on globally coordinated inspections to monitor compliance Mazars is actively involved in the IFAC with a strong with International Standards on Auditing (ISAs), presence in three of its boards and committees: the IFAC Code of Ethics and International Standard on Quality Control (ISQC1). Each year - The International Ethics Standards Board for there is a follow-up of the action plans that have Accountants (IESBA); been defined jointly with the Mazars firm’s Risk Management and Quality Leaders and approved - The Small and Medium Practices Committee by the Managing Partners. There is also a review (SMP); and of each member firm’s own annual self- assessment and of the results of their internal and - The Transnational Auditors Committee (TAC), national external quality assurance reviews. executive committee of the Forum of FirmsThe management of each member entity has theprimary responsibility for the implementation of the 2.1. Independencequality assurance system. They must promote theMazars’ internal culture of quality, reinforced by clear, As at August 31, 2012, Mazars is the legal auditor ofconsistent and frequent messages and initiatives, at all more than 500 listed companies in the 69 integratedlevels of the entity. These must remind everyone of the and 14 countries where Mazars serves its clientsexistence of the quality assurance system and through non-integrated firms.underline the importance of respecting legal andregulatory obligations, particularly with regards to the Maintaining independence is of utmost importance forprofessional code of ethics and professional standards audit firms.of practice when it comes to accepting and carryingout new assignments.Mazars quality assurance and risk managementpolicies are based on the International Federation of10
  11. 11. 2.1.1 Mazars independence practices - An annual declaration of independence byThe Mazars’ Code of Conduct for Objectivity and partners and staff and thorough review of allIndependence situations that could compromise independence. In this respect, all partners of the Mazars’In order to form a basis for the widespread adoption of organisation or their immediate family cannot holdits core values throughout the Group, Mazars has a direct or an indirect financial interest in a listedadopted a Code of Conduct for Objectivity and assurance client of the organisation. Personal orIndependence (CCOI), which is compliant with the family relationships between a member of the auditrevised IESBA Code effective on January 1, 2011. team and a member of management of the audited company or a person holding a key position for theEach national Mazars entity evaluates the equivalence audit are also prohibited. Lastly all firms, partnersof national rules with the measures contained in the and staff working on the audit engagement, mustCCOI, and communicates, if necessary, to the other not have any financial or commercial relations withmembers of the organisation, the more restrictive an audit client except for normal financial relationsnational measures, which are documented as Country with a banking client.Specific Provision (CSP). - Access for all in-house professionals to a list ofThe Code is distributed to all partners and staff. Ethics clients subjected to specific ethical requirements.form an integral part of the entities’ professionaltraining programmes. - Training for technical staff on ethical rules and in the organisation’s procedures in the area of ethics.Mazars states in this code its pluri-disciplinary strategythrough the observance of the regulation in terms of - Technical consultation with experts on technicalfinancial communication and identifies clearly any matters, ethics and other areas.other services that are allowed to be provided to auditclients. - Limits on fees per client in order to avoid financial dependence on one or several clients.Systems to safeguard independence - Clear rules regarding conflicts of interest. WhenThese systems involve the following key procedures: there is such a threat, either the assignment is refused, or appropriate safeguards are- A procedure for acceptance and continuance of implemented. clients and engagements which enables evaluation of the level of the client related risks, the entity’s - A method of remunerating partners that is not ability to perform the engagement and ethical risks solely related to the level of fees billed, new clients in terms of independence and conflicts of interest obtained or additional engagements performed for at a global level. Provision of additional services to their clients and/or to financial performance, but an audit client is subject to prior authorisation from taking into consideration the quality of the the lead group audit partner and, in some cases, to engagement. the opinion of the head of ethics. It is also subject to authorisation of the client’s audit committee, The Ethics and Acceptance Committee, under the where required by auditing standards or when the supervision of the T&I GSU Board, is responsible for client has put in place a procedure for the prior considering any problematic situations that may be approval of such services. brought to its attention, reviewing any proposed- A complete list of non-audit services rendered to departures from the CCOI by country and verifying that audit clients. For group audits, this list forms part all changes in international ethical standards are taken of the audit instructions sent out by the into account by the organisation. coordination team. These non-audit services are The T&I GSU Board ensures that risk management subject to a priori communication and a posteriori procedures are in place and are monitored by each inventory and confirmation of independence to the member entity. group audit engagement and to the partner who signs the client group accounts.11
  12. 12. Two-partner teams and rotation to strengthen both 2.1.2 Statement on the effectiveness of theindependence and quality of services independence safeguard systems of Mazars Slovensko, s.r.o.Except for specific situations which are approved bythe Executive Committee of the entity, very large The independence practices and systems to safeguardengagements are placed under the responsibility of a independence described above were established toteam of at least two partners, one of whom naturally identify circumstances where Mazars Slovensko, s.r.o.assumes the leadership of the engagement. independence could be impaired and to ensure appropriate safeguards were implemented. The operation and effectiveness of these procedures formHaving a team of partners strengthens independence part of the quality control system review. Based on alland enables broader technical expertise to be the evidence collected, the management of Mazarsavailable to the engagement. The responsible partners Slovensko, s.r.o. confirms, with a reasonable level ofassist with key stages of the engagement and remain assurance, that the independence procedures andthe key contact for all parties and professional staff, practices have been implemented and the system iswhether internal or external to the entity. effective in the maintenance of independence. Furthermore, management confirm that the practicesWithin Mazars, rotation is applied to Public Interest have been subjected to internal review.Entity engagements on which key audit partnersshould rotate after seven years (in Slovakia after 5years) and not return to the audit team for at least two 2.2. Quality control systemyears, in compliance with the European Directive onStatutory Audit and the IESBA Code of Ethics. This The policies and procedures adopted by Mazars are inrotation of partners is in place in order to reduce the compliance with the IFAC standards in the area ofrisk of “closeness” to the audited company which may quality control: ISQC1 “Quality control for firms thatimpair independence. It enables the auditor to have perform audits and reviews of financial statements andgreater independence of mind in dealing with clients’ other assurance and related services engagements”issues and in expressing opinions on financial and Revised ISA 220 “Quality control for an audit ofstatements. The allocation of responsibilities to financial statements”. They are documented in apartners in respect of recurring audit engagements and Quality Assurance Manual available in electronicmajor special engagements is decided at the level of format.the entity’s Executive Committee in order to ensure These policies and procedures are complemented bythat partners have the ability to effectively conduct and audit methodology and audit support techniques whichsupervise engagements under their responsibility. This are shared among members of the Organisation andallocation is reviewed annually on the basis of changes by joint training initiatives. Specific audit software hasin each partner’s situation and any particular difficulties been developed which allows a structured auditencountered on their engagements. approach in accordance with the most recent and comprehensive auditing standards (IFAC clarifiedThe Mazars partnership model gives the two-partner standards, supplemented by national requirements).team the liberty to organise the audits of theirsubsidiaries in France and abroad. Compliance with the organisation’s policies and procedures is regularly controlled through reporting byIn case of disagreements with the technical the entities on the results of their internal and externaldepartment’s positions, which is something that rarely quality control and through periodic quality assurancehappens within our organisation, the Executive reviews by trained and experienced reviewers fromCommittee is called upon to arbitrate. In the context of other countries.our quality assurance standards and procedures thetwo-partner team in charge remains the final decision 2.2.1 Internal quality control systemmaker. This point is of paramount importance inpreserving the each partner’s personal commitment Maintaining qualityand sense of responsibility as well as responding toeach audited companies’ specificities. Quality of people: The high standards of quality for our work require that we recruit highly talented individuals, who have the ability to take on ever12
  13. 13. increasing responsibilities. Our ability to attract and main areas identified for improvement. This report,keep talent is one of the key elements in maintaining which is called ReQAR (Report on Qualitythese standards. Assurance Review), covers aspects relating to audit methodology, ethics and the internal QualityMazars’ strategy in terms of training (refer to section Assurance and Control System; and4.4), counselling and compensation stronglyemphasises this high standard of audit quality. - a periodic inspection, which is called IQAR (International Quality Assurance Review),The Quality Control System includes policies and performed by trained and experienced Mazarsprocedures in the following areas which are set out in reviewers from different countries.detail in our Quality Assurance Manual: Each reviewer or quality control responsible prepares- responsibility and leadership; an action plan addressing the findings of the IQAR or- independence and objectivity; the ReQAR. The action plan is submitted for approval- audit policies and methodology; to the entity’s Executive Committee. The partners in- acceptance and continuance of engagements; charge of monitoring geographical zones are informed- human resources; of these action plans and follow up the implementation- engagement performance including: with the help of the IQCC. planning and supervision of engagements; technical consultation; Each year the entities critically assess their Quality audit documentation; Control System by implementing a monitoring independent review; programme which involves an assessment of the- confidentiality; adequacy and effectiveness of the entity’s procedures- quality control system supervision; and a review of engagement files. Each partner is- managing cross-border engagements; and reviewed at least every three years. The results of the- complaints and allegations. engagement file reviews are taken into account in determining the partners’ compensation.These processes are presented in the Mazars’ RiskManagement and Quality Assurance Manuals and are Once a year, the entity communicates the results ofregularly updated to include changes in international internal and external quality control reviewsstandards and users’ suggestions which have the (ReQAR/IQAR/national oversights and peer reviews)objective of improving the effectiveness and the to partners and managers, including to the entity’srelevance of the Quality Control System. Executive Committe. This communication is sufficiently detailed to enable the necessary corrective measuresA Global Assurance Programme and internal to be taken, both at the entity level and with theinspections partners in question.Mazars has put in place an International Quality This summary includes as a minimum:Control System destined to all entities in theorganisation, whether they are integrated members or - a description of the procedures applied and of thecorrespondents. scope of the quality control review;Quality control is operationally managed by an - conclusions of the reviews pertaining to the entity’sInternational Quality Control Committee (IQCC) which procedures and to the audit engagements; andreports to both the Group Executive Board and the T&IGSU Board. - action plans, if required.Two types of quality assurance reviews are in place: Entities that are candidates for admission into the Mazars partnership undergo a technical review by the- a reporting including a self-assessment by the IQCC. The quality control review report is included in countries on their compliance with IFAC standards, the admission file submitted to the GEB and the GGC completed by the results of internal and external for approval before the vote by the partners. It can be quality control and an action plan in respect of the accompanied by an action plan which is naturally13
  14. 14. monitored by the IQCC and the head of monitoring of The Chamber of Auditors performed a quality control in rdthe geographical region to which the new member Mazars Slovensko, s.r.o. on 3 October 2011.belongs. The Authority completed the oversight over 1 audit file th of Mazars Slovensko, s.r.o. on 9 February 2012.2.2.2 Statement on the effectiveness of thequality control system 2.3. Our contribution to the standardMazars has become one of the first full members of setting processthe IFAC’s Forum of Firms in January 2008 afterreporting it had implemented a globally coordinated We believe that the voice of the audit profession bringsquality assurance program, committed to the use of value to the standard setting debate. As aInternational Standards on Auditing (ISAs) and met consequence, at the level of the Group, we areother specific ethical requirements. committed to the improvement of financial reporting, corporate governance and overall confidence in theCommitment to the obligations of membership in the capital markets on a global level. For example:Forum of Firms contributes to raising the standards ofthe international practice of auditing in the interest of - Mazars response to the European Commissionusers of the profession’s services. In this respect, (EC) Green Paper on Audit Policy: Lessons fromMazars is committed to: the Crisis of October 2010, which covers a wide variety of audit and auditors reporting related- maintaining appropriate quality control standards topics, can be accessed at: in accordance with International Standards on Quality Control issued by the IFAC International news2/Mazars-contribution-to-the-Green-Paper Auditing and Assurance Standards Board (IAASB) - Mazars responds to consultations on auditing, and relevant national quality control standards corporate governance, financial reporting and and, to the extent not prohibited by national relevant laws, regulations and standards changes regulation, conducting regular globally coordinated issued by various regulatory or professional bodies internal quality assurance reviews; such as the European Commission, IFAC and its committees and boards, FEE, EAIG, PCAOB,- implementing policies and methodologies based, IASB; to the extent practicable, on the ISAs issued by the IAASB for the conduct of transnational audit - Mazars takes part directly, as stated above, in assignments; and international professional bodies such as IFAC, FEE, ESMA, EFRAG, IASB...- implementing policies and methodologies which comply with the IFAC Code of Ethics for Our professional staff receives regular training in both Professional Accountants and national codes of actual and potential future developments. This enables ethics. audit teams to anticipate these changes and work with their clients on complying with them.On the basis of its Quality Control monitoringconclusions, Mazars confirmed in December 2011,that it met the membership obligations of the Forum inall material respects.2.2.3 Quality control as prescribed by theNational Oversight in Slovakia (the § 31 ofthe Act 540/2007 Coll.)Auditors and audit companies are obliged to abide thequality standards based on requirements of SlovakChamber of Auditors (later also „the Chamber ofAuditors“) and Audit Oversight Authority (Úrad predohľad nad výkonom auditu) later also „ Authority“.14
  15. 15. 03 “Listed clients audited by Mazars across all continents, spread across more than 60 markets”15
  16. 16. III. CLIENTS3.1. Service offering and turnover Mazars Turnover in Slovakia *in thds EUR3.1.1 Global service offering 2011/ 2010/As previously mentioned, Mazars’ services fall into four 2012 2011global business units, two of which are focused on Audit including statutory audit 1 522 1 383Clients and two on Services. This structure is mirrored & compatible services andby each member entity. other assurance services Accounting & financial 1 093 1 037The four Global Business Units are: support Specialised services* 437 510- GBU PIE (Public Interest Entities). This covers statutory and contractual auditing, and other Total 3 052 2 930 advisory or compliance services mainly for listed companies; *"Specialised services" include the following: Transaction Services, Risk Management and Internal- GBU OMB (Owner Managed Businesses). This Control, Organization and IT Services and Actuarial covers advisory and audit services for privately- Services. owned companies of all sizes;- GBU Tax. This covers a complete range of tax 3.2. List of public interest entities for advisory services; which the firm has issued an audit report during the preceding financial- GBU Law. Legal counselling in some countries. yearThe consolidated accounts of Mazars Scrl for the year 3.2.1 Companies that have issuedto August 31, 2012 are due to be approved at the transferable securities admitted to tradingGeneral Assembly of partners on December 8, 2012. on a regulated marketOnce published, they will be available on the Groupwebsite ( The list of engagements for which statutory audit reports have been issued during the Transparency Turnover per Global Business Unit (€ Million) Report period (from September 1, 2011 to August 31, 2012): 2011/2012 2010/2011 PIE 456.1 Inžinierske stavby, a.s. OMB 383.9 3.2.2 Credit Institutions Tax 99.4 The list of engagements for which statutory audit Law 17.3 reports have been issued during the Transparency TOTAL 956.7 Report period (from September 1, 2011 to August 31, 2012):3.1.2 Turnover of Mazars Slovensko, s.r.o. Exportno-importná banka Slovenskej republiky, skrátene EXIMBANKA SRThe turnover of Mazars in Slovakia is 3 052 thousandeuros for the year ended August 31, 2012 (2 930 3.2.3. Insurance companiesthousand for year ended August 31, 2011). The list of engagements for which statutory audit reports have been issued during the Transparency16
  17. 17. Report period (from September 1, 2011 to August 31,2012):AXA pojišťovna a.s., pobočka poisťovne z inéhočlenského štátuAXA životní pojišťovna a.s., pobočka poisťovne ziného členského štátuGSK NONLIFE a.s. “v likvidácii” (predtým Groupamapoisťovňa, a.s.)GSK LIFE a.s. v likvidácii (predtým Groupama životnápoisťovňa, a.s.)Groupama Garancia poisťovňa a. s., pobočkapoisťovne z iného členského štátuPoisťovňa Cardif Slovakia, a.s.3.2.4. Other Public Interest EntitiesThe list of engagements for which statutory auditreports have been issued during the TransparencyReport period (from September 1, 2011 to August 31,2012):AXA d.d.s., a.s.AXA d.s.s., a.s.AXA investiční společnost a.s., organizačná zložkaSlovenskoPCA Slovakia, s.r.o.Kraft Foods Slovakia, a.s.ESIN group, s.r.o.17
  18. 18. 04 “Building sustainable success requires a talent management policy across the whole Group”18
  19. 19. IV. HUMAN RESOURCES 4.2.2 Personnel in Slovakia During the year 2011/2012, the average number of4.1. Quality through talent Mazars personnel in Slovakia amounted to 59,30 people (full time staff).We are deeply convinced that the quality we bring toour clients and to the market in general is dependent 4.2.3 Personnel dedicated to statutory auditon the talent of our people. Several key areas form the in in Slovakiabackbone of our strategy for talent development: During the year 2011/2012, 22,80 professionals from- our culture; all of the Mazars’ offices in Slovakia and within all of- our sense of commitment; the service lines were assigned to audit services.- our diversity of talents;- our transparent and effective assessment system. 4.3. PartnersBased on our common values and managementprinciples, and within a working environment which is 4.3.1 Our partners on an international levelintended to be fulfilling, our Talent management policyis based around 3 main principles: As of August 31, 2012, Mazars Scrl has a total of 760 partners spread across 69 countries.- recruiting the most talented individuals; 4.3.2. CARL Partners in Slovakia- developing long life training, on both technical and managerial issues (refer to § 4.4. continuing For the year 2010/2011, there were 2 CARL partners education); in Slovakia.- offering attractive career opportunities, particularly 4.3.3. CARL Partners dedicated to statutory internationally, within our fast-growing audit in Slovakia organisation. As stated at §1.1.1 Ing. Alena Sermekova is enrolled in the List of auditors of Úrad pre dohľad nad výkonomAll our people have clear objectives, receive feedback auditu v Slovenskej republike (Audit Oversightand talk about their performance regularly. Our Global Authority).Talent and Performance Management Programmecovers all grades and is being monitored in all the 4.3.4. Information concerning the basis forMazars countries. This programme provides us with partners’ remunerationqualitative information on the expectations andcompetencies of our professionals which in turn Partners are remunerated in equal proportionenables us to gauge the effects on our long term according to the performance of the national memberdevelopment ambitions. entity to which they contribute, and to the performance of the Mazars organisation overall.Each employee has their own special role and theirown chance to play a defining part in our success. At Group level, the measure is the “operational performance”, after the deduction of any unforeseen expense such as litigation which remains the sole4.2. Professional and support staff responsibility of the national entity concerned.4.2.1 International staff Profits are shared between partners in proportion to the number of shares (or “base points”) they hold. ,As of August 31 2012, more than 13,000 people work Financing business activity depends exclusively onin Mazars’ offices in the 69 integrated countries each national member entity and follows the sameincluding around 1,700 new recruits that have joined logic of proportionality as the division of profits.the Mazars teams in 2011/2012.19
  20. 20. Several countries have also opted for a bonus system jurisdictions where the transnational audit isbased on individual performance, awards being made conducted:from a pot representing up to 12% of the profits of thecountry concerned. - financial information and auditing standards;Ratified by the Governance Council on advice from the - group audit coordination of multi-locations;Group Executive Board, base points are allocatedevery three years to partners according to the - the standards relevant to companies listed on thecollective performance of their country and individual stock market;performance of each partner, which is assessedagainst various criteria: professionalism and technical - corporate governance standards; andcontribution, importance and complexity ofassignments, contribution to the general development - the local and international economic and businessof local entities and of the Group, level of managerial environments.responsibility, performance in financial management,partnership spirit. None of the criteria listed above is The internal training programme is enhanced withevaluated in isolation, but the greatest importance is complementary external seminars which respond toplaced on technical competence and partnership spirit. certain client requirements or specific economic environments. Internal technical meetings are held on a regular basis4.4. Mazars’ policy regarding the in order to raise awareness, to share experiences oncontinuing education of statutory specific assignments and to discuss topical issues.auditors Mazars University was created in 2008, with aThe Group considers its internal training program to be threefold objective:of strategic importance, not only due to its content(experience sharing and updating of technical - to position Mazars as one of the key players in theknowledge), but also because it is a key means of future in its markets;communicating with staff in respect of requirements inthe areas of professional conduct and ethics. - to focus on Mazars’ values (Mazars Way);Each member entity of the group keeps a record of all - to contribute to Mazars’ commitment to socialthe training courses attended by each partner and issues.member of staff, in order to ensure that each individualbenefits from the complete training programme and so Mazars University coordinates all the Group-widethat the training received is in line with their training and promotes and encourages the sharing ofresponsibilities and with their work. professional knowledge, of professional experiences and the best professional practices.Each member entity’s training program has to includea general syllabus to be followed by all staff at each 4.4.1. Statement of compliance with the professional training obligations in Slovakialevel. The objective of this program is to enable eachstaff member to obtain and develop his or her Mazars in Slovakia complies with IES 7. Partners andexpertise in auditing standards, accounting standards, all audit personnel have to make an annual declarationauditing techniques and engagement management that they have complied with the relevantprinciples. requirements.The programme also includes a sector-specific Registered statutory auditors have to complete at leastsyllabus (particularly insurance, banking, the public 120 hours or equivalent learning units of relevantsector and high technology). professional development activity in each rolling three- year period, of which 60 hours or equivalent unitsAudit professionals involved in transnational audits should be verifiable. They also have to complete atlearn about the following subject areas concerning the20
  21. 21. least 20 hours or equivalent learning units in eachyear.Mazars has established its own policy with regards tocontinuing professional education that includes theorganisation and delivery of technical in-house andexternal seminars, the active participation andinvolvement of professional staff in major national andinternational professional accounting and auditingorganisations, as well as the extensive opportunities toattend technical seminars and conferences.On the basis of these CPE requirements describedabove, Mazars Slovensko, s.r.o. has the ability toascertain, at any given time, that all of its partners andprofessional staffs meet the CPE requirements asdefined by §29 “Continuing education” of the Act540/2007 Coll.21
  22. 22. 05 “Serving in the public interest across the five continents”22
  23. 23. V.COMPANY PRESENCE IN SLOVAKIA AT 31 AUGUST 2012 Bratislava Považská Bystrica Košice23
  25. 25. 25
  26. 26. Bratislava Office Mazars Europeum Business Center Suché mýto 1 SK – 811 03 Bratislava Tel: + 421 2 59 20 47 00 Fax: + 421 2 59 20 47 03 Košice Office Mazars Hlavná 71 SK – 040 01 Košice Tel: (+421) 55 727 42 12 Fax: (+421) 55 727 42 10 Považská Bystrica Office Mazars Železničná 99/30 SK - 017 01 Považská Bystrica More information available on Tel: (+421) 42 43 27 292 Fax: (+421) 42 43 27 29226