Hungarian financial and stock exchange almanac 1997-1998. Volume 3. [antikvár]

preface chamber of hungarian auditors CHAMBER OF HUNGARIAN AUDITORS Summary of preliminaries Auditing had taken shape in the second phase of industrial revolution in Great Britain in the second half of the 19th century and started to develop rapidly in advanced industrialised countries in the 20th century. In Hungary, the training of certified auditors was first regulated by Act V of 1930 on private limited company. This act also placed the operation of certified auditors on a legal basis. The Association of Hungarian Certified Auditors was established in 1932 and legal supervision of this association was assigned to the Ministry of the Interior. From 1948, following the formation of the economic management guided by central planning, the institution system of auditors gradually receded, then in 1950 the Association of Certified Auditors was abolished. Following the abolition of the institution of auditing, however, the training of certified auditors remained: auditor certificates were issued by the Accountancy Graduation Committee of the Ministry of Finance. Experts possessing a degree of certified auditor worked mainly in state supervision and as financial executives of enterprises, co-operatives and institutions. At the beginning of the formation of the market-economy institutional system, in 1987, the Association of Hungarian Auditors was established, setting for its goal the organisation of the auditing trade. At the start auditing activity was regulated by various economic laws, including the acts on economic organisations, on financial institutions and activities and on accountancy. On the 10th anniversary of the establishment of the Association of Hungarian Auditors, Act LV of 1997 on the Chamber of Hungarian Auditors and auditing activity was enacted. The act makes it clear: "It is indispensable for the operation of the market economy that objective information on assets, finances and revenues of enterprises should be published. Reliability, truthfulness and contents in line with legal stipulations are guaranteed by an audit performed by independent auditors." Parliament recognized the right of auditors to have a professional autonomy allowing them to handle their professional matters independently by way of self-elected bodies and officials, within the frames defined by the law, and to represent their professional, ethical and economic interests in line with public interest, thus contributing to the development of the national economy. Officially the Chamber of Hungarian Auditors was established on December 23,1997. One year after the enactment of the law on auditing the new act on economic organisations took effect which confirms in its Chapter V the new institution of auditing as a separate title among the guarantees for the legal operation of economic organisations and declares that the auditor is the institution of public interest protection of the economic organisation's legal operation. The Chamber of Hungarian Auditors The act entrusted state competences and tasks to the chamber and defined, beyond that, numerous new tasks as well. To implement the tasks the act defined the framework principles for the organisation of the chamber, the particular content of which was then determined in the statute of the new chamber. The corporate decision-making bodies of the chamber are the meeting of delegates and the presidium.