Polish Audit Oversight Agency Head Confident in Profession's Future Amidst Reforms

The head of the Polish Audit Oversight Agency (PANA), Jacek Gdański, shared insights into the agency's progress over his two-year tenure, highlighting a significant transformation in its supervisory approach. PANA has become more open, with oversight based on clear, transparent principles. The agency not only enforces legal compliance but also aims to positively influence market practices through education and timely sanctions. Cooperation with domestic and international bodies, including the Polish Financial Supervision Authority, EU audit authorities, and the International Forum of Independent Audit Regulators (IFIAR), is crucial for implementing global best practices.

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The agency has changed its approach to supervising the Polish Chamber of Statutory Auditors compared to previous years, appreciating the importance of respecting the constitutional principle of self-government.

Gdański emphasized the importance of constructive dialogue with the Polish Chamber of Statutory Auditors, recognizing the chamber's vital role in education and professional development. However, he also pointed to persistent challenges, such as the issue of "audit factories" where individual auditors issue an excessive number of reports, compromising quality and posing risks to clients and investors. He also noted difficulties with some smaller audit firms hindering or avoiding PANA's controls.

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I am very keen on increasing the self-government's involvement in combating clearly negative phenomena, such as so-called audit factories, i.e. situations where one statutory auditor issues over 200 financial statement audit opinions per year.

In response, PANA has increased the number of inspections and aims to expedite proceedings. The agency is also open to consensual dispute resolution methods like mediation and agreed penalties. Gdański expressed confidence in the future of the auditing profession, provided these challenges are addressed effectively through continued collaboration and robust oversight.

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We have significantly increased the number of inspections carried out.