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RESEARCH PRODUCT

Changes and Challenges Facing the Audit Profession in Latvia

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Abstract The history of certified auditing and audit services in the Latvian market has now existed for twenty years. It is not a long period of time when compared to other countries and the history of the audit profession. However, during these twenty years the audit profession in Latvia has experienced dynamic development along with a positive trend in the Latvian audit market. The main purpose of this paper is to describe the audit profession in Latvia and assess the expected impact of changes on the audit market by evaluating audit quality management, mainly focusing on the situation since Latvia's accession to the EU, with particular reference to the problems related to the development of the local audit firms and challenges for the audit profession. Latvian Association of Certified Auditors together with the Audit Advisory Board play key roles in the successful further development of the auditing profession in Latvia by implementing and maintaining robust profession regulations and competence requirements, as well as constantly performing the assessment of audit quality. The most critical factor for the further audit profession development in Latvia would be the results of the ongoing debates regarding the criteria rising for the companies to be mandatorily audited.