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    Country by Country Financial Reporting and Auditing Framework

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    Chile - Horwath HB Auditores Consultores (Prepared December 2014)

    Preparation of and Filing of Statutory Financial Statements

    All corporations registered with the Superintendency of Securities and Insurance (hereinafter the "SVS" (a regulatory body similar to the U.S. Securities and Exchange Commission - SEC) should prepare complete financial statements quarterly. The annual financial statements should be audited and the semi-annual statements should have a limited revision. Summarized financial statements are complementary to the above and are only issued for publication in some official journal or on a web page.


    Banks and financial institutions should be registered with the Superintendency of Banks and Financial Institutions (hereinafter the "SBIF") and should meet the same preparation and presentation requirements of financial statements established by the SVS, with some minor differences with respect to issue terms and publication.


    Other companies not registered with the SVS or the SBIF have to prepare annual financial statements but there is no obligation for them to be audited, unless required to do so in their internal bylaws or as a result of some prior request for a loan from a financial institution.


    Financial Reporting Framework

    All companies in Chile, without exception, should prepare their financial statements in accordance with International Financial Reporting Standards - IFRS (Full IFRS or IFRS for Small and Medium Enterprises).


    Audit Requirements for Corporations and LLPs Registered in Chile

    In general, only corporations registered with the SVS (including insurance and re-insurance companies) and the SBIF (including securities brokers) are obliged to issue audited financial statements.


    For other companies not registered with the SVS or SBIF, there is no obligation to present audited financial statements unless their internal bylaws establish this or because some financial institution requires them as a prior requirement for obtaining a loan.


    Audit Appointment, Rotation and Joint Audits

    In corporations, the external auditors are appointed by the shareholders' meeting and, in corporations registered with the SVS, the Directors' Committee should present at least 3 alternatives of external auditors.


    There is no obligation to rotate the external auditors for companies registered with the SVS and SBIF, but the partner in charge should be rotated at least every five years.


    Auditing Standards

    The profession in Chile should meet the auditing standards issued by the audit commission of the Chilean Institute of Accountants. These standards are generally consistent with the International Standards for Auditing (ISA) and those issued by CroweHorwath International, the former prevailing if more restrictive than the previous ones, in applicable aspects, for our local firm.


    Ethical Framework

    The profession in Chile should meet the ethics code issued by the Chilean Institute of Accountants. This ethics code is based on that published by the IFAC.


    Audit Regulation

    Audit firms registered with the SVS should have internal regulations which should also be published on their respective web page.


    The SVS, SBIF and some project financing institutions (e.g. the Interamerican Development Bank) make periodic revisions of the professional aspects of auditing and compliance with quality controls.


    Internal quality control policies and procedures exist which follow the guidelines of Crowe Horwath International. These are monitored periodically with internal preventive and detective (ex post) controls. There are also periodic external revisions made by other firms belonging to the Crowe Horwath network made under the direction and supervision of Crowe Horwath International whose results are reported directly to the International Firm.


    Contact Us
    David Chitty - Audit
    London, United Kingdom
    +44 20.7842.7292

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