According to the report, in the audit supervision cycle 2018/2019 (between June 1, 2018 and May 31, 2019), eight actions of on-site supervision of auditors were concluded, resulting in 291 recommendations regarding irregularities.

This number of recommendations is well above that recorded in the previous audit supervision cycle (2017/2018), when 169 recommendations were made (53 concerning the quality control system and 116 audit matters).

Out of the total of 291 supervisory recommendations made in the 2018/2019 cycle, 108 recommendations were related to the system of internal quality control of statutory auditors and 183 related to audit matters and the regulator mentioned that this showed that there were actions that "continue to need improvement".

Although they are referred to as recommendations, they imply that those concerned have to correct the irregularities within a defined period.

The serious irregularities detected are assessed by the legal department to decide whether there is material to open administrative offence proceedings.

Today's report does not say how serious the irregularities detected were or the names of the auditors where the irregularities were detected.

Among the irregularities detected are those related to the review of the internal quality control system of the statutory auditors, such as weaknesses in the assessment of competence, time and resources to carry out the work, the training of human resources or the prevention of money laundering.

Also in the 2018/2019 cycle, in addition to the closure of eight on-site supervision actions (opened in previous supervision cycles), the CMVM also closed 51 ongoing supervision actions.

An administrative offence was imposed in November 2018 on an auditor (without identifying him) for violation of the Statutes of the Institute of Statutory Auditors, with a fine of €50,000, partially suspended at €25,000 for two years. This part of the fine may become null and void if the entity does not repeat the offense.