Institut der Wirtschaftsprüfer in Deutschland

Institute der Wirtschaftsprüfer in Deutschland e.V. is a privately run organization based in Düsseldorf established to serve its members who comprise both individual Wirtschaftsprüfers and Wirtschaftsprüfungsgesellschaften . The IDW was established on a voluntary basis rather than having been established under German law. In accordance with its Articles of Incorporation, the IDW does not operate as a commercial business and is a not-for-profit organization. Membership as of 2024 was 12,909 full members, of whom 11,782 were German public auditors and 1,127 were German public audit firms.

WWW idw.de

History

Genesis and Early Institutionalization (1884–1929)

1884 saw the introduction of the foundation audit for stock corporations. As a result, courts began appointing so-called Sworn Book Auditors as sworn experts in accounting matters. The North German Hanseatic cities created legal frameworks for the activities of this profession. Later, the opportunity to appoint Book Auditors was established at the national level through Section 36 of the Trade Regulation Act. In 1890, the Deutsche Treuhandgesellschaft was established. The Association of German Book Auditors, which emerged from a merger of Berlin-based auditors, was constituted in 1900. English and American firms, such as Price Waterhouse and Whinney's, established branch offices in Berlin.

Crisis, Legislative Birth, and IDW Foundation (1929–1936)

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By 1929, the VDB counted 853 Book Auditors as its members. In the summer of 1929, the Frankfurter Allgemeine Versicherungs AG, the second-largest insurance company in the German Reich, collapsed. Against the backdrop of the FAVAG collapse and to accelerate parts of the reform, the "Ordinance of the Reich President on Stock Corporation Law, Bank Supervision, and Tax Amnesty was published on September 19, 1931. Among other things, it contained regulations on the duty of disclosure. Balance sheet auditors were only permitted to be individuals experienced and educated in bookkeeping. Auditing firms were only permitted to audit balance sheets if one of their owners, board members, or managing directors was experienced and educated in bookkeeping.
The Institut für das Revisions- und Treuhandwesen e.V. was founded in August 1930 based in Berlin by several professional associations from the German auditing and fiduciary sector, Fachgruppe der Treuhänder im Verband Deutscher Diplom-Kaufleute. In 1930 the Main Office for publicly appointed auditors was established.The IRT's goal was to participate in the legislation for the auditing profession. Simultaneously, the IRT attempted to bridge the differing interests between individual auditors and the larger fiduciary companies. The states of the German Reich established the legal and institutional framework for the new profession. In 1931, twelve admission and examination bodies for Public Auditors were created. The profession of the Wirtschaftsprüfer was created by the 1st Implementing Ordinance to the VO on December 15, 1931. Public Auditors had to be publicly appointed, and auditing firms had to be registered.
On February 1, 1932, the Institut der Wirtschaftsprüfer e.V. was established in Berlin through a renaming of the IRT. Only Public Auditors and Public Audit firms could become members of the IDW. One of the goals of the IDW was to develop into a professional representative body that could uniformly advocate for its interests externally. The IDW published its first professional opinion in 1933; the topic was 'The Level of Detail in the Audit Report,' followed by 17 further professional opinions later that same year. The journal's inaugural issue in January 1932 cemented the name 'Der Wirtschaftsprüfer' as the essential professional reading for all publicly appointed auditors. The first managing directors were Dr. Hans Adler and Dr. Paul-Ludwig Buchholz. It was a private association without a public-law character, with the intention of developing into a professional representative body. A professional liability insurance policy for the members was concluded with Lloyd's. The “Confidential News” was published as the members' magazine. The first technical committee—shortly thereafter renamed the Main Technical Committee —was constituted with the task of clarifying important issues concerning mandatory audits. The first annual meeting took place on February 19, 1933. In May 1933, the Third Reich recognized the IDW as the official professional representative body for Public Auditors. In June 1934, membership in the IDW became mandatory for Public Auditors. The mandatory audit requirement for all stock corporations is introduced in 1934. In 1935 a loose-leaf collection of professional opinions is published for the first time. The statutory annual audit is suspended by regulations dated September 4th 1934. In 1936 the auditing of cooperatives by certified public auditors is regulated.

Dissolution, Post-War Re-establishment, and WPO (1939–1966)

After its integration and dissolution into the Reich Chamber of Economic Trustees in April 1943, the Chamber itself was dissolved in October 1945 following the end of World War II. In 1946, individual institutes reformed in Germany, and the associations in the British Occupation Zone merged in the same year to form the Institut der Wirtschaftsprüfer e.V. with 440 voluntary members starting in Nord-Rheinprovinz/Westfalen and began publishing the "Fachnachrichten" newsletter. Further state representations were founded in the following years. The association moved to Düsseldorf in 1948. On September 18, 1950, its own publishing house, Verlagsbuchhandlung des Instituts der Wirtschaftsprüfer , was founded as a GmbH. In 1954, the IDW was a founding member of the Union Europénne des Experts Comptables Economiques et Financiers . In the same year, the association's name was changed to Institut der Wirtschaftsprüfer in Deutschland e.V. . The year 1961 saw the enactment of the federal Auditors' Act, which established the Chamber of Public Auditors to take over the professional regulatory functions for the auditing profession. The IDW offered preparatory courses for the Public Auditor examination for the first time in 1966.

Global Integration and Quality Standards (1972–1995)

The publishing house has operated as IDW-Verlag GmbH since 1972. When the IASC was founded in 1973 and the International Federation of Accountants was founded in 1977 at The 11th International Congress of Accountants in Munich, the IDW was again involved as a founding member in each instance. In 1995, the IDW and the WPK reinforced auditing standards by issuing a joint statement focused on Quality Assurance in Auditing Practice.

Capital Markets and Regulatory Tightening (1998–2005)

The 1998 KonTraG Act increased auditor liability limits and mandated internal rotation for auditors of listed companies, while also establishing the DRSC. The 1998 Capital Market Access Facilitation Act allowed listed companies to prepare consolidated financial statements using IAS or US-GAAP, providing an exemption from German HGB rules. In 2000, the KapCoRiLiG Act was published, subjecting limited-liability commercial partnerships to the same accounting and auditing requirements as corporations. The 2002 Transparency and Disclosure Act was enacted, primarily resulting in changes to the content of the audit report. On July 30, 2002, the Sarbanes-Oxley Act came into effect in the US, significantly impacting the German auditing market. The 2005 Auditor Oversight Act established an independent commission to supervise auditors and sworn book auditors conducting statutory audits.

Modernization and EU/International Adaptation (2009–2018)

2009: With the entry into force of the Accounting Law Modernization Act on May 29, 2009, German accounting law underwent fundamental changes in the sense of modernization and adaptation to international accounting principles. On May 27, 2014, the EU Regulation and amended Audit Directive governing the audit of public-interest entities were published, marking a major European audit reform. In November 2018, the IDW published the first major package of 12 draft Germanized International_Standards_on_Auditing, with further drafts following in 2019.

Governance

The IDW was established in 1932 and operates with approximately 130 employees. The organizational structure includes twelve regional state groups supported by seven regional offices to represent members' local interests. Governance is handled by three main organs: the Wirtschaftsprüfertag, the Verwaltungsrat, and the Vorstand, the latter composed of six honorary and three managing members. The bylaws detail the membership and define concrete professional duties for actively practicing members. These duties include adhering to the IDW's principles for quality assurance, providing a written justification for any deviation from IDW publications in the audit report, and completing an average of 40 hours of continuing professional development per year.

Mission

In accordance with its by-laws, the organization fosters the technical domain of the public auditor and represents the interests of the profession. The IDW does this both nationally and internationally through collaboration within the various committees, and with permanent and ad-hoc IDW working parties in cooperation with technical staff at the headquarters in Düsseldorf.
The organization:

Represents the professional interests of its members at national and international levels ;
Undertakes technical work relevant to the fields in which its members are active ;
Provides training courses and support for trainee public auditors and continuing professional development for qualified public auditors ;
Provides support to members on technical issues in their day-to-day work.

Technical work

The IDW's technical work is mainly apparent in:

statements in the form of expert opinions, IDW auditing standards and IDW opinions on accounting, IDW standards, information and working aids ;
comments on draft statutes, regulations, position papers and technical standards at both national and international levels;
expert opinions provided in response to members' questions involving accounting and auditing and advice on taxation and management.

The IDW also provides:

membership of committees in various organizations, among them the Fédération des Experts Compatibles Europeans and the International Federation of Accountants ;
political contacts on issues affecting the profession through IDW offices in Berlin and Brussels
representation of the profession to the press and the public.

IDW Pronouncements

IDW Technical Committees

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Core Mission and Scope

The IDW technical committees monitor national and international developments in their respective fields. Their primary task is to promote consistency in handling industry- or topic-specific issues and to coordinate the joint approach of the public auditing profession across three main areas:

Assurance,
Reporting, and
Advisory.

By doing so, they establish the Generally Accepted Auditing Standards for professional practice.Strategy, Problem-Solving, and Policy

Strategy, Problem-Solving, and Policy

The committees address issues where current practice is inconsistent and new problem areas arise, often factoring in industry-specific details. They identify potential strategic IDW projects, support the executive board in defining professional positions, and assist in preparing input for general standard-setting and legislative proposals.

Quality Assurance and Standard-Setting Authority

The Main Technical Committee and the Technical Committee on Financial Reporting ensure consistent and unified technical work. They are statutorily reserved the right to issue binding technical pronouncements, such as ISA-DE, IDW Auditing Standards, IDW Quality Control Standards, and IDW Statements on Financial Reporting. The HFA and FAB adopt broad, cross-industry standards in their areas of competence. Furthermore, standards from other committees generally require the approving acknowledgment of the HFA or FAB before publication to maintain a coherent professional view.

Process for Developing an IDW Pronouncement ("Due Process")

Standard Setting: The IDW Due Process

ISA-DE, IDW Auditing Standards, IDW Quality Control Standards, IDW Statements on Financial Reporting and IDW Standards are developed in a fixed procedure in which, based on published drafts of these pronouncements, professionals and the interested public are given the opportunity to comment.

Transparency and Final Consultation

In the interest of traceability and transparency of the IDW's professional work, the comments from professionals and the interested public on published drafts are published on the IDW website, unless this is expressly rejected by the author. After the commenting phase has ended, the profession and the interested public must be given the opportunity for a hearing or a technical discussion .

Final Adoption of Formal Standards

Final IDW pronouncements—specifically ISA-DE, IDW Auditing Standards, IDW Quality Control Standards, IDW Statements on Financial Reporting, and IDW Standards—are primarily adopted by two central committees:

Auditing and Quality Standards: ISA-DE, IDW PS, and IDW QS are generally adopted by the HFA.
Financial Reporting Standards: IDW Statements on Financial Reporting are generally adopted by the FAB.
Other IDW Standards: These are adopted by the HFA and/or the FAB, depending on the subject matter.

Consultation Requirement: If a standard is adopted by a different, specialized IDW technical committee, it must be submitted to the relevant central committee for approving acknowledgment.

Effective Date and Early Application

Standards become effective on the application date specified within the document, which must take into account the time needed for preparation and implementation in practice. Early application is permissible if explicitly allowed by the pronouncement and provided that all regulations contained within are fully observed. In justified cases, the HFA or FAB can decide to invalidate an existing standard and recommend early application of the new draft during the final adoption phase, enabling professionals to implement the revised view sooner.

Less Formal Guidance

IDW Audit Notes and IDW Financial Reporting Notes :

These are not adopted using the full formal "Due Process" procedure and do not possess the same level of binding authority as the main standards, although compliance is recommended.
They are adopted by the technically competent HFA or FAB. If adopted by a different specialized committee, they must be submitted to the HFA or FAB for acknowledgment to ensure a consistent professional view.

Key to Publications

Note on ISA : International Standards on Auditing are published in German translation, with necessary deviations due to specific legal regulations in Germany, marked by "D-Textziffern".
This list provides a categorized and chronological overview of selected pronouncements from the Institute of Public Auditors in Germany, including Auditing Standards, and adopted International Standards on Auditing.

I. Audits of Historical Financial Information (International Standards on Auditing)

200–299 General Principles and Responsibilities

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300–499 Risk Assessment and Response to Assessed Risks

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500–599 Audit Evidence

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600–699 Using the Work of Others

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700–799 Audit Conclusions and Reporting

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800–899 Specialized Areas

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II. IDW Auditing Standards (IDW PS) and Drafts (IDW EPS)

This section lists various IDW PS, categorized by their main content focus, with the latest status date and application note where available.

IV. IDW Questions and Answers on ISA/IDW PS (IDW F&A zu ISA/IDW PS)

This section lists the Q&A publications issued by the IDW to clarify the application of ISA and their counterpart German Auditing Standards.

IDW F&A	Reference Standard	Title	Status/Date	Note
F & A zu ISA	ISA	On the Introduction of ISA and Individual Questions on the Application of Selected ISA	30.03.2020	Standard current version date.
F & A zu ISA 260 bzw. IDW EPS 470 n.F.	ISA 260 / IDW EPS 470 n.F.	On Communication with Those Charged with Governance	12.06.2017	Standard current version date.
F & A zu ISA 315 bzw. IDW PS 261 n.F.	ISA 315 / IDW PS 261 n.F.	On Risk Identification and Assessment	21.11.2014	Standard current version date.
F & A zur Anwendung von ATT i.R.d. Abschlussprüfung	ATT	On the Practical Application of Automated Tools and Techniques in the Audit	22.09.2020	Standard current version date.
F & A zu ISA 320 bzw. IDW PS 250 n.F.	ISA 320 / IDW PS 250 n.F.	On Determining Materiality and Tolerable Misstatement	11.05.2020	Supersedes the 25.07.2013 version.
F & A zu ISA 450 bzw. IDW PS 250 n.F.	ISA 450 / IDW PS 250 n.F.	On Evaluating Identified Misstatements	25.07.2013	Standard current version date.
F & A zu ISA 505 bzw. IDW PS 302 n.F.	ISA 505 / IDW PS 302 n.F.	On Obtaining Third-Party Confirmations	02.10.2015	Standard current version date.
F & A zu ISA 530 bzw. IDW EPS 310 oder ISA 500 bzw. IDW EPS 300 n.F.	ISA 530 / IDW EPS 310 or ISA 500 / IDW EPS 300 n.F.	On Performing Representative Selection or Directed Selection	20.11.2015	Standard current version date.
F & A zu ISA 540	ISA 540	On the Audit of Accounting Estimates	2021	Date is 2021.
F & A zu ISA 570 bzw. IDW PS 270 n.F.	ISA 570 / IDW PS 270 n.F.	The Use of Forecast Periods for Assessing Going Concern	2021	Date is 2021.
F & A zu ISA 600 bzw. IDW PS 320 n.F.	ISA 600 / IDW PS 320 n.F.	On the Practical Application of Group Audits	06.07.2015	Standard current version date.
F & A zu IDW PS 350 n.F.	IDW PS 350 n.F.	On the Audit of the Management Report	26.08.2019	Standard current version date.
F & A zu ISA 701 bzw. IDW EPS 401	ISA 701 / IDW EPS 401	On Reporting Key Audit Matters	04.10.2017	Standard current version date.

V. IDW Accounting Statements (IDW RS)

This section lists the IDW Stellungnahmen zur Rechnungslegung, which provide authoritative guidance on German GAAP and IFRS accounting issues, categorized by the issuing technical committee.

H. IDW RS WFA (Housing Industry Committee)

VII. IDW Standards (IDW S)

This section lists the IDW Standards, which provide authoritative guidance on general, non-audit-related topics like business valuation, restructuring, and insolvency.

IDW S	Title	Status/Date	Note
S 1	Principles for the Performance of Business Valuations	04.07.2016	Supersedes 2008 version for reissuance date.
S 2*	Requirements for Insolvency Plans	10.02.2000	Superseded by S 2.
S 2	Requirements for Insolvency Plans	19.11.2019	Supersedes S 2.
S 4	Principles for the Proper Appraisal of Statutory Sales Documents for Alternative Investment Funds	24.05.2016	Standard current version date.
S 5	Principles for the Valuation of Intangible Assets	16.04.2015	Supersedes 2011 version.
S 6	Requirements for Restructuring Concepts	16.05.2018	Supersedes 2012 version.
S 7	Principles for the Preparation of Annual Financial Statements	27.11.2009	Reissued in 2021.
S 8	Principles for the Preparation of Fairness Opinions	17.01.2011	Standard current version date.
S 9	Certificate according to § 270b InsO	18.08.2014	Superseded by IDW ES 9 n.F.
ES 9 n.F.	Certificates according to §§ 270d and 270a InsO	12.01.2021	Draft version. Supersedes IDW S 9.
S 10	Principles for the Valuation of Real Estate	14.08.2013	Standard current version date.
S 11	Assessment of the Existence of Grounds for the Opening of Insolvency Proceedings	22.08.2016	Superseded by IDW ES 11 n.F.
ES 11 n.F.	Assessment of the Existence of Grounds for the Opening of Insolvency Proceedings	08.01.2021	Draft version. Supersedes IDW S 11.
S 12	Valuation of Holdings in a Real Estate Company	02.02.2016	Standard current version date.
S 13	Peculiarities in Business Valuation for Determining Claims in Family and Inheritance Law	06.04.2016	Standard current version date.
S 14	Principles for the Proper Appraisal of Statutory Sales Documents for Publicly Offered Investments	09.07.2018	Standard current version date.

VIII. IDW Q&A on Standards (F&A zu IDW S)

This section lists Questions and Answers providing practical clarification for the IDW S.

IDW F&A	Reference Standard	Title	Status/Date	Note
F&A zu IDW S 1 i.d.F. 2008	IDW S 1	Q&A: On the Practical Application of Principles for Business Valuations	14.10.2020	Standard current version date.
F & A zu IDW S 6	IDW S 6	Q&A: On the Preparation and Assessment of Restructuring Concepts	22.08.2016	Standard current version date.

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IX. IDW Quality Control Standards (IDW QS)

This section lists the IDW Standards for Quality Control.

IDW QS	Title	Status/Date	Note
QS 1	Requirements for Quality Control in Auditing Practices	09.06.2017	Standard current version date.

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