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Assessment of the Regulatory and
Standard-Setting Framework

Association of Accountants and Auditors of Republic of Srpska

Introduction

The information below has been submitted as part of the IFAC Member Body Compliance program. The Program has two components:

Part 1: Assessment of the Regulatory and Standard-Setting Framework (provides information about regulatory requirements and standard-setting processes in member body countries); and
Part 2: Assessment of Compliance (provides information on compliance by member bodies with the Statements of Membership Obligations). Part 2 of the Compliance Program will begin later this year, and the results will also be posted to the website.

The responses to Part 1 are provided below. IFAC staff has reviewed the responses and, where necessary, validated them with external knowledgeable parties. A list of key terms is available to assist readers in understanding the responses.

The purpose of this Part 1 Assessment is to collect information on the roles of IFAC member bodies and other organizations (including government, regulatory or other appointed authorities) with respect to:

  1. Setting auditing, accounting, ethics, public sector and education standards; and
  2. Regulating the accountancy profession.

Sections 1 and 2 of Part 1 contain an introduction and instructions for member body respondents. For this reason, they are not included here, and the responses begin with Section 3.

Questions or comments may be sent to complianceassessment@ifac.org.


Section 3 -- Member Body General Information

1. Country:

    Republika Srpska, Bosnia and Herzegovina


2. Name of member body:

    Or please specify name:
    Association of Accountants and Auditors of Republika Srpska



3. Individual responsible for preparation:
    Petrovic Nevenka


4. Date member body became a member of IFAC:
    Note: Please enter a numeric date (e.g., 12/2001, Month/Year)

    11 / 2004


Questions 5 - 22 are for internal use only


Section 3G -- Affiliations


23. Please list those regional organizations to which your organization belongs (e.g., FEE, CAPA, ECSAFA, IAA, etc.):
    SEEPAD- South Eastern European Partnership for Accountancy Development


Section 4 -- Statutory Framework


Responses to this section will provide a description of the legal framework governing the commercial aspects of auditing and financial reporting in your country.

Section 4A -- The Companies Act or Commercial Code


The following questions concern the Companies Act (the Act) or Commercial Code (the Code) or similar Legal authority in your country. If no Legal authority exists, or the Legal authority does not address particular questions, please indicate "N/A" for Not Applicable.

24. What is the full name of:
    a). the Act or the Code: Financial reporting is regulated by Law on Accounting and Auditing is regulated by Rules on Auditing
    b). the Enacting body: Low on Accounting is passed by Generally Assembly and Rules on Auditing by Ministry of Finance
    c). date the Act or Code came into force: 05 / 1993


25. How can IFAC obtain a copy of the Act or Code?
    By contacting AAAS


26. Is the Act or Code available in English?
    Yes   No


27. What are the types of entities covered by the Act or the Code?
    Please check all that apply.
    Listed entities   Other (please specify): All legal entities
    Private companies   Other (please specify):
    Governmental   Other (please specify):
    Not-for-profit   Other (please specify):


28. Is there a requirement for the following entities to prepare annual statutory financial statements? If YES, please describe the financial reporting requirements including the accounting standards to be followed.
    Please check all that apply.
      No Yes (If YES, please describe)
    Listed entities All legal entities are required to prepare financial reports at least twice in one year, on December 31 annual reports and on June 30 semi-annual reports. In the Law on Accounting is stated that all legal entities are obligated to prepare their financial statements in accordance with International Accounting Standards.
    Private companies See above
    Governmental
    Not-for-profit
    Other (please describe) All legal entities See above
    Other (please describe)


29. Is there a statutory requirement for the following entities to be audited? If YES, describe the requirement including the auditing standards to be followed:
    Please check all that apply.
      No Yes (If YES, please describe)
    Listed entities Statutory audit is required for all medium size and large companies and all banks and other financial institutions and insurance companies of all size. See also note under Question 32
    Private companies See above
    Governmental
    Not-for-profit
    Other (please describe) All legal entities See above
    Other (please describe) All legal entities


30. Are the auditors ("statutory auditors") that are appointed for audits required by the Act or Code ("statutory audits") appointed for a specific period?
    Yes   No
    If YES, please indicate the term of appointment: Year(s)


31. Who appoints the statutory auditors?
    Please check all that apply.
    Shareholders   Management
    Board of directors   Other (please specify):
    Audit committee   Other (please specify):
    Government agency   Other (please specify):


32. Does the Act or Code require joint auditors for the statutory audit?
    Yes   No
    If yes, please describe the requirement:
    Note to question 29:

    In accordance with Law on enterprises medium size entities are those who meet at least two of the following criteria:
    1. average number of employees between 50-250
    2. annual turnover between 4,500,000-23,000,000 KM
    3. value of entity's assets between 3,500,000-17,000,000 KM.
    Large entities are those who meet at least two of the following criteria:
    1. average number of employees higher than 250
    2. annual turnover higher than 23,000,000 KM
    3. value of entity's assets higher than 17,000,000 KM


33. Does the Act or Code require the rotation of the auditors or audit firms performing statutory audits?
    Yes   No
    If yes, please describe the requirement:


Section 4B -- Securities Market Regulations


Responses to this section will provide a description of the financial reporting and auditing requirements for listed entities in your country.

34. What are (a) the major items of Legal authority for such requirements, (b) the Enacting body(ies) and (c) the latest amendment date? Please identify the specific articles or sections that pertain to auditing and financial reporting:
  1. the major items of Legal authority for such requirements

    Rules on Reporting and Publishing of Information by Listed Companies.

  2. the Enacting body(ies)

    Securities Commission

  3. the latest amendment date?

    07/2003


35. How can IFAC obtain a copy of the Legal authority?
    www.khov-rs.org


36. Is the Legal authority available in English?
    Yes   No


37. Are there any additional or alternative financial statement reporting requirements for listed entities that are not described in your answer to Question 28?
    Yes   No
    If YES, please describe the requirement:
    Statutory audit is required for all listed companies financial statements.
    In addition to audited financial statements all listed companies have to publish some other significant information including:
    - earnings per share
    -dividend payout ratio
    -dividend rate
    -dividend yield
    -last market price of ordinary and preferred shares etc.


38. Are there any additional auditing requirements that apply to listed entities other than those described in your answer to Question 29 (e.g., additional GAAS requirements, additional independence requirements, requirements to report to those charged with governance, etc.)?
    Yes   No
    If YES, please describe the requirement:


39. Who appoints the statutory auditors of listed entities?
    Please check all that apply.
    Shareholders   Management
    Board of directors   Other (please specify):
    Audit committee   Other (please specify):
    Government agency   Other (please specify):


40. Are auditors who perform audits of listed entities appointed for a specified period?
    Yes   No
    If YES, please indicate the term of appointment: Year(s)


41. Are joint auditors required for audits of listed entities?
    Yes   No
    If YES, please describe the requirement:


42. Is rotation of the auditor or audit firm for audits of listed entities required?
    Yes   No
    If YES, please describe the requirement:


Section 5 -- Auditing Standards


Responses to this section will provide a description of the legal and professional framework governing audit and other assurance standards in your country. The section focuses on the establishment of such standards. Please indicate the role your organization plays within this framework.

Section 5A -- Statutory Framework


43. Please provide the name of the Legal authority and/or self-regulatory rules that establish audit and other assurance standards in your country, the date of the last amendment of such authority or rules and the name of body responsible for setting audit and other assurance standards. If the standards are different for different entities (e.g., listed entities, private companies, governmental bodies, not-for-profit organizations, etc.), please specify the details that apply to each:
    Type of entity Name of
    applicable
    legal
    authority    		 Date of last
    amendment
    (e.g. MM/YYYY 06/2001)    		 Name of body responsible
    for setting audit and
    other assurance standards
    Listed entity Law on Accounting and Auditing 05/2003
    Other (please describe) All medium size and large companies Rules on Auditing 05/2003 Association of Accountants and Auditors of Republika Srpsk
    Other (please describe) Banks and other financial institutions Law on Banks and Rules on Auditing 05/2003 Association of Accountants and Auditors of Republika Srpsk
    Other (please describe) Insurance companies Rules on Auditing 05/2003 Association of Accountants and Auditors of Republika Srpsk

    a. How can IFAC obtain copies of these documents?

    By contacting AAAS

    b. Are the documents available in English?
    Yes   No

Section 5B -- Standard-Setting (Association of Accountants and Auditors of Republika Srpsk)


44. For Association of Accountants and Auditors of Republika Srpsk, please indicate the nature of the body (i.e., whether it is part of a government ministry or department, an agency appointed by government, a private organization established by the profession, or other [please describe]) and the name of the standards.
    a. Nature of body

    Professional non-governmental organization

    b. Name of standards

    Republika Srpska Auditing Standards which are translated International Standards on Audit


45. How many voting members does the standard-setting body have?
    9


46. Are the members of the standard-setting body involved on a voluntary basis or employed by the standard-setting body?
    Voluntary  
    Employed  
    Both - Please describe: Three members are employed in our Association. Three members are university professors in accounting. Two members are respective members of profession. One member is representative of Ministry of Finance.


47. What are the criteria considered in selecting members of the standard-setting body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?
    Members of this Committee are selected in accordance with criteria of best persons for this job and sector of profession.


48. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
    Member body


49. What is the term of appointment for members?
    4 Year(s)


50. For how many years has the standard-setting body been in existence?
    9 Year(s)


51. Please indicate the budget in US$ of the standard-setting body for the last fiscal year:
    Note: Please enter a whole number using commas (e.g., 4,000,000)

    60.606

    Please enter the exchange rate used to calculate this number.

    Note: Please enter a decimal amount (e.g., 4.0027)

    1.65



52. To what entity is the standard-setting body accountable?
    Ministry of Finance


53. Describe the due process followed by the standard-setting body. Please include explanations of the following:
  1. public exposure of standards

    Taking into consideration that in accordance with Republika Srpska Law on Accounting and Rules on Auditing implementation of International Standards on Auditing in performing the audit of all medium size and large companies is obligatory, Association of Accountants and Auditors of Republika Srpska as standard-setting body (through its Accounting and Auditing Standards Committee) translated and published those standards. Association has been granted the IFAC approval to publish International Standards on Auditing in Serbian language. The role of the Accounting and Auditing Standards Committee in setting audit standards was to control the process of its translation and to approve publishing of those translated standards.

  2. accessibility of meetings (i.e., public or private)



  3. approval process for final standards (i.e., majority required to approve final standards)



  4. other relevant due process activities

    Srpska Auditing Standards are identical with ISAs version from 1999. We just translated ISAs and published them in Republika Srpska, with prior written IFAC permission. There is only one version of Auditing Standards in Republika Srpska.
    According to our Law on Accounting from 1999, it was mandatory in Republika Srpska to implement IASs, and Association was required by the Law to translate and publish those standards with prior written IFAC permission. So after the Law was passed we asked IFAC to allow us to translate and publish ISAs. At that time, we did not follow ordinary procedures for adoption of Standards because of the circumstances. We just translated and published ISAs.

    ISAs adopted completely and no text was deleted nor extra items included.


54. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
    5 Day(s)


Section 6 -- Ethics


Responses to questions in this section will provide a description of the legal and professional framework governing ethics standards for accountants in your country. This section focuses on the establishment of such standards. Please indicate the role your organization plays within this framework.

Section 6A -- Statutory Framework


55. For each of the following types of professionals, please indicate the name of the Legal authority and/or self-regulatory rules establishing ethics standards for accountants and auditors in your country, the date of the last amendment of such authority or rules and the name of body responsible for setting the ethics standards.
    Type of professional covered Name of
    applicable
    legal
    authority    		 Date of last
    amendment
    (e.g. MM/YYYY 06/2001)    		 Name of body responsible
    for setting ethics standards
    Professional Accountants in Public Practice Law on Accounting, By-Laws of the Association 9/2002 Association of Accountants and Auditors of Republike Srpska
    Professional Accountants in Business As Above
    Professional Accountants in the Public Sector As Above
    Other (please describe)

    a. How can IFAC obtain copies of these documents?

    By contacting AAAS

    b. Are the documents available in English?
    Yes   No

Section 6B -- Standard-Setting (Association of Accountants and Auditors of Republike Srpska)


56. For Association of Accountants and Auditors of Republike Srpska, please indicate the nature of the body (i.e., whether it is part of a government ministry or department, an agency appointed by government, a private organization established by the profession, or other [please describe]) and the name of the standards.
    a. Nature of body

    Professional non-governmental organization

    b. Name of standards

    Code of Ethics for Professional Accountants


57. How many voting members does the standard-setting body have?
    The answers on questions 57-66 are the same as a answers 45-54.


58. Are the members of the standard-setting body involved on a voluntary basis or employed by the standard-setting body?
    Voluntary  
    Employed  
    Both - Please describe:


59. What are the criteria considered in selecting members of the standard-setting body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?


60. Who appoints these members (e.g., member body, government, user, regulator, etc.)?


61. What is the term of appointment for members?
    Year(s)


62. For how many years has the standard-setting body been in existence?
    Year(s)


63. Please indicate the budget in US$ of the standard-setting body for the last fiscal year:
    Note: Please enter a whole number using commas (e.g., 4,000,000)

    Please enter the exchange rate used to calculate this number.

    Note: Please enter a decimal amount (e.g., 4.0027)



64. To what entity is the standard-setting body accountable?


65. Describe the due process followed by the standard-setting body. Please include explanations of the following:
  1. public exposure of standards



  2. accessibility of meetings (i.e., public or private)



  3. approval process for final standards (i.e., majority required to approve final standards)



  4. other relevant due process activities



66. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
    Day(s)


Section 7 -- Education


Responses to questions in this section will provide a description of how education requirements for the profession are established. Please indicate the role your organization plays within this process.

Section 7A -- Education Requirements


67. Please describe in general terms the education system in your country including the different stages of education from early childhood education through to tertiary level study. Please indicate which aspects / levels are compulsory as part of the national education system:
    Primary school (nine year education) - compulsory as a part of the national education system
    Secondary school (four year after primary school)- not compulsory
    Higher school (two years after secondary school)- not compulsory
    University level - not compulsory


68. Is there a legal authority or regulation that specifies the requirements for an individual to operate as an accountant or auditor in your country?
    Yes   No

    If YES, please provide the name and describe the requirements, including any relating to education, experience or qualifications.

    Law on Accounting


69. Please select from below all the relevant key levels of requirements to obtain certification from your member body (i.e. to qualify as a certified or chartered accountant) and provide a general description of the requirement.
    Academic requirements
    It is explained in Rules on conditions for acquiring professional titles in Republika Srpska accounting profession
    Professional examinations
    It is explained in Rules on conditions for acquiring professional titles in Republika Srpska accounting profession and Rules on instructive training and examinations
    Practical experience
    It is explained in Rules on conditions for acquiring professional titles in Republika Srpska accounting profession
    Final qualifying examination
    It is explained in Rules on conditions for acquiring professional titles in Republika Srpska accounting profession
    Other (please describe)


70. Which of the following arrangements best describes who establishes the education requirements for the accounting profession in your country? Please select one option.
    A government ministry, department or agency establishes education requirements for the accounting profession with no additional requirements set by the member body(ies).
    A government ministry, department or agency establishes minimum education requirements for the accounting profession, and member body(ies) supplement these requirements.
    Member body(ies) establishes the education requirements for the accounting profession.
    Other (please describe)


71. Please provide the name(s) of the relevant body in the government ministry, department, agency and / or member body who establishes the education requirements.
    Association of Accountants and Auditors of Republika Srpska

  1. A general description of the role of the relevant body(ies) including how it operates and its due process in establishing the education requirements.

    General description and the role of Accountants and Auditors of Republika Srpska is set in our IFAC membership application and other submitted documents.

  2. How many voting members does the relevant body(ies) have

  3. Are the members of the relevant body(ies) involved on a voluntary basis or employed by the standard-setting body?
    Voluntary  
    Employed  
    Both - Please describe:

  4. For how many years has the body been in existence?

    8 Year(s)


72. How would you describe the authority that the education requirements have?
    Requirements are legally-based
    Requirements are set in the constitution, by-laws or other rules of the relevant body(ies).
    Requirements are set in member body(ies) policy document(s).
    Other (please describe)

72 a. How can IFAC obtain copies of these documents?
    By contacting AAAS

72 b. Are these documents available in English?
    Yes   No


73. Are the education requirements for accountants and auditors the same throughout your country, or do they differ among regions, provinces or states?
    Same   Different
    If different, please briefly describe the main differences:
    Bosnia and Herzegovina is consisted of two entities, Republika Srpska and Federation of Bosnia and Herzegovina. In accordance to Constitutions of both entities accounting systems are under jurisdiction of the entities. So education requirements for accountants and auditors are same throughout the Republika Srpska but there are some differences among those two entities.


74. Please indicate the scenario that best describes who delivers the education and examination process for members of the profession. Please only select one option.
    The education program and final examination are delivered by the member body.
    The education program and final examination are delivered by the member body and other education institutions (e.g., universities, colleges, and others).
    The education program and final examination are delivered by education institutions (e.g., universities, colleges, and others).
    Other (please explain)


75. Once qualified as a member of your professional body, can members offer their services directly to the public?
    Yes   No


Section 7B -- Licensing


76. Are there licensing requirements for auditors in your country?
    Yes (continue with Question 77)   No (proceed to Section 8)


77. Who sets the requirements to obtain a license?
    Ministry of Finance


78. What are the requirements to obtain a license (please select all relevant requirements.)?
    Academic study specific for obtaining a license
    Practical experience
    Licensing examination
    Final qualifying examination
    Other (please describe)
    Certificate issued by our Association
    To obtain certificate auditors have to meets requirements regarding to practical experiences and to pass examination in Association of Accountants and Auditors of Republika Srpska. After that auditors can obtain a licenses.


79. Are there ongoing requirements to retain a license?
    Yes   No

    If YES, please select all relevant requirements.
    Continuing professional development
    Re-examination
    Other (please specify):


80. What entity grants the license?
    Ministry of Finance


81. Describe any additional licensing requirements for auditors of listed entities (e.g., additional education requirements, registration, etc.).
    There are not additional requirements for auditors of listed entities.


Section 8 -- Public Sector Accounting Standards


Responses to this section will provide a description of the legal and professional framework governing public sector accounting standards in your country. The section focuses on the establishment of such standards. Please indicate, where appropriate, the role of your organization within this framework.

Section 8A -- Statutory Framework


82. Please provide the name of the Legal authority and/or self-regulatory rules establishing public sector accounting standards in your country, the date of last amendment and the name of the body responsible for setting public sector accounting standards. If the standards are different for different entities (e.g., whole of government, ministry/department, statutory authority/agency, profit entity owned by government, state governments, local governments, other [please specify]), please specify the details that apply to each.
    Type of entity Name of
    legal
    authority    		 Date of last
    amendment
    (e.g. MM/YYYY 06/2001)    		 Name of body responsible
    for setting public sector
    accounting standards
    Whole of government See note below
    Ministry/department
    Statutory authority/agency
    Profit entity owned by government
    State governments
    Local governments
    Other (please describe)
    Other (please describe)

    a. How can IFAC obtain copies of these documents?

    NOTE:

    Minister of Finance prescribed balance schemes and chart of accounts for government entities. It is also suggested by Ministry of Finance to all public companies and budget beneficiaries to implement International Accounting Standards for Public Sector. Those Standards are also translated and published by Association of Accountants and Auditors of Republika Srpska and Serbian Association of Accountants and Auditors as a joint project.

    b. Are the documents available in English?
    Yes   No

Section 9 -- Private Sector Accounting Standards


Responses to the questions in this section will provide a description of the legal, statutory and professional framework governing private-sector accounting standards in your country. The section focuses on the establishment of such standards. Please indicate what role your organization plays within this framework.

Section 9A -- Statutory Framework


94. Please provide the name of the Legal authority and/or self-regulatory rules that establish private-sector accounting standards in your country, the date of last amendment, and the name of the body responsible for setting private sector accounting standards. If the standards are different for different entities (for example, listed entities, private companies, governmental organization, not for profit organizations, etc.), please specify the requirements that apply to each.
    Type of entity Name of legal
    authority or
    applicable
    rules    		 Date of last
    amendment
    (e.g. MM/YYYY 06/2001)    		 Name of body responsible
    for setting private sector
    accounting standards
    Listed entity Law on Accounting 9/2002
    Other (please describe) All legal entities Law on Accounting 9/2002 Association of Accountants and Auditors of Republika Srpska
    Other (please describe)
    Other (please describe)
    Other (please describe)

    a. How can IFAC obtain copies of these documents?

    By contacting AAAS

    b. Are the documents available in English?
    Yes   No

Section 9B -- Standard-Setting (Association of Accountants and Auditors of Republika Srpska)


95. For Association of Accountants and Auditors of Republika Srpska, please indicate the nature of the body (i.e., whether it is part of a government ministry or department, an agency appointed by government, a private organization established by the profession, or other [please describe]) and the name of the standards.
    a. Nature of body

    Professional non-governmental body

    b. Name of standards

    Accounting Standards of Repubika Srpska


96. How many voting members does the standard-setting body have?
    9


97. Are the members of the standard-setting body involved on a voluntary basis or employed by the standard-setting body?
    Voluntary  
    Employed  
    Both - Please describe: Three members are employed in our Association. Three members are university professors in accounting. Two members are respective members of profession. One member is representative of Ministry of Finance.


98. What are the criteria considered in selecting members of the standard-setting body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?
    Members of this Committee are selected in accordance with criteria of best persons for this job and sector of profession.


99. Who appoints these members (e.g., member body, government, user, regulator, etc.)?


100. What is the term of appointment for members?
    4 Year(s)


101. For how many years has the standard-setting body been in existence?
    9 Year(s)


102. Please indicate the budget in US$ of the standard-setting body for the last fiscal year:
    Note: Please enter a whole number using commas (e.g., 4,000,000)

    60,606

    Please enter the exchange rate used to calculate this number.

    Note: Please enter a decimal amount (e.g., 4.0027)

    1,65



103. To what entity is the standard-setting body accountable?
    Member body


104. Describe the due process followed by the standard-setting body. Please include explanations of the following:
  1. public exposure of standards

    Taking into consideration that in accordance with Republika Srpska Law on Accounting implementation of International Accounting Standards is obligatory for all legal entities, Association of Accountants and Auditors of Republika Srpska as standard-setting body (through its Accounting and Auditing Standards Committee) published Accounting Standards of Republika Srpska which are, to the great extent, equivalent to the International Accounting Standard. In the forthcoming period, the Association intends to translate and publish the International Accounting Standards with a prior approval from IASB. The role of the Accounting and Auditing Standards Committee in setting accounting standards will be to control the process of its translation and to approve publishing of those translated standards.

  2. accessibility of meetings (i.e., public or private)



  3. approval process for final standards (i.e., majority required to approve final standards)



  4. other relevant due process activities

    Publication of new translated volume of IFRS 2004 version is planed for November 2004. All IFRS will be translated and adopted and there will not be deletions or additions. In future all new IFRS or revised IAS will also be translated and adopted.


105. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
    5 Day(s)


Section 10 -- Monitoring (Quality Assurance) and Enforcement


Responses to the questions in this section will provide a description of the legal and professional framework governing regulation of the profession in your country. Please indicate what role your organization plays within this framework.

Section 10A -- Securities Market Regulatory Authority


106. Name the authority that regulates the securities market:
    Securities Commission


107. What responsibilities does this organization have for monitoring and enforcing compliance with accounting, reporting or auditing requirements? Please identify the Legal authority that establishes that responsibility:
    This organization requires from all listed companies to submit annual audited financial statements. It is required by Rules on reporting and publishing of information by listed companies.


108. Briefly describe the role of the regulatory authority as it relates to the following:
  1. regulation of the audit profession

    All financial statements issued by listed companies have to be audited.

  2. accounting and auditing standard-setting



  3. review of financial statements prepared by listed entities, and monitoring of their compliance with the accounting and disclosure requirements




Section 10B -- Stock Exchange


109. Name the four largest stock exchangers (by market capitalization) and whether it is organized as a profit or not-for-profit organization:
    Profit Not
    for
    profit    		 Stock Exchange
    Banja Luka Stock Exchange


Section 10B -- Stock Exchange
Banja Luka Stock Exchange Details


110. For Banja Luka Stock Exchange, is there a mechanism at the stock exchange(s) for monitoring and enforcing financial reporting, accounting and auditing of listed entities?
    Yes   No

    If YES, please describe the following:

  1. How the monitoring and enforcement of financial reporting, accounting and auditing is conducted.

    Stock exchange requires statutory audit of all listed companies financial statements.

  2. The consequences of non-compliance with the financial reporting, accounting or auditing requirements.



  3. How enforcement actions are administered.



Section 10C -- Regulatory Oversight of the Accounting Profession


111. Has an audit profession oversight body been established (e.g., to oversee the external quality assurance review process, etc.)?
    Yes   No

    If NO, proceed to the next section.

    If YES, please describe :

  1. What are the name and duties of the oversight body?

    Note:
    There are plans to establish independent public overshight body

  2. The number of members on the oversight body



  3. Its powers



  4. How the oversight body conducts or oversees a program of inspections to assess the degree of compliance of each audit firm/auditor with applicable auditing standards and regulations



  5. The sanctions the oversight body may impose in the event of non-compliance



  6. How the oversight body is accountable to any public institution or body


Section 10D -- Banks Regulatory Authority


112. Name the authority that regulates the banks and similar financial institutions. Discuss how this authority differentiates between accounting requirements for regulatory reporting and general purpose external financial reporting:
    Law on Banks and Law on Accounting


113. Discuss briefly the legal requirements with respect to monitoring and enforcement by the regulatory authority of accounting and auditing standards that apply to the banks and similar financial institutions:
    In accordance with Law on Accounting and the Law on Banks, all banks and other financial institutions are obligated to prepare their financial statements in accordance with International Accounting Standards. By those Laws all banks and other financial institutions are also obligated to audit their financial statements in accordance with International Standards on Auditing.


114. Briefly describe the role of the regulatory authority as it relates to the following:
  1. regulation of the audit profession

    In accordance with Law on banks, all banks are obligated to establish Audit Committee that will be responsible for appointment of external auditors, and for communication between external and internal auditors.

  2. accounting and auditing standard-setting

    By the Law on banks, all banks and other financial institutions must prepare their financial statements in accordance with International Accounting Standards and the audit of those financial statements must be performed in accordance with International Auditing Standards.

  3. review of financial statements prepared by listed entities



  4. enforcement of accounting, reporting and auditing requirements

    Banks agency controls implementation of financial reporting requirements in banks and other financial institutions. Banks agency also require statutory audit of all financial statements issued by banks and other financial institutions.


Section 10E -- Non-Banking Financial Institutions Regulatory Authority


115. Name the regulatory authority(ies) responsible for monitoring compliance with and enforcing accounting, reporting and auditing requirements imposed on non-banking institutions.
    Non-Banking Financial Institutions Regulatory Authority are the same as Banking Regulatory Authority and all other requirements regarding monitoring compliance with and enforcing accounting, reporting and auditing requirements imposed on non-banking institutions.


116. What is the source of Legal authority of the regulatory authority(ies)?


117. Briefly describe the role of the regulatory authority(ies) as it relates to the following:
  1. regulation of the audit profession



  2. accounting and auditing standard-setting



  3. review of financial statements prepared by listed entities



  4. enforcement of accounting, reporting and auditing requirements



Section 10F -- Insurance Companies Regulatory Authority


118. Name the regulatory authority responsible for monitoring compliance with and enforcing accounting, reporting and auditing requirements imposed on insurance companies.


119. What is the source of Legal authority of the regulatory authority(ies)?


120. Briefly describe the role of the regulatory authority(ies) as it relates to the following
  1. regulation of the audit profession



  2. accounting and auditing standard-setting



  3. review of financial statements prepared by listed listed entities



  4. enforcement of accounting, reporting and auditing requirements



Section 10G -- Other Regulatory Authority


121. Name any other regulatory authority(ies) responsible for monitoring compliance with and enforcing accounting, reporting and auditing requirements.
    N/A


122. What is the source of Legal authority of each regulatory authority?


123. Briefly describe the role of the regulatory authority(ies) as it relates to the following
  1. regulation of the audit profession



  2. accounting and auditing standard-setting



  3. review of financial statements prepared by listed listed entities



  4. enforcement of accounting, reporting and auditing requirements



Section 10H -- Quality Assurance


124. Does any organization of professional accountants/auditors organize a program of quality assurance review to monitor compliance with accounting, reporting and auditing requirements?
    Yes   No

    If NO, proceed to next Section.

    If YES, briefly describe the monitoring and enforcement mechanism.



125. Under what authority does the organization conduct the program of quality assurance review?


126. Who performs the review (e.g., one firm reviewing another firm, staff from the national professional organization, contractors, or a combination of these)?



Section 10 I -- Investigation and Discipline


127. Is there a process for investigating and disciplining the accounting profession in your country?

128. Which of the following best describes the responsibility for the investigatory and disciplinary function in your country?
    Government or other agencies are solely responsible for this function.
    Government or other agencies have this responsibility, but the member body or bodies participate in the process.
    Government formally delegates this function to the member body or bodies, to exercise on its behalf.
    Member body or bodies have separate and independent processes that operate alongside processes of legal authorities.
    Other (please explain)


129. Please indicate the name of the body or bodies responsible for investigation and discipline.
    Ethics Committee as a disciplinary Committee of our Association


Responses to the remaining questions in this Section are required if your organization has responsibility for investigation and disciplinary actions.

130. How many voting members does the body have?
    3


131. Are the members of the body involved on a voluntary basis or employed by the standard-setting body?
    Voluntary  
    Employed  
    Both - Please describe: One member is employed in the Association. One member is University Professor, and One member is lawyer.


132. What are the criteria considered in selecting members of the body (e.g., best person for the job, sector of the profession, private and public members, academic, geographical representation, etc.)?
    Best person for the job and sector of profession.


133. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
    Member body


134. What is the term of appointment for members?
    4 Year(s)


135. For how many years has the body been in existence?
    2 Year(s)


136. Please indicate the budget in US$ of the body for the last fiscal year.
    Note: Please enter a whole number using commas (e.g., 4,000,000)

    There is no specific budget for this Committee. This Committee is considered as a part of the Association and its financing is including in the Association budget.

    Please enter the exchange rate used to calculate this number.

    Note: Please enter a decimal amount (e.g., 4.0027)

    (specify currency)



137. To what entity is the body accountable?
    Association of Accountants and Auditors of Republika Srpska


138. Approximately how many days per year does the body meet in full session (including teleconferences)?
    3 Day(s)


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