Compliance Responses and Action Plans

  • Compliance Responses and Action Plans

    IFAC members and associates have provided self-assessment information about the regulatory and standard-setting framework in their countries (Part 1) and their organizations' activities in addressing IFAC's membership requirements (Part 2) as described in the Statements of Membership Obligations. Based on an analysis of this information, they are developing SMO Action Plans for continuous development and improvement.

    Some organizations have qualified to submit SMO Action Plans on a biennial basis by meeting eligibility criteria. These organizations are indicated with an asterisk (*).

    In the interest of transparency and providing information to the profession, regulators, and other stakeholders, all responses and SMO Action Plans are accessible below.

    Union of Accountants, Auditors and Financial Workers of Federation of Bosnia and Herzegovina

     

    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:

      Bosnia and Herzegovina


    2. Name of member body:
      Union of Accountants, Auditors and Financial Workers of Federation of Bosnia and Herzegovina

      Or please specify name:



    3. Individual responsible for preparation:
      Igor Zivko


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

      05 / 2010



    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.):
      Union doesn't belong any regional organization



    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: Law on Economic Companies
      b). the Enacting body: Parliament F B&H
      c). date the Act or Code came into force: 06 / 1999


    25. How can IFAC obtain a copy of the Act or Code?
      www.fbihvlada.gov.ba/.../zakoni/1999/zakoni/zakoni%20registar%2099.htm


    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):
      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 Group Financial Statements, IFRS and IAS
      Private companies Group Financial Statements, IFRS and IAS
      Governmental Group Financial Statements,
      Not-for-profit Group Financial Statements, IFRS and IAS
      Other (please describe)
      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 Federal Law on Accounting and Audit
      Private companies Federal Law on Accounting and Audit
      Governmental Federal Law on Accounting and Audit
      Not-for-profit Federal Law on Accounting and Audit
      Other (please describe)
      Other (please describe)


    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:


    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

      Law on Securities market - FB&H Parliament
      Bylaws on the grounds of the aforementioned Law, issued by the FB&H Securities Exchange Commission

    2. the Enacting body(ies)

      Parliament of F B&H
      Securities Exchange Commission

    3. the latest amendment date?

      12/2008


    35. How can IFAC obtain a copy of the Legal authority?
      http://www.komvp.gov.ba/bih/index.php?option=com_remository&Itemid=36&func=select&id=15


    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:
      Annual, semi-annual and quarterly (for issuers included in official listings).
      Reports are published in abbreviated form in daily newspapers, on the notice board and/or the Web page of the issuer, and submitted to the Commission in electronic form also.
      The Commission publishes the reports submitted on its own Web page.
      For annual reports, April 30 of the current year for the previous year
      For semi-annual, 45 days from the end of the semester.
      For quarterly, 45 days upon the expiry of the quarter.


    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:
      Mandatory annual audit of financial statements and, as an exception, in the case of status related changes, independent auditor's opinion is also required


    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 International Auditing Standards (ISA) - Commission for Accounting and Audit of BiH
      Other (please describe)
      Other (please describe)
      Other (please describe)

      a. How can IFAC obtain copies of these documents?

      http://www.fbihvlada.gov.ba/bosanski/zakoni/2009/zakoni%20registar%202009.htm
      http://www.komisija-rrbih.info/index.php?lang=hr


      b. Are the documents available in English?
      Yes   No


    Section 5B -- Standard-Setting (Commission for Accounting and Audit of BiH)


    44. For Commission for Accounting and Audit of BiH, 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

      Commission members are physical persons appointed by recognized professional bodies of accountants and auditors from the entities and the District. The founders of the Commission are the recognized professional bodies whose representatives are members of the Commission: the Association of Accountants and Auditors of RS, which is a member of IFAC, and the Association of Accountants, Auditors and Financial Workers of FBiH.

      b. Name of standards

      International Auditing Standards


    45. How many voting members does the standard-setting body have?
      7


    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:


    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.)?
      university professors in field of accounting and auditing
      renowned experts from the accounting and audit profession


    48. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      Commission members are physical persons appointed by recognized professional bodies of accountants and auditors from the entities and the District. The founders of the Commission are the recognized professional bodies whose representatives are members of the Commission: the Association of Accountants and Auditors of RS, which is a member of IFAC, and the Association of Accountants, Auditors and Financial Workers of FBiH.


    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?
      5 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)

      140.970,78

      Please enter the exchange rate used to calculate this number.

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

      1,54



    52. To what entity is the standard-setting body accountable?
      Council of Ministers of BiH.


    53. 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

      -


    54. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      12 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 Code of Ethics for professional accountants 01/2008 Union of Accountants, Auditors and Financial Workers of Federation of Bosnia and Herzegovina
      Professional Accountants in Business Code of Ethics for professional accountants 01/2008 Union of Accountants, Auditors and Financial Workers of Federation of Bosnia and Herzegovina
      Professional Accountants in the Public Sector Code of Ethics for professional accountants 01/2008 Union of Accountants, Auditors and Financial Workers of Federation of Bosnia and Herzegovina
      Other (please describe)

      a. How can IFAC obtain copies of these documents?

      by contact mail

      b. Are the documents available in English?
      Yes   No


    Section 6B -- Standard-Setting (Union of Accountants, Auditors and Financial Workers of Federation of Bosnia and Herzegovina)


    56. For Union of Accountants, Auditors and Financial Workers of Federation of Bosnia and Herzegovina, 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

      Union of Accountants, Auditors and Financial Workers of Federation of Bosnia and Herzegovina (hereinafter referred to as the a civic organization to foster both both implementation and improvment of the accoutancy and audit function

      b. Name of standards

      Code of Ethics for professional accountants


    57. How many voting members does the standard-setting body have?
      6


    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.)?
      university professors in field of accounting and auditing
      renowned experts from the accounting and audit profession


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


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


    62. For how many years has the standard-setting body been in existence?
      5 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)

      0

      Please enter the exchange rate used to calculate this number.

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

      1.54



    64. To what entity is the standard-setting body accountable?
      Commission for Accounting and Audit of BiH.


    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)?
      12 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:
      In universities and higher education institutions several courses of accounting and audit are being studied, from the basic to the advanced level.
      One could take for example the education at the university level in the area of accounting and audit within the Faculty of Economics of the University of Mostar.
      Several courses are provided. Accounting is a subject taught in the course of the second semester of the second year, while audit is a subject taught in the first semester of the fourth year. In addition to that, voluntary courses are provided in specialized areas, such as financial accounting, management accounting, cost accounting, accounting in financial institutions and accounting and information systems. The number of students studying accounting and audit is increasing constantly. In the year 2009/2010, the number of students within the financial and accounting course amounts to 280. University professors base their curriculum in accounting on the IFRS dating from 2004 (the version published and translated by the Association).


    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.

      Commission for Accounting and Audting of B&H
      Three years of work experience with the title of certified accountant are required.


    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
      Certified Accounting Technician: the candidate has to have at least four years of secondary school qualification
      Certified Accountant: the candidate has to have university level education or college level educational qualifications
      Authorized auditor: the candidate has to have university level education
      Professional examinations
      Certified Accounting Technician:
      - accepts the rights and obligations stipulated by the Code of Ethics for professional accounting experts, and specifically accepts the obligation of continuous professional development with the objective of renewing and updating professional and expert knowledge,
      - envisaged for this degree of professional title, and in compliance with Article 6 Paragraph 3 of the Law on Accounting and Audit of BiH.
      Subjects that need to be passed for this degree of title:
      -Introduction to Financial Accounting,
      -Cost Accounting and Management Accounting,
      -Management and Communications,
      -Information Technology and Applications.
      Certified Accountant: subjects that need to be passed for this degree of title:
      -Corporate Law and Taxation
      -Application of Management Accounting
      -Financial Reporting
      -Audit and Internal Control Systems
      -Application of Financial Management
      Authorized Auditor shall cover the substance from the following subjects, mandatorily:
      -Advanced Management Accounting
      -Audit of management and examination
      -Advanced Financial Reporting
      -Advanced Financial Management
      -Strategic Management
      Practical experience
      Certified Accounting Technician: have two years of practical experience working on accounting
      activities,
      Certified Accountant: least two years of practical experience working on activities of keeping business ledgers, of which at least one year on compiling financial statements.
      Authorized Auditor is an expert person who has graduated from the first cycle of regular study curriculum and holds the title of a Certified Accountant with at least three years of practical experience with that title, and who has passed exams envisaged for this that title.
      Final qualifying examination
      Exams comprise of test questions and the corresponding number of tasks, depending on the title in question.
      There is no limitation to the number of attempts.
      Knowledge, understanding and interpretation are valued equally.
      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.
      Commission of Accounting and Auditing BiH
      Union of Accountants, Auditors and Financial Workers of Federation of Bosnia and Herzegovina

    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.

      Administration of testing is performed by professional bodies on the grounds of the authorities of the Commission for Accounting and Audit in BiH.

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

      Commission of Accounting and Auditing BiH - 7
      Union of Accountants, Auditors and Financial Workers of Federation of Bosnia and Herzegovina-6

    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?

      5 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 contact mail
      http://www.srr-fbih.org

    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:


    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?
      Parialment of F BiH on recommendation of Federal 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)


    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?
      Federal Ministry of Finance


    81. Describe any additional licensing requirements for auditors of listed entities (e.g., additional education requirements, registration, etc.).
      listed entities can be auditing only auditor companies with two employees - licensed auditors



    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 - - -
      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?

      -

      b. Are the documents available in English?
      Yes   No


    Section 8B -- Standard-Setting (-)


    83. For -, 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

      -

      b. Name of standards

      -


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


    85. 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: -


    86. 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.)?
      -


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


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


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


    90. 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)

      0

      Please enter the exchange rate used to calculate this number.

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

      1,54



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


    92. 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

      -


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



    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 IFRS/IAS 05/2010 Commision of Accounting and Auditing BiH
      Other (please describe)
      Other (please describe)
      Other (please describe)
      Other (please describe)

      a. How can IFAC obtain copies of these documents?

      by contact mail and www.http://srr-fbih.org/msfi_mrs.asp

      b. Are the documents available in English?
      Yes   No


    Section 9B -- Standard-Setting (Commision of Accounting and Auditing BiH)


    95. For Commision of Accounting and Auditing BiH, 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

      Commission members are physical persons appointed by recognized professional bodies of accountants and auditors from the entities and the District. The founders of the Commission are the recognized professional bodies whose representatives are members of the Commission: the Association of Accountants and Auditors of RS, which is a member of IFAC, and the Association of Accountants, Auditors and Financial Workers of FBiH.

      b. Name of standards

      IAS - International Accounting Standards
      IFRS - International Financial Reporting Standards


    96. How many voting members does the standard-setting body have?
      7


    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:


    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.)?
      university professors in field of accounting and auditing
      renowned experts from the accounting and audit profession


    99. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      Commission members are physical persons appointed by recognized professional bodies of accountants and auditors from the entities and the District. The founders of the Commission are the recognized professional bodies whose representatives are members of the Commission: the Association of Accountants and Auditors of RS, which is a member of IFAC, and the Association of Accountants, Auditors and Financial Workers of FBiH.


    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?
      5 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)

      140.970,78

      Please enter the exchange rate used to calculate this number.

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

      1,54



    103. To what entity is the standard-setting body accountable?
      Council of Ministers of B&H.


    104. 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

      -


    105. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      12 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:
      The Securities Exchange Commission of the Federation of BiH.


    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:
      The Commission is under obligation to supervise behavior in compliance with the requirements concerning reporting which is mandatory for the issuers and participants in the capital market, and which results from the provisions of the Law on Securities Market, i.e. other laws and bylaws whose implementation is supervised by the Commission.


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

      -

    2. accounting and auditing standard-setting

      The Commission, in line with its legislated authorities, prescribes the contents, the conditions and the standards for disclosing financial statements and other information, including projections of future business operations, and the method of reporting to shareholders on operations of joint stock companies.

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

      The Commission monitors the behavior of issuers in the context of mandatory reporting pursuant to the Law on Securities Market



    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
      Sarajevo Stock Exchange (SASE)
      -
      -
      -



    Section 10B -- Stock Exchange
    Sarajevo Stock Exchange (SASE) Details


    110. For Sarajevo Stock Exchange (SASE), 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.

      -

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

      The Stock Exchange has to exclude the security from trading and file a report to the Securities Exchange Commission

    3. How enforcement actions are administered.

      -


    Section 10B -- Stock Exchange
    - Details


    110. For -, 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.



    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?



    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:
      Federation of Bosnia and Herzegovina Banking Agency [Agencija za bankarstvo Federacije Bosne i Hercegovine] (FBA)


    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:
      Law on Accounting and Audit of FB&H (Official Gazette 83/09) stipulates that accounting standards (IAS and IFRS) are applied to all legal persons. In the Law of Banks, Article 48, the bank and its subsidiaries are under obligation to keep, regularly, timely and continuously, accounting records of business operations and prepare annual financial statements, which adequately represent their activities and their financial condition, in the form and with the content stipulated by the law, International Accounting Standards and regulations of the Agency. Accuracy and reliability of information and reports filed by banks to the Agency is examined and controlled on the periodic basis in banks, in line with the adopted plan of on-site controls, and by independent external audit, once a year at the minimum


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

      The Agency does not regulate the auditing profession, except for the issuance of consents to banks on the selection of external auditors. The Law on Accounting and Audit in FBiH regulates the auditing profession.

    2. accounting and auditing standard-setting

      The Law on Accounting and Audit in FBiH stipulates mandatory application of accounting and auditing standards.

    3. review of financial statements prepared by listed entities

      -

    4. enforcement of accounting, reporting and auditing requirements

      There is open communication between the Agency and the external auditors, including holding, when necessary, meetings relating to the resolution of certain questions, problems and unclear issues that appear in the process of performance of audit or current bank supervision. In addition, meetings are organized, when necessary, with the external auditor and the bank, with the objective of discussing the issues of common interest concerning individual segments of the bank



    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.
      Federation of Bosnia and Herzegovina Banking Agency [Agencija za bankarstvo Federacije Bosne i Hercegovine] (FBA) Sector for Supervision over Operations of Microcredit Organizations


    116. What is the source of Legal authority of the regulatory authority(ies)?
      Law on Microcredit Organizations


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

      The Agency does not regulate the auditing profession, except for the issuance of consents to MCOs on the selection of external auditors. The Law on Accounting and Audit in FBiH regulates the auditing profession.

    2. accounting and auditing standard-setting

      The Law on Accounting and Audit in FBiH stipulates mandatory application of accounting and auditing standards.

    3. review of financial statements prepared by listed entities

      -

    4. enforcement of accounting, reporting and auditing requirements

      There is open communication between the Agency and the external auditors, including holding, when necessary, meetings relating to the resolution of certain questions, problems and unclear issues that appear in the process of performance of audit or current MCOs supervision. In addition, meetings are organized, when necessary, with the external auditor and the bank, with the objective of discussing the issues of common interest concerning individual segments of the MCOs



    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.
      Agency for Supervision of Insurance of the Federation of Bosnia and Herzegovina


    119. What is the source of Legal authority of the regulatory authority(ies)?
      The Law on Insurance Companies in Private Insurance (


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

      Rulebook on Minimal Contents of Auditors

    2. accounting and auditing standard-setting

      -

    3. review of financial statements prepared by listed listed entities

      -

    4. enforcement of accounting, reporting and auditing requirements

      Control of compliance of financial and auditors



    Section 10G -- Other Regulatory Authority


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


    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.

      Chamber of Auditors of the Federation B&H



    125. Under what authority does the organization conduct the program of quality assurance review?
      Federal Ministry of Finance
      Parliament of the Federation B&H


    126. Who performs the review (e.g., one firm reviewing another firm, staff from the national professional organization, contractors, or a combination of these)?
      Commision is appointment by Chamber of Auditors of the Federation BiH



    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.
      Federal Ministry of Finance - Financial Police


    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?
      -


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


    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.)?
      -


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


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


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

      0

      Please enter the exchange rate used to calculate this number.

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

      1,54 (specify currency)



    137. To what entity is the body accountable?
      Parliament of Federation B&H


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



     

     

    Disclaimer

    The information contained within the Part 1 Assessment of the Regulatory and Standard-Setting Framework Questionnaires, Part 2 SMO Self-Assessment Questionnaires, and Part 3 SMO Action Plans are based entirely on information provided to IFAC by the IFAC member or associate to which the information relates. Further, the information has been collected by IFAC for the exclusive use and benefit of IFAC and IFAC's members and associates, but is being made available through this website to the general public in the interest of transparency of the IFAC Member Body Compliance Program. While certain efforts are made to validate the information, IFAC undertakes no obligation to confirm or investigate the completeness or accuracy of any of the content of the questionnaire or action plan, now or at any time in the future. Persons accessing the questionnaire or action plan assume full responsibility for the use of the information set forth herein. IFAC does not make any express or implied warranties or representations whatsoever as to any information provided through the questionnaire or action plan, including, without limitation, that the information contained herein will be error-free. IFAC shall not be liable for any damages, including, without limitation, direct, indirect, incidental, special, punitive or consequential damages, that result in any way from your use or reliance on information provided in the questionnaire or action plan. If you need to rely on the information set forth herein for any purpose, you are urged to confirm the information set forth herein with other sources.

    * Indicates organizations that qualify to submit SMO Action Plans biennially

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