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.

    Croatian Audit Chamber

     

    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:

      Republic of Croatia


    2. Name of member body:
      Croatian Audit Chamber

      Or please specify name:
      Croatian Audit Chamber



    3. Individual responsible for preparation:
      Katarina Lasic; (Gordana Grohovac)


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

      05 / 2009



    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.):
      Non-applicable



    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: Companies Act (Zakon o trgovackim drustvima)
      b). the Enacting body: Croatian Parliament
      c). date the Act or Code came into force: 11 / 1993


    25. How can IFAC obtain a copy of the Act or Code?
      www.nn.hr; www.mfin.hr; www.mvpei.hr


    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 Balance Sheet, Profit and Loss Account, Changes in Equity, Cash Flow and Notes to financial statements. International Financial Reporting Standards.
      Private companies Balance Sheet, Profit and Loss Account, Changes in Equity, Cash Flow and Notes to financial statements. Croatian Financial Reporting Standards, if they have to make consolidated statements must use International Financial Reporting Standards.
      Governmental Balance Sheet, Profit and Loss Account, Changes in Equity, Cash Flow and Notes to financial statements. If their revenues exceed 260,000,000.00 HRK and assets exceeds 130,000,000.00 HRK and/or has more than 250 employees reporting pursuant IFRS. If that criteria is not met/exceeded reporting pursuant to Croatian Financial Reporting Standards (starting from 2008, prior to that pursuant International Accounting Standards).
      Not-for-profit Balance Sheet, Profit and Loss Account and Notes to financial Statements. Reporting pursuant to Act on Non-profit organizations accounting.
      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 International Standards on Auditing
      Private companies If their revenues exceed 30,000,000.00 HRK . Standards: International Standards on Auditing.
      Governmental If their revenues exceed 30,000,000.00 HRK . Standards: International Standards on Auditing. Also liable to State Audit pursuant to INTOSAI standards.
      Not-for-profit Liable to State Audit pursuant to INTOSAI standards.
      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:
      Statutory audit of banks and insurance companies every 4 years.



    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 Croatian Financial Services Supervisory Agency (Official Gazette 140/2005); Law on Croatian National Bank (Official Gazette 36/2001).

    2. the Enacting body(ies)

      Croatian Financial Services Supervisory Agency - a state agency responsible for supervision of financial institutions and stock market. Croatian National Bank - central state bank responsible for supervision of banking and monetary system.

    3. the latest amendment date?

      Amendments of Law on Croatian National Bank published in the Official Gazette (Narodne Novine) number 135 dated December 13, 2006, put in act December 21, 2006.


    35. How can IFAC obtain a copy of the Legal authority?
      www.nn.hr; www.mfin.hr; www.mvpei.hr


    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:
      For banks: supplemental information prescribed from Croatian National Bank (Law on banks Official Gazette 84/02 and 141/06).
      For insurance companies: Supplemental information prescribed by Insurance Law - Official Gazette 151/05.


    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: 1 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:
      For banks and insurance companies.



    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 audit; International Standards on Auditing 12/2008 Croatian Audit Chamber - since January 2006 (previously Croatian Association of Auditors)
      Other (please describe) Private Companies Law on audit; International Standards on Auditing 12/2008 Croatian Audit Chamber - since January 2006 (previously Croatian Association of Auditors)
      Other (please describe) Govermental companies Law on audit; International Standards on Auditing 12/2008 Croatian Audit Chamber - since January 2006 (previously Croatian Association of Auditors)
      Other (please describe)

      a. How can IFAC obtain copies of these documents?

      Law on Audit - Official Gazette 146/05 and 139/08

      b. Are the documents available in English?
      Yes   No


    Section 5B -- Standard-Setting (Croatian Audit Chamber - since January 2006 (previously Croatian Association of Auditors))


    44. For Croatian Audit Chamber - since January 2006 (previously Croatian Association of Auditors), 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

      Independent institution established by Croatian Parliament responsible for unification of audit profession

      b. Name of standards

      International Standards on Auditing


    45. How many voting members does the standard-setting body have?
      Non-applicable. Croatian Audit Chamber directly applies IFAC standards and has a Committee for ethics and audit standards which is responsible for translation of standards.


    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: President of the Chamber - voluntary, 3 employees (Secretary of the Chamber, Professional cooperate for quality control, Bookkeeper)


    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.)?
      The Administrative Council of Croatian Audit Chamber formed an Audit Standards and Ethics Body which has 3 members. They have been selected pursuant to best person for the job criteria and geographical representation.


    48. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      Administrative Council of Croatian Audit Chamber.


    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?
      2 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)

      Please enter the exchange rate used to calculate this number.

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



    52. To what entity is the standard-setting body accountable?
      The Audit Standards and Ethics Body is accountable to Administrative Council of Croatian Audit Chamber and to Public Audit Oversight Board.


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

      Since the Croatian Law on Audit recently changed due to adjustments that have to be made to comply with the 4th and 8th Directive of European Union, the Audit Standards and Ethics Body's processes have not yet been fully determined. By applying for IFAC membership, the Croatian Audit Chamber hopes to speed up the processes and make a detailed plan and monitoring of the Body's activities.(translation of standards and control over use)

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

      non-applicable (refer to 53.a.)

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

      non-applicable (refer to 53.a.)

    4. other relevant due process activities

      non-applicable (refer to 53.a.)


    54. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      30 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
      Professional Accountants in Business
      Professional Accountants in the Public Sector
      Other (please describe) Auditors Law on Audit 12/2008 Croatian Audit Chamber - Audit Standards and Ethics Body

      a. How can IFAC obtain copies of these documents?

      Pursuant to the Law on Audit the Croatian Audit Chamber is responsible to bring in act Code of professional ethics for auditors. The Chamber has directed its auditors to refer to IFAC Code of Professional Ethics.

      b. Are the documents available in English?
      Yes   No


    Section 6B -- Standard-Setting (Croatian Audit Chamber - Audit Standards and Ethics Body)


    56. For Croatian Audit Chamber - Audit Standards and Ethics Body, 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

      Audit Standards and Ethics Body is a Body formed by Administrative Council inside Croatian Audit Chamber.

      b. Name of standards

      The Audit Standards and Ethics Body has directed the auditors to refer to IFAC Code of Ethics.


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


    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.)?
      The Administrative Council of Croatian Audit Chamber formed an Audit Standards and Ethics Body which has 3 members. They have been selected pursuant to best person for the job criteria and geographical representation.


    60. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      Administrative Council of Croatian Audit Chamber.


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


    62. For how many years has the standard-setting body been in existence?
      2 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?
      To Administrative Council of Croatian Audit Chamber and Public Audit Over sight Board.


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

      Croatian Audit Chamber is in process of translating IFAC Code of Ethics (up to now, the Croatian Audit Chamber has only referred its members to use IFAC's Code in english language).

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

      non-applicable

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

      non-applicable

    4. other relevant due process activities

      non-applicable


    66. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      30 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:
      Chartered auditor: Bachelor Degree, 3 years of practice in an audit firm, 2 years supervised by mentor-chartered auditor.
      Organized training within Audit Chamber in cooperation with university institution, followed by examination to gain certificate for chartered auditor.
      Systematic continued education of chartered auditors.


    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.

      Explained in answer to question 67.


    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
      Any Bachelor Degree
      Professional examinations
      Education pursuant to prescribed program and classes.
      Practical experience
      3 years in an audit firm, from which 2 years supervised by mentor-chartered auditor.
      Final qualifying examination
      Final education followed by chartered auditor's exam in written and oral form pursuant to the 8th Directive which regulates the profession in European Union.
      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) Croatian Audit Chamber, Audit Public Oversight Boa


    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.
      Croatian Audit Chamber - Professional Training and Continuous Education Body with approval of Public Audit Oversight Board

    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.

      Croatian Audit Chamber has rules on education and has an appointed a Professional Training and Continuous Education Body which organizes the educational programs. A special Committee is formed to bring the program and follows through the education. The Committee is made of acknowledged professors of economic profession and experienced chartered auditors. The program has to be approved by Public Audit Oversight Board.

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

      The Body responsible for education has 3 members + 5 members of Committee for education and supervision of that Body is performed by Administrative Council which has 7 members, Audit Public Oversight Board has 7 members.

    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: The Committee for education is paid for their work, the Professional Training and Continuous Education Body is voluntary, Public Audit Oversight Board paid by the Government Budget

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

      2 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?
      The requirements for education have been overtaken from the 8th Directive of European Union which regulates Audit profession in members of European Union and have been fully accepted and integrated in legal system of Republic of Croatia.

    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?
      Croatian Audit Chamber


    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)
      Continued professional development, minimum 24 hours within one year.


    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?
      Croatian Audit Chamber - Administrative Council, Education Committee.


    81. Describe any additional licensing requirements for auditors of listed entities (e.g., additional education requirements, registration, etc.).
      no additional requirements



    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?

      Answer to question 82: Croatian Audit Chamber is responsible for commercial audit, Republic of Croatia is responsible for public sector and has established state audit.

      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
      Other (please describe)
      Other (please describe)
      Other (please describe)
      Other (please describe)

      a. How can IFAC obtain copies of these documents?

      Answer to question 94: Croatian Audit Chamber is not authorized for private sector accounting standards. Republic of Croatia established a committee for standards responsible for implementing standards in accounting field.

      b. Are the documents available in English?
      Yes   No



    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:
      Parliament of Republic of Croatia appointed the authority - Croatian Financial Services Supervisory Agency for supervision of financial system.


    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:
      Croatian Financial Services Supervisory Agency prescribes form and content of financial statements for their needs for listed companies. Also, Croatian Financial Services Supervisory Agency prescribes form and content for reporting of financial institutions that are not in banking system, especially insurances and leasing companies, where there are also prescribed auditing requirements.


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

      Demands audit of insurance companies, leasing companies and prescribes form and content of supplemental reporting.

    2. accounting and auditing standard-setting

      Same accounting and auditing standards are applied as for other companies: Croatian Financial Reporting Standards (prior to 2008 International Accounting Standards), International Financial Reporting Standards and for audit International Standards on Auditing.

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

      1. Audit is responsible for review of financial statements.
      2. It is legally regulated that Supervisory bodies of Croatian National Bank conduct surveillance of the banking system.
      3. Croatian Financial Services Supervisory Agency is responsible for surveillance of insurance, leasing and pension companies.
      4. It is possible to disown the Audit Report and ask for a different auditor to perform the audit.




    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
      Zagreb Stock Exchange



    Section 10B -- Stock Exchange
    Zagreb Stock Exchange Details


    110. For Zagreb 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.

      non-applicable

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

      non-applicable

    3. How enforcement actions are administered.

      non-applicable



    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?

      Croatian Audit Chamber pursuant to the article 43 of Law on Audit and Audit Public Oversight Board established by Republic of Croatia Government

    2. The number of members on the oversight body

      Croatian Audit Chamber's Oversight Body: It is formed by 7 acknowledged chartered auditors pursuant to the plan and dynamics of oversight. Every audit firm is liable to oversight minimum once in 6 years, for those who perform audits of banks and insurance companies minimum once in 3 years.

      Audit Public Oversight Board: has 7 members empowered by Republic of Croatia Government


    3. Its powers

      Croatian Audit Chamber oversees whether chartered auditors, audit companies and independent auditors perform audit pursuant to Law on Audit, ISA and other audit regulations, whether they meet the criteria of independence, quality and quantity of engaged human resources, charged audit fees, internal quality control, whether criteria for gaining chartered auditor certificates are met and gaining work permits, if the conditions to be recorded in the related Registry are met, has the transparency report been published pursuant to Law on audit. Upon performed oversight the Croatian Audit Chamber makes the records and forwards it to Chamber Committees which proceeds with the case pursuant to their authority from Law on Audit.

      Audit Public Oversight Body is authorized for oversight over Croatian Audit Chamber, chartered auditors, audit companies and independent auditors. Its duty is to oversee: issuance and abating audit certificates, implementation and application of ISA, Professional Ethics, internal control, continuous education through Chamber programs, organizing exams for auditor certification, nostrification of foreign documents - certifications, ensuring quality control, methodology brough by the Chamber for quality control, cudit fees, disciplinary procedures, oversight of translations and publication performed by the Chamber.


    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

      The oversight is continually performed by direct oversight in the audit firm.

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

      Pursuant to the Law on Audit.

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

      Croatian Audit Chamber is accountable to the Audit Public Oversight Board.


    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 Law on Croatian National Bank


    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:
      non-applicable


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

      All banks are liable to commercial audit of financial statements.

    2. accounting and auditing standard-setting

      For banks - International Financial Reporting Standards and International Standards on Auditing

    3. review of financial statements prepared by listed entities

      The audit is conducted by chartered auditors

    4. enforcement of accounting, reporting and auditing requirements

      Reporting and public announcements obligations which regulated by the Law. financial statements must be pursuant to International Financial Reporting Standards



    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.
      Law on Insurance Law on obligatory and voluntary pension funds Law on Leasing


    116. What is the source of Legal authority of the regulatory authority(ies)?
      Laws are brought by the Parliament


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

      The audit profession is regulated by the Law on Audit (brought by the Parliament) with regards to related laws concerning profession.

    2. accounting and auditing standard-setting

      International Financial Reporting Standards, International Standards on Auditing.

    3. review of financial statements prepared by listed entities

      the Audit reviews financial statements.

    4. enforcement of accounting, reporting and auditing requirements

      Reporting is conducted by public announcements.



    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.
      Answered in Section 10E


    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.
      Answered in Section 10E


    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.

      Croatian Audit Chamber performs quality assurance review of chartered auditors, audit companies and independent auditors. The quality assurance is prescribed by law and the Chamber is still in progress of organizing quality assurance. IBRD accepted Chamber's request and granted funds for drafting methodology of performing quality assurance and to educate individuals for conducting quality assurance.



    125. Under what authority does the organization conduct the program of quality assurance review?
      Pursuant to Law on Audit.


    126. Who performs the review (e.g., one firm reviewing another firm, staff from the national professional organization, contractors, or a combination of these)?
      Employees of Croatian Audit Chamber, chartered auditors with minimum 5 years of experience in audit, authorized by Chamber's Administrative Board with prior approval by Audit Public Oversight Board.



    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.



    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)

      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?



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



     

     

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