Institute of Certified Accountants of Montenegro
Associate | Established: 2006 | Associate since 2011
ICAM is an independent, voluntary professional association of accountants and auditors established in 2006 to promote accounting and auditing knowledge, abilities, and skills of its members in accordance with applicable international accounting, auditing, ethical, and quality control standards. It serves the public interest by strengthening and developing the accountancy profession to provide high-quality services. The institute’s membership is comprised by professional accountants, management accountants, and bookkeepers.
Statements of Membership Obligations (SMOs)
The Statements of Membership Obligations form the basis of the IFAC Member Compliance Program. They serve as a framework for credible and high-quality professional accountancy organizations focused on serving the public interest by adopting, or otherwise incorporating, and supporting implementation of international standards and maintaining adequate enforcement mechanisms to ensure the professional behavior of their individual members.
Although ICAM has no direct responsibility for quality assurance (QA) reviews, it promotes the adoption of a mandatory QA system in Montenegro, and assists with the improvement of the statutory framework to enable the...
Although ICAM has no direct responsibility for quality assurance (QA) reviews, it promotes the adoption of a mandatory QA system in Montenegro, and assists with the improvement of the statutory framework to enable the adoption of a QA system through its participation in the drafting of accounting and auditing legislation.
It proactively supports the implementation of a QA system through the design of a voluntary QA program, and provides training to members of its Quality Control Commission. In addition, it organizes seminars (in collaboration with other IFAC member bodies and the World Bank) for auditors on various technical and legal aspects of auditing, quality control, QA systems, and independent public oversight of the profession. In 2015, the seminar topic was on measuring performance and efficiency in improving audit quality controls.
Additionally, throughout 2015 and 2016, ICAM reports to have participated in workshops in cooperation with regional PAOs and the ICAEW. The workshops were designed to educate and enhance the expertise of ICAM Committee members on QA.
ICAM also designs and disseminates guidance material and offers continuing professional development courses so that members can prepare for the voluntary QA system. It periodically collects and analyzes information from auditors and audit firms to identify areas of weakness related to compliance with ISQC 1. ICAM reports that participation in the QA reviews is currently on a voluntary basis for educational purposes and will be mandatory when it is required by the Law on Accounting and Auditing. One percent of its members have been included in the reviews so far.
In addition, ICAM has translated and published IFAC’s Guide to Quality Control for Small-and Medium-Sized Practices, in collaboration with other IFAC members sharing the same language.
ICAM is encouraged to consider conducting a self-assessment of its voluntary QA review system against SMO 1 requirements and indicating actions that it plans to undertake in eliminating gaps, if any. The ICAM should also consider indicating the date when its QA review system was implemented and the number of reviews that have been conducted. ICAM is also encouraged to showcase the range of educational and training material provided to its members on audit quality and quality control-related topics. It would be beneficial for the institute to share with IFAC’s Quality and Membership staff the latest update on the progress by the Ministry of Finance and/or National Council on Accounting and Auditing with adopting a mandatory QA system in Montenegro and the adoption of the separate Laws on Accounting and Auditing. ICAM should also work with the relevant stakeholders to ensure that the requirements of the proposed QA review system are in line with those of SMO 1.
ICAM, with shared responsibility for initial professional development (IPD) and continuing professional development (CPD) requirements in Montenegro, has developed the Montenegrin National Accounting Educational Standard...
ICAM, with shared responsibility for initial professional development (IPD) and continuing professional development (CPD) requirements in Montenegro, has developed the Montenegrin National Accounting Educational Standard that is in line with the requirements of IES and, to be fully compliant with SMO 2, is in the process of implementing the revised IES by 2015.
In addition, ICAM offers initial and continuing professional development programs together with the Serbian Association of Accountants and Auditors and the University of Podgorica. It continues to improve its evaluation of practical experience, assessment of professional skills, and its CPD program.
In 2013, the World Bank, at the request of the Government of Montenegro, extended financial assistance in the form of a grant from the International Development Fund (IDF) to ICAM in order to support enhancements to the accounting education, curriculum, and examination. Through the grant, consultants from ARRC, Deloitte, and the ACCA, worked through ICAM to prepare a number of training manuals and materials on international standards. With the support of the consultants, ICAM also conducted seminars and trainings on a quarterly basis throughout 2015 with relevant stakeholders, including universities, the Ministry of Education, and the Chamber of Auditors, to inform them about the proposed changes to the curriculum and examination, and overall, promotion of the revised IES.
Lastly, ICAM indicates it updates members on new and revised IES and invites comments from its members on exposure drafts issued by the IAESB.
ICAM is encouraged to provide information in its SMO Action Plan on the role of the Ministry of Finance in the certification program, other bodies that are involved in developing and enforcing IPD and CPD requirements for professional accountants in Montenegro, and the legal foundation for IPD and CPD requirements. In the next round of the update of its SMO Action Plan, ICAM is encouraged to review the existing requirements and to report to IFAC’s Q&M staff on the extent to which other pre- and post-education requirements for all professional accountants and auditors in Montenegro are aligned with IES. The institute is also encouraged to promote the incorporation of IES requirements to other relevant stakeholders in Montenegro to ensure that IES apply to all professional accountants and auditors in the jurisdiction.
ICAM is responsible for the translation and publication of ISA, which have been adopted by law in Montenegro. It fulfills its role through a collaborative arrangement with the Serbian Association of Accountants and...
ICAM is responsible for the translation and publication of ISA, which have been adopted by law in Montenegro. It fulfills its role through a collaborative arrangement with the Serbian Association of Accountants and Auditors and the Association of Accountants and Auditors of Republika Srpska. Due to this arrangement, it supports the implementation of ISA in Montenegro by making Serbian translations available to its members although there is a time lag between translated ISA and the latest versions published by the IAASB. The ICAM reports that its members apply the 2011 version of translated ISA which is the most recently translated version.
The institute offers technical courses and organizes knowledge sharing and networking events to educate auditors on a range of audit-related topics. For example, in 2015 the ICAM reports to have conducted its first symposium which included discussions on the application of the new EU Audit Directive and organized its X Congress of Accountants and Auditors to improve management processes and promote knowledge exchange.
ICAM periodically reviews and revises its education programs to incorporate new and amended IAASB standards and other updates. It also informs members about amendments to the standards via publications, such as the institute’s magazine, and in seminars. Lastly, ICAM solicits members’ feedback on IAASB Exposure Drafts.
ICAM is encouraged to consider how it can further reduce the length of time it takes to translate ISA into the Serbian language. The institute is also encouraged to participate in the international standard-setting process by providing comments on IAASB exposure drafts.
The IESBA Code of Ethics is adopted as the national ethical requirements as per the Law of Accounting (“Official Gazette of Montenegro” No. 52/16) and the Decree on entrusting of affairs of the public administration...
The IESBA Code of Ethics is adopted as the national ethical requirements as per the Law of Accounting (“Official Gazette of Montenegro” No. 52/16) and the Decree on entrusting of affairs of the public administration bodies competent for Accounting and Audit (“Official Gazette of Montenegro” No. 44/07). The ICAM shares responsibility for the implementation of IESBA’s Code of Ethics in Montenegro and raises awareness of the importance of its members abiding by this Code of Ethics through seminars and the distribution of publications. It makes available translations of the IESBA’s Code of Ethics through a formal agreement with the Serbian Association of Accountants and Auditors (AAAS) and the Association of Accountants and Auditors of Republika Srpska (AAARS). The ICAM reports to have translated and published the 2013 version of IESBA’s Code of Ethics in cooperation with AAAS and AAARS.
It supports the implementation of the Code of Ethics through seminars geared toward practical application of the Code. In 2015, the institute organized two seminars on the Code of Ethics. It also informs members on Code amendments through its initial professional education and continuing professional development programs.
More information is needed to determine whether there is an ongoing process in place to translate and disseminate amendments issued by the IESBA between complete translations of the Code of Ethics and whether the IFAC Translation Policy is being followed.
ICAM is encouraged to clarify in its SMO Action Plan the scope of mandatory application of the Code of Ethics and to further showcase the training and educational material and opportunities that it provides to enhance member knowledge, understanding, and compliance with the Code of Ethics.
ICAM supports the adoption of IPSAS in Montenegro and is actively engaged in raising awareness of the importance of adoption and implementation of accrual-basis IPSAS. It continues to participate in dialogues with the...
ICAM supports the adoption of IPSAS in Montenegro and is actively engaged in raising awareness of the importance of adoption and implementation of accrual-basis IPSAS. It continues to participate in dialogues with the Ministry of Finance—the entity response for defining the applicable public sector accounting standards—and the State Audit Institution on the importance of public financial management reform. It also lobbies political entities to prepare financial statements on an accrual basis. Moreover, the institute issued a request to the Ministry of Finance to expand its authority to include the public sector.
ICAM conducts seminars on the application of IPSAS to public sector accountants, and uses various publications and learning events to highlight key topics on IPSAS implementation. Beginning in 2016, the ICAM reports it is conducting ongoing training in cooperation with the Government of Montenegro, the Chartered Institute of Public Finance and Accountancy (CIPFA) and the Center of Excellence in Finance (CEF). This is part of a three-phased training system with phase one focusing on national laws related to taxation and budget, phase two on financial reporting in accordance with IPSAS, and phase three on management accounting in accordance with IPSAS. ICAM indicates its staff will be trainers during phases two and three which were expected to commence in 2017.
ICAM uses the 2013 version of IPSAS that it translated (along with the Serbian Association of Accountants and Auditors and the Association of Accountants and Auditors of Republika Srpska) to prepare continuing professional development courses for its members.
ICAM is encouraged to continue promoting the adoption of accrual IPSAS in Montenegro and to participate in the international standard-setting process by providing comments on IPSASB exposure drafts.
The ICAM is responsible for investigative and disciplinary (I&D) processes for its members and has established an operational system. The ICAM completed a review of its I&D system to identify areas of improvement...
The ICAM is responsible for investigative and disciplinary (I&D) processes for its members and has established an operational system. The ICAM completed a review of its I&D system to identify areas of improvement and to strengthen the institute’s compliance with SMO 6 requirements. ICAM collaborates with other professional accountancy organizations in the region to share experiences and knowledge on disciplinary procedures. In January 2016, ICAM visited the AAARS alongside other regional PAOs to discuss disciplinary matters related to violations of the Code of Ethics.
ICAM raises awareness amongst its members and the public about the I&D system through publications, seminars, and other media to encourage adherence to the rules of professional conduct and to educate individuals on how to report violation of the rules.
ICAM is encouraged to showcase the range of training opportunities that it provides in initial and continuing professional education programs to enhance members understanding of their professional responsibilities and the I&D system. ICAM should consider promoting the establishment of an I&D system in Montenegro for all professional accountants. In addition, ICAM is encouraged to provide more information on the existing framework at the jurisdiction level.
ICAM shares responsibility for the implementation of IFRS, which are required by law. It supports the application of the standards in Montenegro through its collaborative agreement with the Serbian Association of...
ICAM shares responsibility for the implementation of IFRS, which are required by law. It supports the application of the standards in Montenegro through its collaborative agreement with the Serbian Association of Accountants and Auditors (SAAA) and the Association of Accountants and Auditors of Republika Srpska (AAARS) to translate and publish new and revised IFRS to supplement the 2009 Serbian translation of IFRS. The institute states in its 2016 SMO Action Plan that it offers periodic seminars on all issued amendments to the standards because of the time lags in translation. The institute publishes and makes available to members implementation guidance in the form of a manual on the practical application of specific IFRS.
ICAM, SAAA, and AAARS also translated the 2013 version of IFRS for SMEs, which was made available to their members.
ICAM continues to organize training on the implementation of new and amended IFRS for both accountants and auditors in the public and private sectors.
ICAM is encouraged to consider ways to reduce the time lag between the issuance of new IFRS and their translation into Serbian and to participate in the international standard-setting process by providing comments on IASB Exposure Drafts and other pronouncements, which would be an extension of the comments it already provides in the institute’s magazine. It is also encouraged to showcase how it includes standard-related topics in its initial professional education program.
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