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.

    The Slovenian Institute of Auditors

     

    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:

      SLOVENIA


    2. Name of member body:
      The Slovenian Institute of Auditors

      Or please specify name:



    3. Individual responsible for preparation:
      Meta Duhovnik, Ph.D., Senior Technical Adviser


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

      05 / 1995



    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.):
      FEE - associated member



    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
      b). the Enacting body: Ministry of Economy
      c). date the Act or Code came into force: 07 / 1993


    25. How can IFAC obtain a copy of the Act or Code?
      The Slovenian Institute of Auditors can submit a copy in Slovenian language. The translation in Enlish is not official and the last amendments are not included.


    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): partnerships: general partnership, limited partnership and silent partnership
      Private companies   Other (please specify): companies with share capital: limited liability company, joint stick company and limited partnership with share capital.
      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 With the change of Companies Act in December, 2004 Slovenian Accounting Standards are mandatory in Slovenia with the following exceptions: On the basis of Companies Act listed companies preparing consolidated accounts are obliged to prepare financial statements in accordance with International Financial Reporting Standards (IFRSs) for the periods beginning on or after January 1st, 2005. The listed companies with only debt securities are obliged to use IFRSs for the periods beginning on or after January 1st, 2006. Other companies can use IFRSs on the basis of the conclusion of shareholders assembly for the periods beginning on or after January 1st, 2006. Banks are obliged to use IFRSs for the periods beginning on or after January 1st, 2006 and insurance companies are obliged to use IFRSs for the periods beginning on or after January 1st, 2007 at the latest.
      Private companies Slovenian Accounting standards
      Governmental Accounting Act
      Not-for-profit Slovenian Accounting standards or Accounting Act
      Other (please describe) Private institutions others than organized under Companies Act. Slovenian Accounting Standards
      Other (please describe)


    29. Is there a statutory requirement for the following entities to be audited? If YES, describe the requirement including the auditing standards to be followed:
      Please check all that apply.
        No Yes (If YES, please describe)
      Listed entities Statutory audit is required by Companies Act. According to the Auditing Act the Internatinal Standards on Auditing (ISAs) are used to perform the audit.
      Private companies Big and medium-sized; accoring to ISAs. There is size test for companies required to have their financial statements audited (the size test is in line with the EU 4th Directive)
      Governmental
      Not-for-profit
      Other (please describe) Private institutions others than organized under Companies Act.
      Other (please describe) Private institutions others than organized under Companies Act.


    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: 1 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

      Companies Act - the requirements are the same as for non-listed private companies.

    2. the Enacting body(ies)

      National Assembly of the Republic of Slovenia.

    3. the latest amendment date?

      May 28th, 2004.


    35. How can IFAC obtain a copy of the Legal authority?
      The Slovenian Institute of Auditors can submit a copy. The version in English is not offical and the last amendments are not included.


    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:


    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:



    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 ISAs IAASB
      Other (please describe) ISAs IAASB
      Other (please describe)
      Other (please describe)

      a. How can IFAC obtain copies of these documents?

      Note: In Slovenia ISAs are mandatory on the legal basis. There are no special Slovenian auditing standards so far. Other Slovenian auditing rules are responsibility of the Auditing Council..

      b. Are the documents available in English?
      Yes   No


    Section 5B -- Standard-Setting (IAASB)


    44. For IAASB, 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

      ISAs


    45. How many voting members does the standard-setting body have?
      N/A


    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: N/A


    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.)?
      N/A


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


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


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

      N/A

      Please enter the exchange rate used to calculate this number.

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

      N/A



    52. To what entity is the standard-setting body accountable?
      N/A


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

      N/A

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

      N/A

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

      N/A

    4. other relevant due process activities

      N/A


    54. Approximately how many days per year does the standard-setting body meet in full session (including teleconferences)?
      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 IFAC Ethical Code, Code of Professional Conduct 03/1994 Auditing Council
      Professional Accountants in Business Code of Professional Conduct 04/1995 Council of Experts
      Professional Accountants in the Public Sector
      Other (please describe)

      a. How can IFAC obtain copies of these documents?

      The documents are avilable on the web site: www.si-revizija.si

      b. Are the documents available in English?
      Yes   No


    Section 6B -- Standard-Setting (Auditing Council)


    56. For Auditing Council, 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

      It is the body of the Slovenian Institute of Auditors, covering the auditing field. The institute is private organization with public authority.

      b. Name of standards

      Code of Professional Conduct of Auditors.


    57. How many voting members does the standard-setting body have?
      Nine (9)


    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: The Director of the Institute, who is in his capacity a member of the Auditing Council,, is employed at the Institute. Other members are elected.


    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.)?
      Five members of the Auditing Council are licenced certified auditors (the title comparable with CPA), the Director of the Institute is a member by function and the remaining three members are representatives of the interested public and shall have appropriate knowledge and experience from the field of accountancy and finance.


    60. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      The licenced certified auditors are appointed by certified auditors. The members of the interested public are appointed by the minister of finance, two of them on the proposal of the Economic Chamber of Slovenia.


    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?
      3 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)

      18,300

      Please enter the exchange rate used to calculate this number.

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

      195.6014



    64. To what entity is the standard-setting body accountable?
      It is accountable to the National Assembly of the Republic of Slovenia.


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

      Yes.

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

      The meetings can be either public or private depending upon the subject.

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

      For the approval of any decision the majority is required. Usually it is consensus.

    4. other relevant due process activities

      The IFAC Code of Ethics has been translated. The last translation is dated March, 2003.


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


    Section 6B -- Standard-Setting (Council of Experts)


    56. For Council of Experts, 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

      It is the body of the Institute.

      b. Name of standards



    57. How many voting members does the standard-setting body have?
      Eleven (11).


    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.)?
      They are elected.
      Nine members are appointed by the persons having acquired one of the professional titles awarded by the Institute, while two members are appointed by university institutions from among the university staff.


    60. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      Look at the answer to the Q59.


    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?
      10 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)

      12.444

      Please enter the exchange rate used to calculate this number.

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

      195.6014



    64. To what entity is the standard-setting body accountable?
      To the National Assembly of the Republic of Slovenia.


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

      Yes.

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

      The meetings are either public or private depending upon the subject.

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

      For the approval of any decision the majority is required. Usually it is consensus.

    4. other relevant due process activities



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



    Section 7 -- Education


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

    Section 7A -- Education Requirements


    67. Please describe in general terms the education system in your country including the different stages of education from early childhood education through to tertiary level study. Please indicate which aspects / levels are compulsory as part of the national education system:
      - primary school - 9 years
      - secondary school - 4 years
      - university - 4 years so far, but it is changing to 5 years (3 + 2) including masters degree (the last 2 years)
      - master's degree (according to the "old" system - 4 years' university)
      - doctor's degree


    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.

      - Auditing Act determines the requirements for auditors.
      - There is no legal authority describe the requirements, including any relating to education, experience or qualifications, for accountants.


    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
      university degree
      Professional examinations
      13 additional exams
      Practical experience
      5 years in the auditing company
      Final qualifying examination
      after 13 exams
      Other (please describe) Continuing professional education (the licence is issued for two years).


    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) The education requirements are established by law.


    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.
      Auditing Council

    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.

      See Q. 56-65

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

      See Q. 56-65

    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?

      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?

    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?
      Auditors Council set requirements to obtain the license in accordance with the Auditing Act.


    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?
      The member body - The Slovenian Institute of Auditors.


    81. Describe any additional licensing requirements for auditors of listed entities (e.g., additional education requirements, registration, etc.).
      According to the Auditing Act - article 46 an auditor - solo-practitioner shall not carry out the audits of listed entities. Such audits should be performed by auditing companies.



    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 Accounting Act 04/2002 Ministry of Finance
      Ministry/department Accounting Act 04/2002 Ministry of Finance
      Statutory authority/agency Accounting Act 04/2002 Ministry of Finance
      Profit entity owned by government Slovenian Accounting Standards 02/2003
      State governments Accounting Act 04/2002 Ministry of Finance
      Local governments Accounting Act 04/2002 Ministry of Finance
      Other (please describe)
      Other (please describe)

      a. How can IFAC obtain copies of these documents?

      The Institute can submit a copy of Slovenian Accounting Standards and Accounting Act.

      b. Are the documents available in English?
      Yes   No


    Section 8B -- Standard-Setting (Ministry of Finance)


    83. For Ministry of Finance, 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

      N/A

      b. Name of standards

      N/A


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


    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: N/A


    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.)?
      N/A


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


    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)

      N/A

      Please enter the exchange rate used to calculate this number.

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

      N/A



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


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

      N/A

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

      N/A

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

      N/A

    4. other relevant due process activities

      N/A


    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 Slovenian Accounting Standards (SAS) 10/2003 Slovenian Institute of Auditors - Council of Experts
      Other (please describe)
      Other (please describe)
      Other (please describe)
      Other (please describe)

      a. How can IFAC obtain copies of these documents?

      The Slovenian Institute of Auditors can submit a copy.

      b. Are the documents available in English?
      Yes   No


    Section 9B -- Standard-Setting (Slovenian Institute of Auditors - Council of Experts)


    95. For Slovenian Institute of Auditors - Council of Experts, 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

      The Council of Experts is the body at the Slovanian Institute of Auditors.

      b. Name of standards

      Slovenian Accounting Standards.


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


    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.)?
      They are elected.
      Nine members are appointed by the persons having acquired one of the professional titles awarded by the Institute, while two members are appointed by university institutions from among the university staff.


    99. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      Look at the answer to the Q98.


    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?
      10 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)

      12.444

      Please enter the exchange rate used to calculate this number.

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

      195.6014



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


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

      Exposure drafts are exposed for at least 3 months in two professional journals (The Auditor in English, Revizor in Slovenian)and on the Institute web site.

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

      The meetings are either public or private, depending upon the subject.

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

      The majority is required to approve final standards.

    4. other relevant due process activities

      The Slovenian standards are based on IFRSs.


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



    Section 10 -- Monitoring (Quality Assurance) and Enforcement


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

    Section 10A -- Securities Market Regulatory Authority


    106. Name the authority that regulates the securities market:
      Securities Market Agency


    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:
      In accordance with the Securities Market Act the Securities Market Agency have powers to impose fines in case of non-compliance with accounting and disclosure requirements.


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

      No role.

    2. accounting and auditing standard-setting

      No role.

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





    Section 10B -- Stock Exchange


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



    Section 10B -- Stock Exchange
    Ljubljana Stock Exchange Details


    110. For Ljubljana 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.

      Through special stock exchange's rules prepared on the basis of Securities Market Act.

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

      Sanctions: internal warning, public warning and in extreme case the withdrawal from the stock exchange.

    3. How enforcement actions are administered.

      By a special body at the Ljubljana Stock Exchange.



    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?

      The oversigt body is the Auditing Council at the Slovenian Institute of Auditors. It decides on the issue and withdrawal of licences for auditing activities and the tasks of certified auditor and auditor. It also monitors the auditing of financial statements. Besides it
      adopts the rules of the auditing profession, lays down the criteria for obtaining the certificate of professional competence to perform the tasks of certified auditor and auditor and performs other professional tasks related to the development of the auditing profession.

      Note:
      The Slovenian Auditing profession is waiting for the 8th Directive to be adopted.
      Comparing with the proposed 8th Directive the existing public oversight of the auditing profession in the form of Auditing Council at the Slovenian Institute of Auditors meets the following criteria of the public oversight (Article 31):
      The Auditing Council have the ultimate responsibility for the oversight of :
      a) the approval and registration of statutory auditors and audit firms, and
      b) the adoption of standards on ethics, internal quality control of audit firms and auditing, and
      c) continuous education, quality assurance and investigative and disciplinary systems.
      The Auditing Council has the right, where necessary, to conduct investigations of statutory auditors and audit firms, and to take appropriate disciplinary action.
      Although the system of public oversight is funded by the audit firms, it is secure and free from any possible undue influence by statutory auditors or audit firms. Audit firms pay the Institute a supervision fee, which is set by the Institute, to cover supervision costs. The sum of the fees to be paid by all audit firms for an individual year should not exceed the actual costs of supervision for that year. If an audit firm fails to pay the fee within the period stipulated by the Institute, the Institute shall request payment from the audit firm by way of a written decision.
      Although the Auditing Council currently has a majority of non-practitioners, this occurs solely by chance. Hence, a formal, statutory requirement for the Auditing Council to have a majority of non-practitioners is necessary. Furthermore, the system of public oversight should be made more transparent, and annual work programs and activity reports should be published. The two issues must be addressed so that the Auditing Council can fully meet the requirements set forth in the proposed 8th EU Company Law Directive.


    2. The number of members on the oversight body

      Nine members.

    3. Its powers

      Look at the answer to the Q 111 a.

    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

      It supervises the auditing companies by
      1. monitoring, collecting and verifying the reports and notifications of auditing companies and other persons which are under the provisions of the Auditing Act and/or other laws obliged to report to the Institute and/or notify the Institute of particular facts and circumstances;
      2. reviewing the operations of auditing companies and the work of certified auditors and auditors;
      3. imposing measures of supervision.


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

      For auditing companies:
      1. the order for elimination of the violation;
      2. the imposition of additional measures;
      3. the withdrawal of the licence.
      For certified auditors and auditors:
      1. the public reprimand;
      2. the withdrawal of the licence.


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

      The Institute and inside of the Institute the Auditing Council has to report annually to the National Assembly of the Republic of Slovenia.


    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:
      Bank of Slovenia. Special requirements of the Bank of Slovenia in connection with financial reporting are reflected in additional regulations issued on the basis of Banking Act and prescribing: - the sorts and schemas of financial statements, - the detailed substance of annual report, - the way of valuation of accounting items and the way of preparing accounting reports, - the detailed substance and the way of submitting monthly reports about the accounting balances and transactions to the Bank of Slovenia.


    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:
      The basis legal requirements are set down in Banking Act. According to this act the annual report of the bank and the consolidated annual report is to be audited by the certified auditor with the licence of the Slovenian Institute of Auditors.


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

      No role.

    2. accounting and auditing standard-setting

      Additional requirements (to the accounting standards)for banks are prescribed on the basis of the Banking Act. As well as additional requirements for auditor's reporting (long-form report)for banks are prescribed on the basis of the Banking Act.

    3. review of financial statements prepared by listed entities

      No role.

    4. enforcement of accounting, reporting and auditing requirements




    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.
      Securities Market Agency.


    116. What is the source of Legal authority of the regulatory authority(ies)?
      Special act connected with different financial institutions.


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

      No role.

    2. accounting and auditing standard-setting

      Additional requirements (to the accounting standards)for financial institutions are prescribed on the basis of the special act. As well as additional requirements for auditor's reporting (long-form report)for financial institutions are prescribed on the basis of the special act.

    3. review of financial statements prepared by listed entities

      Listed entity has to submit to the Securities Marker Agency - the audited annual report within 30 days after receiving auditors report - 6 months after the end of the business year at the latest; the annual report has to include in special enclosure all important changes of the data from prospectus; - the half-yearly report within two months after the end of the first half of the business year. The agency monitors compliance with the reporting requirements.

    4. enforcement of accounting, reporting and auditing requirements




    Section 10F -- Insurance Companies Regulatory Authority


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


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


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

      No role.

    2. accounting and auditing standard-setting

      No role.

    3. review of financial statements prepared by listed listed entities

      No role.

    4. enforcement of accounting, reporting and auditing requirements

      Additional requirements (to the accounting standards)for insurance companies are prescribed on the basis of Insurance Companies Act. As well as additional requirements for auditor's reporting (long-form report)for insurance companies are prescribed on the basis of the Insurance Companies Act.



    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.

      Quality control is performed by the monitoring system of the Institute, but all important decisions are accepted by the Auditing Council.



    125. Under what authority does the organization conduct the program of quality assurance review?
      On the basis of Auditing Act.


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



    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.
      Auditing Council at the Slovenian Institute of Auditors.


    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?
      Nine (9)


    131. Are the members of the body involved on a voluntary basis or employed by the standard-setting body?
      Voluntary  
      Employed  
      Both - Please describe: The Director of the Institute, who is a member of the body in his capacity is employed at the Institute. The other members are elected.


    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.)?
      The Director of the Institute is be in his capacity a member of the Auditing Council, five members hold the licence of a certified auditor, while the remaining three members - representatives of the interested public - shall have appropriate professional knowledge and experience from the field of accountancy and finance.
      The members of the Auditing Council who have the licence of a certified auditor are appointed by certified auditors.
      The members - three representatives of the interested public are appointed by the minister competent for finance, two of them on proposal of the Economic Chamber of Slovenia.



    133. Who appoints these members (e.g., member body, government, user, regulator, etc.)?
      5 - certified auditors, 3 - Minister of finance


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


    135. For how many years has the body been in existence?
      3 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)

      18,300

      Please enter the exchange rate used to calculate this number.

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

      195.6014 (specify currency)



    137. To what entity is the body accountable?
      The Auditing Council is Accountable to the National Assembly of the Republic of Slovenia.


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



     

     

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