Slovenia

Member Organizations

Member Organization Associate Other PAOs

  Slovenian Institute of Auditors

Legal and Regulatory Environment

  • Overview of Statuatory Framework for Accounting and Auditing

    As a member of the European Union (EU), Slovenia is subject to the accounting, auditing and financial reporting requirements established in EU Regulations and Directives as transposed into national laws and regulations.

    The Companies Act (ZGD-1) sets the requirements for the preparation of corporate financial statements in Slovenia and transposes the EC Accounting Directive (2013/34/EU). The Act outlines the accounting standards to be applied by different types of entities based on their size and public accountability. Public interest entities, defined as listed companies, banks and insurances companies, are required to apply EU-endorsed IFRS in their consolidated and separate financial statements. Companies that apply IFRS must do so for a period of at least five years.

    All other companies have the option to apply either IFRS or Slovenian Accounting Standards (SAS) which are developed by the Slovenian Institute of Auditors (SIA). SAS are approved by the Minister of Finance and Minister of Economic Development and Technology. Upon approval of both ministries, the standards are published in the Official Gazette.

    Certain exemptions apply regarding micro, small and medium sized-enterprises (MSMEs).They are allowed to: (i) submit abridged balance sheets; (ii) draw up abridged profit and loss accounts, subject to prescribed limits; and (iii) companies whose securities are not traded on a regulated market are exempted from preparation of business report. However, certain types of companies are never considered to be an MSME regardless of size (i.e. banks, insurance companies, stock exchanges and any company required to prepare consolidated financial statements in accordance with IFRS). IFRS for SMEs is not required in Slovenia.

    In addition to stipulations in the Companies Act (ZGD-1), banks must submit individual and consolidated financial statements to the Bank of Slovenia. All listed companies are also governed by the Financial Instruments Market Act (ZTFI), listing rules of the Ljubljana Stock Exchange, and regulations of the Securities Market Agency (ATVP). Insurance companies must also comply with the reporting requirements in the Insurance Act (ZZavar-UPB7).

    The Companies Act (ZGD-1) also defines the companies that are subject to mandatory audits. The audit thresholds are based on the EU Audit Directive. A statutory audit is required for the individual and consolidated financial statements of medium and large-sized entities and groups, as well as of all companies in the regulated sectors (i.e. listed entities, banks and insurance companies).

    The standards for audit reporting are enshrined in the law. The Auditing Act (ZRev-2) adopts ISA and other IAASB pronouncements as mandatory. All pronouncements are to be applied as issued by the IAASB, without modifications. All statutory audits must be conducted by auditors and audit firms that are licensed by SIA.

  • Regulation of Accountancy Profession

    This Auditing Act (ZRev-2) regulates the auditing profession, the supervision of auditing and valuations, and the operations of the Slovenian Institute of Auditors (SIA) as well as the Agency for the Public Oversight of Auditing (APOA).

    The Act establishes the initial professional development (IPD) requirements for certified auditors and certified appraisers. Aspiring certified auditors must meet the following requirements: hold a university degree; complete five years of practical experience, three of which must be in auditing; pass a final examination; have no record of a withdrawal of the license in the past; no convictions of commercial or property crime; and be fluent in Slovenian. The requirements for certified appraisers (business, real estate, machines and equipment) are similar to those of auditors with the exception that they must complete five years of practical experience in their respective field.

    The Auditing Act also requires certified auditors and certified appraisers to register for membership with the SIA. SIA was established by the Act and its responsibilities include: implementation of IPD and continuing professional development (CPD) requirements for its members; education and organization of professional examinations; licensing and registration of certified auditors and appraisers; auditing standard-setting; and establishment of a quality assurance (QA) review system and an investigative and discipline (I&D) system for its members.

    Other categories of professionals (internal auditors, accountants, business finance experts, information systems auditors and tax experts) may join SIA on a voluntary basis and be subject to their regulations. Membership requirements are established by the institute which include a university degree, two years practical experience, fluency in Slovenian and passing the examination organized by the institute.

    All SIA members are required to fulfill CPD requirements (80 CPD hours in 2 years) as required by law. Compliance is monitored according to necessary documentation, which must be submitted by candidate. Particularly for certified auditors and appraisers whose licenses are issued by SIA, their certification must be renewed every two years, subject to the fulfillment of CPD requirements. Audit firms are also licensed by SIA and are required to meet specific requirements, including employing at least a certified auditor in order to be authorized to practice.

    The APOA is responsible for the public oversight of the audit profession. The agency oversees the activities of SIA with respect to the following activities: adoption of ethical, quality control and auditing standards; CPD, training and licensing of certified auditors; establishment of QA and I&D systems; and monitoring the activities of audit firms, certified auditors, and certified appraisers. The APOA has the authority to withdraw the licenses of certified auditors and audit firms under specific conditions.

    Other accountancy professionals such as Professional Accountants in Business are not regulated by law and are not required to become members of any professional accountancy organization and/or be registered with SIA. They may, however, voluntarily join the membership of the SIA, Association of Accountants, Treasurers and Auditors of Slovenia or the Chamber of Accounting Services and be subject to their regulation.

  • Audit Oversight Arrangements

    The Agency for Public Oversight of Auditing (APOA) is an independent body established in 2008 under the Auditing Act (ZRev-2). The APOA is responsible for the public oversight of the audit profession and defining audit regulation. The agency oversees the activities of the Slovenia Institute of Auditors with respect to the following: adoption of ethical, quality control and auditing standards; continuing professional development, training and licensing of certified auditors; establishment of the quality assurance and investigation and disciplinary review systems; and monitoring the activities of audit firms, certified auditors, and certified appraisers. The APOA has the authority to withdraw the licenses of certified auditors and audit firms under specific conditions.

    APOA is a member of the International Forum of Independent Audit Regulators.

  • Professional Accountancy Organizations

    The Association of Accountants, Treasurers and Auditors of Slovenia (AATAS)

    The AATAS operates as a federation of 30 local associations with a membership of around 6,000-7,000 individuals. Membership in AATAS is voluntary, with the only requirement to join the association being payment of an annual membership fee. The organization offers various courses and seminars on accounting and auditing topics.

    The Chamber of Accounting Services (CAS)

    The CAS is another voluntary membership PAO operating in the country. It is also a special interest group of the Chamber of Commerce and Industry of Slovenia for companies and individuals who deliver accounting services. Its membership includes more than 500 companies and sole proprietors rendering accounting, bookkeeping, audit, and tax consulting services. The mission of CAS is to promote the development and recognition of the activity of accounting services providers. The main responsibilities of CAS include representing the interests of its members; providing training, building recognition and enhancing the quality of the services delivered by its members; and offering business support. CAS has introduced voluntary professional standards (called Standards for Providers of Accounting Services) and maintains a Catalogue of Accounting Services Providers, which lists CAS members who comply with the related requirements. The PAO has also adopted general ethical principles.

    The Slovenian Institute of Auditors (SIA)

    The SIA is a mandatory membership organization for certified auditors and certified appraisers with a mandate based on the Auditing Act. Aspiring professionals planning to hold the title of qualified internal auditor, qualified accountant, qualified corporate treasurer, qualified information system auditor or qualified tax expert are required to register with SIA. The institute is responsible for a large range of activities including education and organization of professional education and examinations; development and monitoring of initial and continuing professional development requirements; audit standard-setting; licensing and registration of certified auditors and appraisers; and establishment of a quality assurance review system and an investigative and discipline system for its members.

    Apart from IFAC membership, SIA is also a member of Accountancy Europe, formerly known as the Federation of European Accountants, and a member of the International Valuation Standards Council.

  • Projects or Other Information

    The Auditing Act (ZRev-2) is in the process of being amended to transpose the EU Audit Directive. The Slovenian Institute of Auditors reports that the new Auditing Act is expected to be enforced by the middle of 2017.

Adoption of International Standards

  • Quality Assurance

    In accordance with the Auditing Act (ZRev-1), a mandatory quality assurance (QA) review system has been established and been operational in Slovenia since 2001. The Slovenian Institute of Auditors (SIA) is responsible for the implementation of the QA review system in the jurisdiction. In 2016, the institute conducted an assessment of the QA system against the requirements of SMO 1 and reported that it is aligned with its requirements.

    The system uses a cycle approach and is based on peer reviews, with SIA reviewing audits of public interest entities (PIEs) every three years and audits of non-PIEs every six years. The Act also adopted the International Standard on Quality Control (ISQC) 1 and the International Standard on Auditing (ISA) 220.

    In 2008, an updated Auditing Act (ZRev-2) created an oversight authority, the Agency for the Public Oversight of Auditing (APOA) and the activities of SIA, including QA reviews, were placed under the supervision of APOA.

    In light of the transposition of the EU Audit Directive, the responsibility for the implementation of the QA system is expected to be fully taken over by APOA. The new Auditing Act is expected to be enforced in the middle of 2017.

    Current Status: Adopted

  • International Education Standards

    The Auditing Act (ZRev-2) sets the main initial and continuing professional development requirements (IPD and CPD, respectively) and licensing requirements for certified auditors and certified appraisers who are required to become members of the Slovenia Institute of Auditors (SIA). The law also authorizes SIA to implement the IPD and CPD requirements under the oversight of the Agency for Public Oversight of Auditing.

    Other professionals (internal auditors, accountants, business finance experts, information systems auditors and tax experts) may join SIA on a voluntary basis and become subject to the institute’s regulations. Their membership requirements are established by SIA.

    SIA delivers professional accountancy education courses, conducts the examinations for its aspiring members and organizes CPD courses for all professionals registered with the institute. All members are required to satisfy CPD requirements of 80 hours in 2 years. Compliance is monitored according to necessary documentation which must be submitted by members. Particularly for certified auditors and appraisers whose licenses are issued by SIA, their certification must be renewed every two years, subject to the fulfillment of CPD requirements.

    SIA reports that the national standards and requirements are mostly in line with IES, and the institute’s IPD and CPD requirements for certified auditors are harmonized with IES. The extent of IES alignment needs to be established for the other categories of professional accountants (internal auditors, accountants, business finance experts, information systems auditors and tax experts).

    Current Status: Partially Adopted

  • International Standards on Auditing

    The Auditing Act (ZRev-2) adopts ISA and other IAASB pronouncements as issued by the IAASB, including the effective dates, for application in all mandatory audits in Slovenia.

    The law does not prescribe the responsibility for the official translation of ISA and other IAASB Pronouncements, however the Slovenia Institute of Auditors as the professional accountancy organization for certified auditors, has translated and published the 2012 IAASB Handbook according to IFAC translation policy.

    Current Status: Adopted

  • Code of Ethics for Professional Accountants

    In accordance with the Auditing Act (ZRev-2), all certified auditors and certified appraisers must comply with the IESBA Code of Ethics as adopted by the Slovenian Institute of Auditors (SIA) under the oversight of the Agency for Public Oversight of Auditing. Additional ethical requirements are also prescribed in the law.

    SIA has also required its members from the other categories of professionals (e.g., qualified internal auditors, qualified accountants or qualified tax experts) to comply with the IESBA Code of Ethics. The institute has translated the 2010 version of the IESBA Code of Ethics (effective January 2011) in accordance with the IFAC Translation Policy.

    Current Status: Adopted

  • International Public Sector Accounting Standards

    The Ministry of Finance is responsible for the adoption of public sector accounting standards in Slovenia. IPSAS have not been adopted in the jurisdiction and there are no current plans for adoption.

    The nature of the public sector accounting standards currently used in Slovenia needs to be established.

    Current Status: Not Adopted

  • Investigation and Discipline

    In accordance with the Auditing Act (ZRev-1), a mandatory investigative and disciplinary system for certified auditors has been established and operational in Slovenia since 2001. The Slovenian Institute of Auditors (SIA) was originally responsible for the implementation of the I&D system in the jurisdiction.

    In 2008, an updated Auditing Act (ZRev-2) created an oversight authority, the Agency for the Public Oversight of Auditing (APOA) and the overall responsibility for implementing the I&D system was transferred from SIA to APOA. The institute continues to be responsible for performing the inspections under the oversight of APOA.

    In 2016, SIA conducted a self-assessment against the SMO 6 requirements and reported that the I&D system is aligned. However, whether other types of professionals apart from auditors and appraisers are subject to the I&D system needs to be established.

    Current Status: Partially Adopted

  • International Financial Reporting Standards

    The Companies Act (ZGD-1) sets the requirements for the preparation of corporate financial statements in Slovenia and transposes the EC Accounting Directive (2013/34/EU). The Act outlines the accounting standards to be applied by different types of entities based on their size and public accountability. Public interest entities, defined as listed companies, banks and insurances companies, are required to apply EU-endorsed IFRS in their consolidated and separate financial statements.

    All other companies have the option to apply either IFRS or Slovenian Accounting Standards (SAS) which are developed by the Slovenian Institute of Auditors in the preparation of their individual and consolidated financial statements. Companies that apply IFRS must do so for a period of at least five years. SAS are approved by the Minister of Finance and Minister of Economic Development and Technology. Upon approval of both ministries, the standards are published in the Official Gazette.

    IFRS for SMEs have not been adopted in Slovenia and there is no known timetable for adoption.

    Current Status: Adopted

Disclaimer

IFAC bears no responsibility for the information provided in the SMO Action Plans prepared by IFAC member organizations. Please see our full Disclaimer for additional information.

Methodology

Methodology
Last updated: 03/2017
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