Association of Accountants and Auditors of Republic of Srpska

The Union of Accountants, Auditors and Financial Workers of the Federation of Bosnia and Herzegovina (UAAFWFBH) does not have direct responsibility for the design or implementation of the quality assurance (QA) review system for statutory auditors, which is carried out by the Chamber of Auditors under the oversight of the Public Oversight Board.

Nevertheless, UAAFWFBH actively supports the development and implementation of QA systems within the jurisdiction. The organization has played an advocacy role in promoting the establishment of QA review systems and continues to support implementation through the translation and dissemination of international standards and guidance. In October 2022, UAAFWFBH published the 2020 IAASB Handbook and has translated supporting implementation materials related to the quality management standards.

UAAFWFBH also contributes to regional initiatives aimed at strengthening QA systems for accountancy services providers. Through its participation in the Quality Assurance Network for Accountancy Services Providers, established in collaboration with regional PAOs and supported by international partners, the organization promotes best practices and capacity building across the Western Balkans.

At the national level, UAAFWFBH has taken steps to establish a QA review system for professional accountants in practice. Following amendments to the Law on Accounting and Auditing in 2021, the organization was authorized to develop and implement QA procedures for its members providing accounting services. UAAFWFBH has adopted relevant rulebooks, aligned its procedures with ISQM standards, developed operational tools and training materials, and initiated pilot inspections in 2023.

Overall, although UAAFWFBH does not have direct responsibility for QA systems for auditors, it plays an active and ongoing role in supporting the development, implementation, and continuous improvement of QA systems within the jurisdiction. Accordingly, SMO 1 fulfillment is assessed as Sustain.

Current Status: Sustain

The requirements for education and certification of the accountancy profession in Bosnia and Herzegovina are established at the jurisdictional level by the Accounting and Auditing Commission of Bosnia and Herzegovina (AACBiH) and implemented by the Union of Accountants, Auditors and Financial Workers of the Federation of Bosnia and Herzegovina (UAAFWFBH) in the Federation of BiH. UAAFWFBH is responsible for administering initial professional development (IPD), examinations, and continuing professional development (CPD) programs in accordance with legal requirements that are aligned with the International Education Standards (IES).

UAAFWFBH has taken significant steps to align its education and certification programs with the IES. The organization has incorporated key competency areas and professional skills into its qualification framework and collaborates closely with AACBiH to update curricula. Recent updates include the integration of emerging topics such as sustainability and digitalization into professional education programs.

The union maintains a structured CPD system, requiring members to complete continuing education and offering a wide range of learning opportunities through in-person, online, and hybrid formats. CPD compliance is monitored through an electronic system, and quality assurance mechanisms are in place for CPD providers, including program approval processes and periodic monitoring of delivery.

UAAFWFBH also engages with universities and other stakeholders to promote the incorporation of IES principles into academic programs and to strengthen the accountancy education pipeline.

However, while substantial progress has been made, gaps remain in fully aligning national requirements with the latest IES (2019 Handbook and subsequent revisions). In particular, the education framework is not yet fully based on a competency-based approach, and learning outcomes are not comprehensively defined across all areas.

Accordingly, UAAFWFBH is actively implementing IES-aligned requirements but has not yet achieved full alignment with all current standards. Therefore, SMO 2 fulfillment is assessed as Execute.

Current Status: Execute

The Union of Accountants, Auditors and Financial Workers of the Federation of Bosnia and Herzegovina (UAAFWFBH) plays a key role in supporting the implementation of International Standards on Auditing (ISA) through the translation, publication, and dissemination of IAASB pronouncements.

In collaboration with regional partners, UAAFWFBH translated and published the 2020 IAASB Handbook in October 2022 and has translated additional implementation guidance related to quality management standards and ISA 315 (revised 2019). The organization has also translated the Guide to Using ISA in the Audits of Small- and Medium-Sized Entities and supports its dissemination within the jurisdiction.

UAAFWFBH promotes the implementation of ISA through seminars, publications, and other professional development activities, and regularly communicates updates on new and revised standards to its members. The organization collaborates with universities and regional professional accountancy organizations to raise awareness of international standards and share best practices, including participation in regional initiatives and international forums.

UAAFWFBH has established and continues to enhance a range of activities to support ISA implementation, including expanding guidance, training, and regional collaboration initiatives. However, challenges remain in achieving full and consistent application of the most current ISA across the jurisdiction, as standards are not fully up to date in all entities and implementation practices are not yet fully harmonized.

Accordingly, while UAAFWFBH demonstrates a strong and evolving approach to supporting ISA implementation, further efforts are needed to promote consistent application and alignment with the most recent standards across the jurisdiction. Therefore, SMO 3 fulfillment is assessed as Review & Improve.

To further strengthen implementation, continued efforts to reduce delays in the translation and adoption of the most recent IAASB Handbook across all entities would support more consistent application of current ISA.

Current Status: Review & Improve

The Union of Accountants, Auditors and Financial Workers of the Federation of Bosnia and Herzegovina (UAAFWFBH) plays a key role in supporting the implementation of the International Code of Ethics for Professional Accountants (including International Independence Standards) through translation, dissemination, and integration into education and professional development programs.

In cooperation with regional professional accountancy organizations, including the Croatian Audit Chamber and the Association of Accountants and Auditors of Republika Srpska, UAAFWFBH translated and published the 2022 edition of the IESBA Code in March 2023. The organization has also translated and implemented key components of the Code, including the NOCLAR provisions, and requires members to formally acknowledge and adhere to these requirements.

UAAFWFBH supports implementation of the Code through training, seminars, publications, and guidance materials, and has established dedicated committees to promote compliance with ethical requirements. Ethical principles are embedded in both initial professional development and continuing professional development programs, and the organization collaborates with universities to ensure early exposure to ethics in accountancy education.

The organization has established and continues to enhance its activities to support implementation of the Code, including strengthening linkages between ethical requirements and investigative and disciplinary processes. UAAFWFBH also participates in regional and international initiatives, including Accountancy Europe working groups, to stay aligned with emerging developments in professional ethics.

However, further enhancements could support more consistent monitoring of compliance with the Code and greater engagement in the international standard-setting process.

To further progress SMO 4 fulfillment, prioritizing the timely translation and implementation of the most current IESBA Code and enhancing monitoring and enforcement linkages would strengthen alignment with international best practices.

Current Status: Review & Improve

The responsibility for the adoption and implementation of International Public Sector Accounting Standards (IPSAS) in the Federation of Bosnia and Herzegovina rests with the Ministry of Finance under the Law on Accounting and Auditing (Official Gazette No. 15/21).

The Union of Accountants, Auditors and Financial Workers of the Federation of Bosnia and Herzegovina (UAAFWFBH) does not have direct responsibility for IPSAS adoption; however, it plays an active role in supporting public sector accounting reforms and promoting the implementation of international standards.

UAAFWFBH has contributed to public discussions on IPSAS adoption and participates in reform initiatives, including engagement with the World Bank’s PULSAR program. The organization collaborates with regional professional accountancy organizations and international stakeholders to exchange knowledge and support the advancement of public sector accounting practices.

The union is also preparing to support future implementation of IPSAS through capacity building and technical activities. This includes plans to translate and publish the IPSAS Handbook (2022 edition) in phases, as well as integrating IPSAS-related topics into initial and continuing professional development programs.

In addition, UAAFWFBH engages with government stakeholders to raise awareness of developments in public sector accounting and participates in international forums, including Accountancy Europe working groups, to remain aligned with emerging practices.

Overall, although UAAFWFBH does not have direct responsibility for IPSAS adoption, it demonstrates sustained and proactive engagement in supporting the development and future implementation of public sector accounting standards within the jurisdiction. Therefore, SMO 5 fulfillment is assessed as Sustain.

Current Status: Sustain

The Union of Accountants, Auditors and Financial Workers of the Federation of Bosnia and Herzegovina (UAAFWFBH) has direct responsibility for the investigation and discipline (I&D) of its members. The organization established its I&D system through the adoption of the Book of Regulation on Disciplinary Liability in 2012 and the appointment of the Prosecutorial Council and Discipline Review Body in 2013.

UAAFWFBH reports that its I&D framework has been developed in line with the requirements of SMO 6 and has conducted periodic self-assessments to evaluate its alignment with international best practices. These assessments have identified areas for improvement, including strengthening linkages between the I&D system and quality assurance reviews, enhancing coordination with external authorities in cases involving serious offenses, and establishing processes for ongoing review and enhancement of the system.

The organization has taken steps to address these areas, including improving cooperation with regulatory and enforcement bodies and initiating enhancements to its I&D framework. Ongoing initiatives include the development of a centralized case management system, consideration of additional review mechanisms to strengthen complaint handling processes, and exploration of expanded legal expertise to support disciplinary procedures.

UAAFWFBH also collaborates with regional professional accountancy organizations to exchange best practices and participates in initiatives aimed at strengthening I&D systems. In addition, it maintains cooperation with national authorities, including the Ministry of Finance and Financial Intelligence Agency, to support information sharing and oversight.

Accordingly, while UAAFWFBH has established and is actively implementing an I&D system for its members, further enhancements are underway to achieve full alignment with SMO 6 best practices. Therefore, SMO 6 fulfillment is assessed as Execute.

To further enhance alignment with SMO 6 best practices, continued efforts to strengthen the integration between the quality assurance and I&D systems, formalize independent review mechanisms, and implement a centralized case management system would support greater consistency, transparency, and effectiveness of disciplinary processes.

Current Status: Execute

The Union of Accountants, Auditors and Financial Workers of the Federation of Bosnia and Herzegovina (UAAFWFBH) supports the implementation of International Financial Reporting Standards (IFRS) through translation, dissemination, and capacity-building activities. Under the Law on Accounting and Auditing (Official Gazette No. 15/21), IFRS are required to be applied in the Federation of Bosnia and Herzegovina, and UAAFWFBH plays a key role in facilitating their implementation.

UAAFWFBH reports that, since 2020, amendments to IFRS have been regularly translated and published under a copyright agreement with the IFRS Foundation. The organization also plans to translate and publish newly issued standards, including IFRS 18 and IFRS 19, to support continued alignment with international developments.

In addition to translation activities, UAAFWFBH supports implementation through training programs, seminars, and integration of IFRS into initial and continuing professional development. The organization collaborates with universities to incorporate IFRS into academic curricula and raise awareness among future professionals. It also works with regional professional accountancy organizations to exchange best practices and strengthen implementation across the region.

However, certain implementation challenges remain. In particular, the effective date of IFRS 17 Insurance Contracts has been postponed to allow for further preparation of the legislative and regulatory framework. In addition, IFRS are not fully up to date or consistently applied across all entities within the jurisdiction.

To further strengthen IFRS implementation, continued efforts to ensure timely adoption and application of newly issued standards across all entities, as well as enhanced monitoring of implementation and engagement in the international standard-setting process, would support greater consistency and alignment with current IFRS requirements.

Accordingly, while UAAFWFBH demonstrates a strong and evolving approach to supporting IFRS implementation, further enhancements are needed to ensure consistent and up-to-date application of standards across the jurisdiction. Therefore, SMO 7 fulfillment is assessed as Review & Improve.

To further progress SMO 7 fulfillment, maintaining timely translation of new and revised IFRS and strengthening implementation support for recently issued standards would enhance alignment with international best practices.

Current Status: Review & Improve