Association of Accountants and Auditors of Republic of Srpska

Member | Established: 1996 | Member since 2004

The Association of Accountants and Auditors Republika Srpska (AAARS) was established in 1996 and is legally recognized as an authorized professional accountancy organization in the Republika Srpska. Its membership comprises authorized auditors, certified accountants, and certified accounting technicians. Approximately one third of its members provide services in the public sector. The association’s mission is to develop and improve the profession by assisting with the education, examination, training, certification, and continuing professional development of its members as well as translating, publishing, and implementing professional and technical standards. It also promotes its members’ adherence to the Code of Ethics and collaborates with other regional professional accountancy organizations to advance of the profession.

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Statements of Membership Obligation (SMO)

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.

Methodology
Last updated: 02/2016
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SMO Action Plan

Status of Fulfillment by SMO

  • SMO 1: Quality Assurance

    The AAARS is responsible for the establishment and operation of the quality assurance (QA) review system in the Republic of Srpska under the oversight of the Ministry of Finance. It has been working on the initial design and implementation of the Q&A system since 2011 in cooperation with the French professional accountancy organizations. It reports that it is committed to implementing a system that is in line with the revised SMO 1 requirements and that the existing system is in line with those requirements. In the period from December 2014 to the end of 2015, six QA reviews of audit firms were conducted, with the same number planned for 2016. In 2016, the AAARS plans to review the implementation and effectiveness of the existing system for the first time.

    In addition to issuing regulations in 2012 to guide the implementation and operation of the QA system, the association established a commission to carry out the necessary activities. The commission has conducted desk reviews of all audit firms, as well as some on-site inspections. The association is organizing seminars and training on conducting QA reviews for reviewers, and continuing professional development (CPD) courses for members of the profession. The AAARS intends to ensure that future educational materials and CPD courses address common weaknesses of audit firms that are highlighted during QA reviews. The AAARS also supports members’ implementation of applicable standards by making available the 2013 version of ISQC 1 and ISA 220 translated into Serbian.

    Current Status: Review & Improve

  • SMO 2: International Education Standards

    The AAARS shares responsibility for the initial professional development (IPD) and continuing professional development (CPD) requirements and programs in the Republika Srpska. It uses its best efforts to comply with SMO 2. In support of IESs, which have been adopted in the jurisdiction, the association continues to promote the work of the IAESB to key stakeholders such as universities, the Accounting and Auditing Commission of Bosnia and Herzegovina, the Ministry of Finance of Republika Srpska, and the Ministry’s advisory body on accounting and auditing, the Accounting and Auditing Council of the Republika Srpska. It supports and participates in ongoing reviews of the accountancy education curriculum at the State and Entity levels. The association consults with international organizations and other professional accountancy organizations in Europe on compliance with IESs and best practices in accountancy education. The AAARS supports implementation of the standards by translating standards, guidance material, and other pronouncements issued by the IAESB. It also conducts member surveys to determine education and CPD needs, and to design targeted training and educational courses and material.

    The AAARS is encouraged to review existing IPD and CPD requirements for the profession against those of the revised IESs and report to IFAC’s Q&M staff on the results of the review. It should also consider participating in the international standard-setting process by providing comments on Exposure Drafts and other IAESB pronouncements.

    Current Status: Review & Improve

  • SMO 3: International Standards on Auditing

    With delegated responsibility from the Accounting and Auditing Commission of Bosnia and Herzegovina (AACBiH) for the translation and publication of auditing standards in the Republika Srpska, the AAARS collaborates with the Serbian and Montenegrin professional accountancy organizations (PAOs) on common translations of the pronouncements issued by IAASB. In recent years, however, the translation process has been somewhat delayed and the association collaborates with the AACBiH and the PAOs in the region and in Bosnia and Herzegovina to ensure availability of the standards in all languages spoken in the country. The AAARS supports implementation of the standards by incorporating the translated standards into training and initial professional development and continuing professional development (CPD) teaching materials, and making them available to members. The association publishes audit manuals and organizes CPD seminars to assist auditing professionals in understanding and implementing the requirements of Clarified ISAs. Also, the association makes implementation guidance material available on its website.

    The AAARS is encouraged to work with other stakeholders in the region to reduce the time lag In the translation of the most recent international standards and to participate in the international standard-setting process by providing comments on Exposure Drafts and other IAASB pronouncements.

    Current Status: Execute

  • SMO 4: Code of Ethics for Professional Accountants

    Having direct responsibility for the translation and implementation of the adopted IESBA Code of Ethics in the Republika Srpska, the AAARS focuses on making translation of the standards available and ensuring that students and members are informed of ethical requirements. The AAARS, in cooperation with the Serbian and Montenegrin professional accountancy organizations (PAOs), has made translated Serbian versions of the 2012 version of the Code of Ethics available, both in print and electronically on its website. It has translated the 2015 version of the IESBA Code into Serbian and is in the process of making it publicly available as well. It also collaborates with the PAO in the Federation of Bosnia and Herzegovina and the Accounting and Auditing Commission of the Federation of Bosnia and Herzegovina to ensure that the Code of Ethics is available in the other languages spoken in Bosnia and Herzegovina. The association has ongoing discussions with the Ministries of Finance and Justice on possible conflicts between the requirements of the Code of Ethics and national legislation and how those conflicts can be addressed. The AAARS supports its members with the implementation of the Code by providing continuing professional development on ethical requirements and informing members of new IESBA pronouncements in training, regular, and periodic publications, seminars, and through its website.

    The AAARS is encouraged to work with other stakeholders in the region to reduce the time lag In the translation of the most recent version of the IESBA Code and to participate in the international standard-setting process by providing comments on Exposure Drafts and other IESBA pronouncements.

    Current Status: Review & Improve

  • SMO 5: International Public Sector Accounting Standards

    Although the AAARS has no direct responsibility for the adoption or implementation of IPSASs in the Republika Srpska, it collaborates with the government in the Republika Srpska and professional accountancy organizations in Serbia and Montenegro on developing a sustainable approach to the translation of IPSASs and implementation guidance issued by the IPSASB. The latest translated version of IPSASs came out in 2013. The association supports the implementation process by providing education and training to its members in the public sector (15% of its membership). Biannual training events cover new and revised standards, as well as guidance on the application of the standards. The AAARS publishes manuals, which include topics addressed in training seminars along with articles and examples on IPSASs implementation. The association reports that it participates in the international standard-setting process by regular submission of comments to IPSASB consultations on technical issues.

    Current Status: Sustain

  • SMO 6: Investigation and Discipline

    The AAARS, which shares responsibility for the investigation and discipline (I&D) of members of the profession in the Republika Srpska, has an established I&D system that in some areas falls short of the SMO 6 requirements. The AAARS is aware of the areas where improvements are needed and plans to enhance the disciplinary system by reviewing the current I&D system using the revised SMO 6 requirements as a benchmark.

    The association works to ensure that members of the profession are kept informed of the requirements and sanctions under the I&D system via its professional magazine and by posting the Rules on Disciplinary Procedures on its website. The AAARS also informs the public about its members’ obligations.

    The AAARS is encouraged to keep IFAC’s Q&M staff informed on the progress made in aligning the existing system with SMO 6 requirements and to provide information in its SMO Action Plan on the system operated by the Ministry of Finance and its linkage with the I&D system administered by the association.

    Current Status: Plan

  • SMO 7: International Financial Reporting Standards

    The AAARS, which shares responsibility for the adoption and implementation of IFRSs and IFRS for SMEs in the Republika Srpska, provides training and ensures that new and revised standards are translated and disseminated to its members. Nevertheless, the time lag in translations of the standards persists, and the changes made to IFRSs since 2009 have not yet been incorporated. The AAARS participates in the consultative process on adoption of the standards in the EU and Bosnia and Herzegovina, submitting comments to the European Financial Reporting Advisory Group. The association delivers continuing professional development programs on IFRSs and IFRS for SMEs and publishes manuals that provide practical implementation guidance on specific IFRSs. The AAARS also arranges training on the standard for accountancy education providers.

    The AAARS is encouraged to work with other stakeholders in the region to reduce the time lag In the translation of the most recent international standards and to participate in the international standard-setting process by providing comments on Exposure Drafts and other IAASB pronouncements.

    Current Status: Execute

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.

Contact

Petra Kočića 59
Banja Luka 78000
Bosnia and Herzegovina
Tel: +387 51 431 260
Fax: +387 51 43 02 0
sr-rrs@inecco.net
http://www.srrrs.org/

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