Serbian Association of Accountants and Auditors

The Serbian Association of Accountants and Auditors (SAAA) operates a voluntary quality assurance (QA) review system for non-statutory audit and accounting services provided by its members. Responsibility for quality assurance reviews of statutory audits lies with the Securities Commission, the Chamber of Authorized Auditors of Serbia (KoR), and the Ministry of Finance (MoF).

SAAA’s QA review system was established in 2011 with the assistance of the French professional bodies Ordre des Experts-Comptables and Compagnie Nationale des Commissaires aux Comptes.

Following completion of the initial phase of implementation, which involved administering survey questionnaires to member firms to identify common deficiencies in relation to International Standard on Quality Control 1 (ISQC 1), SAAA progressed to conducting field reviews. The association reports that field reviews continue and that it remains active in raising awareness of the QA review program and the benefits of participation for members.

Since 2015, SAAA has also worked with the Institute of Chartered Accountants in England and Wales (ICAEW) Quality Accounting Services Network to strengthen its existing system and improve its QA methodology and procedures through a series of workshops and technical support activities.

SAAA further supports members through the translation and publication of the IFAC Guide to Quality Control for Small- and Medium-Sized Practices, and offers regular training, including joint activities with professional accountancy organizations in European Union countries, to enhance members’ understanding and implementation of relevant quality management standards.

SAAA reports that it reviews its QA system on a regular basis and continues dialogue with the MoF and other relevant government stakeholders on QA review systems in the jurisdiction.

SAAA has established a functioning QA framework and continues to review and improve its methodology, training, and member support activities. Accordingly, it is assessed as Review & Improve.

To further strengthen alignment with SMO 1, SAAA is encouraged to continue prioritizing support for the translation and legal adoption of ISQM 1, ISQM 2, and ISA 220 (Revised) and to continue providing implementation support to members, particularly those involved in assurance-related services and small and medium practices.

Current Status: Review & Improve

There are no prescribed educational requirements for accountants in Serbia other than those established for statutory auditors. Accordingly, the Serbian Association of Accountants and Auditors (SAAA), which brings together accountants and auditors on a voluntary basis, has developed and maintains its own qualification pathways.

SAAA offers the qualifications of Accountant, Certified Accountant, and Certified Public Accountant, based in part on the Association of Chartered Certified Accountants (ACCA) framework, and has established requirements for final assessment, practical experience, and continuing professional development for its members.

According to the World Bank Accountancy Education Benchmarking Study, the Certified Public Accountant qualification was broadly aligned with the revised International Education Standards (IES) requirements applicable at the time of the assessment, while the Certified Accountant program was identified as having opportunities for further strengthening in areas such as governance, risk, ethics, and corporate reporting.

The continuing professional development requirements remain aligned with IES 7, requiring 120 hours over a three-year rolling period.

SAAA has continued to strengthen its educational framework. In 2016, it signed a mutual recognition agreement with the Chartered Institute of Public Finance and Accountancy (CIPFA), including membership recognition for its members and the development of a specialized pathway for public sector accountants. In 2019, it introduced a Forensic Accountant qualification, and in 2020 it established an online proctoring platform for examinations.

SAAA also reports that it actively promotes the incorporation of IES requirements through articles, seminars, workshops, and meetings with government stakeholders, and collaborates with academic institutions in Serbia to help ensure access to quality initial accountancy education programs.

SAAA has established a mature education and qualification framework and continues to review and improve its alignment with evolving IES requirements. Accordingly, it is assessed as Review & Improve.

To further strengthen alignment with SMO 2, SAAA is encouraged to continue reviewing its qualification framework against the latest IES requirements, particularly IES 2, 3, 4, and 8, and to consider using IFAC’s IES Checklist and Accountancy Education E-Tool to support the ongoing enhancement of competency-based learning outcomes, technology-related competencies, and professional skepticism skills.

Current Status: Review & Improve

The Law on Auditing of 2019 requires the application of International Standards on Auditing (ISA) for the performance of statutory audits in Serbia, as translated into Serbian and promulgated by the Ministry of Finance (MoF). As of the latest publicly available information, the 2016–2017 International Auditing and Assurance Standards Board (IAASB) Handbook remains the version formally promulgated by the MoF.

The Serbian Association of Accountants and Auditors (SAAA) is responsible for the translation of auditing standards in line with IFAC’s Translation Policy and has translated several IAASB Handbook versions over the years. However, SAAA recognizes that delays in translation and approval can hinder timely adoption and implementation and reports that it is working with the MoF to coordinate more timely translations of new and revised standards.

The association also reports that it organizes training for members who conduct financial statement audits and regularly updates its initial professional development (IPD) and continuing professional development (CPD) programs and materials to incorporate amendments to ISA issued by the IAASB.

In addition, SAAA has established processes to solicit feedback on Exposure Drafts and consultation papers issued by the IAASB, both to raise awareness of proposed changes to ISA and to encourage participation in the international standard-setting process.

SAAA is actively executing measures within the scope of its responsibilities to support the adoption and implementation of ISA and is therefore assessed as Execute.

To further strengthen alignment with SMO 3, SAAA should continue prioritizing the translation and submission of these revised standards for approval by the MoF, while continuing to provide targeted implementation support and training to members.

Current Status: Execute

The Serbian Association of Accountants and Auditors (SAAA) plays an important role in supporting the implementation of the International Code of Ethics for Professional Accountants (including International Independence Standards), which is adopted by law for statutory auditors and through SAAA’s own requirements for its voluntary members.

SAAA is responsible for the translation of the Code and, as of the latest publicly available information, the 2018 version of the Code has been translated into Serbian and is being applied in the jurisdiction by members of both professional accountancy organizations.

SAAA also supports members with implementation through the inclusion of an ethics module within its qualification program, the delivery of regular ethics courses and seminars throughout the year, and the updating of its educational programs in line with amendments issued by the International Ethics Standards Board for Accountants (IESBA).

In addition, SAAA has developed and disseminated an Ethics Toolkit that addresses common ethical dilemmas faced by members and provides guidance on appropriate responses.

The association also reports that it participates in the international standard-setting process through the provision of comments on Exposure Drafts and consultation papers issued by IESBA.

SAAA maintains established processes for supporting implementation and continues to review and improve its activities in this area. Accordingly, it is assessed as Review & Improve.

To further strengthen alignment with SMO 4, SAAA should continue prioritizing the timely translation and approval of the latest version of the Code, while continuing to document recent implementation support activities and member guidance within its SMO Action Plan.

Current Status: Review & Improve

The Serbian Association of Accountants and Auditors (SAAA) reports that cash-basis International Public Sector Accounting Standards (IPSAS) were adopted in Serbia through government decision and that the Ministry of Finance (MoF) is leading the transition toward accrual-based IPSAS by 2030. This is also reflected in the IFAC/CIPFA International Public Sector Financial Accountability Index and the World Bank Centre for Financial Reporting Reform (CFRR) PULSAR reports.

In this area, SAAA reports that it actively participates in a government working group focused on the transition from cash-basis to accrual-basis IPSAS. It has also established its own Public Sector IPSAS Implementation Working Group to address key issues, facilitate dialogue, and serve as a technical resource.

As part of its support activities, SAAA translated the 2013 edition of the IPSAS Handbook and continues to provide technical support to stakeholders in the jurisdiction.

In addition, given its active public sector membership, SAAA regularly publishes IPSAS-related information through online and other professional publications, and hosts regular seminars on public sector accounting and implementation challenges related to IPSAS.

SAAA also reports that it offers training on updated IPSAS requirements and, in 2016, signed a Memorandum of Understanding with the Chartered Institute of Public Finance and Accountancy (CIPFA) to establish a specialized qualification pathway in public sector accounting with reciprocal membership arrangements.

SAAA has demonstrated sustained and active engagement in supporting IPSAS implementation and public sector financial reporting reform and is therefore assessed as Sustain.

Current Status: Sustain

The Serbian Association of Accountants and Auditors (SAAA) reports that it has incorporated the requirements of SMO 6 into the investigative and disciplinary (I&D) framework it operates to address non-compliance by its members with applicable laws, regulations, and the International Code of Ethics for Professional Accountants (including International Independence Standards).

SAAA reports that it has established separate investigation, disciplinary, and appeals committees, and that it has recourse through the Serbian legal system to sanction members for non-compliance where necessary.

The association further states that it maintains ongoing dialogue with the Ministry of Finance (MoF) and other relevant authorities to help ensure that its I&D framework remains aligned with legal and professional requirements.

In addition, SAAA continues to raise awareness among its members of the I&D system and related procedures as a means of promoting compliance and deterring misconduct.

SAAA maintains an established and operational I&D framework aligned with the requirements of SMO 6 and is therefore assessed as Sustain.

Current Status: Sustain

The Ministry of Finance (MoF) is responsible for the adoption and promulgation of accounting standards in the Republic of Serbia in accordance with the Law on Accounting of 2019. The MoF has adopted International Financial Reporting Standards (IFRS), as translated into Serbian, for the preparation of the financial statements of large entities and public interest entities (PIEs) as defined in the law. It has also adopted IFRS for Small and Medium-sized Entities (IFRS for SMEs) for application by small and medium-sized entities, while medium-sized entities may elect to apply full IFRS.

Since 2013, the MoF has held sole legal responsibility for the translation of IFRS. Historically, due to the time lag between the issuance of new IFRS and their translation into Serbian, the Serbian Association of Accountants and Auditors (SAAA) has supported the MoF with translation efforts and technical review.

The 2019 version of IFRS and the 2015 version of IFRS for SMEs have been translated into Serbian. While subsequent editions of IFRS have not yet been formally translated and published, SAAA reports that it has incorporated relevant updates into training programs for members and continues to disseminate updates and technical developments as needed.

SAAA maintains an active and ongoing role in supporting implementation and continues to review and improve its activities in this area. Accordingly, it is assessed as Review & Improve.

To further strengthen alignment with SMO 7, SAAA is encouraged to continue advocating for and supporting the timely translation and promulgation of the latest IFRS Standards, including the most recent revisions and amendments, and to continue documenting recent examples of member support, training, and technical guidance within its SMO Action Plan.

Current Status: Review & Improve