Slovenian Institute of Auditors
Member | Established: 1993 | Member since 1995
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 certified auditor or certified appraiser 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; 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 and the International Valuation Standards Council.
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.
SMO 1: 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. In 2008, Auditing Act (ZRev-2) created an oversight authority — the Agency for the Public Oversight of Auditing (APOA)— and QA reviews were transferred from the Slovenian Institute of Auditors (SIA) to the APOA. SIA reports that the QA system is aligned with the SMO 1 requirements, and it worked closely with the APOA on the transition.
SIA’s objectives in this area are now to support members to provide high quality audit services and prepare them for undergoing QA reviews. SIA has translated ISQC 1 and ISA 220 into Slovenian as well as the IFAC Guide to Quality Control for Small- and Medium-Sized Practices, Third Edition.
SIA indicates it is preparing members for the upcoming changes from quality control to quality management standards by offering trainings on ISQM 1 and ISQM 2 and presentations from the IAASB on quality management standards in its 2021 Annual Conference.
SIA is encouraged to continue to monitor and support the implementation of ISQM1 among members who might be auditors when it becomes effective as of December 15, 2022. Resources on the quality management standards are available on the IAASB website.
SMO 2: International Education Standards
The Auditing Act (ZRev-2) sets the main initial and continuing professional development requirements and licensing requirements for certified auditors and certified appraisers who are required to become members of SIA. The law also authorizes SIA to implement the initial and continuing professional development (IPD and CPD) requirements under the oversight of the Agency for Public Oversight of Auditing (APOA). SIA reports that while IES are not mandatory in Slovenia, they are widely considered as the benchmark in the jurisdiction, and the institute’s IPD and CPD requirements for certified auditors and appraisers – which include a university degree, practical experience, and a professional competence exam — are harmonized with those of IES.
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. Membership requirements include a university degree, two years practical experience, fluency in Slovenian and passing the examination organized by the SIA, which incorporate components of IES requirements.
All SIA members are required to fulfill CPD requirements. Certified auditors and appraisers must complete 120 hours over 3 years as stipulated by the APOA in line with IES 7. Other SIA members must fulfill the same requirements. Compliance with practical experience and CPD is monitored based on documentation completed and submitted by candidates/members.
The institute reports that it ensures that new and revised standards on auditing, financial reporting and ethics are incorporate into SIA’s training and education requirements. The institute conducts educational programs for the attainment of professional titles and organizes conference and seminars for CPD for all types of professional titles that are registered with SIA.
Alignment with the IES requirements is an important foundation for a strong accountancy profession at all levels. SIA is encouraged to consider the revisions to IES 2, 3, 4, and 8 which became effective as of January 2021. The revisions to these standards reflect the need for competency-based approaches as well as the increasing demand for accountants skilled in information and communications technologies and place further emphasis on professional skepticism skills and behaviors. These revisions could be relevant for all SIA members. The IES Checklist developed by IFAC may be useful as well as the IFAC Accountancy Education E-Tool to review the current version of IESs and share these requirements with key stakeholders like the APOA.
SMO 3: 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 Agency for Public Oversight of Auditing will adopt any other auditing rules as necessary. SIA has an important role in the implementation process; particularly in ensuring that auditors are aware of the standards and using them as intended.
While the law does not prescribe the responsibility for the official translation of ISA and IAASB Pronouncements, SIA taken the lead in the translation and publication of the standards. The institute has translated the 2016—2017 Handbook and ISA 250 and ISA 5450 – revisions that were a part of the 2018 Handbook. It has also translated ISA 315 (revised) effective December 2021. It also has stated plans to translate new standards effective in 2022.
Further, SIA offers continuing professional development courses, other implementation guidance, and publishes articles in its regular journal to assist its members with the implementation of the auditing standards.
SIA maintains a timely translation and implementation support process to fulfill obligations under SMO 3. The IAASB has issued an exposure draft of the proposed separate standard for audits of Less Complex Entities. SIA is encouraged to participate in the public consultation process for this landmark new draft standard.
SMO 4: 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 issued by the IESBA. The Slovenian Institute of Auditors (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 2018 version of the IESBA Code of Ethics and states it has a process to monitor changes in the revised versions of the IESBA Code of Ethics.
In addition, SIA integrates ethics matters into its initial and continuing professional development courses and will issue public recommendations on ethical requirements based on any disciplinary findings. The institute also reports that it participates in standard-setting by providing comments to IESBA exposure drafts.
SIA is encouraged to continue its timely translation efforts in this area to ensure that professionals can implement the upcoming revisions to the Code of Ethics once effective.
SMO 5: 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. According to the CIPFA/IFAC 2020 International Public Sector Financial Accountability Index, the current framework for public sector accounting uses national standards on a partial-accrual basis.
SIA has no responsibility for the adoption of public sector accounting standards and uses its best efforts to advocate for IPSAS adoption when opportunities arise, such as any legislation revisions or amendments related to the public sector or during any meetings with the MoF or Slovenian Court of Audit. The institute also reports that it informs the MoF about the IPSASB’s work plans and its members of all IPSAS and other papers issued by the IPSASB. Due to capacity, SIA indicates that it can only undertake advocacy activities at this time and updating translations is not feasible.
SIA is encouraged to continue its advocacy and support toward accrual-basis IPSAS. Adoption and implementation of accrual IPSAS as issued by the IPSASB would ensure application of global best practice.
SMO 6: 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. 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 for certified auditors and appraisers was transferred from SIA to APOA.
The APOA is responsible for investigations conducted on statutory auditors and audit firms. The SIA continues to be responsible for performing the investigations of certified appraisers under the oversight of APOA as well as other professional accountants within its membership when a complaint is received. SIA reports that the I&D system in Slovenia is compliant with the SMO 6 requirements and periodic reviews of the I&D mechanisms are undertaken to ensure proper and effective operations.
SMO 7: International Financial Reporting Standards
SIA has the responsibility for the adoption of the Slovenian Accounting Standards (SAS), in accordance with the Companies Act (ZGD-1), which may be applied by all other companies except listed companies, banks, and insurance companies – considered public interest entities and must apply EU-endorsed IFRS. Companies may also choose to use IFRS but must do so for a period of at least five years. IFRS for SMEs have not been adopted.
The institute states it has established an ongoing process for convergence of SAS with IFRS, which must be approved by the Minister of Finance and Minister of Economic Development and Technology and is also actively involved in the coordination of its ongoing translation of IFRS in cooperation with the International Accounting Standards Board (IASB) and European Commission. The SAS were updated in 2019 to reflect changes in revenue and lease standards in the IFRS. In addition, SIA advises its members about new and revised IFRS and assists them with the implementation of the accounting standards through CPD seminars. The institute also provides input to the IASB standard-setting process via SIA representatives in Accountancy Europe.
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