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 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.
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 QA review system has been established and operational in Slovenia since 2001. SIA is responsible for the implementation of the QA review system for the jurisdiction. Since then, SIA has been actively contributing to the development and implementation of the QA review system.
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.
SIA remains responsible in implementing the QA review system and for performing the quality control procedures of its members. SIA has also performed the translation of ISQC 1 and ISA 220 (version 2012) into Slovenian in accordance with the IFAC Translation Policy. In 2016, the institute conducted a self-assessment of its system against the requirements of SMO 1 and reported that the system is aligned with the requirements.
With the transposition of the EU Audit Directive, the responsibility for the implementation of the QA system is expected to be fully taken over by the oversight authority, the APOA from SIA. The new Auditing Act is expected to be enforced in the middle of 2017. SIA reports that it cooperates closely with APOA on the transition of the QA system under the new Act.
SIA is encouraged to update its SMO Action Plan on the execution of the transition of the QA review system to the APOA and how the institute participates in ongoing consultations about the revised QA system with other stakeholders in the jurisdiction. SIA is also encouraged to indicate activities to supports its members with the implementation of quality control standards.
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 standard in the jurisdiction, and the institute’s IPD and CPD requirements for certified auditors are harmonized with those of IES.
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 also organizes conference and seminars for CPD for all types of professional titles that are registered with SIA.
SIA also reports that developments in SMO 3 and SMO 6 are permanently integrated in their educational programs, and in coordination with APOA, it has been working to ensure that new and revised IES are properly applied in the jurisdiction.
SIA is encouraged to include an activity in its action plan to perform a benchmarking exercise to identify gaps, if any, with revised IES and to develop specific actions with a defined timeline to address the gaps. It is also recommended that SIA establish plans to collaborate with other stakeholders involved in the education of professional accountants in the jurisdiction, such as the APOA, to develop a roadmap for bringing national educational requirements for all professional accountants in line with IES. In addition, the institute should consider participating in the international standard-setting process by providing comments on exposure drafts and other pronouncements issues by the IAESB.
SMO 3: International Standards on Auditing
ISA and all other IAASB pronouncements are directly adopted by law in Slovenia. 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 has taken the leadership in the translation and publication of the standards. The institute has published the 2012 IAASB Handbook and reports that it has completed the translation of the Revised ISAE 3000 in April 2016. SIA has also communicated in its SMO Action Plan that the institute is undergoing the translation of the revised ISA which are expected to be completed by July 2017. In addition, the institute has developed continuing professional development courses to assist its members with the implementation of the auditing standards.
SIA is encouraged to provide more information about the current and future activities it has planned to further assist its members with the implementation of the auditing standards. SIA is also encouraged to consider participating in the international standard-setting process by providing inputs on exposure drafts and other pronouncements issued by the IAASB.
SMO 4: Code of Ethics for Professional Accountants
The Auditing Act (ZRev-2) mandates all certified auditors and certified appraisers to comply with the IESBA Code of Ethics. The act gives SIA the responsibility to adopt other ethical requirements under the oversight of the Agency for Public Oversight of Auditing (APOA). SIA has required that all of its members (all categories of professional accountants) comply with the IESBA Code of Ethics. The institute has translated the 2010 version of the IESBA Code of Ethics in accordance with the IFAC Translation Policy.
In addition, to assist its members with the implementation of the standards, SIA has established an ongoing process to monitor changes in the revised versions of the IESBA Code of Ethics and to integrate ethics matters into its initial and continuing professional development courses. The institute also reports in its SMO Action Plan that it has participates in standard-setting by providing comments to exposure drafts.
SIA is encouraged to update its SMO Action Plan to include specific planned activities to further assist its members with the implementation of the IESBA Code of Ethics. SIA should establish ongoing processes for the translation of revised IESBA Code of Ethics. The institute is also encouraged to review NOCLAR, which will become effective as of July 2017, and to ensure that the latest version of the Code is available for incorporation. The institute should also develop plans to raise awareness and support its implementation among its members and the APOA.
SMO 5: International Public Sector Accounting Standards
SIA has no responsibility for the adoption of public sector accounting standards. While IPSAS have not been adopted in Slovenia, SIA reports that it has developed activities to promote the incorporation of IPSAS into the Slovenian public sector accounting standards to the Ministry of Finance. However, no specific activities have been indicated. The institute also reports that it informs its members of all IPSAS and other papers issued by the International Public Sector Accounting Standards Board.
SIA is encouraged to provide additional information about the nature of the public sector accounting standards in the jurisdiction and to provide examples of activities or recent meetings the institute may have planned with the Ministry of Finance to further support the incorporation of IPSAS in the Slovenian public sector accounting requirements.
SMO 6: Investigation and Discipline
In Slovenia, an I&D system has existed since 2001 as established in the Auditing Act (ZRev-1) with SIA having direct responsibility over the system and performing inspections. Since then, SIA has been actively contributing to the development and implementation of the I&D system.
In 2008, reforms in the Auditing Act (ZRev-2) transferred overall responsibility from SIA to the Agency for Public Oversight and Audit (APOA). SIA indicates in its SMO Action Plan that it promotes the requirements of SMO 6 to APOA on an ongoing basis and that it continues to work with APOA to provide its expert opinion on I&D matters. In 2016, the institute conducted a self-assessment of its system against the requirements of SMO 6 and reported that the system is aligned with the requirements. However it is not clear if other types of professionals accountants (internal auditors, accountants, business finance experts, information systems auditors and tax experts) apart from auditors and appraisers are subject to the I&D system.
SIA is encouraged to clarify its disciplinary mechanisms established for its members and whether other types of title holders (internal auditors, accountants, business finance experts, information systems auditors and tax experts) are subject to the I&D system. The institute is also encouraged to update its SMO Action Plan with current and future planned activities to promote the SMO 6 to APOA and its members.
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). The institute has established an ongoing process for convergence of SAS with IFRS 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. In addition, SIA advises its members about new and revised IFRS and assists them with the implementation of the accounting standards. The institute also provides input to the IASB standard-setting process via SIA representatives in Accountancy Europe (formerly FEE).
SIA is encouraged to include specific planned activities that promote the adoption of IFRS for SMEs for relevant entities. In addition, SIA is also encouraged to update its SMO Action Plan to showcase specific actions or initiatives planned to further assist its members with the implementation of the accounting standards.
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