Union of Accountants, Auditors and Financial Workers of Federation of Bosnia and Herzegovina
Member | Established: 2003 | Associate since 2010; Member since 2016
The Union of Accountants, Auditors, and Financial Workers of Federation of Bosnia and Herzegovina (UAAFWFBH) is legally recognized as an authorized professional accountancy organization in the Federation of Bosnia and Herzegovina and is empowered to promulgate international standards and regulate accountancy professionals except auditors. Membership in the UAAFWFBH is mandatory for practicing the profession. UAAFWFBH plays a leading role in the development of financial reporting framework in the jurisdiction and actively collaborates with other stakeholders and professional accountancy organizations, both at the national and regional levels.
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
Prior to the adoption of a quality assurance (QA) review system by the Chamber of Auditors, UAAFWFBH actively promoted the importance of establishing a QA review system amongst relevant authorities, and the work plans of all UAAFWFBH committees required promoting a QA review system given that it had no direct responsibility for the implementation of the system. Now that the system has been established and became operational, UAAFWFBH focuses on providing support to their members on the quality control standards. As part of these efforts, UAAFWFBH has translated the 2015 Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements in collaboration with the Croatian Audit Chamber (CAC) and plans on publishing it in September of 2016 pending IFAC approval.
The UAAFWFBH cooperates with several other bodies in the region to provide continuous professional development programs on the quality controls standards. To this effect, a Regional Working Group (Quality Assurance Network – Accountancy Services Providers) was established in September 2014, comprising representatives of professional bodies from Serbia, Macedonia, Montenegro, Republic Srpska, and Federation of BiH. The purpose of the group is the sharing of best practices between the professional accountancy organizations in the region and to learn from the Institute of Chartered Accountants in England and Wales (ICEAW), which is mentoring the group. The union hosted a meeting of the Working Group on June 14–15, 2016.
UAAFWFBH could consider conducting a comparison of the requirements of the Chamber of Auditor’s adopted Rulebook on Oversight and Quality Control with those of the SMO 1 requirements and share the results of the review during the 2017 update of its SMO Action Plan. It should also work with the relevant authorities to ensure that the QA review system is in line with SMO 1 and establish ongoing processes for translating IAASB quality control pronouncements.
- SMO 2: International Education Standards
In compliance with the legal requirements, UAAFWFBH has implemented IES into its programs for education, certification, and continuing professional development (CPD) and reviews its programming on an ongoing basis to ensure compliance. UAAFWFBH continues to promote the importance of IES for the accounting and auditing profession through formal communications, outreach activities with relevant stakeholders, and publications.
The union has made significant advancements in regards to its CPD program. It provided 62 forms of CPD courses to its members in 2015 and it monitors member compliance via an electronic register. In addition, the UAAFWFBH has established a quality control mechanism for the delivery of its CPD programs. UAAFWFBH permits its CPD to be organized and delivered by educational providers who fulfill certain criteria and then submit their planned educational programming. After the UAAFWFBH’s CPD Committee reviews and approves the programs, its members can take their CPD courses at these institutes. The union’s Education Performance Monitoring Committee, comprised of 15 practitioners, will conduct monitoring visits and prepare evaluation reports to ensure the program is operating as proposed. Through this mechanism, UAAFWFBH is committed to ensuring high quality educational programs for its members.
The union is also active in working with universities in the Federation of BiH to promote and incorporate IES standards. In 2013, the union finalized its work with university Faculties of Economics to include IES in university syllabi and programs of education and has established an ongoing dialogue with the education providers to ensure that the curriculum continues to be in line with the international requirements. To this end, UAAFWFBH planned on presenting the 2015 IES Handbook to professors and the Ministry of Finance in May 2016. The UAAFWFBH provides the Faculties of Economics’ libraries with access to all of its publications. In addition, the UAAFWFBH is supporting the third annual meeting of the Accounting and Auditing Departments of the Faculties of Economics from countries in the region (BiH, Croatia, Serbia, Montenegro, Macedonia, and Slovenia) to be held in July 2016.
In cooperation with the Croatian Audit Chamber (CAC), UAAFWFBH has translated the 2014 and 2015 Handbook of International Education Pronouncements. The 2014 Handbook has been published and the UAAFWFBH will subsequently make the 2015 Handbook publicly available pending IFAC approval.
UAAFWFBH is encouraged to participate in the international standard-setting by providing comments to the IAESB Exposure Drafts and other consultations and to disseminate information on the developments in the area to stakeholders involved in providing education and training.
- SMO 3: International Standards on Auditing
Given its mandate to translate the IAASB pronouncements for application in the Federation of BiH, UAAFWFBH cooperates with the Croatian Audit Chamber (CAC) in translating the IAASB Handbook in Croatian and also translates the materials into Bosnian, albeit with a time lag. The 2009 Handbook of International Quality Control, Auditing, Review, Other Assurance, and Related Services Pronouncements, which was translated to Bosnian and Croatian, has been applied since 2012 and the latest IAASB Handbook is expected to be translated by September 2016 and published at the end of 2016. Upon CAC’s completion of the translation, UAAFWFBH indicates it will submit a request to IFAC to receive a sub-license to use the new translated edition.
The union has also translated the Guide to Using International Standards on Auditing in the Audits of Small and Medium-Size Entities into Bosnian language and subsequently, worked with the CAC to translate and publish the Guide into Croatian in December 2015.
UAAFWFBH continues to assist its members with the implementation of ISA through seminars and trainings. The UAAFWFBH monitors revisions and developments to the ISA and informs its members about the changes through seminars, journals, and publications.
UAAFWFBH is encouraged to establish ongoing processes to ensure timely translation of the IAASB pronouncements and could also consider participating in the international standard-setting process by submitting comments on Exposure Drafts issued by the IAASB.
- SMO 4: Code of Ethics for Professional Accountants
As the entity responsible for the translation and dissemination of the Code of Ethics for professional accountants in the FBiH, the UAAFWFBH works to provide translations of the IESBA Code for application by its members in cooperation with other regional professional accountancy organizations—the Association of Accountants and Auditors of Republic of Srpska (AAARS) and the Croatian Audit Chamber (CAC).
As of 2016, a time lag in incorporating revisions to the Code still exists, with the 2010 version of the Code being applied since 2012. However, in December 2015 the UAAFWFBH reports that it translated the 2015 IESBA Code of Ethics and will publish the Code pending the approval of IFAC. Upon IFAC’s approval, UAAFWFBH intends to incorporate the 2015 Code into its initial education and continuing professional development programs.
In the meantime, the union works to ensure that the requirements of the 2010 IESBA Code are incorporated into education and training programs and supports its members with the implementation of the Code. It has formed a Committee dedicated to addressing adherence to the Code of Ethics and provide guidelines regarding the implementation of the Code. These guidelines often inform the topics of workshops that the union organizes for its members. UAAFWFBH also organizes seminars and shares implementation guidance via journals and other publications. The union also indicates that it is working to improve its system for monitoring compliance with the Code and ensure it is linked to its investigative and discipline system.
The UAAFWFBH monitors amendments to the Code and informs its members and other stakeholders of any changes. The union reports that it will encourage its Boards to contribute to the development of the Code of Ethics for Professional Accountants by providing comments on draft proposals.
UAAFWFBH is encouraged to establish ongoing translation processes to reduce the time lag in translating the international pronouncements. During its 2017 Action Plan update, the union should provide an update regarding the application of the translated version of the 2015 IEBSA Code of Ethics.
- SMO 5: International Public Sector Accounting Standards
The UAAFWFBH is responsible for the translation and dissemination of IPSAS which have been formally adopted by law. In line with its mandate, the union had planned to complete the translations by July 2014 in cooperation with the Croatian Association of Accountants and Financial Experts (CAAFE). However, plans have stalled due to the withdrawal of the CAAFE from the project.
The union reports that in 2016 it will seek the support of the Ministry of Finance to continue with the activities concerning the translation of IPSAS and communicate with regional professional accountancy organizations to exchange experiences and information related to the translation and publication of IPSAS. The union reports that it is actively raising awareness of the Ministry of Finance of the need to proceed with the translation of IPSAS and organizes workshops, symposiums, conferences, and professional publications.
Despite a lack of translation, the UAAFWFBH includes the IPSAS in its continuing professional development seminars and initial professional development education programs to increase its members’ understanding and awareness of the standards.
UAAFWFBH should continue to proactively liaise with the Ministry of Finance regarding the continuation of the translation project and update its Action Plan to reflect the outcome of a decision once it has been made.
- SMO 6: Investigation and Discipline
UAAFWFBH has direct responsibility for the investigation and discipline (I&D) of its members and has made significant progress in bringing its I&D system in line with the requirements of SMO 6 by adopting the Book of Regulation on Disciplinary Liability and appointing members of its Prosecutorial Council and Discipline Review Body in April 2013.
In 2015, the union conducted a self-assessment against the requirements of SMO 6 as part of its SMO Action Plan update. The areas identified as those that require attention include linking its I&D system with the results of QA reviews (only recently operational in the jurisdiction), establishing appropriate process for liaison with outside bodies on possible involvement in serious crimes and offences, and establishing processes of reviewing the existing system on an ongoing basis.
Improvement of the overall I&D system is one of the Union’s current strategic objectives. UAAFWFBH reports that it continues collaborating with regional professional accountancy organizations regarding best practices in the field of I&D and indicates that the Regional Working Group of Accountancy Service Providers will hold several workshops next year regarding I&D.
To support members’ understanding of the I&D system, UAAFWFBH has published the Book of Regulation on Disciplinary Liability on its website and notified members’ of its publication and application. The union also states that it continuously informs members of their responsibilities and rules and procedures.
Based on the results of its self-assessment against the SMO 6 requirements, the UAAFWFBH is encouraged to include specific actions in its Action Plan that it will undertake to address the gaps in compliance. Additionally, once the new Law on Accounting and Auditing is passed, the UAAFWFBH should clarify its responsibilities and those of the Chamber of Auditors regarding I&D.
- SMO 7: International Financial Reporting Standards
In accordance with its mandate to translate IFRS for application in the Federation of BiH, the UAAFWFBH has established processes to translate the standards, although with a time lag. As of 2016, the 2010 version of IFRS is being applied and the translation of the subsequent amendments to IFRS has been delayed since 2013.
Nevertheless, the UAAFWFBH has reiterated its commitment to translate the most recent IFRS and to start relevant discussions with the IFRS Foundation. The union reports that in 2014 it submitted a permission request to the IFRS Foundation for the translation and publication of amendments to IFRS introduced since 2010. The UAAFWFBH reports that, as of July 2016, it has published the consolidated version of the IFRS for SMEs, which incorporates all amendments and has signed a new contract with the IFRS Foundation to start the translation of the 2016 IFRS. In addition, the union has completed the translation of the new terminology list for IFRS.
In addition to translation activities, the union continues to support its members in implementing IFRS and IFRS for SMEs by providing trainings, seminars, and including IFRS into continuing professional development programming. The UAAFWFBH is also cooperating with the Faculties of Economics to raise awareness and promote the importance of IFRS amongst students and collaborates with regional professional accountancy organizations in order to exchange best practices on promoting and improving the application of IFRS and IFRS for SMEs.
UAAFWFBH is encouraged to establish ongoing translation processes to reduce the time lag between the issuance of new and revised IFRS and their translation for application in the Federation of BiH. UAAFWFBH is also encouraged to indicate in its SMO Action Plan whether it plans to participate in the international-setting process by submitting comments on Exposure Drafts issued by the IASB.
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.