Union of Accountants, Auditors and Financial Workers of Federation of Bosnia

The Union of Accountants, Auditors and Financial Workers of the Federation of Bosnia and Herzegovina (UAAFWFBH) does not have direct responsibility for the quality assurance (QA) review system for statutory auditors, which is implemented by the Chamber of Auditors under the oversight of the Public Oversight Board. However, UAAFWFBH plays an active role in supporting QA implementation and has assumed increasing responsibility for QA systems applicable to professional accountants in practice.

UAAFWFBH has contributed to the development of QA systems in the jurisdiction through advocacy, stakeholder engagement, and participation in the legislative process, including supporting the introduction of QA requirements under the Law on Accounting and Auditing (2021). The organization has also translated and disseminated international standards and guidance, including the IAASB Handbook and implementation materials relevant to quality management standards.

At the regional level, UAAFWFBH collaborates with professional accountancy organizations through initiatives such as the Quality Assurance Network for Accountancy Services Providers to exchange best practices and support the development of QA systems across the Western Balkans.

At the national level, UAAFWFBH has taken steps toward establishing a QA review system for its members providing accounting services. This includes developing methodologies, building institutional capacity, and preparing operational tools to support implementation.

While UAAFWFBH demonstrates strong engagement in supporting and developing QA systems, the QA framework for accountants is still being operationalized, and responsibility for QA of auditors remains with external bodies.

Accordingly, UAAFWFBH is actively implementing and supporting QA systems within the jurisdiction, but further progress is needed to achieve full alignment with SMO 1 best practices. Therefore, SMO 1 fulfillment is assessed as Execute.

To further progress SMO 1 fulfillment, prioritizing the full operationalization of the QA review system for professional accountants and ensuring alignment with the latest quality management standards would strengthen overall effectiveness and consistency.

Current Status: Execute

The requirements for education and certification of the accountancy profession in Bosnia and Herzegovina are established at the jurisdictional level by the Accounting and Auditing Commission of Bosnia and Herzegovina (AACBiH) and implemented by the Union of Accountants, Auditors and Financial Workers of the Federation of Bosnia and Herzegovina (UAAFWFBH) in the Federation of BiH. UAAFWFBH is responsible for administering initial professional development (IPD), examinations, and continuing professional development (CPD) programs in accordance with legal requirements aligned with the International Education Standards (IES).

UAAFWFBH has taken significant steps to align its education and certification programs with the IES, including translating and disseminating the standards and supporting updates to professional curricula in collaboration with AACBiH. The organization has incorporated many of the competency areas and professional skills outlined in the IES into its qualification framework and continues to support curriculum development and stakeholder engagement in the education ecosystem.

The union maintains a structured CPD system with monitoring through an electronic register and quality assurance mechanisms for CPD delivery, including approval processes for providers and periodic monitoring of programs. UAAFWFBH also engages with universities and other stakeholders to promote the integration of IES principles into academic programs and to strengthen the pipeline of professional accountants.

However, while substantial progress has been made, gaps remain in fully aligning national requirements with the latest IES. In particular, the framework is not yet fully based on a competency-based approach and does not comprehensively incorporate all learning outcomes.

Accordingly, UAAFWFBH is actively implementing IES-aligned requirements but has not yet achieved full alignment with all current standards. Therefore, SMO 2 fulfillment is assessed as Execute.

To further progress SMO 2 fulfillment, continued efforts to align education and certification requirements with the latest IES, including strengthening the competency-based approach and learning outcomes framework, would enhance overall compliance.

Current Status: Execute

The Union of Accountants, Auditors and Financial Workers of the Federation of Bosnia and Herzegovina (UAAFWFBH) is responsible for translating and disseminating IAASB pronouncements for application in the Federation of BiH, in accordance with its mandate under the Law on Accounting and Auditing. To support this function, UAAFWFBH collaborates with the Croatian Audit Chamber (CAC) in translating the IAASB Handbook into Croatian and subsequently into Bosnian.

UAAFWFBH has translated and published key implementation materials to support the application of ISA, including the Guide to Using International Standards on Auditing in the Audits of Small and Medium-Sized Entities. The union also actively monitors developments in ISA and communicates updates to its members through seminars, publications, and professional events.

In addition, UAAFWFBH supports ISA implementation through training initiatives, collaboration with academia, and participation in regional and international forums such as the Accountancy Europe Audit and Assurance Policy Group. These activities contribute to strengthening awareness and application of auditing standards within the profession.

However, there is a time lag between the issuance of IAASB pronouncements and their translation and publication for use in the jurisdiction, which affects the timely application of the most current standards.

Accordingly, UAAFWFBH demonstrates strong ongoing support for ISA implementation and continuous improvement efforts. Therefore, SMO 3 fulfillment is assessed as Review & Improve.

To further strengthen implementation, continued efforts to reduce delays in the translation and adoption of the most recent IAASB Handbook across all entities would support more consistent application of current ISA.

Current Status: Review & Improve

The Union of Accountants, Auditors and Financial Workers of the Federation of Bosnia and Herzegovina (UAAFWFBH) is responsible for the translation and dissemination of the IESBA Code of Ethics for application by its members. In fulfilling this role, UAAFWFBH collaborates with regional professional accountancy organizations, including the Association of Accountants and Auditors of Republika Srpska (AAARS) and the Croatian Audit Chamber (CAC), to translate and publish the Code in local languages.

UAAFWFBH has translated and published multiple versions of the Code, including the 2015 and 2018 editions, and has incorporated key pronouncements such as NOCLAR into its regulatory and educational framework. The organization promotes adherence to ethical requirements through initial and continuing professional development programs, guidance materials, and dedicated training initiatives.

To support implementation, UAAFWFBH has established internal structures, including a committee focused on ethics, and works closely with its quality assurance and disciplinary functions to strengthen compliance with the Code. The union also collaborates with universities to embed ethics into academic curricula and raises awareness through seminars, publications, and stakeholder engagement activities.

While these efforts demonstrate a strong commitment to promoting ethical standards, there is a need to ensure timely adoption and implementation of the latest version of the IESBA Code and to further strengthen the linkage between ethical requirements and investigative and disciplinary mechanisms.

Accordingly, UAAFWFBH demonstrates strong ongoing efforts to support the implementation of the Code while continuing to enhance its systems. Therefore, SMO 4 fulfillment is assessed as Review & Improve.

To further progress SMO 4 fulfillment, prioritizing the timely translation and implementation of the most current IESBA Code and enhancing monitoring and enforcement linkages would strengthen alignment with international best practices.

Current Status: Review & Improve

The Union of Accountants, Auditors and Financial Workers of the Federation of Bosnia and Herzegovina (UAAFWFBH) does not have direct responsibility for the adoption or implementation of IPSAS, which is mandated at the jurisdictional level and led by the Ministry of Finance.

Despite the absence of direct responsibility, UAAFWFBH actively supports the advancement of public sector accounting reforms in the Federation of BiH. The union has participated in public discussions related to IPSAS adoption and positions itself as a key partner in supporting future implementation efforts.

UAAFWFBH is building institutional capacity to support both its members and public sector stakeholders, including those providing services to government entities. IPSAS and public sector accounting topics are incorporated into initial and continuing professional development (CPD) programs, and targeted seminars are regularly delivered to enhance awareness and technical understanding.

The union also engages in regional and international initiatives, including collaboration with other professional accountancy organizations and participation in the World Bank’s PULSAR program, to exchange knowledge and support the implementation of public sector accounting reforms. UAAFWFBH further contributes to raising awareness among national authorities and participates in international forums such as the Accountancy Europe Public Sector Group.

Given its proactive engagement, capacity-building efforts, and continued support to stakeholders despite having no direct responsibility for IPSAS adoption or implementation, UAAFWFBH demonstrates a sustained commitment to advancing public sector accounting in the jurisdiction.

Current Status: Sustain

The Union of Accountants, Auditors and Financial Workers of the Federation of Bosnia and Herzegovina (UAAFWFBH) has direct responsibility for the investigation and discipline (I&D) of its members, as all professional accountants in the Federation of BiH are required to be members of the union. UAAFWFBH established its I&D system through the adoption of the Book of Regulation on Disciplinary Liability in 2012 and operationalized the system through the Prosecutorial Council and Discipline Review Body.

UAAFWFBH has undertaken self-assessments of its I&D system against SMO 6 requirements and identified areas for improvement, including strengthening the linkage between the I&D and quality assurance (QA) systems, enhancing coordination with external authorities, and establishing ongoing system review processes. Progress has been reported in improving coordination with relevant stakeholders and advancing integration with QA processes, which are being further developed in line with recent reforms.

The union actively collaborates with national authorities, including the Ministry of Finance and Financial Intelligence Agency, and participates in regional and international initiatives to strengthen disciplinary practices, including anti-money laundering (AML/CFT)–related programs and knowledge-sharing activities with other professional accountancy organizations. UAAFWFBH also supports awareness and capacity building through CPD activities and stakeholder engagement.

While UAAFWFBH demonstrates an operational I&D system with ongoing improvements, certain elements of SMO 6 best practices are still being strengthened, particularly in ensuring full integration with QA processes, enhancing independent review mechanisms, and formalizing system-wide monitoring and continuous improvement.

Accordingly, UAAFWFBH has established and is actively operating an I&D system with ongoing improvements. Therefore, SMO 6 fulfillment is assessed as Execute.

To further enhance alignment with SMO 6 best practices, developing and implementing a time-bound strategy to address identified gaps, including strengthening QA–I&D linkages, formalizing independent review processes, and enhancing system monitoring, would support greater alignment with SMO 6 best practices.

Current Status: Execute

In accordance with its mandate, the Union of Accountants, Auditors and Financial Workers of the Federation of Bosnia and Herzegovina (UAAFWFBH) is responsible for translating and disseminating IFRS and IFRS for SMEs for application in the Federation of BiH. The union has established processes to translate and publish standards, including updates and amendments, in cooperation with the IFRS Foundation under a copyright agreement.

UAAFWFBH has made sustained efforts to improve the timeliness of translations and ensure that the latest IFRS are made available to the profession. While time lags existed in earlier periods, the union reports that processes have been strengthened to better align the availability of translated standards with their effective dates.

In addition to translation activities, UAAFWFBH actively supports implementation through training programs, seminars, and integration of IFRS into initial and continuing professional development. The union also collaborates with universities to incorporate IFRS into academic curricula and engages with regional professional accountancy organizations to exchange best practices and enhance implementation support.

These efforts demonstrate a strong commitment to promoting high-quality financial reporting standards; however, continued attention is needed to ensure consistent and timely translation of all new and revised IFRS and to support full implementation of complex standards across the jurisdiction.

Accordingly, UAAFWFBH demonstrates strong ongoing efforts to support IFRS adoption and implementation while continuing to enhance timeliness and effectiveness. Therefore, SMO 7 fulfillment is assessed as Review & Improve.

To further progress SMO 7 fulfillment, maintaining timely translation of new and revised IFRS and strengthening implementation support for recently issued standards would enhance alignment with international best practices.

Current Status: Review & Improve