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Legal environment

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  1. Legal environment • Establishment of the Institute: 9 September, 1993 • Legal form:Institute, governed by the provisions of the Institute’s By- laws (Official Gazette of the R of Slovenia No. 70/01) • Slovenian Auditing Act • (Official Gazette of the RS No. 11/01) - harmonized with the EU legislation - http://www.si-revizija.si/o_siru/dokumenti/zakon_o_revidiranju-an.doc Meta Duhovnik, Ph.D., Slovenian Institute of Auditors

  2. Tasks and powers • The Institute carries out tasks and implements powers in the domain of • auditing and • other professional domains related to auditing • Professional domains related to auditing: • accounting • business finance • internal auditing • information systems auditing • tax analysis and consulting • valuation ofbusiness, real estate, machines and equipment Meta Duhovnik, Ph.D., Slovenian Institute of Auditors

  3. Auditing services may be provided by • a company with a registered office in the Republic of Slovenia which has obtained the license of the Institute for the provision of such services - auditing company • a certified auditor (providing auditingservices on anindividual basis as occupation) who has obtained the license of the Institute for the provision ofsuch services - solo-practitioner • the professional title is protected by law as long as it ensures adequate quality Meta Duhovnik, Ph.D., Slovenian Institute of Auditors

  4. Senior Advisers (4) Legal Adviser AUDITING SECTION Administrators (2) Director AUDITING COUNCIL COUNCIL OF EXPERTS ACCOUNTING SECTION TAX ADVISORY SECTION SECTION FOR INFORMATION SYSTEMS AUDITING BUSINESS FINANCE SECTION SECTION FOR VALUATION SECTION FOR INTERNAL AUDITING STRUCTURE OF THE ORGANIZATION BOARD Meta Duhovnik, Ph.D., Slovenian Institute of Auditors

  5. The main governing bodies • Board • Director • Auditing Council • Council of Experts Meta Duhovnik, Ph.D., Slovenian Institute of Auditors

  6. Board of the Institute – themain tasks • adopts articles of association and other general acts • adopts working and development programs of the Institute and monitors their implementation • draws up business plans and approves annual reports of the Institute • determines policies for price formation of auditing services • determines rates and prices for the services performed by the Institute Meta Duhovnik, Ph.D., Slovenian Institute of Auditors

  7. 13 members of the Board are appointed (for a 4-yearterm): • 4 by the founder (Association of the Accountants, Treasurers and Auditors of Slovenia) • 6 by registered members of the Institute • 2 by the minister of finance • 1 by the employees of the Institute Meta Duhovnik, Ph.D., Slovenian Institute of Auditors

  8. Director of the Institute (appointed for a 4-year term by the Board of the Institute) should • hold the license of a certified auditor • have the qualities and experience required for the management of the Institute • be a national of the Republic of Slovenia • have a certificate of no previous convictions Meta Duhovnik, Ph.D., Slovenian Institute of Auditors

  9. 9 members of theAudit Council are appointed (for a 4-yearterm) • 5 of them, who should hold the license of a certified auditor, are elected by certified auditors • 3 representatives of the interested public, who should have appropriate professional knowledge and experience in the field of accountancy and finance, are appointed by the minister of finance (two of them on proposal of the Economic Chamber of Slovenia) • director of the Institute is a member in his capacity Meta Duhovnik, Ph.D., Slovenian Institute of Auditors

  10. 11 members of theCouncil of Experts are appointed (for a 4-year term) • 9 by the registered members of the Institute • certified auditors, auditors, certified valuators, internal auditors, management accountants, business finance experts, information systems auditors, tax consultants • 2 by university institutions from among the university professors Meta Duhovnik, Ph.D., Slovenian Institute of Auditors

  11. Professional work of the Institute • organized in sections • auditing section (covered by the Auditing Council) • other sections (covered by the Council of Experts) • accounting section • business finance section • tax advisory section • section for valuation (real estate, plant and machinery, business) • section for information systems auditing • internal auditingsection Meta Duhovnik, Ph.D., Slovenian Institute of Auditors

  12. The sections are • represented by the registered members of the Institute • managed by the committees of 5 members (elected by registered members of each section) The Institute receives no external subsidies • its main source of income are fees for • external quality control (paid by the auditing companies) • various educationalprograms • conferences • seminars Meta Duhovnik, Ph.D., Slovenian Institute of Auditors

  13. Powers of supervision - Quality Assurance • supervision of auditing companies • with the purpose to establish whether an auditing company observes auditing rules in the course of an audit • auditing rules: ISAs, Code of Professional Ethics of External Auditors, Basic Auditing Principles, Guidelines for Auditing Companies, auditing practice statements and recommendations of the Auditing Council • supervision of certified auditors • supervision of certified valuators Meta Duhovnik, Ph.D., Slovenian Institute of Auditors

  14. Meta Duhovnik, Ph.D., Slovenian Institute of Auditors

  15. Professional Standards • According to the Auditing Act the Institute is authorized to adopt and publish the following professional standards: • auditing standards • internal auditing standards • information systems auditing standards • accounting standards • business and finance standards • standards in the field of business, real estate, machine and equipment valuation Meta Duhovnik, Ph.D., Slovenian Institute of Auditors

  16. Already adopted and published • auditing rules • internal auditing standards • accounting standards • business-finance standards • business-finance principles Meta Duhovnik, Ph.D., Slovenian Institute of Auditors

  17. Important responsibility in the accounting field • According to the Companies Act the Institute is authorized to set and prepare Slovenian Accounting Standards, which are to be approved by the Ministry of Finance and Ministry of Economy • New SAS were put into force on 1 January, 2002 and are in the process of renewal Meta Duhovnik, Ph.D., Slovenian Institute of Auditors

  18. Enforcement of professional standards • accounting standards • enforced by the Companies Act and other special acts (referring to banks, insurance companies, mutual funds, etc.) • auditing standards • ISAs and other auditing rules are enforced by the Auditing Act • other standards • enforced by professional rules Meta Duhovnik, Ph.D., Slovenian Institute of Auditors

  19. Educational programs • Language: Slovene • Minimum formal education requirement: B. Sc. • Certification requirements and training programs are offered by the Institute • BASIC TRAINING for all training programs (except for certified real estate valuator and certified machine and equipment valuator): 76 hours • accounting 18 hours • auditing 8 hours • business finance 15 hours • corporate and tax law 20 hours • mathematical and statistical methods 10 hours • business communication 5 hours Meta Duhovnik, Ph.D., Slovenian Institute of Auditors

  20. VERIFIED INTERNAL AUDITOR • basic training 76 hours • special subjects • auditing 41 hours • accounting and taxation 21 hours • business finance 15 hours • VERIFIED MANAGEMENT ACCOUNTANT • basic training 76 hours • special subjects • accounting and taxation 62 hours • business finance 15 hours • VERIFIED BUSINESS FINANCE EXPERT • basic training 76 hours • special subjects • business finance 52 hours • accounting and taxation 25 hours Meta Duhovnik, Ph.D., Slovenian Institute of Auditors

  21. VERIFIED TAX CONSULTANT • basic training 76 hours • special subjects • tax procedures and tax audit 47 hours • accounting and taxation 25 hours • business finance 15 hours • VERIFIED INFORMATION SYSTEMS AUDITOR • basic training 76 hours • special subjects • information systems auditing 40 hours • information science 37 hours Meta Duhovnik, Ph.D., Slovenian Institute of Auditors

  22. CERTIFIED BUSINESS VALUATOR • basic training 76 hours • special subjects • business valuation 52 hours • accounting and taxation 26 hours • business finance 15 hours • CERTIFIED REAL ESTATE VALUATOR • subjects • real estate valuation 132 hours • accounting and taxation 15 hours • business finance 15 hours • CERTIFIED MACHINE AND EQUIPMENT VALUATOR • subjects • valuation of machines and equipment 132 hours • accounting and taxation 20 hours • business finance 15 hours Meta Duhovnik, Ph.D., Slovenian Institute of Auditors

  23. Conditions of admission (prescribed by the Auditing Act) • certified auditor • university degree • five years’ working experience • of which minimum three years in auditing after the date of obtaining the license to carry out the tasks of an auditor • examination of professional competence to carry out tasks of a certified auditor • certificate of no previous convictions • knowledge of the Slovene language Meta Duhovnik, Ph.D., Slovenian Institute of Auditors

  24. auditor • university degree • two years’ working experience • in the field of auditing or internal auditing • examination of professional competence to carry out the tasks of an auditor • certificate of no previous convictions • knowledge of the Slovene language • certified valuator • university degree • five years’ working experience in the field requiring knowledge necessary for carrying out the tasks of a valuator • examination of professional competence to carry out the tasks of a certified valuator • certificate of no previous convictions • knowledge of the Slovene language Meta Duhovnik, Ph.D., Slovenian Institute of Auditors

  25. Conditions of admission (for other titles, not prescribed by the Auditing Act) • internal auditor, management accountant, business finance expert, information systems auditor, tax consultant • professional qualifications obtained in graduate school • appropriate working experience • examination of professional competence to carry out the tasks of a certain profession • certificate of no previous convictions • knowledge of the Slovene language • fulfillment of requirements set by the code of ethics for the profession in question Meta Duhovnik, Ph.D., Slovenian Institute of Auditors

  26. Continuing training requirements • 30 hours of training per year (for all titles) Meta Duhovnik, Ph.D., Slovenian Institute of Auditors