slovenian institute of auditors

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

Legal environmentLegal environmentEstablishment of the InstituteEstablishment of the Institute: : 9 9 September, 1993September, 1993Legal form:Legal form: Institute, governed by the provisions of the Institute’s Institute, governed by the provisions of the Institute’s

By- laws (Official Gazette By- laws (Official Gazette of the of the RR of of SSlovenia No.lovenia No. 70/01) 70/01) Slovenian Auditing ActSlovenian Auditing Act (Official Gazette (Official Gazette of the of the RS RS No. No. 11/01) - harmonized with 11/01) - harmonized with

the EU legislation - the EU legislation - http://http://www.si-revizija.si/www.si-revizija.si/o_siru/dokumenti/o_siru/dokumenti/zakon_o_revidiranju-an.doczakon_o_revidiranju-an.doc


Tasks and powersTasks and powers The Institute carries out tasks The Institute carries out tasks

and implements powers in the domain ofand implements powers in the domain of auditing andauditing and other professional domains related to auditingother professional domains related to auditing

Professional domains related to auditing: Professional domains related to auditing: accountingaccounting business financebusiness finance internal auditinginternal auditing information systems auditinginformation systems auditing tax analysis and consultingtax analysis and consulting valuation ofvaluation of business, real estate, machines and equipment business, real estate, machines and equipment


Auditing services may Auditing services may be provided bybe provided by a company with a company with a a registered office in the Republic registered office in the Republic

of Slovenia which has obtained the license of the of Slovenia which has obtained the license of the Institute for the provision of such services - Institute for the provision of such services - auditing companyauditing company

a certified auditor (providing auditinga certified auditor (providing auditing services on services on anan individual basis as occupation) who has individual basis as occupation) who has obtained the license of the Institute for the obtained the license of the Institute for the provision ofprovision of such services - solo-practitionersuch services - solo-practitioner

the professional title is protected by law as long as the professional title is protected by law as long as it ensures adequate qualityit ensures adequate quality


BOARD

STRUCTURE OF THE ORGANIZATIONSTRUCTURE OF THE ORGANIZATION

Senior Advisers (4) Legal Adviser

Administrators (2)

DirectorDirector

AUDITING COUNCILAUDITING COUNCIL

AUDITING SECTIONAUDITING SECTION

COUNCIL OF EXPERTSCOUNCIL OF EXPERTS

TAX ADVISORY TAX ADVISORY SECTIONSECTION

BUSINESS BUSINESS FINANCE FINANCE SECTIONSECTION

ACCOUNTING ACCOUNTING SECTIONSECTION

SECTION FOR SECTION FOR VALUATIONVALUATION

SECTION FORSECTION FORINFORMATION SYSTEMSINFORMATION SYSTEMS

AUDITING AUDITING SECTION

FOR INTERNALFOR INTERNALAUDITING AUDITING


The main governing bodiesThe main governing bodiesBoard Director

Auditing Council

Council of Experts


Board of the InstituteBoard of the Institute – – thethe main tasksmain tasksadopts articles of association and other general actsadopts working and development programs of the

Institute and monitors their implementationdraws up business plans and approves annual

reports of the Institutedetermines policies for price formation of auditing

servicesdetermines rates and prices for the services

performed by the Institute


13 members of the Board are 13 members of the Board are appointed (appointed (for a 4-year term):):

4 by the founder (Association of the Accountants, Treasurers and Auditors of Slovenia)

6 by registered members of the Institute2 by the minister of finance1 by the employees of the Institute


Director of the Institute Director of the Institute (appointed for a 4(appointed for a 4--yearyear termterm by the Board of the by the Board of the Institute) Institute) should

hold the license of hold the license of a a certified auditorcertified auditor have the qualities and experience required for the management have the qualities and experience required for the management

of the Instituteof the Institute be a national of the Republic of Sloveniabe a national of the Republic of Slovenia have a certificate of no previous convictions have a certificate of no previous convictions


9 members of the9 members of the Audit Council are Audit Council are appointed (for a appointed (for a 4-4-yearyear term)term) 5 of them, who should hold the license of a certified 5 of them, who should hold the license of a certified

auditor, are elected by certified auditorsauditor, are elected by certified auditors 3 representatives of the interested public, who should 3 representatives of the interested public, who should

have appropriate professional knowledge and experience have appropriate professional knowledge and experience in the field of accountancy and finance, are appointed by in the field of accountancy and finance, are appointed by the minister of finance (two of them on proposal of the the minister of finance (two of them on proposal of the Economic Chamber of Slovenia)Economic Chamber of Slovenia)

director of the Institute is a member in his capacitydirector of the Institute is a member in his capacity


11 members of the11 members of the Council of Experts Council of Experts are appointed (for aare appointed (for a 4-4-year termyear term)

9 by the registered members of the Institute9 by the registered members of the Institute certified auditors, auditors, certified valuators, internal certified auditors, auditors, certified valuators, internal

auditors, management accountants, business finance experts, auditors, management accountants, business finance experts, information systems auditors, tax consultantsinformation systems auditors, tax consultants

2 by university institutions from among the university 2 by university institutions from among the university professorsprofessors


Professional work of the InstituteProfessional work of the Instituteorganized in sections organized in sections

auditing section (covered by the Auditing Council)auditing section (covered by the Auditing Council) other sections (covered by the Council of Experts)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 auditing section


The sections areThe sections are represented by the registered members of the

Institutemanaged 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 educational programs• conferences• seminars


Powers of supervision - Quality AssurancePowers of supervision - Quality Assurancesupervision of auditing companiessupervision of auditing companies

with the purpose to establish whether an auditing with the purpose to establish whether an auditing company observes auditing rules in the course of an auditcompany observes auditing rules in the course of an audit

auditing rules: ISAs, Code of Professional Ethics of auditing rules: ISAs, Code of Professional Ethics of External Auditors, Basic Auditing Principles, Guidelines External Auditors, Basic Auditing Principles, Guidelines for Auditing Companies, auditing practice statements for Auditing Companies, auditing practice statements and recommendations of the Auditing Counciland recommendations of the Auditing Council

supervision of certified auditorssupervision of certified valuators

Meta Duhovnik, Ph.D., Slovenian Institute of Auditors 1

HIERARCHY OF THE AUDITING RULES

AUDITING ACT

BASIC AUDITINGPRINCIPLES

CODE OFPROFESSIONAL

CONDUCTINTERNATIONAL STANDARDS

ON AUDITING ANDINTERNATIONAL AUDITING

PRACTICE STATEMENTS

IFAC'SCODE OF ETHICS

INTERPRETATION OF THEAUDITING ACT

SLOVENIAN AUDITINGSTANDARDS

EXPLANATIONS ANDGUIDELINES OF THEAUDITING COUNCIL

METHODICAL MATERIALOF THE INSTITUTE

POSITIONS OF THEAUDITING COUNCIL

PROFESSIONAL LITERATURE

GENERALLY ACCEPTEDAUDITING ACTIONS IN

FOREIGN PRACTICE


Professional StandardsAccording to the Auditing Act the Institute is authorized to According to the Auditing Act the Institute is authorized to

adopt and publish the following professional standardsadopt and publish the following professional standards:: auditing standardsauditing standards internal auditing standardsinternal auditing standards information systems auditing standardsinformation systems auditing standards accounting standardsaccounting standards business and finance standardsbusiness and finance standards standards in the field of business, real estatestandards in the field of business, real estate,, machine and machine and

equipment valuationequipment valuation


Already adopted and published

auditing rulesinternal auditing standardsaccounting standardsbusiness-finance standardsbusiness-finance principles


Important responsibility in the Important responsibility in the accounting fieldaccounting field

According to the Companies Act According to the Companies Act the Institute is authorized to set the Institute is authorized to set and prepare Slovenian and prepare Slovenian Accounting Standards, which are Accounting Standards, which are to be approved by the Ministry of to be approved by the Ministry of Finance and Ministry of Finance and Ministry of EconomyEconomy

New SAS were put into force on New SAS were put into force on 1 January, 2002 and are in the 1 January, 2002 and are in the process of renewal process of renewal


Enforcement of professional Enforcement of professional standardsstandards

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


Educational programs

Language: SloveneLanguage: Slovene Minimum formal education requirement: Minimum formal education requirement: B. Sc.B. Sc. Certification requirements and training programs are offered by the Certification requirements and training programs are offered by the

InstituteInstitute BASIC TRAININGBASIC TRAINING for all training programs (except for certified for all training programs (except for certified

real estate valuator and certified machine and equipment valuator): real estate valuator and certified machine and equipment valuator): 76 hours76 hours

• accountingaccounting 18 hours18 hours• auditingauditing 8 hours 8 hours• business financebusiness finance 15 hours15 hours• corporate and tax lawcorporate and tax law 20 hours20 hours• mathematical and statistical methodsmathematical and statistical methods 10 hours10 hours• business communicationbusiness communication 5 hours 5 hours


VERIFIED INTERNAL AUDITORVERIFIED INTERNAL AUDITOR basic trainingbasic training 76 hours76 hours special subjectsspecial subjects

• auditingauditing 41 hours41 hours• accounting and taxationaccounting and taxation 21 hours21 hours• business financebusiness finance 15 hours15 hours

VERIFIED MANAGEMENT ACCOUNTANTVERIFIED MANAGEMENT ACCOUNTANT basic trainingbasic training 76 hours76 hours special subjectsspecial subjects

• accounting and taxationaccounting and taxation 62 hours62 hours• business financebusiness finance 15 hours15 hours

VERIFIED BUSINESS FINANCE EXPERTVERIFIED BUSINESS FINANCE EXPERT basic trainingbasic training 76 hours76 hours special subjectsspecial subjects

• business financebusiness finance 52 hours52 hours• accounting and taxationaccounting and taxation 25 hours25 hours


VERIFIED TAX CONSULTANTVERIFIED TAX CONSULTANT basic trainingbasic training 76 hours76 hours special subjectsspecial subjects

• tax procedures and tax audittax procedures and tax audit 47 hours47 hours• accounting and taxationaccounting and taxation 25 hours25 hours• business financebusiness finance 15 hours15 hours

VERIFIED INFORMATION SYSTEMS AUDITORVERIFIED INFORMATION SYSTEMS AUDITOR basic trainingbasic training 76 hours76 hours special subjectsspecial subjects

• information systems auditinginformation systems auditing 40 hours40 hours• information scienceinformation science 37 hours37 hours


CERTIFIED BUSINESS VALUATORCERTIFIED BUSINESS VALUATOR basic trainingbasic training 76 hours76 hours special subjectsspecial subjects

• business valuationbusiness valuation 52 hours52 hours• accounting and taxationaccounting and taxation 26 hours26 hours• business financebusiness finance 15 hours15 hours

CERTIFIED REAL ESTATE VALUATORCERTIFIED REAL ESTATE VALUATOR subjectssubjects

• real estate valuationreal estate valuation 132 hours 132 hours• accounting and taxationaccounting and taxation 15 hours15 hours• business financebusiness finance 15 hours15 hours

CERTIFIED MACHINE AND EQUIPMENT VALUATORCERTIFIED MACHINE AND EQUIPMENT VALUATOR subjectssubjects

• valuation of machines and equipmentvaluation of machines and equipment 132 hours 132 hours• accounting and taxationaccounting and taxation 20 hours20 hours• business financebusiness finance 15 hours15 hours


Conditions of admission (prescribed by the Auditing ActConditions of admission (prescribed by the Auditing Act)

certified auditorcertified 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


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


Conditions of admission (for other titles, Conditions of admission (for other titles, not prescribed by the Auditing Actnot 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


Continuing training requirementsContinuing training requirements30 hours of training per year (for all titles)30 hours of training per year (for all titles)

slovenian institute of auditors

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