2015年-世界发展银行全球_Bosnia_and_Herzegovina___Accounting_and_Auditing_Technical_Note_19页_997kb

Financial Sector Assessment Program (FSAP) - Bosnia and Herzegovina: Accounting and Auditing

Executive Summary

The Second ROSC for Bosnia and Herzegovina (BiH) was published in July 2011. This Technical Note reviews the implementation of its recommendations and provides current developments in BiH's accounting and auditing sector. BiH has significantly aligned its accounting and auditing laws with the EU acquis communautaire, and will implement new EU Directives on Accounting and Auditing in 2016.

Since the 2010 ROSC, secondary legislation has been introduced in both Entities to implement IFRS for SMEs and address recommendations. In the Federation of Bosnia and Herzegovina (FBiH), the Ministry of Finance (MoF) issued secondary legislation in 2013, while in Republika Srpska (RS), it was issued in 2011. However, the implementation of IFRS for SMEs in FBiH remains low, and there is a need to expand its use to all SMEs.

The accounting and auditing professional bodies in both Entities—SRRF-FBiH and RS-AAA—are members of IFAC. They have made efforts to comply with IFAC's Statements of Membership Obligations (SMOs). However, both lack a continuous mechanism for translating IFRS and ISA, which is essential for effective implementation.

Current monitoring and enforcement systems are not yet sufficient to ensure the quality of financial statements meets IFRS standards. Audit quality assurance systems are in early stages and require further development. The new EU audit regulation demands that oversight bodies be independent from the audit profession, which presents additional challenges for the Entities.

Professional bodies have enhanced their education and training programs, but more needs to be done to improve audit quality and ensure compliance with international standards. The implementation of statutory audit quality assurance systems has shown a decrease in audit quality and non-compliance with ISA and IFRS.

Core Content

• ROSC Publication: The Second ROSC for BiH was published in July 2011.
• EU Alignment: BiH has aligned its accounting and auditing laws with the EU acquis communautaire, with new Directives expected to be implemented in 2016.
• Secondary Legislation: Both FBiH and RS have issued secondary legislation to implement IFRS for SMEs and address recommendations.
• Professional Bodies: SRRF-FBiH and RS-AAA are members of IFAC, with SRRF-FBiH as an associate member and RS-AAA as a full member.
• Translation Issues: Continuous translation of IFRS and ISA is not ensured, and the process is outdated.
• Audit Quality: Audit quality assurance systems are underdeveloped, and audit quality has declined.
• Regulatory Capacity: Both Entities need to enhance their regulatory capacity to monitor and enforce compliance with international standards.
• Education and Training: Both professional bodies have improved their education and training processes, but more needs to be done.

Main Findings

• Legal Framework: BiH's accounting and auditing laws are aligned with the EU acquis, but need further harmonization.
• Implementation of IFRS for SMEs: In RS, over 50% of companies use IFRS for SMEs, while in FBiH, implementation is low.
• Professional Bodies: SRRF-FBiH and RS-AAA are both active in promoting international standards, but lack continuous translation mechanisms.
• Audit Quality: Audit quality in both Entities is low, with issues such as low fees, lack of experience, and insufficient oversight.
• Regulatory Capacity: Both Entities need to improve their regulatory capacity to monitor and enforce compliance with IFRS and ISA.
• Education and Training: Both professional bodies have made progress in education and training, but more is needed to ensure compliance with international standards.

Key Recommendations

Main Challenges

• Translation Mechanisms: Current translation processes are not continuous and outdated.
• Audit Quality: Audit quality is low due to factors such as low fees, lack of experience, and insufficient oversight.
• Regulatory Capacity: Both Entities need to improve their regulatory capacity to monitor and enforce compliance with international standards.
• Compliance with Standards: There is a need for further efforts to ensure compliance with IFRS and ISA.
• Professional Development: More needs to be done to improve professional education and training in both Entities.

Main Opportunities

• Implementation of IFRS for SMEs: This standard can reduce the administrative burden on SMEs and improve the quality of their financial reporting.
• Professional Bodies: Both SRRF-FBiH and RS-AAA have made efforts to comply with IFAC SMOs and have enhanced their education and training programs.
• EU Alignment: BiH is aligned with the EU acquis, and the implementation of new EU Directives presents an opportunity for further improvement in the accounting and auditing sector.

Conclusion

The implementation of the ROSC recommendations in BiH has been substantial, but further efforts are needed to ensure compliance with international standards. Both Entities need to improve their regulatory capacity and translation mechanisms to ensure the quality of financial statements meets IFRS standards. The professional bodies have made progress in education and training, but more needs to be done to improve audit quality and ensure compliance with international standards.