FUNCTIONING OF BIH ACCOUNTING AND AUDITING COMMISSION

FUNCTIONING OF BIH ACCOUNTING AND AUDITING COMMISSION

ESTABLISHING OF THE COMMISSION The Commission is an independent and professional body, established in June 2004 pursuant to BIH Accounting and Auditing Law. The Commission is a legal entity founded by FBIH and RS professional bodies and Brcko District professional body.

MEMBERSHIP The Commission consists of seven members elected out of accounting profession, as follows: a) Three members from FBIH b) Three members from RS c) One member from Brcko District

MEMBERSHIP Commission members are elected for a two-year term of office by the professional bodies. The same member of the Commission can spend at most four consecutive years in this function.

COMMISSION SESSIONS Regular meetings of the Commission are held at least once in three months. Extraordinary meetings of the Commission are held upon request by any of four Commission members. Decisions are made by the majority of five out of seven Commission members.

COMMISSION ACTIVITIES Commission performs the following tasks: Translating and publishing standards, follow-up instructions, explanations and guidelines of professional ethics; Establishing of the criteria and enacting the uniform framework program of qualifications, training, testing, certification and licensing, which is entirely in line with IFAC standards and guidelines and which is applied on the whole BIH territory, as well as monitoring of their implementation in BIH entities and Brcko District.

COMMISSION ACTIVITIES Monitoring of the implementation of the single training program for acquiring accounting qualifications and, in cooperation with BIH professional bodies and training providers, issuing necessary instructions needed for appropriate and uniform implementation of the program in the whole of BIH; Establishing of the single program for testing accounting profession candidates and implementing the program in the whole of BIH.

COMMISSION ACTIVITIES Pursuant to Article 5 of the Law, the Commission monitors certification process performed by professional bodies in regard to meeting the requirements relating to previous training, exams passed, education level and practical experience in the whole of BIH; Monitoring of licensing and certification process for accountancy professionals.

COMMISSION ACTIVITIES Holding regular meetings for discussing standard application control, implementation of the uniform program for qualification acquiring and other related issues; Preparation of an annual report to BIH Council of Ministers, which also must contain the information on incomes and expenses of the Commission.

ACHIEVEMENTS According to general impression, the Commission has so far achieved the following extraordinary results: First, the Commission succeeded in harmonizing the legislation in BIH entities and Brcko District regarding the terms of becoming an accounting or auditing professional.

ACHIEVEMENTS Second, the uniform professional titles have been agreed on in the whole of BIH and those are recognized by all three BIH professional bodies. Third, a number of regulations have been harmonized on the BIH level which are of the imperative or framework content, which represents the grounds for the entity professional associations to more specifically regulate certain issues and incorporate some specificities of the given professional body.

ACHIEVEMENTS - Fourth, uniform procedures have been established for accounting license renewal, which is the best promotion of the profession. - Fifth, an increasing number of economics graduates wants to acquire a certificate in accountancy, which is an indicator of the level achieved by the profession and professional bodies in BIH, credits for which belong to the Commission as well.

ACHIEVEMENTS - Sixth, the exams are conducted twice per year in three BIH cities Sarajevo, Banja Luka and Mostar. Around 2000 exams were applied for in the May term (May 10 14), all of which being a part of the BIH Uniform Qualification Acquisition Program. - Seventh, the Commission is funded from the activities which belong to its authority, contributions by entity Associations and exam fees, all providing the financial stability of the Commission.

FUTURE ACTIVITIES - Amendments and annexes to the existing BIH Accounting and Auditing Law, according to which some other related professions should also be included in the Law (appraiser, financial analyst, internal auditor etc.). - Strengthening of professional competencies with respectful international associations.

FUTURE ACTIVITIES - Improvement of the BIH Uniform Qualification Acquisition Program in accordance with the best world practices; - Regional and every other possible cooperation for the purpose of accepting and incorporating the best practices in professional bodies in BIH

FUTURE ACTIVITIES - Continual work on designing exam questions as a function of strengthening the credibility of certified accountants and auditors in BIH professional associations, which are the exclusive authorized bodies for issuing certificates.