The Institute of Certified Accountants of Montenegro RADUNOVIC VESNA, Certified auditor Member of the Board of Directors
The establishment of the Institute Accounting reform Disagreements within the then existing The Institute of Accountants and Auditors of Montenegro (IAAM) and establishment The Institute of Certified Accountants of Montenegro (ICAM) in 2006. Consortium agreement between ICAM, Economic Faculty in Podgorica and Serbian Association of Accountants and Auditors (SAAA) in 2006. The Institute of Certified Accountants of Montenegro is a self-regulatory, independent, voluntary professional association, functioning in accordance with its acts. The aims of ICAM to take measures in promoting the knowledge, abilities, skills and expertise of its members in the accounting and auditing activities and in accordance with the IAS, IFRS, ISA and IES-7.
DECREE ON ENTRUSTING OF AFFAIRS OF THE PUBLIC ADMINISTRATION BODIES COMPETENT FOR ACCOUNTING AND AUDITING ("Official Gazette of Montenegro" No 44/07 from July 23rd, 2007, ammended on May 2010) Duties and powers adoption, translation and publication of the IAS, IFRS, ISA declared by the IASB, in accordance with the Accounting and Auditing Law adoption, translation and publication of new or amendments to the IAS, IFRS, ISA declared by the IASB, in accordance with the Law; preparation, providing of instructions and explanations to legal entities registered for the publication of economic and social activities and branches of a foreign company preparation of patterns of financial statements for legal entities and their publication in the "Official Gazette of Montenegro determining of certification programs in accordance with the IFAC training standard and their publication in the "Official Gazette of Montenegro"
DECREE ON ENTRUSTING OF AFFAIRS OF THE PUBLIC ADMINISTRATION BODIES COMPETENT FOR ACCOUNTING AND AUDITING (cont.) ("Official Gazette of Montenegro" No 44/07 from July 23rd, 2007, ammended on May 2010) organization of taking professional examinations for obtaining the title of Certified accountant and issuing the certificate to Certified accountant; determining whether the conditions for obtaining the title of Certified accountant referred to in Article 11 paragraph 4 of the Law are met and issuing of certificates to Certified accountant; monitoring of the quality programs implementation in order to evaluate the results of accounting and auditing in accordance with the obligations of IFAC, on an annual basis; training of accountants and auditors in accordance with ongoing IFAC's International Training Standards (IES); Keeping records of Certified Menagement Accountants According to the Decree adopted in 2007, ICAM had the authority to maintain a register of auditors and audit firms This power was taken over by the Ministry of Finance in May 2010. There is the representative of ICAM in the Council for Accounting and Auditing and also in Commission for awardin licenses for auditors.
The bodies of the Institute Assembly Board of Directors Steering Committee Secretary General Working bodies commissions, committees - Commission for the membership and the validation of titles; - Committee for Education, Training and organization of the exam; - Commission on Tax Policy; - Commission on accounting and auditing standards; - Commission for the control of public practice and - Other commissions as may be necessary
The Board of Directors The Board of Directors is consisted of 9 (nine) members out of which 6 (six) are elected by the Assembly from among regular members, 1 (one) from among extraordinary members. Two members are appointed by: Central Bank of Montenegro (one member) and Faculty of Economics. Powers of The Board of Directors determine the Proposal of Statute and other acts adopted by the Assembly, adopt the Rules of Procedure of the Board of Directors, and other general acts of the Institute, which are not within the competence of the Assembly or other bodies of the Institute, approve plans and programs of work of the Institute and monitor their implementation, adopt the annual financial plan and determine the proposal of financial statement and report on the work of the Institute, determine the pricing policy of the Institute, appoint and dismiss the Secretary General,
Powers of The Board of Directors appoint and dismiss the Chief Editor of the publishing and consulting, appoint and dismiss members of commissions of the Institute and determine their duties and responsibilities, adopt Rulebook on taking examinations for obtaining professional titles in the accounting profession, determine the amount of compensations for taking examinations for obtaining professional titles, approve the report of the exams held and the results achieved. pass regulations regarding primary and continuous education of the membership, decide on the format and content of the Entry Declaration, membership card, certificate and a solemn declaration upon the obtaining of professional titles, make decisions on the establishment of professional collaboration with other organizations. decide on appeals, requests and complaints of membership within its competence, determine the amount of annual membership fees-initiation fees and amounts of other compensations paid by the membership of the Institute determine the internal organization of the administration of the Institute, if it is estimated as necessary for its establishment and adopt the processing and analytical job evaluation, based on the proposal of the Secretary General, submit an annual report on its work to the Assembly of the Institute; decide on other issues and perform other activities, which are not within the scope of other bodies of the Institute, according to this Statute and other acts of the Institute
The Secretary General meets the following requirements: Certificate of Certified Menagement Accountants, work experience of at least 5 years in accounting and financial profession, advanced IT skills and knowledge of English language (minimum level V) Secretary General is appointed for a term of four years and may be reappointed. The Secretary General: represent the Institute in accordance with the authorizations arising from the Law manage the administration of the Institute organize the performance of the activities of the Institute and be responsible fortheir quality and timely completion perform other duties within in the scope of work of the Secretary General, defined by this Statute propose program of work and submit report on the work.
Financing ICAM receives no external subsidies For now ICAM doesn t have any financial and technical support All that had been accomplished was done with its own funds The main sources of ICAM s incomes are membership fees, fees for seminars, subscriptions to professional journals, educational programs
Quality assurance work of members of ICAM adherence to the Code of Conduct and Code of Ethics usage soft (educational) methods members receive an annual license to operate ICAM plans to award the license to the best accounting agencies and audit firms, if they meet all the requirements for it.
Translation of IAS/IFRS ICAM has signed a contract with Serbian Association of Accountants and Auditors (SAAA) and Association of Accountants and Auditors of Republic of Srpska (AAARS) about joint translations and publications of IAS and IFRS in 2007. Committee for the translation of IAS/IFRS for small and medium enterprises was formed in 2010. One of the members of the committee is representative of the Ministry of Finance of Montenegro. Official announcements are published up to 01.01.2009. The plan is to obtain the rights for non-commercial translation of auditing standards (necessary financial support) Slide 11
Montenegrian educational accounting standard CORS-1 Professional education and training of accountants is national accounting educational standard which is based on International educational standards of IFAC (International Federation of Accountants IES), Code of Ethics for professional accountants, relevant Directives of the European Union and Statute of the Institute of certified accountants of Montenegro (ICAM). This standard regulates a vocational training and acquiring of professional titles and knowledge for independent keeping of business books and compiling of financial statements for enterprises, banks, other financial organizations, other legal persons, institutions, and other entities which keep business books and compile financial statements: to the vocational training of persons in public practice vocational training of persons for independent performing of external auditing of financial statements and assurance services, as well as professional training of persons for professional control and supervising over work of professional accountants in public practice the vocational training of persons who conduct legal and professional control and supervision of material and financial operations of legal persons and other forms of organizing The Standard regulates the vocational training of persons for independent conduct internal auditing and control as well as other specialist trainings provided by this standard related to other professional persons who perform other tasks in the accounting Slide 12
Montenegrian educational accounting standard CORS-1 Slide 13 CORS-1 defines three professional titles: 1. Bookkeeper-BK 2. Menagement Accountant-MA 3. Certified Management Accountant-CMA 1. Bookkeeper (BK) A candidate acquires the professional title 'bookkeeper' if he/she meets thefollowing criteria: to have completed high- school and to have at least three years of practical work in accounting to have passed professional examinations for acquiring this professional title title from the following subjects: 1.1. Recording of financial transactions 1.2. Information for management control 1.3. Preparing of financial statements 1.4. Expenses accounting 1.5. Implementation of audit procedures 1.6. Tax system 1.7. Management of personnel and systems 1.8. Compilation of financial statements 1.9. Planning, control and management of performances
2. Management Accountant (MA) A candidate acquires the professional title of 'Menagement Accountant' if he/she meets the following criteria: a University degree and at least three years of practical work in keeping of business books and preparing of financial statements; or a higher professional degree in duration of three years and at least four years of practical work in keeping of business books and preparing of financial statements or college in duration of two years and at least five years of practical work in keeping of business books and preparing of financial reports; or professional title ' independent accountant' and at least three years of practical work in that profession. He/she has passed the professional exams from the following subjects for acquiring of this professional title: 2.1. Preparing of financial statements 2.2. Financial information for management 2.3. Human resources management 2.4. Information systems 2.5. Corporate and Business law Slide 14 2.6. Tax system 2.7. Financial management and control 2.8. Financial reporting 2.9. Audit and Internal control
3.Certified Menagement Accountant (CMA) A candidate acquires the professional title 'Certified Management Accountant' if he/she meets the following criteria: has a University degree has the professional title 'Menagement Accountant' or '(Menagement) chartered professional accountant' and at least three years of practical work in that profession has passed the exam for acquiring of this professional title from the following subjects: 3.1. Auditing and assurance services 3.2. Management of performances 3.3. Strategic business planning and development 3.4. Complex corporate reporting 3.5. Strategic financial management has not been convicted of a crime that makes him/her unfit to perform tasks from accounting area. We are committed to the Implementation of SMOs and to the existing professional associations and those that may be established in future.
Licence of the Auditor Ministry of Finance issue a license of the auditor based on the certificate in the rank of Certified Menagement Accountants. In accordance with the Law on Accounting and Auditing (Article 14), it is prescribed that the auditor's license may be obtained by a person who meets the following criteria: possession of the title of Certified Menagement Accountant that he/she performed auditing on the basis on employment contract at minimum three years, under the supervision of a Certified Auditor that he/she has not been sentenced for a criminal offense that makes him/her unworthy to carry out the accounting and auditing.
Validation titles ICAM validate the certificate in accounting to professional accountants who are members of associations outside of Montenegro (member of IFAC) according to professional licenses obtained from the parent association. For validation candidate must submit: Application Diploma on educational attainment Certificate License Evidence of payment costs of validation The plan is that the candidate must also submit evidence on passed exams from: Montenegrin language Economic rights Tax system of Montenegro
Countinuing professional development - CPD All members - holders of professional accounting titles are required to obtain the minimum of 40 CPD points/hours annually, or 120 points/hours in period of three, consecutive, years.
Membership in IFAC During the past and this year we have intensified our efforts for membership in IFAC. At the recent CPD seminar in March for the first time we had speakers from the IFAC and the World Bank, we promote the IFAC policies, attitudes and guidelines ICAM has worked hard to meet the SMO Statement of member obligation. We have had over the last year and this year an intensive cooperation with our nominator Slovenian Institute for Auditing who unselfishly gave us great support. Our cooperation will continue to develop the Action Plan, which will work after applying.
Membership in IFAC We are pleased that we are your guests in this wonderful event! It is useful to share the experience with you! We wish you continued success in work and development of the accounting profession. Thank you for your attention!!!