Meta Duhovnik, Ph.D., Slovenian Institute of Auditors
Legal environmentLegal environment
Establishment 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
Meta Duhovnik, Ph.D., Slovenian Institute of Auditors
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
Meta Duhovnik, Ph.D., Slovenian Institute of Auditors
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
Meta Duhovnik, Ph.D., Slovenian Institute of Auditors
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 INTERNAL
AUDITING AUDITING
Meta Duhovnik, Ph.D., Slovenian Institute of Auditors
The main governing bodiesThe main governing bodies
Board
Director
Auditing Council
Council of Experts
Meta Duhovnik, Ph.D., Slovenian Institute of Auditors
Board of the InstituteBoard of the Institute – – thethe main tasksmain tasks
adopts 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
Meta Duhovnik, Ph.D., Slovenian Institute of Auditors
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
Meta Duhovnik, Ph.D., Slovenian Institute of Auditors
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 have the qualities and experience required for the
management of the Institutemanagement of 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
Meta Duhovnik, Ph.D., Slovenian Institute of Auditors
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
Meta Duhovnik, Ph.D., Slovenian Institute of Auditors
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
Meta Duhovnik, Ph.D., Slovenian Institute of Auditors
Professional work of the InstituteProfessional work of the Institute
organized 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
Meta Duhovnik, Ph.D., Slovenian Institute of Auditors
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
Meta Duhovnik, Ph.D., Slovenian Institute of Auditors
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 and for Auditing Companies, auditing practice statements and recommendations of the Auditing Councilrecommendations 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
Meta Duhovnik, Ph.D., Slovenian Institute of Auditors
Professional Standards
According to the Auditing Act the Institute is authorized According to the Auditing Act the Institute is authorized to adopt and publish the following professional standardsto adopt 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
Meta Duhovnik, Ph.D., Slovenian Institute of Auditors
Already adopted and published
auditing rulesinternal auditing standardsaccounting standardsbusiness-finance standardsbusiness-finance principles
Meta Duhovnik, Ph.D., Slovenian Institute of Auditors
Important responsibility in the Important responsibility in the accounting fieldaccounting field
According to the Companies According to the Companies Act the Institute is authorized to Act the Institute is authorized to set and prepare Slovenian set and prepare Slovenian Accounting Standards, which Accounting Standards, which are to be approved by the are to be approved by the Ministry of Finance and Ministry of Finance and Ministry of EconomyMinistry of Economy
New SAS were put into force New SAS were put into force on 1 January, 2002 and are in on 1 January, 2002 and are in the process of renewal the process of renewal
Meta Duhovnik, Ph.D., Slovenian Institute of Auditors
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
Meta Duhovnik, Ph.D., Slovenian Institute of Auditors
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
Meta Duhovnik, Ph.D., Slovenian Institute of Auditors
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
Meta Duhovnik, Ph.D., Slovenian Institute of Auditors
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
Meta Duhovnik, Ph.D., Slovenian Institute of Auditors
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
Meta Duhovnik, Ph.D., Slovenian Institute of Auditors
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
Meta Duhovnik, Ph.D., Slovenian Institute of Auditors
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
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
Meta Duhovnik, Ph.D., Slovenian Institute of Auditors
Continuing training requirementsContinuing training requirements
30 hours of training per year (for all titles)30 hours of training per year (for all titles)