PUBLIC OVERSIGHT OF AUDIT PROFESSION AND QUALITY ASSURANCE

Authors

  • Новак Кондић, PhD Associate Professor, Faculty of Economics, University of Banja Luka
  • Невенка Петровић, M.Sc. Elektroprenos BiH, Banja Luka

Keywords:

Public oversight, quality assurance, monitoring, monitored peer review.

Abstract

For the last few years there were a lot of discussions about establishing efficient and transparent public oversight of audit profession and quality assurance systems within the audit profession as well among legislators and regulators in either developed countries or developing and countries in transition.

As a result of this and having in a mind significance of audit profession on the whole, European Union and International Federation of Accountants have adopted a few very important documents regulating quality assurance within the audit profession. Those are European Union Eight Directive: Statutory Audit of Financial Statements and Consolidate Financial Statements, IFAC’s International Standard on Quality Control 1 (ISQC1) and Statement on Membership Obligations 1-Quality Assurance.

Regarding to this, the first chapter of this work deals with public oversight practice in European Union countries in the light of Eight Directive, requirements of International Federation of Accountants and national legislations and regulations in each of the European Union countries.

Second chapter deals with quality assurance systems within the European Union countries, with special emphasis on institutions performing quality control, methods and scope of quality control, selection and cycles of quality control and ways of its financing.

Since establishing efficient and transparent public oversight of audit profession and quality assurance systems is among others the prerequisite Bosnia and Herzegovina has to fulfill on its way to European Union, recommendations or solutions for establishing those systems are given in third chapter of this work.

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References

Закон о рачуноводству и ревизији Републике Српске, Службени гласник Републике Српске, број 67/05

Правилнику о ревизији финансијских извјештаја у Републици Српској, Службени гласник Републике Српске, број 120/06

IFAC Handbook of International Auditing, Assurance and Ethics Pronouncement, International Federation of Accountants IFAC, New York, 2006.

Statement on Membership Obligations 1-Quality Assurance, International Federation of Accountants (IFAC), New York, USA, 2005.

Strategy and action plan to enhance the quality of corporate financial reporting in Bosnia Herzegovina, World Bank, октобар 2006.

Reports on the Observance of Standards and Codes (ROSC), Accounting and Auditing Bosnia and Herzegovina, World Bank, 2004, www.worldbank. org

Quality Assurance Arrangements Across Europe, European Federation of Accountants, Brussels, 2006.

Eight Council Directive 2006/43/EC, Official Journal of European Union L 157/87, 09.06.2006, www.ec. europa. eu/nternal_market/company

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Published

2008-06-30

How to Cite

Кондић, Н., & Петровић, Н. (2008). PUBLIC OVERSIGHT OF AUDIT PROFESSION AND QUALITY ASSURANCE. Acta Economica, 6(8), 123–153. Retrieved from http://ae.ef.unibl.org/index.php/AE/article/view/254

Issue

Section

Review article