Beruflich Dokumente
Kultur Dokumente
I BASIC PROVISIONS
1. The Scope of Regulation and Application
Article 1
The present Law shall govern the procedure for keeping books of account, recognizing and evaluating assets and
commitments, revenues and expenditures, producing, presenting, delivering, disclosing and processing annual
financial statements, conditions and mode of conducting financial statement audits and internal audits.
The provisions of the present Law shall apply to undertakings, cooperatives, banks and other financial organizations,
insurance companies, financial leasing lessors, voluntary pension funds, voluntary pension fund management
companies, investment funds and investment fund management companies, stock exchange markets and brokerage
houses and other legal entities (hereinafter referred to as: legal entities).
The provisions of the present Law shall also apply to individuals who are autonomously performing economic
activities for the purpose of gaining profit and who are keeping books of account according to the dual bookkeeping
system (hereinafter referred to as: entrepreneurs), unless otherwise specified by separate regulations.
The provisions of the present Law shall also apply to legal entities and other organizing forms the legal entity has
established abroad, providing those countries' regulations have not defined the obligation to keep books of account
and to produce financial statements.
The provisions of the present Law shall also apply to branches and other organizational parts of foreign legal entities
located abroad which are running their business in the Republic of Serbia, unless otherwise specified by separate
regulations.
If requested so by the National Bank of Serbia, banks and other financial organizations, as well as insurance
companies, which have established legal entities located abroad, shall provide data relevant for perceiving business
operations of such legal entities.
The provisions of the present Law shall not apply to budgets and budget fund beneficiaries, churches and religious
communities, and to mandatory social security organizations, unless otherwise specified by separate regulations.
Law prescribes to be regulated by legal entity's, i.e. entrepreneur's general act, in compliance with legal and
professional regulations.
Small legal entity and entrepreneur may, and large legal entity, medium legal entity, legal entity producing
consolidated financial statements in compliance with law, legal entity issuing securities by public offering or legal
entity whose securities are the subject of trading at organized securities market, must apply IAS, i.e. IFRS.
Minister in charge of finance (hereinafter referred to as: the Minister of Finance) shall prescribe procedure for
recognizing, measuring and evaluating assets and commitments, revenues and expenditures of small legal entities
and entrepreneurs not applying IAS, i.e. IFRS, in compliance with legal and professional regulations.
The Authorized Auditors Chamber (hereinafter referred to as: the Chamber) shall issue professional title certificates
specified in paragraphs 3 and 5 of the present Article, in compliance with the present Law.
Article 6
The Chamber shall organize professional title examinations specified in the Article 4 paragraph 1 of the present Law.
The Chamber shall establish the Commission to process examinations.
The Chamber, professional association or other legal entity may organize training for professional title examinations
specified in paragraph 1 of the present Article, and advanced training for persons holding certificates on these
professional titles, in compliance with international guidelines and professional accountants' education demands.
In case legal entity shall refuse to harmonize the information on classification with the request coming from the the
Agency, the Agency shall define the volume of such legal entity and those data shall be used in the following financial
year.
Notwithstanding the criteria mentioned in paragraph 2 of the present Article, banks and other financial organizations,
insurance companies, financial leasing lessors, voluntary pension funds, voluntary pension funds' management
companies, investment funds and investment funds' management companies, stock exchange markets and
brokerage houses shall be considered as large legal entities, and entrepreneurs shall be considered as small legal
entities.
2. Accounting Documents
Article 9
Entering business changes on assets, commitments and equity, revenues and expenditures shall be done through
accounting documents, either in written or in electronic form.
Accounting document shall be the written evidence on a business change and it shall include all data relevant for
entries into the books of account in such a way that accounting document shows base and category of a business
change, and which shall be signed by persons authorized for producing and controlling accounting documents.
A copy of an accounting document is a basis for entering a business change in books, provided that the place of
keeping of the original is stated therein, signed by the responsible person.
A document shall also be considered as an accounting document if delivered electronically, which includes electronic
exchange of data among computers, in accordance with law.
An electronic document - an accounting document delivered electronically must be signed by electronic signature and
confirmed by an electronic message between the sender and the receiver, in accordance with law.
Transmitter shall make sure the data entering the telecommunication system is based on accounting documents, and
it shall store the original documents.
Data transfer service provider, i.e. mediator in execution of the appropriate transaction during the electronic exchange
of data between computers shall be held responsible for transmitted messages' accuracy.
Article 10
Persons responsible for producing and controlling accounting documents shall confirm by their signature, either
written or electronic, that accounting document is complete, accurate, arithmetically precise and that it presents the
business change.
Persons entrusted by material issues (values) the documents relate to shall not control accounting documents.
The accounting documents produced in electronic form on computer must have the electronic signature of the person
that produced the document, or other authorized electronic signature.
Article 13
The journal shall be the book of account with business changes entered in the sequence of their emergence, i.e. in
the sequence of accounting documents reception.
The general ledger shall be the entire set of accounts, with balancing prerogatives, used for systematic enclosure of
status and changes on assets, commitments, equity, revenues and expenditures, serving as a base for producing
financial statements.
Subsidiary ledgers shall be the analytical records kept for immaterial investments, real estates, installations and
equipment, investment real estates, long-term financial investments, stocks, demands, cash and cash equivalents,
commitments, equity and others.
The cash-book shall consist of business changes arising from cash and other values kept in the legal entity's and
entrepreneur's pay desk. The cash book shall be concluded at the end of every day and it shall be delivered to the
accounting department on the same day, and no later than the next day.
Books of account may be kept in open sheets, bound or transferred to some of the electronic or magnetic media, so
they can be printed or displayed on the screen, depending on the situation.
Article 14
Books of account shall be kept for the financial year equal to the calendar year, except in case specified in the Article
24 paragraph 2 of the present Law, when books of account are kept for the financial year different from the calendar
year.
Opening of books of account shall be done in the beginning of the financial year on the grounds of the previous year's
final statement of assets and liabilities.
Newly founded legal entities and entrepreneurs shall open books of account on the grounds of the foundation
statement which is made on the grounds of the list of assets and commitments, with the balance on the foundation
day at the agency, i.e. organization in charge of keeping records of undertakings.
2. Structure of Accounts
Article 15
Legal entities and entrepreneurs shall enter business changes at accounts prescribed by the structure of accounts.
Fully respecting implementation of IAS and IFRS, the following persons shall define the structure of accounts and the
content of accounts within the structure of accounts:
1) Minister of Finance - for undertakings, cooperatives, entrepreneurs, and for other legal entities;
2) Governor of the National Bank of Serbia - for the National Bank of Serbia, banks and other financial organizations,
insurance companies, financial leasing lessors, voluntary pension funds and voluntary pension fund's management
companies;
3) Securities Commission - for investment funds and investment funds' management companies, as well as stock
exchange markets and brokerage houses.
3. Employees Entrusted with Keeping Books of Account and Producing Financial Statements
Article 16
Legal entity, i.e. entrepreneur shall in its general act define the schooling level, work experience and other conditions
the person in charge of keeping the books of account and producing financial statements must meet.
Legal entity and entrepreneur shall in their general acts define the person employed at the legal entity and
entrepreneur who shall be entrusted with keeping the books of account and producing financial statements.
Article 17
In terms of the present Law, legal entity, i.e. entrepreneur may sign a contract on keeping the books of account and
producing financial statements with the undertaking or entrepreneur which is registered for providing accounting
services and which has employees entrusted with keeping the books of account and producing financial statements,
and which meet conditions specified in the general act.
Provisions specified in paragraph 1 of the present Article shall not apply to banks and other financial organizations,
insurance companies, financial leasing lessors, voluntary pension funds, voluntary pension fund management
companies,investment funds, investment funds' management companies and stock exchange markets and brokerage
houses.
Article 19
Besides taking an inventory of assets and commitments specified in the Article 18 of the present Law, legal entity, i.e.
entrepreneur shall also take an inventory and reconcile balances when bookkeepers takeover each other's duty,
when selling prices of products and goods change in the store, when statutory changes take place, when initiating,
i.e. closing regular liquidation and bankruptcy procedure and in other cases defined by law.
The Minister of Finance shall prescribe the procedure and deadlines for taking inventories and for reconciling the
bookkeeping balance with the actual balance.
Documents of payment operations in the organizations authorised for payment operations shall be filed for five years
Sales books, control books, subsidiary forms and similar documents shall be filed for two years.
Deadlines for storing accounting documents and books of account specified in paragraph 1 of the present Article shall
be calculated starting from the last day of the financial year they relate to.
Audit companies shall file documents used as a base for the conducted audit for five years.
Accounting documents, books of account and financial statements shall be filed as originals or by using other
archiving means defined by law.
Accounting documents, books of account and financial statements shall be filed within the business premises of a
legal entity, i.e. entrepreneur, and/or within legal entities or entrepreneurs who were entrusted with keeping books of
account.
In case books of account are kept in the computer device, legal entity, i.e. entrepreneur shall memorize applicative
software along with memorized data, in order to have such data available for control.
When initiating liquidation or bankruptcy procedure, accounting documents and books of account shall be handed
over to the liquidation, i.e. bankruptcy receiver.
2. Financial Statements
Article 25
The financial statements include:
1) Balance sheet;
2) Income statement;
3) Cash flow statement;
4) Statement of changes in equity;
5) Notes to the financial statements;
6) Statistical annex.
Exclusive of Paragraph 1, of the present Article, financial statements of small legal entities which do not have the
obligation to apply IAS/IFRS, or which do not issue securities by public offer or whose securities are not being traded
on the organized securities market, as well as financial statements of entrepreneurs, include: Balance sheet, Income
statement and Statistical annex.
Balance sheet shall be the review of assets, commitments and equity on a given day.
Income statement shall be the review of revenues, expenditures and results accomplished in a given period of time.
Cash flow statement shall provide information on receiving and issuing cash and cash equivalents in a given
accounting period of time.
Statement of changes in equity shall provide information on legal entity's changes in equity in a given accounting
period of time.
Notes to the financial statement shall contain base for producing financial statements and applied accounting policy,
as well as other disclosures in compliance with IAS, i.e. IFRS or in compliance with the provisions specified in the
Article 2 Paragraph 6 of the present Law.
Statistical annex shall contain specific statistic and statutory data.
Article 26
The Minister of Finance shall prescribe the content and form of financial statements in the purpose of having unique
information and statistical data processing for undertakings, cooperatives, entrepreneurs and other legal entities
Governor of the National Bank of Serbia shall prescribe the content and form of financial statements for the National
Bank of Serbia, banks and other financial organizations, insurance companies, financial leasing lessors, voluntary
pension funds and voluntary pension fund management companies.
Securities Commission shall prescribe the content and form of financial statements for investment funds, investment
fund management companies and stock exchange markets and brokerage houses.
Article 29
Legal entity may provide, and in cases defined by law it must provide an internal auditing with the goal to inspect,
evaluate and follow the adequacy and efficiency of the accounting system and internal control systems, in compliance
with law.
Internal control system shall include all procedures and proceedings the legal entity management has defined for the
purpose of providing legal entity's clean and efficient business operations, for holding on to defined management
policy, for preserving integrity of funds, for preventing and discovering criminal behaviour and mistakes, for applying
legal provisions, for having accurate and complete accounting records, and for producing prompt and reliable
financial information.
Article 31
The Audit obligors specified in the Article 37 of the present law, along with regular annual financial statements or
consolidated financial statements form the Article 30, Paragraph 1 and 3 of the present law shall deliver to the
Agency not later the September 30th:
1) Decision on adoption of regular annual financial statements or consolidated financial statements;
2) Auditors report on performed audit of regular annual or consolidated financial statements in compliance with the
present law and International standards on auditing;
3) Decision on profit distribution or coverage of losses under regular annual financial statement, if it is decided that
the profit shall be distributed or the losses shall be covered;
4) Corrected regular annual financial statements or corrected consolidated financial statements, adopted by the
competent body if they contain corrections related to delivered financial statements referred to in Article 30 Paragraph
1 and 3 of the present law;
5) Annual business report for the legal entities prescribed by separate regulations.
Exclusive of Paragraph 1 of the present Article, the legal entities from the Article 24 Paragraph 2 of the present law,
along with regular annual financial statements, shall deliver the documents referred to in the Paragraph 1 of the
present Article not later the period of 90 days after the day of the delivery of the regular annual financial statement
form Article 30, Paragraph 2 of the present law.
Article 32*
The Agency registers the received financial statements in the Register of financial statements and date on solvency
of legal entities entrepreneurs (here in after referred to as: the Register of financial statements).
Register of financial statements is a central, public, unique electronic data base of financial statements form the
Article 30 and 31 of the present law, as well as data on solvency of legal entities and entrepreneurs, based on which
the business results and financial state of legal; entities and entrepreneurs, as well as, business trends in the
Republic of Serbia are assessed.
The Agency shall keep records of financial statements form the Paragraph 1 of the present article for 10 years.
Article 33
The agency shall process and publish data from the received financial statements, based on which the business
results and financial state of legal entities and entrepreneurs is assessed.
For the purpose of keeping the Register of financial statements, the Agency is authorized to gather and use the data
from competent state bodies and institutions.
Based on data from the Paragraph 2 of the present article, data from other registers and records that the Agency
keeps, as well as data supplied by other competent bodies and interested service users, the Agency shall keep the
solvency data base within the Register of financial statements, shall give opinion on solvency of legal entities and
entrepreneurs and provide other services in accordance wit the law and other regulations.
The Register of financial statements shares the financial statements of legal entities and entrepreneurs with
competent registers of the Agency that register their status data.
The Agency provides, in accordance with the law and the other regulations, the electronic connection of the Register
of financial statements with other registers or data bases that are kept in the republic of Serbia and out side of
Republic of Serbia as well as with other users through telecommunication network, or by computer media.
Article 34
The Agency shall publish registered regular annual financial statements and consolidated financial statements of the
audit obligors from the Article 37 of the present law on the web page of the register of financial statement not later the
June the 13th, or the documents from the Article 31 of the present law not later then October the 31st, respectively,
unless otherwise specified by separate regulation.
Exceptionally, the agency shall publish the regular annual financial statements of audit obligors that are produced in
compliance with the Article 24, Paragraph 2 of the present law or documents form Article 21 of the present law,
respectively, on the web page within the period of 30 days after the day of the delivery.
The Agency shall enable the users' insight on the web page of the Register of financial statements, without
compensation, into financial statements from Paragraph 1 and 2 of the present Article, for the period last three
reporting years.
Article 35
The Minister of finance, acting on a suggestion by the Agency, shall prescribe in detail the conditions of procedure for
receiving, controlling, registering, processing and publishing of financial statements, manner of keeping and contents
of the register of financial statements, as well as providing data form those statements.
The Minister of finance, acting on a suggestion by the Agency, shall prescribe in detail the conditions and manner of
collecting data supplied to the Agency by other competent bodies and providing data and opinions on solvency of
legal entities and entrepreneurs, as well as other services which the Agency provides in the process of keeping the
Register of financial statements.
Article 36*
(Ceased to be valid)
Auditing of regular annual financial statements shall be mandatory for large and medium legal entities as well as for
small legal entities which issue securities public offer, or whose securities are being traded on the organized
securities market.
Auditing of consolidated financial statements shall be mandatory for parent legal entities which produce consolidated
financial statements in compliance with Article 21 of the present law.
Newly established legal entities shall not be audit obligors in the year of their establishment, unless otherwise
specified by separate regulation.
Small legal entities and entrepreneurs may decide to audit financial statements, in compliance with the present Law.
Legal entities issuing securities and other financial instruments through public tender shall obtain the report on
conducted auditing for the year preceding the year in which they are issuing securities, i.e. other financial
instruments.
Separately agreed auditing of legal entities' and entrepreneurs' financial statements shall not be considered as
auditing of annual financial statements, in terms of the present Law.
2. Conducting Audits
Article 38
Auditing of regular annual financial statements and consolidated financial statements shall be preformed in
accordance with the present law, other laws that prescribe financial statements audit of some legal entities,
International standards on auditing (ISA) and Code of ethics for professional accountants.
Auditing of financial statements shall be conducted by persons holding a professional title in terms of the present
Law, i.e. authorized auditors holding a licence for conducting auditing of financial statements (hereinafter referred to
as: licensed authorized auditors), audit company employees and the Chamber members.
Auditing of financial statements may also be conducted by authorized auditors specified in the Article 73 paragraphs
2 and 3 of the present Law not holding a licence for conducting auditing of financial statements, no later than the
expiration day of a deadline specified in the Article 73 paragraph 4 of the present Law.
Licensed authorized auditors may delegate some tasks in the process of auditing to other persons employed by the
auditing company, who do not have professional title in compliance with the present law, provided that their work is
planed and supervised by the licensed authorized auditor.
Licensed authorized auditor shall audit financial statements and in a report on conducted auditing he/she shall
unambiguously express an opinion whether financial statements accurately and objectively, and including all
significant issues, present financial balance, business results and cash flows and whether they have been made in
compliance with IAS, i.e. IFRS, i.e. in compliance with regulations specified in the Article 2 of the present Law.
Authorized auditor's opinion shall be expressed in compliance with International Standards on Auditing and it may be
positive, it may be a reserved opinion, it may be negative or auditor may restrain from expressing an opinion.
Audit company specified in paragraph 2 of the present Article may conduct auditing of legal entities specified in the
Article 37 of the present Law, providing it employs minimum three licensed authorized auditors. Audit company may
conduct audit of medium legal entities, providing it employs minimum one licensed authorized auditor.
The same auditing company may conduct auditing of financial statements of one legal entity no more than five times
in a row, unless otherwise specified by other law.
Exceptionally, auditing company may conduct auditing of one legal entity maximally for another five years, unless
otherwise specified by other law, providing auditing is conducted by different authorized auditors of that audit
company (rotation of auditors).
Auditing of financial statements specified in the Article 37 of the present Law shall be conducted every year, on the
grounds of data for classification of legal entities from the preceding year.
Legal entity's competent body shall choose audit company, in compliance with law.
Authorized auditor of a chosen audit company is entitled to attend the session of Assembly, i.e. other body, when
adopting annual financial statements is on agenda and to receive all necessary information and documents the
management body members are receiving for that session.
Authorized auditor is entitled to inspect all documents, books of account and accounts and to request and obtain from
legal entity's management body all additional explanations necessary for conducting auditing.
Employees of the Auditing company shall use obtained data and information exclusively for auditing needs, shall not
communicate them to third parties, except in case of doubt on existence of a criminal act, in other cases provided by
the law which regulates prevention of money laundry and financing the terrorism, as well as other laws and in
accordance with IAS and Code of ethics for professional accountants.
Auditing shall be conducted on the grounds of a contract the audit obligor and audit company shall sign, no later than
by the end of the calendar, i.e. financial year, and exceptionally a new contract may be concluded even after the
expiry of this deadline, if a previously concluded contract terminated, pursuant to Paragraph 19 of the present Article,
and Article 46 Paragraph 2 of the present law.
Each year, the audit company shall provide the independence certificate in written form in line with Article 40 and 45
of the present law by which it shall confirm its independence, independence of licensed and authorized auditors and
persons form Paragraph 4 of the present Article, from the audit obligor.
The audit company shall inform the management body of the legal entity wherein it performs audit of financial
statements, or other competent body (audit committee) about important issues that appear during audit, especially
about important malfunctions of internal control systems in the process of financial reporting and to include its
conclusions into the mandatory content of the letter to the management.
The audit company shall not assign contracted audit tasks to other audit companies.
Audit contract may be terminated when justified causes for that exist. Different opinions on accounting treatment or
audit procedures shall not be deemed as a justified cause for termination.
4. Audit Companies
Article 40
Audit company shall be founded in compliance with law governing undertakings, unless otherwise specified by the
present Law.
Audit company shall meet the following additional conditions:
1) authorized auditors or audit companies, being the founders of an audit company, shall have the majority
management right;
2) it shall have the audit licence;
3) authorized auditors as founders of an audit company and authorized auditors as employees of an audit company
shall not be under control of any person or any interest groups, in compliance with the Ethic Codex for Professional
Accountants;
4) it shall employ a defined number of authorized auditors holding a licence specified in the Article 38 of the present
Law;
5) it shall be the Chamber member.
Audit company shall insure itself against the liability risk for damage caused by a false audit opinion of a licensed
authorized auditor, as well as against not applying International Standards on Auditing and Ethic Codex for
Professional Accountants.
Besides auditing financial statements, audit company may provide bookkeeping and producing financial statements
services, and it may conduct evaluation of assets and equity.
Audit company may not conduct auditing of a legal entity it provides services specified in paragraph 4 of the present
Article.
Audit company may provide advisory services to the legal entity it conducts auditing of, in compliance with the Ethic
Codex for Professional Accountants.
Article 41
The Ministry shall issue a licence for conducting auditing and that licence shall be used as a base to register the audit
company.
Legal entity which does not have the license to perform the business of auditing in line with the present law, may not
use the name "audit" in legal transactions
Article 42
The founder of the audit company shall submit the request to the Ministry to have the audit licence issued.
As an addition to the request specified in paragraph 1 of the present Article, the founder shall submit:
1) statute or foundation act, in compliance with law governing undertakings;
2) internal act governing auditing methodology;
3) data on persons conducting auditing with proofs on their permanent employment and with proof they have the
professional title and licence for conducting financial statements auditing, in compliance with the present Law;
4) data on founders.
Article 43
The Ministry shall decide on the request specified in the Article 42 of the present Law within 30 days starting from the
day the request was submitted.
If conditions specified in the present Law have not been met, the Ministry shall refuse the request mentioned in
paragraph 1 of the present Article.
Decision specified in paragraph 2 of the present Article shall be final, and one may initiate administrative dispute
proceedings against it.
Article 44
Audit company shall submit the request for membership in the Chamber within period of 30 days from the when its
license to perform auditing has been granted.
Auditing company shall submit the request for inscription in to the Register of auditing companies (here and after
referred to as: the Register) within the period of 30 days from the day of the inscription in to the records of the
Chamber membership.
The Register is kept by the Minister of Finance, and the data from the Register shall available on the web
presentation of the Ministry of Finance.
The Register of audit companies contains:
1) Business name, address, registration number, tax identification number and legal form;
2) Contact information and internet address;
3) Address of each office of subsidiary in the country or abroad;
4) Name and registration number of all licensed authorized auditors employed by the audit company;
5) Data on founders;
6) Data about general manager, or members of the management board;
7) Data on network membership;
8) Supervision measures.
More detailed conditions and manner of audit company register keeping shall be regulated by the Minister of Finance.
Article 45
Auditing shall not be conducted by:
1) audit company which is shareholder, investor or founder of audited legal entity;
2) audit company - when audited legal entity is shareholder, investor or founder of that audit company;
3) authorized auditor who does not hold audit licence;
4) licensed authorized auditor who is shareholder, investor or founder of audited legal entity;
5) licensed authorized auditor who is direct relative up to any degree of relationship, spouse or relative-in-law up to
the second degree of in-law relationship, regardless whether marriage has terminated, adopter, i.e. adoptee of a
founder or director of audited legal entity and guardian, i.e. foster-parent of a founder of audited legal entity;
6) The audit company and the licensed authorized auditor if having indirect ownership share of the legal entity where
the audit is performed.
Article 46
Audit company where number of licensed authorized auditors is reduced under the number specified by the present
Law shall inform the Ministry about that change within eight days starting from the day the change took place.
Audit company which during the auditing procedure is left without one single licensed authorized auditor shall
discontinue the auditing procedure and inform the audited legal entity and the Ministry about it within eight days
starting from the day the change took place, and audited legal entity shall entrust the started auditing procedure to
some other audit company.
In cases specified in paragraphs 1 and 2 of the present Article, audit company may not sign new audit contracts until
it again meets conditions specified in the Article 38 paragraph 7 of the present Law and informs the Ministry about it.
Article 47
If activities with crime elements are uncovered, audit company shall in line with ISA inform the management of legal
entity and competent state agency about it, in accordance with law.
Article 47a
Audit company shall inform the Ministry about the changes of all facts and circumstances based on which it was
inscribed into the register within the period of 8 days from the day when the change appeared, and shall at least once
a year until the end of march of the current year submit data on:
1) Stock and share holders of the audit company, and acquiring or change of stock and share holders;
2) Investments by which the audit company directly or indirectly acquired share in other legal entity;
3) Changes of articles of association and memorandum association;
4) Basis for determination of insurance premium;
5) Employees;
6) list of all contracts on financial statements audit, by type of audit, that the audit company has concluded with audit
obligors in the previous accounting period of time, and list of all contracts on financial statement audit that have been
terminated with a proper explanation, regardless of which party terminated the contract;
7) Number of audit statements signed by each licensed authorized auditor.
Annual report from Paragraph 1, Item 1 to 7 of the present Article includes all data within the period from December
the 31st of the previous year until the December the 31st of the current year.
Requested by the Ministry, the audit companies shall also submit data on number of planed and completed hours for
each member of the audit team and for each audit of financial statements.
The manner of reporting and the content of reports from the Paragraph 1 of the present Article shall be regulated in
more detail by Minister of Finance.
Article 48
The Ministry shall revoke the audit licence to audit company in the following cases:
1) if the founder renders the decision to cease performing the business of financial statements audit as well as in
cases of cessation of a company in line with the law that governs companies;
2) if audit licence was granted on the grounds of false data provided by founders;
3) if it shall not submit the request to file at the Audit Companies Register;
4) if number of licensed authorized auditors is reduced under the specified number, and audit company, within three
months staring from the day the change took place, does not increase the number of licensed authorized auditors up
to the number specified by the present Law and does not inform the Ministry about it;
5) The audit company ceases to fulfill one of the conditions of the Article 40 Paragraph 2 of the present law or
performs audit contrary to provisions of the present law and does not remove those irregularities, or does not conduct
additional measures within the time frame specified by the competent body.
Decision specified in paragraph 1 of the present Article is final, and one may initiate administrative dispute against it.
Article 49
Once the decision on revoking audit licence specified in the Article 48 of the present Law becomes executive, the
Ministry shall distribute the copy of the decision to the competent body, i.e. organization in charge of running the
register of undertakings and the Chamber for erasure from membership.
2. Chamber Activities
Article 51
The Chamber shall perform the following activities:
1) it shall follow the implementation of International Accounting Standards, i.e. International Financial Reporting
Standards, International Standards on Auditing, International Standards on Quality Control and Code of Ethics for
Professional Accountants;
2) it shall follow the process of harmonizing accounting and auditing regulations with international professional
regulations;
3) it shall adopt program, conduct candidates' training, organize examinations and issue professional title certificates,
and rules for continuing professional advanced training, in compliance with international professional training
demands and with the present Law;
4) it shall prescribe conditions for acquiring, extending and revoking audit licences to authorized auditors for
conducting financial statements audits, in compliance with the present Law;
5) it shall issue, extend and revoke audit licences to authorized auditors for conducting financial statements audits
and run register on issued audit licences to authorized auditors for conducting financial statements audits;
6) it shall run registers on issued professional title certificates;
7) it shall define criteria and validate professional titles acquired abroad;
8) it shall at least once a year inform the Ministry about implementation of international standards in accounting and
auditing and Code of Ethics for Professional Accountants among legal entities and audit companies;
8a) conducts quality trial of performed audits in line with the Code of ethics for professional accountants and in line
with the methodology determined by the Chamber;
9) it shall define criteria in forming prices for auditing services among audit companies;
10) it shall cooperate with international professional organizations;
11) it shall deliver annual financial statement and work report to the Ministry;
12) it shall perform activities the International Federation of Accountants and other international professional
organizations have vested in it;
13) it shall perform other activities defined by the Chamber's foundation act.
The Chamber shall perform activities specified in paragraph 1, items 3)-7) as entrusted activities.
Acts specified in paragraph 1, items 5) and 7) shall be final and one may initiate administrative dispute against it.
The Chamber shall establish the operational department for performing professional and administrative activities.
Regulations linked with state administration shall apply to the operational department in terms of official language and
writing, professional qualifications and competence of employees dealing with entrusted state administration affairs
and in terms of desk work.
The Chamber shall adopt the Statute and general acts which shall closely govern the organization and work mode for
activities specified in paragraph 1 of the present Article.
The Ministry shall give its consent on the Chamber's Statute and other general acts within 30 days starting from the
day these acts have been adopted by the Chamber's bodies.
The consent given on the Chamber's Statute shall be published in the "Official Herald of the Republic of Serbia".
Article 52
The Chamber shall be authorized to become the International Federation of Accountants member (IFAC), in
compliance with that Federation's Statute.
3. Chamber Bodies
Article 53
The Chamber shall have its Assembly, Council, Supervising Committee and Disciplinary Commission.
Article 54
The Assembly shall be the Chamber's top body.
The Assembly shall appoint the President of the Assembly from authorized auditors Chamber members.
A person who is a member of political party and an official in terms of the law governing the prevention of conflict of
interests when performing public services, or union official, shall not be appointed for the President of the Assembly
post.
The Minister of Finance shall give his/her consent on the appointment of the President of the Assembly.
The President of the Assembly shall be appointed for a five year term and same person shall not be reappointed for
that post.
The Assembly shall perform the following activities:
1) it shall adopt the Chamber's Statute and Rules of Procedure, it shall define rules for Code of Ethics for
Professional Accountants implementation, it shall adopt the Rulebook on Disciplinary Proceedings and professional
rules;
2) it shall appoint and recall members of the Chamber's bodies and organs in compliance with the present Law and
Statute, except for members who are in terms of the present Law representatives of specific bodies and
organizations, appointed by those bodies and organizations;
3) it shall adopt a program for acquiring professional titles specified in the Article 4 of the present Law, in compliance
with international guidelines and professional training demands, and in compliance with the present Law;
4) it shall establish Commission to process examinations specified in the Article 6 paragraph 1 of the present Law;
5) it shall prescribe conditions for acquiring, extending and revoking audit licences to authorized auditors for
conducting financial statements audits;
6) it shall decide on a membership fee for covering the Chamber's activities, and on examination and registration
fees;
7) it shall consider and adopt report on other bodies activities and it shall approve the Chamber's financial plan;
8) it shall adopt annual report on the Chamber's work and the Chamber's annual financial statements, and it shall
deliver it to the Ministry along with auditor's opinion;
9) it shall perform other activities prescribed by the Chamber's Statute, in compliance with the present Law.
The representative of the Ministry shall be the Assembly member.
Article 55
The Council shall be the Chamber's executive body.
The Council shall consist of: the President, the Vice-President, the Ministry representative, the National Bank of
Serbia representative, the Association of Banks of Serbia representative, the Securities Commission representative,
the University professor and four authorized auditors employed at audit companies.
The Chamber members shall propose the President and the Vice-President, from the Chamber members.
A person who is member of political party and an official in terms of law governing the prevention of conflict of
interests when performing public functions, or union official, shall not be appointed for the Council President and
Vice-President posts.
The Minister of Finance shall give his/her consent on appointing the Council President and Vice-President.
The Council President and Vice-President shall be appointed for a five year term and same persons shall not be
reappointed for those posts.
The Council shall perform the following activities:
1) it shall prepare the Statute draft and other general acts drafts to be adopted by the Assembly;
2) it shall prepare the program for acquiring professional titles specified in the Article 4 of the present Law, in
compliance with international guidelines and professional training demands, in accordance with the present Law;
3) it shall propose members of the Commission to process examinations specified in the Article 6 paragraph 1 of the
present Law;
3a) exclusive of item 3) of the present Paragraph, it can appoint not more then one third of the members of the
Commission to process examinations from Article 6, Paragraph 1 of the present law;
4) it shall propose conditions for acquiring, extending and revoking audit licences to authorized auditors for
conducting financial statements audits;
5) it shall decide on issuing, extending and revoking audit licences to authorized auditors for conducting financial
statements audits;
6) it shall decide on filing and erasing members from registers run by the Chamber;
7) it shall define procedures for supervising the international audit standards implementation and the Codex of Ethics
for Professional Accountants provisions among audit companies;
8) it shall define guidelines for conducting internal audits, in compliance with internationally accepted principles for
conducting internal audits;
9) it shall perform other activities on the grounds of law and the Chamber's Statute.
Article 56
The Supervising Committee shall consist of five members.
The Supervising Committee shall consist of: the President, the Vice-President, the Ministry representative and two
audit companies' representatives.
The Chamber's Assembly members shall propose the President and Vice-President, from the Chamber members.
A person who is member of a political party and an official in terms of law governing the prevention of conflict of
interests when performing public functions, or union official, shall not be appointed for the Supervising Committee
President and Vice-President posts.
The Minister of Finance shall give his/her consent on appointing the Supervising Committee President and VicePresident.
The Supervising Committee President and Vice-President shall be appointed for a five year term and same persons
shall not be reappointed for those posts.
The Supervising Committee shall perform the following activities:
1) it shall supervise the Chamber's work in terms of its legality;
2) it shall examine the annual work report and financial statements, and other Chamber's acts;
3) it shall perform other activities on the grounds of the present Law and the Chamber's Statute.
Article 57
The Disciplinary Commission shall be the Chamber's body performing tasks defined by the Statute and the Rulebook
on Disciplinary Proceedings in terms of processing disciplinary and other measures, in compliance with the present
Law.
The Disciplinary Commission shall consist of: three Chamber members, the Ministry of Finance representative and
the Ministry of Justice representative.
Article 58
The Chamber's Statute shall closely prescribe the scope of work, the appointment mode, and the number and
composition of specific bodies specified in the Articles 53-57 of the present Law.
5) to accomplish cooperation with the Ministry and the Chamber, with faculties teaching accounting and auditing and
with domestic and foreign professional organizations.
Article 61
The Commission shall deliver its work report to the Ministry at least once a month.
Article 62
Upon the Minister's of Finance proposal, the Government shall appoint the president and six members of the
Commission from the experts who possess knowledge and practice in the area of finance, accounting and auditing,
while two of the members shall be appointed on a proposition by the Securities commission and National bank of
Serbia.
The Ministry shall perform professional and administrative tasks for the Commission.
Reimbursements for the work of the President of the Commission and its members shall be provided from the Budget
of the Republic of Serbia.
Upon the Ministry's proposal, the Government shall determine the amount of the reimbursements for the President of
the Commission and its members.
XIII SUPERVISION
1. Supervision over Audit Companies' Work
Article 63
Supervision of the auditing companies work shall be conducted by the Ministry through authorized persons.
Supervision of the auditing companies work shall be conducted in the premises of the Ministry and in the premises of
the auditing company.
Supervision of the auditing companies work includes:
1) Control whether auditing companies fulfill conditions for the issuance of the license to perform the audit of financial
statements and for inscription into the register;
2) control whether licensed authorized auditors fulfill the conditions for inscription into respective registers of the
Chamber;
3) Control of accounting companies and licensed authorized auditors independence from the entity that ordered the
audit;
4) Supervision, gathering and trial of report that audit companies must deliver to the Ministry;
5) Control whether the auditing companies have established and applied internal procedure quality assurance system
6) Whether there are reasons for taking away the license for performing the business of audit from the audit
company;
7) Insight into general and individual acts, records and other documents in order to determine facts and
circumstances which are important for conducting supervision;
8) Impose supervision measures in line with the present law.
Supervision from the Paragraph 1 of the present Article may be also conducted on a reasoned request by the
Chamber.
Auditing companies, as well as the Chamber, shall deliver all documents necessary for conducting the supervision
from the Paragraph 12 of the present Article within the time frame determined by the Ministry.
The auditing company shall allow the authorized person from the Ministry to enter into its offices and shall provide
that person with necessary conditions for conducting supervision, with all requested explanations and present
documents and data on companies business.
Article 63a
Authorized person of the Ministry in the process of supervision may impose following measures to the audit company:
Article 63b
Authorized person of the Ministry shall order removal irregularities or illegalities by resolution in case it is determined
that:
1) The audit company acts contrary to Article 5 of the present law;
2) The audit company performs its activities contrary to Article 40, Paragraph 5 of the present law;
3) The audit company acts contrary to the Article 47a of the present law;
4) The audit company does not fulfill any of conditions for issuing of license for performing the business of audit;
5) The audit company does not conduct audit in lie with provisions of the present law.
Authorized person of the Ministry determines the time frame for repairing irregularities or illegalities.
Article 63v
Authorized person of the Ministry may determine additional measure by a resolution in case it is determined that:
1) The audit company does not act in line with the order for removal of irregularities or illegalities;
2) The procedure for taking away the license from de licensed authorized auditor who performs audit in the audit
company has been started;
3) audit company in last two years more then four times breaches its obligations of timely and properly reports
submission or information or in some other way interferes with supervision of it business.
The following measures are ordered to the audit company by additional measure:
1) Improving internal procedures which assure quality of conducting the audit;
2) change of the internal organization of the audit company;
3) Other measures needed for removal of determined irregularities.
Article 64
The minutes shall be made about conducted supervision over the audit company.
A copy of the minutes shall be distributed to the audit company.
Article 65
(erased)
Article 66
An appeal can be filed against the resolution from Article 63b, Paragraph 1 and Article 63v, Paragraph 1 to the
Minister of Finance no later than 15 days after the delivery of the resolution.
The appeal against the resolution from the Article 63b, Paragraph 1 and Article 63v, Paragraph 1 does not postpone
enforcement.
Minister of Finance shall decide on an appeal no later than 30 days after the day of reception of the appeal.
Against the final resolution from Article 63b, Paragraph 1 and Article 63v, Paragraph 1 and resolution from the
Paragraph 3, the administrative dispute may not be initiated.
Article 68a
An audit company shall be fined from 100.000 to 3.000.000 RSD for a corporate offence in the following cases:
1) If it performs audit contrary to Article 38 of the present law;
2) If it doesn't insure itself against the liability risk for damage caused by a false audit opinion of a licensed authorized
auditor (Article 40, Paragraph 3);
3) If it performs audit contrary to Article 40, Paragraph 5 of the present law;
4) If it performs audit contrary to Article 45 of the present law;
5) If acts contrary Article 46 of the present law;
6) If acts contrary Article 47 of the present law;
7) If it does not submit prescribed data form Article 47a of the present law.
Legal entities responsible person shall also be fined from 5.000 to 150.000 RSD for corporate offence, for conducting
activities specified in Paragraph 1 of the present law.
Article 68b
Authorized auditor shall be fined from 10.000 to 100.000 RSD for a corporate offence in the following cases
1) If he acts contrary to Article 38, Paragraph 14, of the present law;
2) If he conducts audit contrary to Article 45, Paragraph 1, items 3) to 6) of the present law.
Article 69
Entrepreneur shall be fined from 5.000 to 500.000 dinars for a misdemeanor if it conducts activities specified in the
Article 68, paragraph 1, items 2)-12) of the present Law.
Article 71
The Minister of Finance shall appoint the President and ten members of the Preliminary Commission which shall draft
the Statute and other general acts, prepare bodies appointments, and conduct other tasks indispensable for having
the Chamber commence its work.
The Preliminary Commission's work funds shall be provided from the Budget of the Republic of Serbia.
The Ministry shall provide premises for the Preliminary Commission's work.
Once the Chamber commences its work, the Preliminary Commission shall terminate its own.
Article 72
The first Chamber's Council shall consist of the President, the Vice-President and nine members, five of them
originating from the Preliminary Commission. The Chamber's Assembly shall appoint the other four members.
Article 73
Persons who, prior to the present Law coming into force, have acquired professional titles in compliance with the Law
on Accounting ("Official Gazette of the Federal Republic of Yugoslavia", Nos. 46/96, 74/99, 22/01 and 71/01) and
Law on Accounting and Auditing ("Official Gazette of the Federal Republic of Yugoslavia", No. 71/02 and "Official
Herald of the Republic of Serbia", No. 55/04) shall have those titles recognized.
Persons who, prior to the present Law coming into force, have acquired the certificate or decision on the authorized
auditor title by passing examination in compliance with the Federal Government's program shall have the authorized
auditor title recognized, in compliance with the present Law.
Persons who, prior to the present Law coming into force, have acquired the certificate or decision on the authorized
auditor title without passing examination as stipulated by the Law on Auditing Financial Reports ("Official Gazette of
the Federal Republic of Yugoslavia", Nos. 30/96, 74/99, 1/00 and 71/01) shall have the authorized auditor
professional title recognized, in compliance with the present Law.
Persons mentioned in paragraphs 2 and 3 of the present Article shall be eligible for conducting financial statements
audits specified in the Article 38 paragraph 2 of the present Law without having the audit license, for no longer than
for the period of one year starting from the day the regulations specified in the Article 39 paragraph 2 of the present
Law were adopted, and within this deadline they shall acquire the license for conducting financial statements audits.
Exceptionally, persons who, prior to the present Law coming into force, have acquired the certificate or decision on
the auditor professional title by passing examination in compliance with the Federal Government's program or without
passing such examination, as well as persons who have acquired the authorized accountant title in compliance with
Law on Accounting ("Official Gazette of the Federal Republic of Yugoslavia", Nos. 46/96, 74/99, 22/01 and 71/01)
shall have those professional titles recognized. These persons may be eligible to conduct financial statements audits
specified in the Article 38 paragraph 4 of the present Law for no longer than for the period of three years starting from
the day the Commission specified in the Article 6 paragraph 1 of the present Law was established, and within this
deadline they shall pass the examination and acquire the authorized auditor professional title certificate and license
for conducting financial statements audits.
Persons specified in paragraphs 2 and 3 of the present Article shall register within the Register mentioned in the
Article 51, paragraph 1, item 5) of the present Law.
Article 74
Persons who, prior to the present Law coming into force, have started taking examinations in compliance with the
Federal Government's program for acquiring auditor and authorized auditor titles may take remaining examinations in
compliance with the program under which they started taking examinations, no later than for the period of one year
starting from the day the Commission specified in the Article 6 paragraph 1 of the present Law was established.
Article 75
Audit companies who, prior to the present Law coming into force, have acquired the license, i.e. the Federal Ministry
of Finance license, shall harmonize their businesses with the provisions of the present Law no longer than during the
period of one year starting from the day the conditions for acquiring license for conducting financial statements audits
specified in the Article 39 of the present Law were prescribed.
Besides filing a request for issuing a license specified in the Article 42 of the present Law, audit companies shall also
submit documents specified in paragraph 2 of the present Article, and all other necessary documents requested by
the Ministry.
Article 76
Law on Accounting and Auditing ("Official Gazette of the Federal Republic of Yugoslavia", No. 71/02 and "Official
Herald of the Republic of Serbia", No. 55/04) shall cease to be valid on the day the present Law comes into force.
Bylaws enacted in compliance with the law that shall cease to be valid in terms of paragraph 1 of the present Article
shall apply until bylaws are enacted in compliance with the present Law, unless opposed to the present Law.
Article 77
The present Law shall come into force on the eighth day after its publication in the "Official Herald of the Republic of
Serbia".
Article 42
Legal entities founded in 2009 are not audit obligors in 2009, as well as small legal entities whose does not issue
securities by public offer or whose securities are not being traded on the organized security market, unless otherwise
specified by separate regulation.
Article 43
Provisions of Article 5, Paragraphs 2 and 3, Paragraph 18 to 24 and Article 44, Paragraph 1 of the present law shall
be applicable from January 1st 2010.
Article 44
The provisions of Article 44 of the Law on registration of business entities ("Official Herald of RS" No. 55/04 and
61/05), and Article 54 of the Law on payment transactions ("Official gazette of SRJ" No. 2/03 and 5/03 and "Official
Herald of RS" No.43/04 and 61/05) shall cease to be valid on January 1 st 2010.
The provisions of Article 77, Paragraph 2, items 13) and 14) of the Law on registration of business entities ("Official
Herald of RS" No. 55/04 and 61/05) shall cease to be valid on the first day of applicability of the act of Government
from Article 24 of the present law.
Article 45
On the day of entering the force of the present law the Agency shall take over files, documents, records, database,
tools, needed number of employees and part of information system and necessary information equipment and
technology that has been used by National bank of Serbia in conducting the tasks of accepting and processing of
financial statement and keeping data registers on solvency of legal entities and entrepreneurs.
Take over of files, documents, records, database, tools, needed number of employees and part of information system
and necessary information equipment and technology of National bank of Serbia from Paragraph 1 of the present
Article shall be executed on the bases of agreement between National bank of Serbia and the Agency.
Article 46
This law shall enter into force on the next day after its publication in the "Official Herald of Republic of Serbia".