2015年-世界发展银行全球_Report_on_the_Observance_of_Standards_and_Codes_on_Accounting_and_Auditing_Update___Republic_of_Serbia_66页_1mb

Summary of the Report on the Observance of Standards and Codes on Accounting and Auditing (A&A ROSC) for Serbia

Core Content

This report provides an updated assessment of Serbia's accounting and auditing practices, focusing on the quality of corporate financial reporting and its alignment with international standards. It is part of the World Bank and IMF's joint initiative to evaluate the implementation of twelve internationally recognized standards, including IFRS, ISA, and the EU acquis communautaire, which Serbia aims to conform to as a candidate for EU accession. The report updates an earlier 2005 assessment and identifies areas for further reform and improvement.

Main Views and Key Information

I. Introduction

• Country Background: Serbia has an educated but aging population, with about 98% literacy and 16.2% with higher education. The average age is 42.2 years, and 20% are over 65. A significant "brain drain" is occurring, with about 32,000 people leaving annually, mostly younger and better-educated individuals.
• Economic Context: Serbia's transition to a market economy is incomplete. Despite being the largest of the former Yugoslav Republics, its economic output lags behind Croatia and Slovenia, both EU members. The transition began in 2001, following a decade of war and political instability.
• Financial System: The financial system is evolving, with the National Bank of Serbia (NBS) playing a key role in regulation and supervision. The banking sector has made progress in aligning with IFRS.
• SOE Sector: State-Owned Enterprises (SOEs) are a significant part of Serbia's economy. They face challenges in internal controls, which increase the risk of waste, fraud, and losses to the state.
• SME Sector: Small and Medium Enterprises (SMEs) often lack the resources to maintain high-quality accounting and auditing. Many outsource their accounting functions to low-cost providers, often with questionable competence.
• Linkage to Development Agenda: Developing a reliable financial reporting system is essential for Serbia's reform agenda, as it supports economic growth, competitiveness, and alignment with EU standards.

II. Institutional Framework

• Statutory Framework: Serbia has made progress in aligning its legal framework with the EU acquis. In 2013, new Accounting and Audit Laws were enacted, which are largely compliant with the acquis.
• Publication of Financial Statements: A business registry was established in 2005 to manage and publish financial statements, which has become more efficient over time.
• Professional Bodies: The Chamber of Authorized Auditors and the Serbian Association of Accountants and Auditors have been created to regulate and support the profession.
• Professional Education and Training: There is a need for better integration of IFRS into university curricula and improved cooperation between academia and professional bodies.
• Monitoring and Enforcement: Quality assurance inspections have been implemented, but capacity is limited, especially for specialized audits. The Public Oversight Board (POB) has been established, but its independence and effectiveness need to be strengthened.
• Role of Women: The report acknowledges the need for greater inclusion of women in the profession, though specific details are not provided.

III. Accounting Standards as Designed and Practiced

• Standards Gap: There is a gap between the international standards and the current Serbian accounting practices, particularly in the application of IFRS for SMEs.
• Compliance Gap: Many companies, especially SMEs, struggle with compliance due to the complexity and cost of IFRS for SMEs, which is not realistic for small enterprises.

IV. Auditing Standards as Designed and Practiced

• Standards Gap: The audit environment is not fully aligned with international standards, particularly in the assessment of internal controls.
• Compliance Gap: Audit fees are often too low to support professional standards, leading to potential compromises in audit quality.

V. Perception and Use of Financial Reporting

• Financial reporting is not widely understood, trusted, or used in economic decision-making in Serbia.
• Banks rely more on collateral than on financial statements for lending decisions.
• The equity market is small and underdeveloped, limiting demand for reliable financial reporting.
• There is a perception of low reliability in reported financial information among foreign investors.

VI. Areas for Consideration

• Statutory Framework: Further alignment with EU law, including reconsideration of IFRS for SMEs and full independence of the POB.
• University Accounting Education: Better integration of IFRS into curricula and more practical training.
• Professional Accounting Education: Improved training and exams for statutory auditors, with more focus on internal control assessment.
• Monitoring and Enforcement: Strengthening QA inspections, developing risk-based selection processes, and creating dedicated committees for auditor discipline.
• SOE Sector: Reforming the auditor selection process to prioritize quality, requiring earlier auditor involvement, and improving understanding and use of financial reporting among regulators.
• Perceptions and Use of Financial Reporting: Promoting awareness and understanding of the value of financial reporting among stakeholders.

Conclusion

The report highlights significant progress made by Serbia in improving its legal framework and institutional infrastructure for accounting and auditing. However, challenges remain, particularly in the quality of financial reporting, the effectiveness of external audits, and the professional development of accounting and auditing personnel. These issues are exacerbated by economic pressures and limited resources. To enhance the reliability and impact of financial reporting, the report recommends further reforms, including legal updates, improved education, and stronger monitoring and enforcement mechanisms.