ACCOUNTINGANDAUDITINGLAWOF.docVIP

ACCOUNTING AND AUDITING LAW OF REPUBLIKA SRPSKA I BASIC PROVISIONS Article 1 This Law regulates the field of accounting and auditing including issues of importance for organisation and functioning of the bookkeeping and accounting system, preparation and presentation of financial reports, establishing and operation of the Accounting and Auditing Council of Republika Srpska, auditing of financial reports, monitoring of the work of legal persons and entrepreneurs registered as providers of accounting and auditing services, and vocational qualification process, certification and licensing. Article 2 (1) Terms used in this Law have the meaning as follows: a) accounting is a system providing information on financial status, level of success, cash flows, changes in equity, and other financial and non-financial information that are of importance for external and internal users of financial reports, b) bookkeeping is a system that includes collecting, classification, records keeping and recapitulation of business transactions, as well as safekeeping of original business documentation providing evidence on these transactions, v) audit(ing) of financial reports is investigation of financial reports in order to provide an opinion regarding their objectivity and authenticity, and, based on all materially significant issues, it shows status of assets, capital and liabilities, business results, cash flows, and changes in equity, in accordance with International Accounting Standards, that is, International Financial Reporting Standards, g) legal person is profit or non-profit legal person with the main office registered on the territory of Republika Srpska (hereinafter: Republika) or outside its territory, d) entrepreneur is a private person with registered enterprise who keeps business records in line with the Law on Income or this Law, ?) accounting and auditing standards are standards, instructions, explanations, guidelines and principles defined by this Law, published by t