lawonamendmentstothelawonaccountingandauditing.docVIP

Pursuant to Article 88 item 2 of the Constitution of the Republic of Montenegro I hereby pass the DECREE PROMULGATING THE LAW ON ACCOUNTING AND AUDITING (Official Gazette of the Republic of Montenegro, No 69/05 of 18 November 2005; Official Gazette of Montenegro No 80/08 of 26 December 2008) I hereby promulgate the Law on Accounting and Auditing, adopted by the Parliament of the Republic of Montenegro at the second sitting of the second regular session in 2005 on 10 November 2005. Number: 01-1140/2 Podgorica, 15 November 2005 The President of the Republic of Montenegro Flip Vujanovi?, m.p. LAW ON AMENDMENTS TO THE LAW ON ACCOUNTING AND AUDITING I BASIC PROVISIONS 1. General Provisions Article 1 This Law governs the conditions and the manner for keeping business books, preparation and presentation of financial statements (hereinafter referred to as the accounting), as well as the conditions and the manner for conducting procedure and performing audits of financial statements (hereinafter referred to as the auditing) and other issues important for accounting and auditing. This Law shall apply to legal entities registered for performing economic and non-economic activities, and to parts of foreign companies (hereinafter referred to as the legal entities). This Law shall not apply to entities financed from the budget and extra-budgetary funds. 2. Meaning of Specific Terms Article 2 Specific terms, as used in this Law, shall have the following meaning: Auditing Firm shall mean a business organization established to conduct auditing activities at the territory of the Republic of Montenegro (hereinafter referred to as Montenegro) in accordance with the law; Auditing shall mean an examination of financial statements for the purpose of expressing an opinion whether the financial statements subject to the audit represent true and fair condition of assets, capital and liabilities, as well as of results of operations, by applying the International Standards of Auditing and Cod