First Public Auditing Oversight Committee session held

The first session of the independent Public Oversight Board (POB) over the audit was held in the Ministry of Finance.

POB’s main responsibility is to overview the work of auditors, audit companies and the Chamber of Authorised Auditors, as well as to issue licences to auditors and permits to audit companies. POB’s establishment and its activities are in accordance with the Law on Auditing and it represents the most important feature of the new law. The Committee’s members are independent of the influence of auditors as well as of the Chamber of Authorised Auditors. The establishment of this body will contribute to better transparency and financial discipline.

The model of an independent public audit oversight was adopted in accordance with the best international practice in this field and it is harmonised with EU regulations. The main objectives are to improve the quality of financial statements, to equalise regulations and practice and to avoid possible financial scandals that auditors may be involved in.

POB was founded by the decision of the Serbian Government in October, and the chairperson and members have been appointed this month by the Government’s decision. They have been appointed at the proposal of the Minister of finance, the National Bank of Serbia and the Securities and Exchange Commission.

Besides the members of the POB, the World Bank representatives were also present in the session and strongly supported future activities of this body. Also, the European Commission assessed both the Law on Auditing and the Law on Accounting as well advanced in its 2013 Annual Progress Report.