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Tasks and competences of the Agency

In accordance with the Auditing Act (Official Gazette of the RS, no. 65/2008), the Agency has the competence and responsibility over:

  • The adoption of auditing rules and establishment of the hierarchy of the auditing rules that are not regulations, and the training to obtain the title of certified auditor. This is done by issuing its consent to auditing rules, the training programme, and to the hierarchy of auditing rules, which are adopted by the Slovenian Institute of Auditors (the Institute);
  • The issue of licences to perform the auditing activities and tasks of a certified auditor and the registration of third-country statutory auditors and audit companies. This is done by issuing its consent to the rules for the verification of certificates of professional competence for performing the tasks of a certified auditor, which are adopted by the Institute, and by verifying the accuracy of the issue of licences and the registration of third-country statutory auditors and audit companies;
  • The permanent training of certified auditors. This is done by issuing its consent to the programme of permanent training of certified auditors, which is adopted by the Institute, and by checking the implementation of the permanent training programme carried out by the Institute;
  • The quality assurance of auditing work done by certified auditors and audit companies. This is done by supervising the Institute in their planning and implementation of quality control regarding the auditing work done by certified auditors and audit companies. The Agency supervises the planning of control by setting the criteria for drawing up the strategic and annual quality control plan regarding the auditing of certified auditors and audit companies, by giving its consent to the strategic and annual plan set by the Institute in accordance with the criteria, and by lodging individual requests to the Institute for exceptional checks of auditing quality.


The Agency may carry out supervision over auditing quality by itself with the same competences as the Institute. During the control procedure, the Institute must allow the Agency, at its request, access to all documents, or deliver all documents to the Agency and provide appropriate clarifications that are needed for the implementation of its competences.


Methods of carrying out supervision over audit companies and certified auditors

Systematic and on-going examination of the records which are to be delivered by audit companies takes place on the premises of the supervisory body:

  • On-going examination of whether individual subjects meet the conditions necessary to obtain the licence to perform auditing services;
  • On-going examination of whether certified auditors and audit companies meet the conditions to be entered in appropriate registers;
  • Monitoring, collection and verification of reports and notifications by audit companies and other persons which are obliged under the provisions of the Auditing Act or other laws to report to the Institute or notify it of individual facts and circumstances.

 

The overview of audit companies’ business operations takes place on the premises of audit companies in order to supervise them:

  • At least every 3 years, the audit company that carries out statutory audits of the subjects that have their securities listed on an organised securities market of any Member State in accordance with the law;
  • At least every 6 years, other audit companies in accordance with the law;
  • At any time in accordance with the Criteria for drawing up the strategic and annual quality control plan of the auditing performed by certified auditors and audit companies.


Overview of audit companies’ business activities

  • Inspection of quality control system within an audit company (whether the audit company in question has established appropriate guidelines and procedures);
  • Verification of certified auditor’s independence from the audit client;
  • Conformity checks of auditing procedures with auditing rules;
  • Evaluations of quality and quantity of applied factors (composition of an audit group and hours spent on individual engagements);
  • Overview of charged audit services;
  • Direct supervision over certified auditors.


Direct supervision over certified auditors is carried out by inspecting the entire audit documentation pertaining to a performed audit of at least one client in the period from the last supervision carried out, thus verifying the quality of their work.