statut komore ovlascenih revizora eng

8/10/2019 Statut Komore Ovlascenih Revizora ENG

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Pursuant to Article 51, paragraph 5.54 and paragraph 6, item 1), Article 55, paragraph 7, item 1) and Article 58 of the Law of Accounting and Auditing (“Official

Gazette of RS”, No. 46/2006),On its First constitutional meeting held on 15 November 2006, the Assembly

of the Chamber of Authorized Auditors passed

THE ARTICLES OF ASSOCIATION OF THE CHAMBER OF AUTHORIZED

AUDITORS

I COMMON PROVISIONS

Article 1

The Chamber of Authorized Auditors (hereinafter: Chamber) shall be founded

pursuant to the Law of Accounting and Auditing (“Official Gazette of RS”, No.

46/2006, hereinafter: Law) for the purpose of promotion and development of theaccounting and auditing profession, implementation of the accounting and auditing

regulations and harmonization with these regulations, protection of common and

individual interest in performing activities in this area, organization of provided

services in the aforesaid area, conducting exams for acquiring the professional title for

issuance and withdrawal of licenses for performing auditing of financial statements, aswell as for the purpose of achieving other aims pursuant to the Law, these Articles of

Association and common enactments of the Chamber.

Article 2

These Articles of Association shall regulate: the activities performed by the

Chamber, internal organization of the Chamber, authorities of the Chamber, selection

and scope thereof, the issue of discipline responsibility and other issues of

significance for the Chamber’s work.

Article 3

The Members of the Chamber are certified auditors employed in an audit

company and certified internal auditors, as well as audit companies.

Article 4

The business title name of the Chamber is: ''Комора oвлашћених

ревизора''.

The business title name of the Chamber reads in Serbian and is written in the

Cyrillic alphabet.

The translation of the Chamber’s business title name into English reads:

“Chamber of authorized auditors“.The Head Office of the Chamber is in Belgrade.

Article 5



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The Chamber is in the capacity of legal person.

The Chamber shall begin its work by establishing the Assembly and the Council

of the Chamber.

Article 6

The Chamber shall be legally represented by the Chairman of the Council and

Secretary General of the Chamber without any limitation.

Article 7

The Chamber shall be held responsible with all its assets for its obligations in

legal operations.

The Chamber shall not be responsible for the obligations of the members of

the Chamber.

Article 8

The Chamber has a seal and official stamp, and may have a postal seal anddie stamp.

The Chamber seal, postal seal and die stamp are round in shape, 30 mm in

diameter, and the Chamber’s official stamp is rectangular in shape and 60 x 30 mm in

size and all contain the Chamber’s title name and Head Office written in the Cyrillic

alphabet in Serbian. The Chamber seal and official stamp are imprinted in black, dark

blue and violet ink, and the postal seal on red wax.

The Chamber Council enacts the Rule Book regulating the method ofimplementation, filing, keeping records, destruction and other matters of concern forimplementing the Chamber seal, postal seal and official stamp.

Article 9

The Chamber has a graphic logo established by the Chamber Assembly.

The Chamber uses its letter paper with heading in its business operations, which

contains the business title name, graphic logo, head office address, phone and faxnumbers, as well as e-mail.

For correspondence with foreign countries, the Chamber uses its letter paper with

heading, which contains elements from paragraph 2 of this Article, written in English.

Article 10

The work of the Chamber, its authorities and bodies is transparent and open

to public.

When it is in the interest of the Chamber, the Chamber authorities may decide

to hold a meeting not open to public, which only applies to the session where such

decision was passed.



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II FUNDS FOR THE CHAMBER’S WORK

Article 11

The Chamber acquires its business assets from:

1. membership fees;

2.

benefit compensation for enforcement of exams and issuance of

certificates, licenses;

3. benefit compensation for registration and issuance of data from the keptregister;

4. donations, sponsorships, grants;5.

subscription to the Chamber’s journal and

6. other sources, pursuant to the Law.

Funds for starting the Chamber’s work may be provided from the budget of

the Republic of Serbia.Funds under paragraphs 1 and 2 of this Article shall be used by the Chamber

for realization of its tasks established by the Law and these Articles of Association,

pursuant to the annual Program of work and Financial plan of the Chamber.

Article 12

The Chamber shall establish, with the consent of the Ministry of Finance, the

amount of the membership fee, benefit compensation for enforcement of exams and

issuance of certificates and licenses, as well as the amount of benefit compensation

for registration and issuance of data from the kept registers.

III ACTIVITIES PERFORMED BY THE CHAMBER

Article 13

The Chamber performs the following activities:

1) monitors the implementation of the International Accounting Standards,

and International Financial Reporting Standards, International Standards on

Auditing, International Standards on Quality Control and Code of Ethics for

Professional Accountants;

2) monitors the process of compliance of the accounting and auditing

regulations with the international professional regulations;

3) launches the program and conducts the training of candidates, organizes

exams and issues certificates for acquiring professional titles, as well as the rulesfor continuous advanced training, in compliance with the international

requirements for professional training and the Law;

4) prescribes the requirements for certified auditors for acquiring licenses, and

for renewal and withdrawal of licenses for conducting financial statements

auditing, pursuant to the Law;

5) issues, renews and withdraws licenses to/from certified auditors for

conducting financial statements auditing and keeps the register of issued licensesto certified auditors for conducting financial statements auditing;



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6) keeps registers of issued certificates on professional titles;7) establishes criteria and conducts validation of professional titles acquired

abroad;8) reports to the Ministry of finance at least once a year on the implementation

of international standards in the area of accounting and auditing and the Code of

Ethics for Professional Accountants employed with legal persons and auditcompanies;

9) establishes criteria for pricing of auditing services provided by audit

companies;

10) cooperates with international professional organizations;

11) submits the annual financial statement and the operating report to theMinistry of finance;

12) conducts activities for which it has been authorized by the InternationalFederation of Accountants and other international professional organizations;

13) provides conditions for advising on all issues of significance for

acquiring functions within the accounting and auditing activities;

14) conducts other activities established by the Law and these Articles ofAssociation.

The Chamber shall conduct activities under paragraph 1, items 3) to 7) of this

Article as entrusted.

Enactments under paragraph 1, items 5) and 7) of this Article are final and anadministrative mitigation may be instituted against them.

IV THE AUTHORITIES OF THE CHAMBER

Article 14

The authorities of the Chamber are the Assembly, the Council, the Supervisory

Board and the Disciplinary Commission.

The Assembly

Article 15

The Assembly is the top body of the Chamber.

The Assembly consists of certified auditors employed with the audit company

and certified internal auditors entered into the Chamber Register, as well as auditcompanies entered into the Register kept by the Ministry of finance and the Chamber

Register, as well as the representative from the Ministry of finance (hereinafter:

members of the Assembly).

Article 16

The Assembly elects the Chairman of the Assembly from the line of certified

auditors who are members of the Chamber.

A person who is a member of a political party and an official pursuant to the

law preventing conflict of interest in conducting public office, or an official of the

Trade Union organization, cannot be nominated Chairman.The Minister of finance approves the election of Chairman of the Assembly.



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The Chairman of the Assembly is elected for a five-year term of office and thesame person cannot be re-elected for the same position.

Article 17

Within its jurisdiction the Assembly:

1. enacts the Chamber’s Articles of Association, the Rules of Procedure,

establishes the rules for implementation of the Code of Ethics for Professional

Accountants, enacts the Rule Book on the disciplinary proceedings and

professional rules;2. launches the annual Work Program of the Chamber;

3. elects and recalls members of authorities and bodies within the Chamber pursuant to the Law and these Articles of Association, except for the members

who are according to the provisions of the Law representatives of certain

authorities and organizations appointed by those authorities and organizations;

4. launches the program for acquiring professional titles under Article 4 ofthe Law and rules for continuing professional development, in accordance

with the international guidelines and requirements for professional training

and the Law;

5. forms a commission for enforcement of organization of exams underArticle 6, paragraph 1 of the Law;

6. prescribes requirements for:а) issuance, renewal and withdrawal of licenses to/from certified auditors

for auditing financial statements;

b) issuance of certificates for acquiring professional titles of certified

auditor and certified internal auditor;

c) validation of professional titles acquired abroad;

d) acceptance to membership and termination of membership in the

Chamber;

7. decides on the amount of membership fee paid by the Chamber’smembers in order to cover the costs of the Chamber’s activities, as well as on

the amount of benefit compensation for taking exams, issuance of certificatesand licenses, entry into the registers kept by the Chamber and for issuance of

data from these registers;

8. considers and adopts the report on the activities of other authorities;

9. approves the Chamber’s financial plan;

10. selects audit companies for conducting auditing of the Chamber’sfinancial statements;

11. adopts the annual statement on the Chamber’s business operations and

the Chamber’s annual financial statements and submits these together with theissuance of the auditor’s opinion to the Ministry of finance;

12. establishes the principles and guidelines for conducting quality controland verification of work of the Chamber members in the function of

supervision pursuant to Article 63, paragraph 5 of the Law;

13. establishes the regulations for providing cooperation with the local and

international institutions and organizations, as well as public relations;

14. establishes the criteria for pricing of auditing services provided by audit

companies;



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15.decides on the involvement of the Chamber in the local and internationalorganizations;

16. decides on benefit compensation for participation in the Council’swork;

17. decides on benefit compensation for participation in the work of

commissions and other bodies elected by the Assembly;18. decides on business trips of the Assembly members within the country

and abroad, organized in the function of implementing the Chamber’s

activities;

19. decides on publishing the Chamber journal and on other matters

concerning the issuing thereof;20. decides on the presentation of the Chamber award and

21. conducts other affairs based on the Articles of Association incompliance with the Law.

Article 18

The Assembly makes decisions at regular and extraordinary meetings.

The Assembly holds a regular meeting once a year, and not later than by the

end of March and it is convened by the Chamber Council.An extraordinary meeting of the Assembly is convened at the request of the

Council or at least 10 members of the total Assembly. Members of the Assemblyrequesting the convening of an extraordinary Assembly meeting, are obliged to justify

their request and submit it with the proposed Agenda and attached documents to the

Council.

At the request of the members of the Assembly under the previous paragraph

the Council is obliged to decide within 15 days from the day of submission thereof

and to convene an extraordinary Assembly meeting within a month’s time from the

day of received request for convening.

If the Council does not proceed in accordance with the previous paragraph ofthis Article, the members of the Assembly which had submitted the request are

authorized to directly convene the Chamber Assembly.

Article 19

In decision-making, Members of the Assembly have one vote each.

The Assembly may be held and may make decisions if a simple majority out ofthe total number of Assembly members or their representatives (quorum for the

Assembly work) takes part in its work.

If the scheduled Assembly meeting could not be held due to lack of quorum, a

new meeting shall be scheduled at the same meeting with the same Agenda within 30

days from the day of cancelled meeting. The quorum for the repeated Assembly

meeting makes 1/3 of the total number of the Assembly members.

The Assembly enacts decisions by a simple majority of votes from the presentAssembly members.

If the votes of the Assembly members are evenly divided, the decisive voteshall be that of the Chairman of the Assembly.

The Assembly shall decide by public and secret vote.



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The Ministry of finance gives consent to the appointment of the CouncilChairman and Vice-Chairman.

The Council Chairman and Vice-Chairman are elected for a term of five yearsand the same persons cannot be re-elected for the same position, and the other

Council members are elected for a term of five years and the same persons can be re-

elected for the same position without any limitation as to the term of office.

Article 23

Within its powers and duties, the Council:1. prepares the proposed Articles of Association and other general

enactments, as well as other decisions passed by the Assembly;

2. enacts the Rules of Procedure;

3. prepares the proposed program for acquiring a professional title under

Article 4 of the Law and rules for continuing professional development, in

compliance with the international guidelines and requirements for

professional training, pursuant to the Law;

4. proposes members of the commission for enforcement of exams under

Article 6, paragraph 1. of the Law;

5. proposes requirements for:а) acquisition, renewal and withdrawal of licenses by/to/from certified

auditors for auditing financial statements;

b) issuance of certificates for acquiring professional titles of certified

auditor and certified internal auditor and


d) acceptance to membership and termination of membership in the

Chamber;6. decides on:а) issuance, renewal and withdrawal of licenses to/from certified auditors

for auditing financial statements; b) issuance of certificates for acquiring the professional titles of certified

auditor and certified internal auditor and


7. decides on entry of Chamber members and referent data into and

removal from the Registers kept by the Chamber;

8. establishes procedures for monitoring the implementation of the

International Standards on Auditing and the Code of Ethics for Professional

Accountants with audit companies, as well as for monitoring the process ofcompliance of the accounting and auditing regulations with the international

professional regulations;9. establishes guidelines for internal auditing, in compliance with the

generally accepted international principles for conducting internal auditing;

10. appoints and relieves from duty the Secretary General of the Chamber;

11. launches the Rule Book on the organization and description of job

positions within the Secretariat as part of the Chamber’s administration;

12. forms commissions and other supporting bodies of the Chamber which

are not within the jurisdiction of the Assembly (hereinafter: Commissions) for

conducting jobs within the Chamber’s sphere of activities;

13. engages experts, if necessary, from the field of accountancy andauditing for the implementation of the Chamber’s activities;



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14. decides on the benefit compensation for participation in the work ofcommissions formed by the Council and for the involvement of experts from

the field of accountancy and auditing;15. issues professional opinion in reference to issues from the field of

accountancy and auditing;

16. prepares and submits to the Assembly for adoption the report on itswork and annual statement on the Chamber’s business operations;

17. reports to the Ministry of finance at least once a year, on the

implementation of the International Accounting Standards and International

Standards on Auditing and the Code of Ethics for Professional Accountants

with legal persons and audit companies;18. prepares reports on request of the Assembly and the Ministry of

finance;19. considers and adopts reports on the work of the Chamber’s Secretariat;

20. controls and verifies the quality of the Chamber members’ work in

accordance with the principles and guidelines of the Assembly under Article

17, paragraph 1, item 12 of these Articles of Association;21. proposes the Financial plan of the Chamber;

22. considers complaints lodged by the Chamber members regarding its

work, as well as complaints regarding the work of the Chamber members and

makes decisions on taking legal proceedings against these complaints;23. makes second degree decisions against complaints concerning the

decisions of the Disciplinary commission;24. proposes pricing criteria for auditing services of audit companies;

25. makes decisions on translating, publishing and harmonizing the

international professional regulations, as well as on other activities entrusted

to the Chamber by the International Federation of Accountants and other

international professional organizations;

26. supervises the implementation of the Chamber’s annual Program of

Work;

27. executes the decisions of the Assembly;28. decides on business trips of the Council members in the country and

abroad, organized in the function of implementing the Chamber’s activities;29. passes general enactments and conducts other business in the sphere of

the Chamber’s activities pursuant to the Law and these Articles of Association

which are not within the jurisdiction of the Assembly;

The Council reports to the Assembly on its work.

Article 24

The Council makes decisions at its regular and extraordinary meetings.Regular meetings are held once quarterly and are convened by the Chairman of

the Council.Extraordinary meetings of the Council are held according to the working

requirements of the Chamber.

An extraordinary meeting is convened by the Chairman of the Council or at

least 4 members of the Council based on a written justified proposal submitted to the

Chairman, in which case the Chairman is liable to call an extraordinary Council

meeting within 10 days from the day of received proposal.



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An extraordinary meeting of the Council is also convened by request of theAssembly and Secretary General of the Chamber, within 10 days from the day of

received written request for convening the meeting.The Secretary General of the Chamber and other invited persons shall take part

in the Council’s work.

Article 25

The Council meeting shall be held and the Council shall make decisions if asimple majority of Council members (quorum for the Council’s work) takes part in its

work.

If the scheduled Council meeting cannot be held due to lack of quorum, a new

meeting shall be scheduled at the same meeting with the same Agenda within 15 daysfrom the day of cancelled meeting.

The Council passes decisions by simple majority of votes of the present

Council members.

If the votes of the Council members are evenly divided, the decisive vote shall be the vote of the Council Chairman.

In the procedure in which the Council shall consider the raised objections underArticle 23, paragraph 1, item 22, as well as in the decision-making on a lodged appeal

against the decision of the Disciplinary commission under Article 23, paragraph 1,

item 23 of these Articles of Association, neither the Council member who had raised

the objection, nor the member against whom the objection had been raised, nor the

Council member who had lodged the appeal can take part in decision-making and

voting.

A member of the Council whose right to vote has been excluded in the case

under paragraph 5 of this Article, shall not be taken into account when establishingthe quorum for decision-making.

Supervisory Board

Article 26

The Supervisory Board has five members.

The Supervisory Board consists of: the Chairman, Vice-Chairman, one

representative from the Ministry of finance and two representatives from the audit

company (common title name: members of the Supervisory Board).

The Chamber Assembly proposes the Chairman and Vice-Chairman from the

line of members of the Chamber and elects 2 representatives from the audit company

in the Supervisory Board.A person who is a member of a political party and an official pursuant to the

law preventing conflict of interest in conducting public office, or an official of theTrade Union organization is not eligible as Chairman or Vice-Chairman of the

Supervisory Board.



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The Ministry of finance gives consent to the appointment of Chairman andVice-Chairman of the Supervisory Board.

The Chairman and Vice-Chairman are eligible for a five-year term of office andthe same persons cannot be re-elected for the same position, and the other members

of the Supervisory Board are appointed for a five-year term and the same persons are

eligible for the same position without a limitation to the number of terms of office.

Article 27

Within its powers and duties the Supervisory Board:

1) executes supervision over the legitimacy of the Chamber’s work;

2) inspects the annual statement and financial statements, as well as other

Chamber enactments;

3) enacts the Rules of procedure and

4) conducts other activities in accordance with the Law and these Articlesof Association.

Article 28

The Supervisory Board decides at regular and extraordinary meetings.

Regular meetings of the Supervisory Board are held every six months and are

convened by the Chairman of the Supervisory Board, and extraordinary meetings are

held in accordance with the Chamber’s needs.Extraordinary meetings of the Supervisory Board are convened by any member

of the Supervisory Board.

Article 29

A meeting of the Supervisory Board shall be held and the Supervisory Board

can make decisions if a simple majority of the Supervisory Board members (quorum

for the Supervisory Board’s work) takes part in its work.

If a scheduled meeting of the Supervisory Board cannot be held due to lack of

quorum, a new meeting shall be convened at the same meeting with the same Agenda,within 15 days from the day of cancelled meeting.

The Supervisory Board makes decisions by a simple majority of votes of the present Supervisory members.

If the votes of the Supervisory Board members are evenly divided, the decisivevote shall be the vote of the Chairman of the Supervisory Board.

Disciplinary commission

Article 30

The Disciplinary commission is a body of the Chamber enforcing the

disciplinary procedure of establishing a discipline offense and discipline

responsibility of the Chamber members and it shall take disciplinary proceedings

pursuant to the Law, these Articles of Association and Rule Book on the discipline procedure.



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Article 31

The Disciplinary commission consists of: three members of the Chamber, onerepresentative of the Ministry of finance and one representative of the Ministry of

Justice, out of which the Chairman and Vice-Chairman shall be elected by a majority

of votes.

The Disciplinary commission is eligible for a five-year term of office and the

same person can be re-elected for another term of office in the Disciplinarycommission without any limitation concerning the number of terms of office.

The Disciplinary commission submits to the Assembly and the ChamberCouncil an annual statement on its work and, if required by these authorities,

periodical statements as well.

Termination of office within the authorities and other bodies of theChamber

Article 32

In the case of termination of office of any person in the authorities and other

bodies of the Chamber, no matter whether it concerns a recall, termination of office by personal request or for any other reason, a certain authority the shall be liable to

appoint, as soon as possible, a new person replacing the one whose office has

terminated.

Work of the Chamber’s authorities

Article 33

The Chamber’s method of work is regulated by the Rules of Procedure which

include: invitation, time and venue, management of the authorities’ work, as well as

other issues of significance for the work of the authorities.The working procedure of the Disciplinary commission is regulated by the

Rule Book on the disciplinary procedure.

V THE CHAMBER SECRETARIAT

Article 34

Professional and administrative activities within the Chamber’s competence

are performed by the Secretariat as the Chamber’s administration.

The Secretariat may perform its activities completely or distributed among its

organizational entities.



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The organizational forms of the Secretariat, the title names, description of jobs,number of executors, as well as the employment requirements for the Secretariat’s

employees, shall be prescribed by the Rule Book on the organization and descriptionof jobs within the Secretariat, in order to provide efficient execution of the Chamber’s

competence.

The Secretariat consists of experts employed with the Chamber.The Secretariat submits to the Council semi-annual and annual statements on

its work.

General provisions shall apply to the rights, liabilities and responsibilities of

the Secretariat employees.

Concerning the official language and alphabet, vocational training and

qualifications of the employees performing entrusted jobs of government

administration and concerning office work, regulations pertaining to government

administration shall apply to the administration’s work.

Article 35

The Secretary General of the Chamber shall manage and organize the labor and

business procedure thereof.

Article 36

The Secretary General of the Chamber is appointed and relieved from duty bythe Chamber Council.

The Employment contract with the Secretary General of the Chamber shall be

signed by the Chairman of the Council on behalf of the Chamber.

Article 37

The Secretary General of the Chamber is appointed for a four-year term of

office and the same person can be reappointed for the same duty without a limited

number of terms of office.

A person who is a member of a political party and an official pursuant to the

law preventing conflict of interest in performing public office or an official of a TradeUnion organization cannot be reappointed Secretary General of the Chamber.

Article 38

The Secretary General of the Chamber:

1. organizes and manages the labour process and business operations of the

Chamber’s Secretariat;

2.

represents and acts as proxy of the Chamber;

3. provides and is responsible for legitimacy of work performed by the

Chamber’s Secretariat;4. organizes, supervises and is responsible for the work of the Chamber’s

Secretariat;5.

decides on using the Chamber’s funds in accordance with the financial plan

and is responsible for the Chamber’s business operations;6. executes the decisions of the Chamber authorities;



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7. decides on employment of persons, on termination of employment foremployees as well as their responsibility regarding entrusted jobs, on the

rights and liabilities of the employees pursuant to the provisions andenactments of the Chamber, as well as on engaging other persons for certain

professional jobs in the Chamber, if the engagement of these persons is not

within the competence of the Assembly and/or the Chamber Council;8. decides on local and international business trips of the employees of the

Chamber’s Secretariat;

9.

sets up commissions not within the competence of the Assembly and

Council for conducting activities within the Chamber’s sphere of work

and decides on benefit compensation for taking part in their work;10. decides on other issues entrusted to him/her by the Law, by-laws and

professional regulations, these Articles of Association, general andindividual enactments of the Chamber authorities and other regulations

within his/her competence and

11. decides on other issues not within the competence of the Chamber

authorities.

Article 39

The Secretary General of the Chamber may entrust certain jobs from the previous Article to an employee within the Chamber’s Secretariat or another person,

except for jobs directly entrusted to the Chamber’s Secretary General by theChamber authorities.

Also in the case under paragraph 1 of this Article, the Secretary General of the

Chamber is responsible for the legitimacy of the Chamber’s work.

Article 40

The Secretary General of the Chamber reports to the Council on his work and

on the business operations of the Chamber’s Secretariat.

Article 41

The Secretary General of the Chamber can be relieved from duty even before

the expiration of his term of office:

1. by personal request;2. if the Council estimates that the Chamber’s Secretariat does business

operations contrary to the Law, other regulations, these Articles of Association or

other general enactments of the Chamber or if this results from the audit report, or ifany other irregularities are found concerning the business operations of the Chamber’s

Secretariat, and the Secretary General has not taken required proceedings to removethem.



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Article 42

The Chamber, or the Chamber’s Secretariat can have some of their

organizational parts outside their Head Office, with certain authorization in legal

operations, but not in the capacity of a legal person.

The decision on setting up organizational parts outside the Chamber shall be passed by the Assembly.

VI REPRESENTATION OF THE CHAMBER

Article 43

The Chamber shall be legally represented by the Chairman of the Council

and the Secretary General of the Chamber without any limitation.

The Chamber may also be represented by the procurator for concluding legal

affairs and activities concerning the Chamber’s sphere of work. The Chamber Councilshall decide on the issuance of collection endorsement.

A proxy with special power of attorney issued by special authorization of the

Council and Secretary General of the Chamber within their jurisdiction may represent

the Chamber in conducting individual jobs and activities.

VII COMMISSIONS

Article 44

The Assembly, Council and Secretary General shall set up a commission,within their competence, to perform certain activities from the Chamber’s sphere of

work.

The professional composition, number of members, assignments of the

commission shall be defined by the decision on the establishment thereof inaccordance with the task and work required to be done.

The authority which had set up the commission may change the

assignments and composition of the commission in the course of its work.

Commissions may be set up, in compliance with the assignments, on a

temporary basis, or as commissions in permanent session, or until the adoption of the

decision on the termination of its work.Commissions submit monthly reports and reports upon completion of their

work to the authority which had established them.

Members of the commission are obliged to perform their duties

conscientiously within the framework of the entrusted assignment.



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VIII LEGAL DECREES AND OTHER CHAMBER ENACTMENTS

Article 45

The Chamber has legal decrees in accordance with the Law, other regulations,

provisions of these Article of Association, as well as in accordance with the decisions

of the Assembly and Council.The legal decrees of the Chamber are these Article of Association, Rule-

Books, enactments regulating the general requirements for business operations,decisions, as well as other enactments regulating certain issues from the Chamber’s

sphere of activities.

The Assembly and Council shall pass the Chamber’s legal decrees within its

competence.The authority which had passed the legal decree shall give an authentic

interpretation thereof and shall establish the revised text.

The amendments and changes of the legal decrees shall be done in the

procedure foreseen for their adoption.The passed enactments of the Chamber shall be signed by the authority,

namely Chairman of the authority which had passed these enactments, or the personacting on his/her behalf, as well as other authorized persons in accordance with these

Articles of Associations.

Article 46

The Articles of Assocation are the basic general enactment of the Chamber,

and other general enactments of the Chamber shall be in acdordance with the Articles

of Association.The Chairman of the Chamber’s Assembly shall sign the Chamber’s Articles

of Association and put his abbreviated signature (initials) on each page of the Articlesof Association.

Article 47

The decisions and other enactments of the Chamber which do not have ageneral character pursuant to Article 45, paragraph 2 of these Articles of Association,

shall be in accordance with the general enactments of the Chamber.

Article 48

If it is prescribed by the Law that the Ministry of finance shall give an

approval to the Chamber’s enactment, it shall be published and shall enter into force

upon obtaining this approval. The approval of the Ministry of finance shall be

attached to the corresponding enactment as its integral part.

Until the establishment of its web page, the Chamber shall perform the

publishing of its enactments and other contents within the framework of the



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Chamber’s activities on the web page of the Ministry of finance -www.mfin.sr.gov.yu.

IX BUSINESS BOOKS, FINANCIAL STATEMENTS AND AUDITING

Article 49

The Chamber keeps business books and prepares financial statements in

accordance with the law regulating the accountancy and auditing.

The Chamber shall submit the Annual financial statement with the issuance ofthe auditor’s opinion to the Ministry of finance.

Auditing of the Chamber’s business operations shall be performed pursuant tothe law regulating the accountancy a auditing.

Auditing under paragraph 3 can be regular and extraordinary. Regular auditing

is performed for each year, and extraordinary by request of the Ministry of finance

and the Chamber’s Assembly.

Article 50

Internal auditing shall be established by the Chamber’s legal decree pursuant

to the provisions regulating the principles of internal auditing organization and work,

as well as with the international standards.

X BUSINESS SECRET

Article 51

Documents, data and information on business operations of the Chamber and

its members are considered as a business secret, the disclosure and announcement of

which would be harmful for the interests and business reputation of the Chamber and

its members.

Article 52

Documents, data and information marked as business secret by state and otherauthorities and organizations, or marked “strictly confidential”, “confidential”, or

“internal” shall be considered as a business secret in the Chamber’s activities.

Article 53

Members of the Chamber, its authorities, employees of the Chamber, as well

as other persons taking part in the Chamber’s work, are obliged to keep a business

secret, if they should in any way find out about the documents, data and informationunder Articles 51 and 52 of these Articles of Association. Keeping a business secret is



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Article 58

The Publishing Council of the Chamber’s journal consists of: the Chief and

Responsible Editor, who is by virtue of his office the Secretary General of the

Chamber, the Deputy Chief and Responsible Editor and 3 members. The DeputyChief and Responsible Editor and members of the Publishing Council shall be

appointed by the Chamber Assembly.

The Chief and Responsible Editor, Deputy Chief and Responsible Editor and

members of the Publishing Council report on their work to the Chamber Assembly.

XIII THE CHAMBER REGISTERS

Article 59

The Chamber shall keep the following registers of the Chamber members:1. Register of audit companies;2. Register of issued licenses to certified auditors for auditing work;

3. Register of issued certificates for the professional title of “certified internal

auditor”;

Other than the Registers under paragraph 1 of this Article, the Chamber shall

also keep the following registers:

1. Register of issued certificates for the professional title of “certified auditor”;

2. Register of validated professional titles acquired abroad.

Article 60

Entities entered into registers under Article 59 of these Articles of Association

have a duty to inform the Chamber immediately, and not later than within 15 days, of

all changes of data contained in the Chamber’s registers.

Article 61

The Chamber’s registers are public books containing data concerning the entry

into and removal from a certain register.

The Chamber’s registers contain a separate file on each entered entity into the

Chamber’s register.

The file under the previous paragraph of this Article contains proofs of entryinto and removal from the register, proofs of changes of data and all other proofs

submitted and compiled in the procedure of entry into and removal from the Register.

The contents and method of managing the registers and files shall be more

closely regulated by the Rule Book on managing the Chamber’s registers, which is

passed by the Council.

XIV THE RIGHTS AND DUTIES OF THE CHAMBER MEMBERS

Article 62

The Chamber members have the following rights and duties:



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1. to take part in the work of the Chamber and its bodies, submit proposals, electand be elected for authorities and other bodies of the Chamber;

2. to initiate decision-making within the Chamber’s competence, as well as to

propose proceedings and actions for better position and reputation of the

auditor’s profession;

3.

to continue personal professional development on their jobs;4. to implement the Chamber’s decisions professionally and conscientiously;

5.

to act in accordance with the Law and the legal and professional regulations,

Code of Ethics for Professional Accountants, these Articles of Association and

other general and individual legal decrees of the Chamber;

6. to submit at the Chamber’s request and in due time accurate and updated

documents, information and data on their status and work;

7. to keep a business secret;

8.

to execute due financial liabilities towards the Chamber;

9. to act in due time according to the recommendations of the Chamber’s Council

under Article 65, paragraph 5, item 3.10. to protect and improve the Chamber’s corporate image.

The Chamber’s members also have other powers and duties stipulated by the Law and

other legal enactments and by-laws, these Articles of Association and other general

and individual enactments and decisions of the Chamber.

XV PROFESSIONAL TRAINING AND CONTINUING PROFESSIONAL

DEVELOPMENT

Article 63

The Chamber organizes and enforces professional development and training for

taking exams in order to acquire the professional titles of certified auditor and

certified internal auditor pursuant to the Law, by-law regulations passed for execution

of the Law, professional regulations, program and requirements prescribed by the

Assembly and the Chamber enactments.

The Chamber realizes continuing professional development through various

forms of professional and educational activities of the Chamber, by organizing

symposia, workshops, panels, round tables and similar, in accordance with the

Chamber’s Annual Program.

XVI RECOGNITION

Article 64

The “Plaque of the Chamber of authorized auditors” shall be awarded as a signof recognition to members of the Chamber as well as to other entities taking part in

the Chamber’s work for achieved results and contribution in the achievements withinthe Chamber’s competence and in its development.

The requirements for granting the recognition under the previous paragraph, as

well as the decision on granting the award shall be passed by the Chamber Assembly.



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XVII QUALITY CONTROL AND VERIFICATION OF THE CHAMBER

MEMBERS’ WORK

Article 65

The Chamber accepts and considers complaints against the work of the

members submitted in writing.

The Council decides on proper, timely submitted and complete complaints

against the work of the Chamber.

A member of the Chamber is required to give an explanation in writing within

15 days from the day of received notice on the received complaint.

The Chamber’s Secretariat shall analyze the received complaint and make a

note on the complaint against the Chamber’s member work and on his statementthereof, with a conclusion on the breach of the legal provisions, professional

regulations, Code of Ethics for Professional Accountants and the Chamber’s

enactments and submit to the Council a draft proposal concerning the lodgedcomplaint.

Concerning the complaint the Council may decide:

1. to reject the complaint as irregular;

2. to reject it as unfounded;

3. to accept the complaint in which case the Council shall take a stand in

reference with the lodged complaint and give appropriate

recommendations for the purpose of removing the causes of the

concerned complaint;

4.

to forward the complaint to the Disciplinary commission;

5.

to forward the complaint to the Ministry of finance in the form of a justified proposal for inspection.

Recommendations under paragraph 5, item 3 of this Article may be of

general character or recommendations referring to the behavior of a certain member

of the Chamber. The Council monitors whether the Chamber members or a certain

Chamber member act/s in their/his work in accordance with the given

recommendation.

Should the Council find that the audit company did not proceed in accordancewith the recommendation given in accordance with paragraph 6 of this Article, the

Council may pass a decision on the pronounced reprimand or public summons to the

audit company, depending on the established circumstances in connection with failure

to act according to the Council’s recommendation.

The pronounced proceeding of public summons under paragraph 7 of this

Article shall be published on the Chamber’s web page and/or in a newspaper with a

high circulation and issued on the whole territory of the Republic of Serbia.

The Council’s decisions under paragraph 5 of this Article must be justified.

Article 66

In addition to the procedure regulated by Article 65 of these Articles of

Association, the Chamber’s authorities control and verify the quality of work performed by the Chamber members in the manner established by the Chamber



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Assembly pursuant to Article 17, paragraph 1, item 12 of these Articles ofAssociation.

XVIII DISCIPLINARY LIABILITY

Article 67

The Chamber shall enforce disciplinary proceedings against certified auditors

employed in an audit company and certified internal auditors of the Chamber

members for breach of duty and image of the auditor’s profession, in order to

establish the existence of disciplinary offence and disciplinary liability, as well as to

take disciplinary measures pursuant to these Articles of Association and Rule Book onthe disciplinary proceedings.

Failure to act accordingly may provide grounds for conducting disciplinary

proceedings only if there is a binding commitment of the Chamber member to act.

Article 68

There is breach of duty and image of the audit profession under Article 67 ofthese Articles of Association if:

1. the entry into the registers kept by the Chamber was based onuntruthful and incorrect data;

2. it has been established by decree absolute that the Chamber member

has committed a penal offence which calls in question his reputation

for further auditing;

3.

a member of the Chamber performs auditing unconscientiously and

unprofessionally, or does not act in accordance with the law, the

International Standards on Auditing, the Code of Ethics forProfessional Accountants, these Articles of Association and the

Chamber’s enactments;

4.

a member of the Chamber does not fulfill the obligations towards the

Chamber under Article 62 of these Articles of Association.

Article 69

For committed disciplinary offence under Article 68 of these Articles of

Association, one of the following measures shall be pronounced to the member of the

Chamber:

1. reprimand;

2. public summons;

3.prohibition from practicing a profession for a period of one year;



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4. removal from the Chamber’s Register.

Measures of reprimand under items 1 and 2 of the above paragraph shall be

pronounced for milder breach of the Law, legal and professional regulations, Code of

Ethics for Professional Accountants, these Articles of Association and the Chamber’s

enactments.Measures under paragraph 1, items 3 and 4 of these Articles of Association

may be pronounced only for severe breach of the Law, legal and professional

regulations, Code of Ethics for Professional Accountants, these Articles of

Association and the Chamber’s enactments. These measures shall be pronounced by

firstly applying the measure under paragraph 1, item 3 of this Article. The measure

under paragraph 1, item 4 of this Article shall be pronounced in the case if, upon

expiration of the measure under item 3, a member of the Chamber repeats a similar or

the same breach within two years from the expiration of the pronounced measure.

Article 70

A disciplinary offence can be reported by the Chamber members, the Chamber

authorities, except for the Disciplinary commission, as well as other entities which

find out about the committed disciplinary offence and the perpetrator.

The report under paragraph 1 of this Article shall be submitted to theDisciplinary commission. Upon receipt of the report, the Disciplinary commission

shall introduce and conduct the disciplinary proceedings ex officio in accordance withthese Articles of Association and Rule Book on the disciplinary proceedings.

The Disciplinary commission is obliged to act urgently in the decision-making

procedure concerning the disciplinary liability.

Article 71

The member of the Chamber against whom the disciplinary proceedings had

been taken can lodge an appeal to the Chamber Council within 15 days from the day

of received written dispatch of the decision. The Council is obliged to decide on the

complaint within 30 days from the date of its receipt.

In decision-making in reference to the appeal, the Chamber Council may

confirm the decision of the Disciplinary commission, modify or abolish it and return

the subject to the Disciplinary commission for renewed proceedings and decision-

making.

The Chamber member against whom the disciplinary measure had been taken

may introduce proceedings against the Decision of the Chamber concerning the

appeal before the court.

Article 72

Records of the final and decisions absolute on the pronounced disciplinary

measures shall be kept by the Chamber’s Disciplinary commission.

Records from the above paragraph are not public and data from these records

may be given only by request of the government authorities for the purpose of

conducted proceedings.



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Article 73

Introduction of disciplinary proceedings expires within 6 months from the day

of the Disciplinary commission’s acknowledgement of the committed disciplinary

offence and perpetrator, and not later than within a year from the day of committed

disciplinary offence.There proceedings shall stay until it is possible to introduce or conduct the

disciplinary proceedings, due to the absence of the Chamber member or for other

justified reasons.

A pronounced disciplinary measure cannot be executed after the expiration of

one year from the date of finality or irrevocability of the decision on the pronounced

disciplinary measure.

Article 74

The statute of limitation of the disciplinary proceedings within the frameworkof the subjective 6 months deadline shall be stayed by every action of the Chamber’s

competent authority taken in order to introduce the disciplinary proceedings. With

each stay the statute of limitation shall be restarted.

XIX SUPERVISION OVER THE CHAMBER’S WORK

Article 75

In executing the jobs entrusted to the Chamber by Law, supervision shall be performed by the Ministry of finance.

XX TRANSITIONAL AND FINAL PROVISIONS

Article 76

The Chamber shall pass, within 30 days from the day of constituting the

Assembly and the Assembly Council, the Articles of Association and enactmentsregulating: the requirements for acceptance to and termination of membership within

the Chamber, the membership fee paid by the Chamber members, amount of benefitcompensation for taking exams, for issuance of certificates and licences and entry

into the registers kept by the Chamber, as well as for providing data from these

registers.

Within the timeframe under paragraph 1 of this Article, the Chamber shall set

up a Commission for enforcing the exams under Article 6, paragraph 1 of the Law.

The Chamber shall pass, within 60 days from the date of constituting theChamber’s Assembly and Council, a Financial plan, enactment on the internal

organization and description of job positions, enactments regulating: the program for

acquiring professional titles under Article 4 of the Law, requirements for acquiring,

renewal and withdrawal of licenses for certified auditors for auditing financial



statements, requirements for issuance of certificates for acquiring the professionaltitles of certified auditor and certified internal auditor.

Other enactments required for the Chamber’s work shall be passed by the

competent authorities within 3 months from the day of constituting the Assembly and

the Assembly Council.

Article 77

These Articles of Association shall come into force on the eighth day after

publishing the approval of the Ministry of finance given to these Articles of

Association in the “Official Gazette of RS”.

The given approval of the Ministry of finance shall be attached to these Articlesof Association as an integral part thereof.

After publishing the approval of the Ministry of finance given to these

Articles of Association in the “Official Gazette of RS”, these Articles of Associationshall be published on the Chamber’s web page.

CHAIRMAN OF THE CHAMBER ASSEMBLY

Prof.Dr. Jovan Rodic, (signed)