Shoqata e Kontabilistëve të Çertifikuar dhe Auditorëve të

Shoqata e Kontabilistëve të Çertifikuar dhe Auditorëve të Kosovës
Društvo Kvalifikovanih Računovođa i Revizora Kosova
Society of Certified Accountants and Auditors of Kosovo
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Mision, Vision, Goals
Mission
Our mission is to develop and maintain an internationally competitive professional organization
complying with highest professional and ethical standards, which enhances organizational performance through financial management, assurance and specialized expertise. We act with integrity,
objectivity and a commitment to excellence and the public interest.
Vision
Our vision is to be the leader in creating, evaluating and interpreting information which measure
and enhance the organizational performance in order to be the best choice for financial management, assurance and other specialized services.
Goals
Our goals are the continuous development of training programs comparable to the most eminent
professional accounting associations’ programs. Development and advancement of our membership base recognized for professional expertise and highest ethical standards. Membership to international professional organizations.
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Contents
Contents
SCAAK Organisational Structure.......................................................................................................... 5
President’s Speech............................................................................................................................. 6
Executive Director’s Message............................................................................................................... 9
Introduction..................................................................................................................................... 11
The Financial Reporting and Audit System Reformin in Kosovo............................................................. 12
Continuous Support to the Public Sector Towards Increasing Transparency, Accountability
and Implementation of High Quality Standards................................................................................... 19
SCAAK As a Center of Excellence - in line with new developments of international education standards.. 21
SCAAK representation and involvement with interest groups at the local, regional and
international level............................................................................................................................. 27
SCAAK - An example at the Accounting Education Community of Practice (EduCoP) workshop
organized by the World Bank Centre for Financial Reporting Reform (CFRR) in Vienna........................... 33
SCAAK Committees Reports.............................................................................................................. 36
2013 Statistics................................................................................................................................. 46
Financial Statements and Independent Auditor’s Report...................................................................... 49
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SCAAK Organisational Structure
SCAAK Organisational Structure
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President’s Speech
President’s Speech
Dear SCAAK Members,
It is our pleasure to present the 2013 Activities Report in
front of a group of accounting and auditing professionals, members of the Association of Certified Accountants and Auditors of Kosovo, as you are.
The work of our members in the profession of accounting and auditing and protection of public interest is to
be highly appreciated in this time in which Kosovo’s economy and institutions are being faced today.
Your valuable experience and the proven practices in the service of public interest, although without a proper legal regulation, deserve a respect and decent appreciation, both from the business as well as from the
relevant institutions.
SCAAK retains the primacy of being a leader in the profession of accounting and auditing in Kosovo and in
the region, and thanks to the commitment of its members, monitoring the Association by the Council and
efficient governance.
Despite all these difficulties, ranging from the lack of a proper legal regulation for the profession, are the
professional principles and sustainability of our Association which is becoming stronger in many aspects,
such as in terms of services of education, practice, governance, membership and representation in local,
regional and international institutions.
This year, the Council with the structures of the Executive Office, has continued to perform the duties set out
in the 2011-2014 Strategy in the field of improving services and support for its members, providing qualifications for accountants and auditors as well as specializations in various fields.
Council has taken many important decisions during 2013 towards implementing the strategy and plans approved by the Assembly, and implementation of the IFAC’s Statements of Membership Obligations.
This year, in terms of cooperation with public and private institutions, can be treated as the year of openness
and transparency.
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President’s Speech
The Council of this mandate has made a decision that a part of trainings from the field of education should
pass on to universities. With this being emphasized, we managed, as always, to lead the financial reporting
system reforms in Kosovo. The Association has continually searched for partners in universities, especially
the public university. This was also a long-standing demand of the World Bank in Kosovo. In June 2013, an
agreement was reached with the Faculty of Economics of the University of Pristina for the exemption of their
students from the SCAAK’s certified technician level, with a condition that courses and examinations have to
be in accordance with accepted standards. This trend of cooperation has continued with private institutions,
but with a strict monitoring criterion.
Meanwhile, the Association, through signing of two agreements with the leading institutions in Kosovo and
Albania, became important partner in the field of public finance. Being a partner of two major institutions of
financial control, the Office of the Auditor General (OAG) in Kosovo and the Albanian State Supreme Audit
Institution (ALSAI) in Albania, shows that how much the work of our members is respected, in particular, and
of our Association, in general, from the most professional and competent state institutions in the field of
protection the public interest.
One of the goals of the Council was to maintain the level of the memberships, grow the membership and
delivery of services for all the members that enter into this profession. We managed to approach our passive memberships with a genuine program of contractual obligations, in order for them to become regular
members of the Association.
During 2013 the Association has made continuous efforts, and in some cases even outside of its competences, through competent institutions to hold the legal criteria in licensing of professional associations in the
country. Furthermore, by communicating constantly with responsible institutions for monitoring the acts
that oversee the law enforcement in this profession, we have constantly tried to express our views for protection of the profession and the public interest.
Taking advantage of the licensing practice of associations by the respective and competent institution, we
have raised significant legal issue, strictly for the protection of the work and practice of your precious profession. All this was done for the protection of the profession and the public interest, since the Association is a
nonprofit organization and it belongs to its members.
Association and its members were the main bearers of initiatives and discussions for changes in the current
Law on Accounting, Financial Reporting and Auditing.
Despite expectations and a lot of organized meetings in cooperation with key stakeholders that monitor and
regulate the profession, such as MF, KFRC, CBK, WB, etc.., we insist and hope on a new legal regulation of the
profession. This would greatly assist our profession, stimulating foreign and domestic investments, fighting
economic corruption and economic development of Kosovo.
Like in previous years, the Association has continued its cooperation with many similar institutions in the
region and beyond, such as IEKA, TURMOB, FCM and IFAC.
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President’s Speech
Association and the Council have supported our representative at KFRC, who has protected the principles
of the profession and the professional practice, while on the other hand, the Association’s committees have
functioned based on assigned tasks and competencies.
At the end of this mandate of Council, I want to thank all the members of the Association for their efforts, to
thank local institutions for cooperation, and donors like the World Bank and our partners abroad.
I want to thank members of Council and the Executive Office for their valuable contribution to the implementation of the strategy and governance of the Association.
Fahri Breznica
President of the Council
From left: Mentor Hyseni, Avni Jashari, Fahri Breznica, Shaban Muharremi and Visar Peci.
Absent: Adrian Alo and Bekim Berisha
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Executive Director’s Message
Executive Director’s Message
Dear Members,
Being witness to a many great work that is done in this office
while unable to explain it in detail, allow me to begin this report
by thanking Leading Council and the staff of the Executive Office for the hard work they have invested. The synergy within
the team has helped implementing the mission of our Association, which is engraved in hearts and minds of everyone in this
office, and makes us what we are today, a Centre of Excellence
for our profession.
Results show all the work that has been done this year, albeit in a difficult environment to develop, lacking
good legal infrastructure, a very slow implementation process of the Law on Accounting, Financial Reporting
and Auditing, and frequent policy changes. If SCAAK did not act proactively, and rely on the present circumstances to implement an idea, a vision, we would not be where we are today - a leader and example for
developing countries. 2013 was also characterized by new developments towards implementing the idea of
collaboration between the public and private sector.
A well-governed professional organization develops and maintains a profession that is willing to serve the
public interest and has the power to support high quality financial information, contribute to the development of the public and private sector as well as to the state agenda to foster stability and economic development.
A professional organization benefits from the strength of its identity, the benefits and rights that its members are entitled to, and the contribution they provide for the professional organization by respecting public
interest and by working in accordance with the highest professional and ethical standards.
SCAAK has an identity, this has been proven by being an example in the guidelines of global organizations.
In recent years, cooperation between the public and private sector to certify professionals is one of the most
discussed topics by international organizations; consequently SCAAK oriented all of its energy towards developing a certification scheme for the public sector, which is the first of its kind.
For a more sustainable development of the Association, we are working on identifying the delivery of professional education in various fields focused within the profession. SCAAK has been portrayed as an example
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Executive Director’s Message
of self-sustainability through the development of its certification programs, which were defined as “Fit for
Purpose” at the meeting of global donors.
We have managed to be in the spotlight of global development agendas, but maintaining this achievement is
of great importance, therefore in the coming years SCAAK should set its focus on further development of its
members and help creating a better legal infrastructure, which would affect the development of loyal competition and the fight against corruption, while mainly aiming towards economic development, attraction of
investors and reduced unemployment.
Ardiana Bunjaku
Executive Director
From left: Burbuqe Gjonbalaj, Lendita Shahini-Ustaibo, Lulzim Zeka, Art Navakazi, Burim Ahmeti, Arbër Hoti, Ardiana
Bunjaku, Lulzim Berisha, Edona Perjuci-Uka, Fatos Sylaj, Nertilë Latifi and Ermal Kozgori
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Activities and work of SCAAK during 2013
Activities and work of SCAAK during 2013
In the wake of global developments and trends, on the international level, the year 2013 was
characterized by the continuation
of economic recovery through international financial reforms. As
part of these global trends and
as an institution attempting to
adopt these changes and standards in a developing country,
which represents an additional
burden - SCAAK’s role expanded
even further in the sustainable
development of the accounting
profession, stabilization of the
financial market and economic
empowerment.
As leader of the accounting profession in Kosovo, SCAAK works
in the public interest, to strengthen and support the profession,
which will have a positive impact
on the economy and in the society in which we live and work.
This report gives a general overview of activities, structures and
programs of the Association, as
well as the developments in the
accounting profession in Kosovo
during 2013.
The work of SCAAK during this
year has been based on the Association’s 2011-2014 Strategy and
Action Plan for 2013, with special
focus on several areas.
Meanwhile, particular focus was
to implement the recommendations of the World Bank Report
on the Observance of Standards
and Codes (ROSC) on accounting
and auditing in the Republic of
Kosovo in 2013, under which the
Association is estimated to have
fulfilled all the recommendations
of the 2006 ROSC report, based
on which the Association has
served as an example for developing the financial reporting profession in Kosovo.
The 2013 ROSC report recommendations were given with the
intention to further strengthen
the corporate financial reporting
system in Kosovo, by bringing it
closer to the acquis communautaire and EU requirements.
An essential part of the 2013
ROSC report recommendations
were related to the amending the
Law No.04/L-014 on Accounting,
Financial Reporting and Auditing.
The initiative of SCAAK towards
this goal was the organization of
a workshop that brought together all interest groups affected by
the law. In close cooperation with
the Central Bank, the World Bank
Office in Kosovo and the World
Bank Centre for Financial Reporting Reform in Vienna (CFRR),
SCAAK invited professional ex-
perts, law working groups and
government representatives to
the workshop, in order to discuss
the draft amendments of the
Law No. 04/L-014 on Accounting,
Financial Reporting and Auditing.
Another recommendation of the
2013 ROSC report suggested further efforts of SCAAK and KCFR in
the integration of university education to professional accounting
qualifications. SCAAK responded
to this recommendation by signing Memorandums of Understanding with public and private
institutions of higher education
in Kosovo.
Capacity building for public sector financial reporting was another special focus of the Association, where SCAAK functionalized
the certification program of the
public sector, which apart from
attracting regional attention and
interest, by the Professional Accountancy Organization Development Committee (PAODC) within
the International Federation of
Accountants (IFAC), was assessed
as a good model to be implemented by other countries.
Organizing the Workshop on
Amendment of the Law on Accounting, Financial Reporting
and Auditing based on the World
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Activities and work of SCAAK during 2013
The Financial Reporting and Audit System
Reform in Kosovo
Bank 2013 ROSC Report In 2013 the World Bank
published a new edition of the Report on the Observance of Standards and Codes (ROSC) on accounting and auditing in the Republic of Kosovo. This report has highlighted significant changes and made
relevant recommendations for the further development of financial reporting, including the necessary
amendments of the Law No. 04/L-014 on Accounting, Financial Reporting and Auditing.
The new law brought Kosovo’s legal framework
closer to the acquis communautaire of the EU, but
the 2013 ROSC report recommended that there
will be a need for additional changes, in order to
achieve full harmonization with EU laws. SCAAK’s
initiative towards this goal was the organization of
a workshop that brought together all stakeholders
affected by this law. In close cooperation with the
Central Bank, the World Bank Office in Kosovo and
the World Bank Centre for Financial Reporting Reform in Vienna (CFRR), SCAAK invited professional
experts, law working groups and government representatives to the workshop, in order to discuss
the draft amendments of the Law No. 04/L-014 on
Accounting, Financial Reporting and Auditing.
The workshop’s goal was to improve the transparency, accountability and effectiveness of financial
reporting and auditing, to initially help improve the
business and investment environment in Kosovo
and increase the trust in the private sector, in order
for Kosovo to benefit from its economic activities.
The main objectives of this workshop were to increase the awareness of all stakeholders regarding
the benefits that Kosovo would have by implementing the recommendations of the 2013 ROSC report,
discussing the amendments to the Law on Accounting, Financial Reporting and Auditing and supporting efforts of the Ministry of Finance to finalize these
amendments.
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Activities and work of SCAAK during 2013
Conclusions drawn from the Workshop on Amending the Law on Accounting, Financial Reporting and
Auditing
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Given Kosovo’s ambitions to be ranked in accordance with EU directives and advanced international
standards, the financial reporting and accounting framework will have to adhere to two important
frameworks: EU Directives and the International Accounting Standards on education, financial reporting,
auditing and quality control.
••
Regarding the financial reporting standards for business entities, the guiding framework for Kosovo
should be that of International Financial Reporting Standards published by the Board of the International
Accounting Standards translated and published by Kosovo Council for Financial Reporting.
••
Professional accounting organizations will necessarily have to be full members of the International
Federation of Accountants (IFAC), in order to ensure professionalism and protection of the public interest.
This can only be achieved through the application of Statements of Membership Obligations in the
development of accounting professionals.
••
Professional organizations should strengthen professional and ethical standards, which include initial
and ongoing requirements of professional education for accountants and auditors. In the continuing
professional development of statutory auditors, this process will be subject to the public oversight system
of KCFR. The Professional association is obliged to implement the International Education Standards (IES)
in defining and strengthening the certification and licensing system of statutory auditors and ensure that
the program remains updated and in accordance with the IES terms, regarding statutory auditors, relevant
education parts in accordance with the European Commission Statutory Audit Directive.
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Activities and work of SCAAK during 2013
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Kosovo should have a uniform examination system for certified accountants and auditors, which will be
implemented by professional associations, which are subject to public oversight by KCFR.
••
Initially, it is upon the Kosovar society to determine which entities are of public interest that should apply
IFRS and related interpretations by the International Accounting Standards Board which are published by
KCFR.
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Review of thresholds and business-entity classification for the purpose of this law and financial reporting
purposes, as well as the discussion on the auditing requirements for all enterprises whose annual turnover
exceeds 1 million Euros.
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In the context of Small and Medium Enterprises (SMEs), Kosovo should atempt to find a balance between
the requirements for fiscal discipline that refers to International Financial Reporting Standards for SMEs,
which are published by the International Accounting Standards Board and in agreement with the IFRS
Foundation have been translated and published by KCFR.
••
Conclusions regarding the regulatory and supervisory role of the Kosovo Council for Financial Reporting
were as follows:
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The independence of KCFR and its role in public oversight of statutory auditors and audit firms is important
to clarify and comply with the requirements of the EU 8th Directive for statutory audits. During the
workshop, the participants discussed about two organizational models of KCFR.
••
The first proposal suggested creating a supervisory board, whose members will be appointed and will
report to the Kosovo Parliament, while being an independent board in terms of funding and decisionmaking.
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Activities and work of SCAAK during 2013
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The
second proposal suggested creating a supervisory board within KCFR, which will have the ultimate role in
controlling the quality of the work of auditors as well as investigating their discipline and will comprise of
the KCFR, CBK and SCAAK.
••
Regarding KCFR’s independence, it is important that funding would be sufficient and comes from different
sources, to avoid funder influence. Aside being funded from the Kosovo budget, it was proposed for KCFR
to be financed from licenses, financial statement submission fees, professional organizations fees, etc. But
most importantly KCFR must be strengthened, either through capacity building, funding or professional
assistance.
••
The 2013 ROSC report recommendation as well as European Commission recommendations of 2008
regarding quality assurance, are to consider the supervised self-regulation model, where the investigative
function is carried out by professional organizations or SCAAK, but the assessment of findings and
sanctions can be undertaken by KCFR. In order to clarify stakeholders roles, including KCFR, the Central
Bank of Kosovo and professional accounting organizations, the following proposals were discussed during
the workshop:
••
The first proposal suggested that the review of statutory auditors – persons – should be performed by
SCAAK, while audit firms should be reviewed by KCFR.
•• The proposed alternative suggested that SCAAK should
review audit firms that perform audits of none public
interest entities, while KCFR should review the audit firms
that perform audits of public interest enterprises.
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Activities and work of SCAAK during 2013
Advancing the profession through
collaboration with Institutions of Higher
Education
Based on Association objectives, legal requirements
and recommendations of the 2013 ROSC report, the
professional education component is treated as a
strong element in producing accounting professionals and genuine respect of International Education
Standards (IES). Therefore, SCAAK has assessed the
necessity of starting the accreditation process of
higher education institutions in Kosovo.
This important accreditation process of higher education institutions in Kosovo will create uniformity
in terms of International Education Standards and
curriculum implementation in the accounting field,
and in cooperation with SCAAK, it will also ensures
quality in capacity arising from higher education institutions.
whole process will be under the direct supervision
of the SCAAK’s Council. During 2013, the Association
has signed MoUs with the Economic Faculty of the
University of Prishtina “Hasan Prishtina”, the RIINVEST University, and has begun the first steps towards collaboration with the UBT University; these
universities will implement the SCAAK’s curricula
and examination procedures. The Commission will
periodically review all processes of meeting the accreditation criteria, under which students of these
universities will be able to gain the knowledge and
qualifications of SCAAK programs.
To ensure quality, the Education Standards Committee of SCAAK has drafted the criteria for higher education institutions, which will ensure the implementation of International Education Standards. The
By incorporating IES literature in the field of finance,
accounting, auditing, financial management, business planning and other subjects, the universities
will greatly increase their quality of qualifications
and employment opportunities for those who
achieve them. Helping universities and the higher
education sector to focus more on the field of accounting, SCAAK will attract a greater number of
quality graduates of the profession and thus can
contribute to expanding the universities’ opportunities to specialize and profile their students through
professional education.
From left: Fahri Breznica - President of SCAAK and Skender Ahmeti
- Dean of Faculty of Economics, University of Prishtina
From left: Fahri Breznica - President of SCAAK and Bardha Qirezi Director for Academic Planning, RIINVEST
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Activities and work of SCAAK during 2013
Continuous Support to the Public Sector
Towards Increasing Transparency,
Accountability and Implementation of High
Quality Standards
The key element of this cooperation was the creation of the public sector certification program,
which will increase the level and quality of public
financial management, financial reporting and auditing in this sector, by creating clear, comparable
and comprehensive information contained in the
financial statements and audit reports, regarding
financial consequences of economic, political and
social decisions.
The financial crisis have led to the global development of specific financial reporting programs. The
focus on achieving public sector policy development, institutional arrangements and effective implementation will stimulate economic growth and
development towards the implementation of EU
membership framework requirements.
To achieve the same in Kosovo, SCAAK and the Office of the Auditor General (OAG) have seen the certification of audit staff in the public sector in Kosovo
as an urgent focus, in accordance with International
Standards of Supreme Audit Institutions (ISSAI) established by the International Organization of Supreme Audit Institutions (INTOSAI).
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The program was implemented as part of the MoU
between OAG and SCAAK, based on which, SCAAK
is the first association in the region and beyond, to
develop a certification program for public sector
auditors. As such, this certification will increase the
quality and professionalism of OAG auditors, who
serve as auditors of all public enterprises and institutions financed by the Kosovo budget.
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Activities and work of SCAAK during 2013
From left: Lars Lage Olofsson - Auditor General, AGO and Ardiana
Bunjaku - Executive Director. SCAAK
During 2013, the European Commission published
a report emphasizing that the application of accrual
based Accounting Standards for the Public Sector
within the EU will have a large effect in each member
state and that the necessary preparations of implementing EPAS (International Accounting Standards
for the Public Sector) based on IPSAS, are being
made. Therefore, the new certification program offered by SCAAK is fully in line with recent accounting
developments in the European Union and beyond.
The public sector certification program developed
between OAG and SCAAK will be another source of
the Association’s sustainability and has also attracted the interest of professional organizations outside
Kosovo. SCAAK has signed a MoU with the Supreme
State Audit Institution of Albania for the development and advancement of this institution’s staff.
The public sector certification program was presented to all global donors during the Professional
Association Organizations Development Committee
meeting (PAODC) within IFAC, where it was considered as a great example of the development of
public sector certifications. With the launching of
this certification and its presentation on a global
scale, professional organizations from all around
the world, began to contact SCAAK with regards to
possible cooperation.
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Activities and work of SCAAK during 2013
SCAAK As a Center of Excellence - in line with new
developments of international education standards
Recent developments on the international level have
oriented professional accounting organizations
more and more towards providing specializations
for their members, for creating a diversity of services in order to meet the market demand around
the world. In this regard, SCAAK has achieved one of
the main aims of its strategy, becoming the Center
of Excellence for the development of certification
programs in various sectors in Kosovo.
As a result, SCAAK has made utmost efforts, not
only to continue the same trend of providing certification programs, but also to increase the quality
of certifications, as well as providing new opportunities for members to specialize in different areas.
These certification programs are based on the requirements of relevant EU Directives, International
Standards of private and public sectors and the IFAC
SMO requirements.
Leader in providing certification programs
SCAAK’s certification program is in full compliance
with International Education Standards (IES) and the
latest changes and updates to IES are constantly incorporated. As such, SCAAK is the only association
in Kosovo, whose certification program is in full
compliance with International Standards .
SCAAK has also adopted a strategy on fulfilling the
obligations of lecturers, through which lecturers will
be responsible for achieving the subject’s defined
plan, the subject objectives, lecturing based on exercises and examples similar to those in exams,
preparaing additional exercise banks, cooperating
and encouraging students to take proactive roles,
cooperating with the SCAAK Education Department
and keeping them updated with the overall lecturing
process, aiming to perfect the SCAAK training program. The Professional Department of the Executive
Office monitors the lecturing process, ensuring that
lectures are held according to plan, perforiming surveys and assessments, and providing feedback to
lecturers based on the survey results.
SCAAK continuously develops lectures which are
mainly focued on exercises and practical examples,
which help candidates pass their exams. Lectures
are also developed based on detailed plan, through
which all objectives of each part of the course curriculum are met.
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Activities and work of SCAAK during 2013
This process helps the Association to promote and
continually enhance the quality of its educational
system.
Being in compliance with IES implies the adoption
of new requirements for practical experience for accounting technicians, certified accountants and auditors, designed to meet the minimum IES requirements
as well as EU 8th Directive requirements for statutory
audits. SCAAK liaises with employers from all sectors
and KCFR to implement all requirements for statutory
auditors.
Its Achievents, have made SCAAK the market leader in providing accounting and auditing certification
programs, resulting in a continuous growth of the
number of professionals. SCAAK’s goal is not simply
to increase the number and quantity of professionals, but also to develop and improve the quality of
its members’ services; only through the enhancement of the quality, the financial reporting and audit
environment in Kosovo will improve and increase
reliability of the profession.
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Activities and work of SCAAK during 2013
Expanding knowledge through sessions of
Continuous Professional Development
During 2013 SCAAK also organized sessions of Continuous Professional Development as a fundamental goal to provide professional quality of its membership base and to ensure that members are always up to date with the latest global developments.
During 2013, seven workshops with a total of 44
hours of continuous professional development
were organized, which except for informing members about the latest updates, has enabled them to
meet the requirements arising from the Administrative Instruction 2012/02 on licensing of statutory
auditors.
Since the Law on Accounting, Financial Reporting
and Auditing requires most companies to apply International Financial Reporting and Audit Standards,
this year SCAAK has organized several CDP sessions,
where special focus was given to IFRSs, IASs and ISAs.
During the next years SCAAK will continue to focus on
the provision of CDPs covering these standards and
other topics of special interest to its members.
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In close cooperation with the Kosovo Tax Administration, SCAAK has organized CPD sessions and professional seminars which dealt with detailed explanations of the laws adopted by the Kosovo Assembly.
For the accurate development of of the requirements arising from the implementation of the to
quality assurance by members of the association,
SCAAK in cooperation with the PUM project from
the Netherlands has organized CPDs on quality control and quality assurance. During these sessions,
SCAAK members were introduced to quality control
guidelines published by IFAC, and possibilities of implementation of these guidelines in Small and Medium Audit Practices (SMPs) were discussed.
In terms of cooperation with IEKA, during 2013
SCAAK has organized a joint seminar, attended by
auditors of both countries who were able to exchange their experiences on the implementation of
International Auditing Standards.
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Activities and work of SCAAK during 2013
Training of trainers and support to existing
lecturers
The Professional Education Committee and the
SCAAK Council have worked closely in the preparation of CPD topics for 2014, which are mainly based
on the results of surveyes submitted by SCAAK
members. Through this method, SCAAK provides to
its members the opportunity to make suggestions
of CPD topics for their own advancement and professional development, and provide them the opportunity to meet annual CPD requirements and
specialize in certain fields.
The great demand for training programs and increasing credibility in the education offered by SCAAK,
have resulted in an ever growing demand for registration at SCAAK. This trend has pushed SCAAK to
continue the incorporation of new staff and invest in
the engagement of professionals towards excelling
the certification programs. In this regard, by developing capacities and always looking for new candidates, SCAAK has organized a Training of Trainers
for all existing lecturers as well as for new candidates
who have expressed their interest in becoming junior
professional lecturers. The candidates were invited
to participate in the Training of Trainers, where they
were taught of presentation techniques and skills,
the organization of lectures and the literature to be
used. Successful candidates were subject to panel
presentations, which represented the last phase of
their evaluation process.
In terms of training, during 2013 the intent was to increase the range of lecturers, by involving all those
who have passed the “Training of Trainers” program,
accompanied by assistants during the lectures, which
will provide a transfer of expertise and will ensure
professional consistency for the association.
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Activities and work of SCAAK during 2013
SCAAK always makes sure to get feedback from its
members for the development of the lecturing process,
in order to further increase the quality of its capacity.
The digitalized evaluation process of lecturers and assistants has enabled more convenient process for students, full data collection and a more efficient data assessment and analysis process.
In order for the Professional Department (PD) to provide all the training mentioned above, as part of the
continuous development of the staff, in 2013 PD participated in the two “Training of Trainers” sessions organized by the World Bank Centre for Financial Reporting
Reform (CFRR).
The evaluation procedures are designed in such a way,
in order to provide SCAAK with experienced and well
prepared lecturers, which will educate future generations of SCAAK.
In this regard SCAAK has organized its annual meeting
with existing lecturers, discussing numerous ways to
improve the training process, updating the materials
and literature and induce close collaboration with students.
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SCAAK will continually recruit new lecturing staff for the
certification programs, which will transmit their experience and skills to the students and members of SCAAK
in the most professional manner, while always respecting SCAAK’s teaching standards.
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Activities and work of SCAAK during 2013
Training programs tailored to the specific
needs of Insolvency Specialists
Within its strategy goal to serve its members, the
association has developed training in specific areas
such as public financial management and public
sector auditing, as well as training in the insolvency
field.
The insolvency certification of SCAAK is designed to
provide training for professionals with experience
in the insolvency functions at the Kosovo Privatization Agency (KPA), the legal staff of the Liquidation
Department, as well as other staff selected for the
training. At the request of KPA, during this year,
SCAAK has provided insolvency specialist training
services to KPA employees.
The Insolvency Specialist Certification was initially
developed to meet capacity building requirements
within the KPA institution.
Informing the Members - SCAAK’s priority
As a major focus, the digitalization of communication process with members, among others, is realized with increased use of social networking as
a media communication between SCAAK and its
members.
The Executive Office and particularly this department will maintain the commitment to the continuous improvement of the communication system
between the association and its members, and to
duly meet their needs and demands.
At the local level, SCAAK proves its commitment with
its engagement as active participant in the working
groups of various public and independent institutions and organizations in Kosovo.
With the initiative of the Kosovo Government / Ministry of Trade and Industry, SCAAK was invited to be
part of the working group for drafting the Law on
Bankruptcies. As part of the working group, SCAAK
will be engaged for its members’ insolvency certifications to be recognized by this law.
SCAAK consistently offers programs tailored to specific market needs or the needs of Kosovo institutions, in order to build and increase capacity in all
areas related to financial reporting and auditing in
Kosovo.
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Activities and work of SCAAK during 2013
SCAAK representation and involvement with interest
groups at the local, regional and international level
As a member of international mechanisms and as a
reputable and influential organization in the country, this year SCAAK has been an active part of meetings and conferences at the national and international level. Thus, through SCAAK, Kosovo as a new
state has an impact on global decision-making for
the development of the profession.
The purpose of SCAAK’s engagement to committees and projects of ministries, international organizations in Kosovo, chambers of commerce and
governmental organizations, is the development of
the tax system, reform of the Law on Accounting,
Financial Reporting and Auditing, the development
of strategies for economic development, reduction
of financial crimes risk, as well as the general protection of the public interest. Simultaneously, SCAAK
was also an active participant in roundtable discussions that addressed import social and economic
development issues in Kosovo.
SCAAK and IEKA expand their synergy for the
nationwide development of the profession
The Memorandum of Understanding signed in 2012
between SCAAK and IEKA had laid the foundations
for a long-term cooperation in the field of auditing,
with the only aim to coordinate efforts in developing
the profession in both countries.
Aside organizing joint seminars, conferences and
CPDs, during 2013 an additional outcome of this
synergy was the initiation of the joint development
of audit terminology between the two institutions.
As an active part of these developments, SCAAK represents its members by contributing with its expertise in profession development, the application of
good governance functions and practices and overall socio-economic development.
Regarding audit terminology unification process,
the parties have agreed to create a new dictionary
with linguistic inputs from both countries. As a result of the unified terminology, there will be greater
opportunities for translation of more guidelines and
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Activities and work of SCAAK during 2013
manuals published by IFAC, which will help raise the
members’ information level. Aside from contributing to the further development of the members’
knowledge, this process will also reduce the cost of
translation for both sides.
This cooperation will play an important role for the
certification of ALSAI auditors in the public sector
program. Through this collaboration, SCAAK has
taken its first step towards expanding its certifications outside the borders of Kosovo.
Cooperation Agreement with the Albanian
State Supreme Audit Institution
The development of the public sector certification
program has attracted the attention of countries in
the region. One of the first Memorandums of Understanding for this purpose was signed in 2013
between SCAAK and Albanian State Supreme Audit
Institution (ALSAI).
This memorandum is designed to implement various joint activities between SCAAK and ALSAI,
such as training, consultation meetings, roundtables, workshops and seminars; activities aimed at
enhancing the quality of work of the ALSAI staff,
through qualified public sector training from SCAAK.
Moreover, this cooperation consolidates EUROSAI
2011 – 2017 Development Strategy and its four basic
objectives, which include capacity building, developing professional standards, sharing knowledge and
professional experience and compliance with good
governance principles and effective.
In the wake cooperation activities with the ALSAI and
OAG, SCAAK attended the second scientific conference of ALSAI with the topic - The Role of the Supreme
Audit Institutions in Contributing to the current Challenges of an Accountable Public Management”. During
this conference the SCAAK public sector certification
program was presented, and participants had the
opportunity to be informed about the details of the
certification program.
From left: Ardiana Bunjaku - Executive Director, SCAAK and Bujar
Leskaj - President of ALSAI
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Activities and work of SCAAK during 2013
Memorandum of Understanding between
SCAAK and the Union of Chambers of Certified
Public Accountants of Turkey
In June 2013, in Ankara, Turkey, SCAAK and the
Union of Chambers of Certified Public Accountants
of Turkey (TURMOB) signed two Memorandums of
Understanding, which judging by both institutions,
are very important.
The conference was attended by representatives of
decision-making audit institutions for the public sector such as SIGMA and the European Commission
representatives for Public Finance Management as
well as the auditor general of Macedonia, Turkey,
Montenegro, Poland, and Sweden.
From left: Nail Sanli - President of TURMOB and Fahri Breznica President of SCAAK
The first agreement signed was the Memorandum
of Understanding, which aims to enhance cooperation in the field of education through joint activities,
promotion of professional ethics among members
of both institutions as well as other issues of mutual
interest.
During the visit, TURMOB also presented the project
‘LUCA COZA’, which is an integrated accounting system that can be used online by accountants at any
time and place. Regarding this project, SCAAK signed
a Memorandum for the provision of expertise in relation to the adoption and implementation of the
accounting system with the applicable legislation in
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Activities and work of SCAAK during 2013
The focus of this conference was the further development of the accounting profession in the Mediterranean region countries, and taking into account
that this organization has members from the EU,
the Balkans, West Asia and North Africa with their
cultural, economic, social and political specifics; the
conference was a success to the strategic development of the organization.
Participating at this conference were representatives of SCAAK, the Budget Chairperson and Finance
Parliamentary Group of the Republic of Kosovo.
Kosovo, as this system, created by TURMOB, will be
placed in the Kosovo market as well.
Through these memorandums SCAAK and TURMOB, as full members of the International Federation of Accountants, have expressed their willingness to continue their fruitful cooperation in the
further development of the accounting and auditing
profession.
Active participation in activities and
meetings of the Federation of Mediterranean
Accountants (FCM)
At the Assembly meeting of the Federation of Chartered Accountants of Mediterranean Countries (FCM)
held in Rome in April 2013, the new directing board
of the Federation was elected, among the elected
board memeberswas also the SCAAK Executive Director, Ms. Ardiana Bunjaku. During this meeting it
was proposed that in collaboration with the Institute
of Chartered Auditors of Albania (IEKA), the 12th FCM
Conference will be held in Tirana with the topic “Today’s audit profession requires an effective and combination of Professional Standards, Ethics, Public Supervision and Quality Control”.
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Activities and work of SCAAK during 2013
Meeting with Senior Officials of the Centre for
Financial Reporting Reform (CFRR) in Vienna,
Austria
SCAAK and the Government officials represented
Kosovo among the 26 countries of Central, Eastern
and Southern Europe, who attended the meeting
with the Senior Officials of the Centre for Financial
Reporting Reform (CFRR), which was held in Vienna. Over 160 deputy ministers, officials, regulators,
along with senior staff from the European Commission and international accounting organizations
gathered to discuss the latest developments in corporate financial reporting and auditing.
The meeting focused on the importance of confidence in financial reporting and how this may impact on reducing the cost of capital for companies.
The participants agreed that regulators are to try to
apply methods based on estimates of market values, being that this information is best understood
by investors.
During the meeting, participants had the opportunity to discuss their achievements and challenges in
the implementation of financial reporting reforms
in their own countries and further steps that should
be taken to implement these requirements.
Each participant made a presentation on the reforms to date in their countries and a description of
the implementation progress of the key accounting
directives issues, ISAs and statutory audit directives.
The challenges and opportunities for further implementation of the guidelines were also identified,
taking into account the areas which are currently
being reviewed on the European Commission level.
The presentation on behalf of the Republic of Kosovo on the issues mentioned above was undertaken by the representative of the Government, Act-
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ing Deputy Minister at the Ministry of Finance, Mr.
Menderes Ibra. Other representatives of Kosovo at
this meeting were Budget Chairperson and Finance
Parliamentary Group, Mrs. Safete Hadërgjonaj and
Executive Director of SCAAK, Ms. Ardiana Bunjaku.
From left: Henri Fortin - Head of CFRR, Ardiana Bunjaku - Executive
Director of SCAAK, Henri Olivier - Ex President of FEE and Warren
Allen - President of IFAC
One of the conclusions depicted the hard work that
was done to implement the requirements for professional development, but greater effort should be given to the development of SME financial reporting and
regulation of the audit profession .
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Activities and work of SCAAK during 2013
Participation in the ‘Audit Training of Trainers’
as part of the World Bank REPARIS Program in
Vienna
As part of its activities, the Centre for Financial Reporting Reform of the World Bank (CFRR) has organized the second and third session of “Audit Training of Trainers” during 2013.
These workshops included practical examples on
quality control, implementation of clarified International Standards of Auditing (ISA), and the challenges that small and medium practice auditors face,
and also instructed practical and teaching methodologies.
These workshops are organized as part of REPARIS
program (Road to Europe - Program of Accounting
Reform and Institutional Strengthening). Participating countries of these workshops were Kosovo,
Albania, Montenegro, Croatia, Serbia, Macedonia,
Bosnia and Herzegovina and Moldova. Participants
have been delegated by the respective countries’
professional accounting and audit organizations.
The Training of Trainers workshops are intended to
develop the capacity and qualifications of trainers,
who provide Continuous Professional Development
(CPD) for statutory auditors and other accounting
and audit association members.
The main topics presented and discussed during
the workshop group were: Audit of Internal Control
Systems, case study discussions of Risk Assessment
and Management Reports.
These workshops have responded to SCAAK needs,
as the responsible institution for developing CPDs
in the implementation of International Standards of
Auditing (ISA), and through them to help SMP auditors by providing them with tools and methods in
the development of internal control systems, as defined by ISQC 1.
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Activities and work of SCAAK during 2013
SCAAK - An example at the Accounting
Education Community of Practice (EduCoP)
workshop organized by the World Bank Centre
for Financial Reporting Reform (CFRR) in
Vienna
The next activity in the World Bank REPARIS framework was the sixth workshop of the Accounting Education Community of Practice (EduCoP), in which
SCAAK representatives have participated.
Participants from many universities and professional associations from the region were invited to participate in the REPARIS program. The focus of the
presentation was the co-development of relations
between universities and professional associations.
This workshop was intended to contribute to the
further development of capacities between universities and professional organizations in order to de-
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velop and deliver effective education in professional
and academic programs for future generations, as
well as supporting the continuous professional development. The purpose of this workshop was to
encourage the cooperation between universities
and professional organizations in the participating
REPARIS countries.
The SCAAK Head of Professional Department, Mrs.
Edona Perjuci-Uka was invited to share the experience of SCAAK in the criteria and curriculum development processes and procedures that universities
in Kosovo have to comply during the program-recognition process by SCAAK. The agreements and
collaborations that SCAAK has established with
public and private universities in Kosovo and IEKA in
Albania were also presented.
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Activities and work of SCAAK during 2013
developments. Participants contributed to the development of a common agenda and further commitment for necessary interventions to the REPARIS
program, in order to support accounting and auditing education reforms.
SCAAK representation at International
Federation of Accountants meetings
International Federation of Accountants
Assembly Meeting (IFAC)
During close discussions and exchange of experiences, participants agreed to:
••
Share knowledge on regional developments
of program-design and content, implemented
teaching measures, as well as liaisons among
stakeholders in the accounting and auditing
profession development based on international
standards and relevant EU directives
requirements
••
Provide updates and discussions on IAESB news
of International Education Standards and its
implications for REPARIS countries
••
Country level planning and REPARIS’ role
in the further development of accounting
and auditing education, with a focus on
promoting and strengthening the cooperation
and liaisons between stakeholders through
twinning, mentoring, accreditation and mutual
recognition
Participants had the opportunity of more detailed
information about the further development of the
accounting and auditing education systems, taking into account new regulatory and professional
In 2013 the International Federation of Accountants
(IFAC), the global organization for the accountancy and
auditing profession, held its 36th annual Council Meeting in Seoul, South Korea.
As a full member of IFAC, at this conference SCAAK was
represented by the President of the Council, Mr. Fahri
Breznica and Executive Director, Ms. Ardiana Bunjaku,
where the most important point was the change of
various IFAC statute articles and the introduction of the
new membership fee formula by the IFAC Planning and
Finance Committee. In this meeting the IFAC Assembly
elected four new members to the Board of the Federation. The Assembly also voted and approved three new
full members and 5 associate members.
As part of the meeting, IFAC held its annual seminar,
Strengthening the Links of the Financial Reporting
Supply Chain. The seminar focused on the necessary
elements to support high-quality financial reporting,
including the audit quality executives, and the importance of oversight and regulation.
Through participation in the IFAC Assembly meetings SCAAK
allows Kosovo to be part of global decision-making for the
profession, which comes as a result of many years of hard
work of the Association and the ongoing fulfillment of the
conditions and responsibilities as full member of IFAC.
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Activities and work of SCAAK during 2013
The IFAC Professional Accountancy Organization
Development Committee Meeting (PAODC /
IFAC)
The PAO Development Committee consists of individuals from both developed and developing nations who focus on identifying solutions to challenges facing the development of strong, sustainable
PAOs around the world.
The Committee’s work is carried out in diverse ways
at the national, regional, and global levels to serve
its three objectives:
••
Capacity development of the accountancy
profession,
••
Increase awareness building and knowledge
sharing, and
••
Engage and deepen development partnerships.
During this year the Committee has held three
meetings. At the meeting held in Accra, Ghana the
Committee has developed performance measures
for its activities, introduced regional cooperation
and explored ways of supporting non-member
countries of IFAC.
Besides the regular PAODC meeting in Beijing, China, the donors meeting and a joint session with the
Professional Accountants in Business Committee
were also held.
In recent years the development progress of the
profession has been moving towards closer cooperation between the public and private sectors and
the donors’ interest is in encouraging professional
organizations towards this goal.
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At this donor meeting Kosovo had the opportunity
to present its institutional cooperation for the new
public sector Auditors Certification development.
During this presentation to all global donors SCAAK
and OAG gave all the details about the challenges
and development stages through which these two
institutions have passed to create the public sector
auditors certification. This certification was welcomed by all participants who expressed an interest
to be informed more about the stages of its implementation and use it as an example for other countries. As a result, SCAAK is in negotiations with the
professional accounting and auditing organization
of Afghanistan, for the provision of SCAAK’s public
sector certification program in that country, similar
to the cooperation of SCAAK with the Supreme State
Audit in Albania.
As a result of the large contribution that SCAAK’s Executive Director, Ms. Bunjaku, has given as a Committee member during her three-year term 2011 2013, in 2013 the IFAC Board reappointed her in the
Committee for the next term 2014-2016.
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SCAAK Committees Reports
SCAAK Committees Reports
One of the factors which affect SCAAK’s good governance are SCAAK’s committees.
The key function of the SCAAK committees is their commitment to meeting the organizational objectives of
the Association as well as meeting the requirements of IFAC Statements of Membership Obligations (SMOs).
Their activities provide service to the public interest, SCAAK’s representative role, setting professional and
education standards, maintaining professional integrity and quality assurance of expertise and standards.
The Association committees have active roles and besides their basic obligations, they engage in initiating
further projects and activities, which help develop a qualitative profession in Kosovo.
From left: Sakip Imeri, Burim Ahmeti, Shyqiri Bytyqi, Lulzim Berisha, Lulzim Zeka, Visar Peci, Afërdita Çarkaxhiu, Besa Berisha,
Arbër Hoti, Edona Perjuci-Uka, Ymer Mehmeti, Shaban Muharremi, Ardiana Bunjaku, Fahri Breznica, Agim Bulliqi, Avni Jashari,
Mentor Hyseni and Bahri Hyseni.
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Report from the Investigation and Discipline
Report from the Investigation
and Discipline Committee
The Investigation and Discipline Committee aims at ensuring
SCAAK members that are taken care of and protected from
any harmful action of any association member or students towards all other members or the association in general
This committee has and will continue to work for the prevention and detection of any inconsistent behavior
with the SCAAK statute, or is in contradiction to other SCAAK regulations or in violation of the code of ethics.
This Committee has been and is willing to consider all complaints made against members and students of
the Association, in order to ascertain whether there is sufficient basis for initiating investigations of each
case.
During 2013 the Investigation and Discipline Committee has reviewed one case of violation, which was contradictory to the statute and regulations listed above. The case concerns the attempt of copying during the
examination and the committee has taken punitive measures as prescribed by the SCAAK statute.
The committee considers that the small number of violations by the Association members is as a result of
professionalism and dedication of its members and the genuine respect of the professional code of ethics.
Ymer Mehmeti
Chairman of the Investigation and Discipline Committee
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Report from the Nominations Committee
Report from the Nominations
Committee
The Nominations Committee is one of SCAAK`s fundamental
committees. The duties and responsibilities of this committee
are defined by the SCAAK statute and respective committee
regulation.
This Committee is responsible for developing nomination procedures for major committees of the Assembly, which makes it one of the most important committees of the Association.
In 2013 the Nominations Committee has developed and led its nomination procedures only for the Investigation and Discipline Committee. During this process, the Committee has implemented the statute and
committee regulation provisions, in order to ensure a transparent nomination process.
A total of 12 members were nominated within the period specified in the Invitation for nominations of the
Investigation and Discipline Committee. These members have expressed their willingness to be part of the
further process.
Commensurate to the Committee regulation, nominated members were sent the application form and
statement, which were supposed to be filled and returned to the Executive Office within a specified period.
During this time 10 applications and declarations have been sent in by nominees, while two of them revoked
from the process. Every process was transparent and according to the rules.
As in previous years, this year the Nomination Committee has reported to the SCAAK Council on the nomination process, while the final recommendations were presented to the Assembly, where its members have
voted for the candidates from the list of nominees for the Investigation and Discipline Committee.
Given its performance results from the ongoing practices of all its processes, the Nominations Committee
considers that the implementation of statute provisions and general Committee regulations, as well as the
strict enforcement of procedures, particularly during the nominations process, provides an objective and
successful nomination process and increases the reliability of the committee and its work.
Fahri Breznica
Chairman of the Nominations Committee
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Report from the Quality Assurance Committee
Report from the Quality
Assurance Committee
As a result of its continuous focus to meet legal requirements
for quality assurance, during 2013 SCAAK has repeatedly been
very vigilant in this aspect and has realized its objectives of a
continuous increase in the quality control of financial reporting
in Kosovo
One of the key objectives of this Committee continues to be the training of members through CPDs on the
implementation of quality control systems in accordance with ISQC1. Through the continuous professional
development members understand and implement the objectives to maintain adequate systems of quality
control. During 2013 one of the most important CPDs in this regard has been lectured by Paul Hurks, NBA
Netherlands, which was addressed to auditor members of the Association. This CPD was based on oversight
visits to audit firms in Kosovo conducted by Dutch experts, and the CPD was organized based on the experts’
findings, and were intended to educate members on the implementation requirements arising from the Law
on Accounting, Auditing and Financial Reporting.
In terms of the PUM project on Oversight and Review, the SCAAK Quality Assurance Committee has made
the request for a second review of members in 2014, in order to see their progress in this direction.
Engagement Quality Control Review (EQCR) is an extremely important component of the quality control process on the audit firm level. In order to serve this objective the document published by IFAC which examines
all EQCR elements was sent to all our members.
In order to support members in implementing the International Standards of Quality Control (ISQC 1), in
2012 SCAAK published the latest edition of the IFAC Guide to Quality Control in Albanian, which was distributed to members with the intention to be applied by them during their audit work. Given that the largest
number of audit practices in Kosovo are small and medium practices, SCAAK along with its twinning partner
NBA, has developed a more simplified guide, which fulfills quality control requirements for Small and Medium Practices (SMPs).
In this period SCAAK and KCFR also have held meetings with IEKA from Albania to find cooperation opportunities for quality control, given that almost only SMPs operate in the two countries. This cooperation brings
with it the exchange of information between the two countries and the possibility of developing a common
quality assurance system, which will enable a greater transparency with lower cost.
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Report from the Quality Assurance Committee
SCAAK and IEKA have exchanged their Quality Control Guides, which enabled SCAAK members to use either
one of these manuals during the audit period of 2013 audits. The experiences of members in the implementation of the manuals during the audit periods will be discussed in a seminar which will be organized by
SCAAK and IEKA in 2014.
Upon receiving comments from members regarding their experience with the simplified guide, SCAAK and
IEKA in collaboration with KCFR and the Supreme State Audit of Albania will be able to decide on the use of
the most appropriate Quality Assurance guide for SMPs.
Another commitment towards international standards Quality Assurance was the participation in the World
Bank Audit Training of Trainers on behalf of the REPARIS program in Vienna. Among many topics, this training addressed practical examples, including quality control, implementation of clarified International Standards on Auditing (ISA), and the challenges that small and medium practice auditors face in the implementation of quality control procedures.
During the Amendment to the Law on Accounting, Financial Reporting and Auditing workshop, a special focus was
dedicated to Quality Assurance, where participants have discussed the clarification of stakeholders’ roles,
including KCFR, CBK and the professional organization.
SCAAK has no legal competencies to initiate a quality control process, except through education of its members for the best possible implementation of these requirements.
Although the amendments of the law with the recommendations of this workshop, including the recommendations for quality assurance, were supposed to be examined in the agenda of the Kosovo Parliament
in September 2013, no such amendment of the law has yet happened.
The Quality Assurance Committee will continue to be persistent in its demands for the implementation of
Quality Assurance by the competent authorities, in order to increase the reliability of financial reports that
will affect the economic development and attract investors.
Ardiana Bunjaku
Chairperson of the Quality Assurance Committee
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Report from the Professional Education Committee
Report from the Professional
Education Committee
The association’s Committee for Professional Education is
committed to the further development of training programs
within the association’s certification program. Being one of the
key players in these developments, the committee’s duties
and responsibilities include ensuring the full implementation
of International Education Standards and requirements arising
from the Statements of Membership Obligations of International Federation of Accountants.
During 2013, the committee has been actively involved in determining the curriculum, certification requirements and conditions for public sector auditors, in cooperation with the Office of the Auditor General in
Kosovo, the certification developed is the first of its kind not only in Kosovo, but also in the region. The Committee has examined the requirements of the International Public Sector Standards in detail and incorporated them into the training materials for this certification, by matching them with legislative requirements
in Kosovo.
Another focus of 2013 was the cooperation with universities in Kosovo, for which a great amount of work has
been done in the determination of the universities’ requirements and procedures for monitoring and implementing accounting programs in their curriculum. This great effort has been made to ensure that standards
and publications of international boards in the field of accounting, auditing, financial management and ethics represent a point of orientation for the profession in Kosovo and for the association as a concept to be
recognized as a key player in the further development of a comprehensive framework for continuous professional development and training. The Professional Education Committee has been working on updating
and publishing procedures for the universities’ course-recognition and has been working closely with them
to meet the criteria in accordance with SCAAK procedures.
SCAAK represents a bridge between global trends and professional memberships to all of our members.
One of the best means to create this connection is through Continuous Professional Development sessions.
Given that SCAAK simultaneously aims at providing a variety of these sessions in the area of financial reporting, auditing, insolvency and taxes, this year the Professional Education Committee was cautious to determine a CPD plan for the coming year and ensure the implementation of the CPD plan of the current year.
During the preparation of the CPD plan the committee is always careful to include the member’s demands
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Report from the Professional Education Committee
expressed to the Membership Services Department as well as online surveys, market needs and the requirements to improve the financial reporting and auditing environment in Kosovo.
As one of the most highly reputed institution in Kosovo, which it has acquired through the hard work of everyone involved in education and training; even after more then 10 years SCAAK continues to be the leader
in providing certification programs for accounting and auditing in Kosovo. Based on this, we as a committee have a professional and moral responsibility to make our greatest efforts, to consistently serve special
attention and importance on the professional education component as part of capacity development in
accounting and auditing.
Naim Avdiu
Chairman of the Professional Education Committee
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Report from the Taxation Sub-Committee
Report from the Taxation SubCommittee
The Taxation Sub-Committee is part of the SCAAK organization and functions within the Professional Education Committee while it cooperates with other committees. This committee also sets its own annual targets and objectives based on
the SCAAK work plan, the requirements of the Statements of
Membership Obligations at IFAC, international standards and
taxation laws in Kosovo.
The role of this committee is specific, taking into account the nature of the issues which it exhausts. Given
that tax legislation in our country undergoes constant changes, the responsibilities of the Committee are
numerous.
It is the committee’s responsibility to continuously monitor the Taxation legislation in Kosovo and to report
on the effects of this legislation to the Association members.
During 2013 the Taxation Sub-Committee in respect of its role, has continued to monitor the changes to
tax legislation and other laws relating to our profession and has consistently conveyed concerns coming
from SCAAK members. The Taxation Sub-Committee has raised its voice in a professional manner, during
numerous institutional meetings this year, pushing the relevant institutions towards fair implementation of
legislation and their respective changes. There was a great commitment to update the teaching material for
courses in Taxation Laws in Kosovo that resulted from comments and additions to taxation laws, the law on
labor and commercial entities as well as other laws.
Another ongoing activity of this committee is the joint working group with KTA dealing with tax implications
in the construction sector. Within this group, the committee has held several meetings and has prepared a
guide on how to tackle this issue, based on the law of corporate income tax and international accounting
standards, which was presented and delivered to the Kosovo Tax Administration.
The Taxation Sub-committee has addressed and responded to important issues at the relevant institutions in
favor of the profession’s and business interests, as was the case of pension contributions from large individual
businesses, where there were a series of meetings with the Pensions Trust and the Budget and Finance Committee of the Kosovo Parliament, where the committee has managed to push an amendment of the Law on
Pensions in Kosovo in favor of these businesses.
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Report from the Taxation Sub-Committee
In numerous meetings with the respective Chambers of Commerce in Kosovo, in particular with AMCHAM,
where the sub-committee is a member of their Tax Committee, and on behalf of which a number of important issues were established, such as: Failure of the court to review the fiscal complaints; treatment of transfer pricing by KTA (proposed treatment is 95% to 5%); prohibition of tax incentives over penalties by KTA,
facilities allowed by law; improper handling of invoices for VAT purposes to the issuer of the invoice and not
only to the receiver; passage of the law interpretation from KTA to the Ministry of Finance TAK, respectively
the fiscal policy department, as well as a range of other proposals.
The sub-committee reacted harshly towards KTA on the meeting concerning the time limit for correction of
tax declarations, which was decided upon non-legal basis by KTA. After our response, KTA has been forced
to change its position and return the correction of statements required by law.
One of the most important decisions of the Taxation Sub-Committee this year, and is to be implemented in
the near future, was to collect questions from members on a quarterly basis, which will be analyzed professionally and the answers of which will be published.
Therefore, one of the future tasks of the Sub-Committee remains the commitment to fulfilling its obligations
and the realization of the SCAAK objectives, to which this committee belongs.
Shyqiri Bytyqi
Chairman of the Taxation Sub-Committee
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Report fromthe Professional Standards Committee
Report from the Professional
Standards Committee
The Professional Standards Committee continues to serve as
a reference point for the review and discussion of all issues regarding International Financial Reporting Standards (IFRS) and
International Standards on Auditing (ISA).
The Committee has and will consistently provide full and periodic updating of international financial reporting standards and in cooperation with the Professional Education Committee, also provides the continuous
professional competence maintenance of SCAAK members.
The Professional Standards Committee has carefully analyzed the Law on Accounting, Financial Reporting
and Auditing and has taken the necessary steps to implement this law. The committee has also followed all
developments of IFRS and ISA and has carefully examined their possible impacts in the financial reporting
and auditing field in Kosovo.
This year the committee has discussed the possibility of planning periodic meetings with members for the
next year. In this way, the committee will be a bridge between the Association members and stakeholders in
addressing the challenges faced by members in implementing their duties.
Alban Lufi
Chairman of the Professional Standards Committee
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150
100
50
0
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2012
2013
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50 www.scaak.org
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52 www.scaak.org
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54 www.scaak.org
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56 www.scaak.org
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58 www.scaak.org
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62 www.scaak.org