Auditing companies is a very responsible task because many partners of the audited company – shareholders, banks, suppliers, customers, employees, etc. - rely on the assessment of the auditor ("auditor's opinion").

All auditings carried out by the "Bilans" d.o.o. Sarajevo is to be conducted according to shared guidelines as set forth in this methodology.

The responsibility in auditing projects carried out by "Bilans" d.o.o. Sarajevo is to be defined as follows:

The signing auditor / chartered accountant is finally responsible for the correctness of the auditing assessment (auditor's opinion).

A "director" is responsible for all auditings conducted by the "Bilans" d.o.o. Sarajevo.

Accepting an assignment and conducting the audit

Risk assessment

Before accepting an auditing assignment, we have to assess our risk resulting from this. This risk assessment is to be carried out by the head auditor and it has to be conducted on an annual basis – thus, also for existing assignments.

Ensuring Independence

Additionally, before accepting an assignment for auditing we have to ensure that all required independence provisions have been met. If the rejection of the assignment is recommended this has to be documented accordingly in the questionnaire.

This assessment of independence has to be conducted on an annual basis – thus, also for existing assignments.

Offer

If we have been invited to place an offer for an audit and if the assessments of risk and independence lead to the conclusion that the assignment can be accepted an offer is to be established. The offer has to be established by the future head auditor and signed by the director.

Order

For documentation purposes our client shall be asked to send the order in written form.
If we have been chosen as auditors by a directory board, the decision by the directory board also has to be documented in our worksheets (copy of the board meeting's proceedings, e.g.)

Accepting the assignment

After the order has been placed by the company to be reviewed, a letter of order acceptance using the appropriate template, has to be send to the "Bilans" d.o.o. Sarajevo.

If we have been chosen as auditors by a company's directory board, a letter has to be sent to the board including thanks for the assignment and our acceptance of the assignment. Further details (as described above for letters to the managment) are not to be included in this letter.

General Terms and Conditions for Audits signed by the Client

Make sure that there is an up-to-date version of the General Terms and Conditions for Audits issued by the Chamber of Auditors signed by an authorized representative of the company to be reviewed in our files. There is no need for signing the General Terms and Conditions for Audits each year.

Limitation of Liability for Audits

According to the general legal conception, there is neither limitation of liability for auditors for compulsory audits nor for voluntary audits. Therefore, both audits might result in unlimited liability of the auditor.To avoid this unlimited liability a limitation of liability has to be agreed with the client in case of accepting voluntary or compulsory audits of annual financial statements.
Furthermore, it has to be agreed with the client that the transmission of the annual reports or parts of it is excluded without our prior written consent.

Furthermore, it has to be pointed out that the use for other than the purpose mentioned in the offer and the letter of order acceptance, respectively, is forbidden and that we do not assume any liability in this case.

Each member of the auditing team has to execute the work assigned to him or her in due time, meeting the deadlines established in the time budget, and document the work done properly. As soon as it becomes evident that deadlines cannot be met the head auditor has to be informed immediately stating the reasons for the delays.