Slovakia : Accounting and Auditing
This report, on the strengths and weaknesses of Slovakia's institutional arrangements for the observance of the International Accounting Standards (IASs), and International Standards on Auditing (ISAs), is based on a self-assessment of account...
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| Language: | English en_US |
| Published: |
Washington, DC
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2001/11/6595972/slovak-republic-report-observance-standards-codes-rosc-accounting-auditing http://hdl.handle.net/10986/14461 |
| Summary: | This report, on the strengths and
weaknesses of Slovakia's institutional arrangements for
the observance of the International Accounting Standards
(IASs), and International Standards on Auditing (ISAs), is
based on a self-assessment of accounting and auditing
practices in the country. The self-assessment exercise was
conducted under the management of a National Steering
Committee, consisting of representatives from government and
private sectors, assisted by Bank staff. Slovakia's
legislative requirements on accounting and corporate
financial reporting seem to be geared toward satisfying the
information needs of the tax authorities only; other users,
including investors and creditors, have difficulty in making
meaningful use of the financial statements for
market-oriented decision making. There is a large gap
between Slovak accounting requirements, and the IASs.
Although listed companies are required to prepare financial
statements in accordance with the IASs, in addition to
statutory annual financial statements, there is no mechanism
to monitor and enforce this requirement. In the auditing
area, too, a number of problems indicate the need for a
well-organized reform program: auditors' failure to
comply with internationally comparable independence, and
ethical requirements, inadequate capacity of the Slovak
Chamber of Auditors (SKAu) to properly regulate the
profession, shortcomings in educational and training
arrangements with regard to the practical application of
high-quality accounting and auditing standards and
requirements, and, absence of effective mechanisms for
enforcing established rules and regulations. The National
Steering Committee in a joint meeting with Bank Staff agreed
with various policy recommendations that will form the basis
for designing, and implementing a Country Action Plan to
address the issues concerning accountancy development, and
observance of international accounting and auditing
standards in Slovakia. |
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