- Memorandum of Understanding -

The Working Group for the development of a regional accounting and audit reform initiative in South Eastern Europe met on 13-14 December 1999 in Sinaia, Romania, to agree on a common mission, objectives, framework and programme of work.   The professional accountancy and audit bodies and international organisations participating in the Working Group include the:

·         Albanian Institute of Authorised Auditors;

·         Citizens Association for Public Finance "JAFIS" from the Federation of Bosnia and Herzegovina;

·         Accounting and Audit Association of the Republika Srpska;

·         Institute of Certified Public Accountants in Bulgaria;

·         Association of Accountants, Financial Workers and Auditors (AAFA) of the Republic of Macedonia;

·         Corpul Expertilor Contabili si Contabililor Autorizati din Romania (CECCAR);

·         Organization for Economic Co-operation and Development (OECD);

·         United Nations Conference for Trade and Development (UNCTAD); and

·         Unites States Agency for International Development.(USAID)

The members of the Working Group agreed:  

1.       To work for the establishment of a regional accounting and audit reform initiative.

2.       To work together in partnership in order to analyse obstacles to accountancy/professional development, seek common solutions and to commit themselves to implement the necessary changes.

3.       To allow other professional accountancy and audit bodies in the region that subscribe to the mission and objectives of the regional initiative to become members of the South Eastern European Partnership on Accountancy Development (SEEPAD).

4.       To organise and hold 4 meetings in the year 2000.

5.       To extend the mandate of the Working Group in order to explore the appropriate structure for SEEPAD.

6.       On the mission statement for SEEPAD, which is to:

·         Co-operate in order to raise the standing of the accountancy sector, in particular the accounting and auditing profession, both nationally and internationally, with the view of integrating into the international community.

·         Promote internationally recognised accounting and auditing practices, accountability and improved corporate governance.

·         Contribute to the harmonization of national standards and practices, in order to raise them to the international level.

7.       On the objectives of SEEPAD, which are to:

                                 I.            Build strong and sustainable self-regulatory accounting and auditing bodies that are in a position to fulfill their responsibility towards the profession.

                               II.            Act as a catalyst for economic reforms and facilitate the development of the business culture necessary in supporting the provision of appropriate financial information.

                              III.            Compare and identify gaps between the actual practice and international benchmarks in the following areas:

a.       accounting;

b.       auditing;

c.       ethics;

d.       quality control systems;

e.       training and certification; and

f.         legal and regulatory frameworks.

                            IV.            Promote the understanding and use of internationally recognised standards on accounting and auditing, with a view towards meeting the needs of both national and cross-borders users of financial statements.

                              V.            Work towards the development and/or enforcement, on a regional basis, of a model code of professional ethics, based on IFAC’s Code of Ethics.

                            VI.            Put in place and/or improve, by profession, appropriate quality control and disciplinary systems.

                           VII.            Provide for a regional forum for the exchange of views and information on accounting and audit.

                         VIII.            Develop and harmonise professional qualification, and certification and/or licensing requirements, regulating the access to the profession, based on internationally recognised guidelines.

                             IX.            Raise awareness of and the need for an enabling legal and regulatory framework in order to facilitate the development of the accountancy sector.

The Working Group agreed to implement the following programme of work:

·         8-10 March 2000 in Sofia, Bulgaria on "legal and regulatory frameworks, and the respective roles and responsibilities of the public and private sector"

·         5-6 June 2000 in Banja Luka, Republika Srpska, Bosnia and Herzegovina on "training and certification programmes"

·         7-8 September 2000 in Tirana, Albania on "ethics, quality control and independence"

·         7-8 December 2000 in Sarajevo, the Federation of Bosnia and Herzegovina, Bosnia and Herzegovina on "the implementation of international accounting and auditing standards"

For the Albanian Institute of Authorised Auditors
__________________________
(Mr. Romeo Mitri, Vice-President)

For the Citizens Association for Public Finance "JAFIS" from the Federation of Bosnia and Herzegovina
__________________________
(Ms. Ljiljana Simunovic, President)

For the Accounting and Audit Association of the Republika Srpska
__________________________
(Prof. Dr. Vladislav Djurasovic, President)

For the Institute of Certified Public Accountants in Bulgaria
__________________________
(Prof. Dr. Stoyan Durin, Chairman of General Assembly)

For the Association of Accountants, Financial Workers and Auditors (AAFA) of the Republic of Macedonia
__________________________
(Mr. Kiro Sonevski, President)

and for

Corpul Expertilor Contabili si Contabililor Autorizati din Romania (CECCAR)
_________________________
(Mr. Marin Toma, President)