Bosnia and Herzegovina’s Accounting and Auditing Practices Under Scrutiny

A new report on accounting and auditing (A&A) practices in Bosnia and Herzegovina has been released by the World Bank and International Monetary Fund, with a focus on strengthening the corporate financial reporting environment.

Assessment Methodology

The assessment uses International Financial Reporting Standards (IFRS) and International Standards on Auditing (ISA) as benchmarks to evaluate both statutory requirements and actual practice. It draws on international experience and best practices to highlight areas of strength and weakness in Bosnia and Herzegovina’s A&A environment.

Progress in Post-Conflict Reconstruction

Since the end of the war, Bosnia and Herzegovina has made significant progress in post-conflict reconstruction and development, with robust economic growth driven by private sector investment. The country’s economy grew at an average annual rate of 6 percent between 2004 and 2008, before slowing down slightly due to the global financial crisis.

Importance of High-Quality A&A Practices

The report aims to support Bosnia and Herzegovina’s strategic objective of developing its corporate sector and improving access to finance for domestic enterprises. It highlights the importance of high-quality A&A practices in promoting transparency and accountability, as well as reducing the cost of doing business in the country.

Key Findings and Recommendations

Further work is needed to strengthen the A&A environment and ensure compliance with international standards.
Bosnia and Herzegovina’s corporate sector has made significant progress in recent years, but there are still areas for improvement.
High-quality A&A practices are essential for promoting transparency and accountability, as well as reducing the cost of doing business.

Update on Previous Findings

The assessment updates previous findings from the World Bank and IMF’s Observance of Standards and Codes (ROSC) initiative, which was first conducted in Bosnia and Herzegovina in 2004. The report is expected to provide policymakers and stakeholders with a comprehensive overview of the country’s A&A practices and identify areas for improvement.

Conclusion

Recommendations

Implement policies and regulations that promote high-quality A&A practices.
Increase awareness among businesses and stakeholders about the importance of A&A practices.
Provide training and capacity-building programs for A&A professionals.