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Auditing is collecting evidence from independent experts (certified auditors) on claims collected in financial statements or other subjects of auditing. The purpose of auditing is to establish or confirm the accuracy and completeness of information contained in the subject of auditing and thus confirm its reliability. This means that revised financial statements present a true and fair view of business transactions. A true and fair view means that business transactions actually occurred, they were registered correctly and they are presented correctly in financial statements.

Auditing of financial statements

The purpose of auditing of financial statements is to increase users’ trust in financial statements. This is done by an auditor’s opinion published as a report on whether financial statements are drawn up in accordance with the financial reporting standards from all important aspects. An appropriate frame of financial reporting in Slovenia is usually the Slovenian Accounting Standards; however, International Financial Reporting Standards may be used as well. 

An audit of financial statements is based on legal requirements or on a voluntary decision of owners or management. 

The responsibility for financial statements is borne by the management of the company. An audit of financial statements is therefore an important lever by which managements reduce the risks for the prepared financial statements and prevent and detect errors or fraud in the company they manage.

Auditing company

The main activity of an auditing company is auditing. In order to perform auditing services, it must obtain the approval of the Agency for Public Oversight of Auditing, which is granted if the company meets the requirements laid down by the Auditing Act. The management of an auditing company may have one or more members, most of them certified auditors employed by the auditing company.

Certified auditor

The profession of certified auditor is regulated, which means that the state defines by law the conditions for granting authorisations to persons who may perform statutory audits, their registration, rules on independence, impartiality and professional ethics applicable to those persons, and a framework for the public oversight of them. 

A certified auditor issues audit opinions, which must be prepared in accordance with International Standards on Auditing and fundamental auditing principles. By doing so, the auditor contributes to the credibility of presentation of business results of the company, which are also harmonised with the Slovenian accounting criteria and applicable legislation. Besides presenting the findings of the audit, the auditor’s report proposes improvements of operation and the elimination of any irregularities or deficiencies.

Agency for Public Oversight of Auditing

To protect investors, the Agency for Public Oversight of Auditing is authorised for investigating and imposing sanctions. The purpose of these authorisations is to detect, deter and prevent violations of the rules in the provision of auditing services by certified auditors and auditing companies. The Agency is also authorised to supervise the implementation of Regulation EU/537/2014 on specific requirements regarding statutory audit of public-interest entities and appointed as a supervisory body for the quality of work of certified appraisers. The Agency is independent and autonomous in the implementation of its tasks.