1

Pursuant to Article 51, paragraph 5.54 and paragraph 6, item 1), Article 55,
paragraph 7, item 1) and Article 58 of the Law of Accounting and Auditing (Official
Gazette of RS, No. 46/2006),
On its First constitutional meeting held on 15 November 2006, the Assembly
of the Chamber of Authorized Auditors passed

THE ARTICLES OF ASSOCIATION OF THE CHAMBER OF AUTHORIZED
AUDITORS

I COMMON PROVISIONS

Article 1

The Chamber of Authorized Auditors (hereinafter: Chamber) shall be founded
pursuant to the Law of Accounting and Auditing (Official Gazette of RS, No.
46/2006, hereinafter: Law) for the purpose of promotion and development of the
accounting and auditing profession, implementation of the accounting and auditing
regulations and harmonization with these regulations, protection of common and
individual interest in performing activities in this area, organization of provided
services in the aforesaid area, conducting exams for acquiring the professional title for
issuance and withdrawal of licenses for performing auditing of financial statements, as
well as for the purpose of achieving other aims pursuant to the Law, these Articles of
Association and common enactments of the Chamber.

Article 2

These Articles of Association shall regulate: the activities performed by the
Chamber, internal organization of the Chamber, authorities of the Chamber, selection
and scope thereof, the issue of discipline responsibility and other issues of
significance for the Chambers work.

Article 3

The Members of the Chamber are certified auditors employed in an audit
company and certified internal auditors, as well as audit companies.

Article 4

The business title name of the Chamber is: '' o
''.
The business title name of the Chamber reads in Serbian and is written in the
Cyrillic alphabet.
The translation of the Chambers business title name into English reads:
Chamber of authorized auditors.
The Head Office of the Chamber is in Belgrade.

Article 5

2
The Chamber is in the capacity of legal person.
The Chamber shall begin its work by establishing the Assembly and the Council
of the Chamber.

Article 6

The Chamber shall be legally represented by the Chairman of the Council and
Secretary General of the Chamber without any limitation.

Article 7

The Chamber shall be held responsible with all its assets for its obligations in
legal operations.
The Chamber shall not be responsible for the obligations of the members of
the Chamber.

Article 8

The Chamber has a seal and official stamp, and may have a postal seal and
die stamp.
The Chamber seal, postal seal and die stamp are round in shape, 30 mm in
diameter, and the Chambers official stamp is rectangular in shape and 60 x 30 mm in
size and all contain the Chambers title name and Head Office written in the Cyrillic
alphabet in Serbian. The Chamber seal and official stamp are imprinted in black, dark
blue and violet ink, and the postal seal on red wax.
The Chamber Council enacts the Rule Book regulating the method of
implementation, filing, keeping records, destruction and other matters of concern for
implementing the Chamber seal, postal seal and official stamp.

Article 9

The Chamber has a graphic logo established by the Chamber Assembly.
The Chamber uses its letter paper with heading in its business operations, which
contains the business title name, graphic logo, head office address, phone and fax
numbers, as well as e-mail.
For correspondence with foreign countries, the Chamber uses its letter paper with
heading, which contains elements from paragraph 2 of this Article, written in English.

Article 10

The work of the Chamber, its authorities and bodies is transparent and open
to public.
When it is in the interest of the Chamber, the Chamber authorities may decide
to hold a meeting not open to public, which only applies to the session where such
decision was passed.



3


II FUNDS FOR THE CHAMBERS WORK

Article 11

The Chamber acquires its business assets from:
1. membership fees;
2. benefit compensation for enforcement of exams and issuance of
certificates, licenses;
3. benefit compensation for registration and issuance of data from the kept
register;
4. donations, sponsorships, grants;
5. subscription to the Chambers journal and
6. other sources, pursuant to the Law.
Funds for starting the Chambers work may be provided from the budget of
the Republic of Serbia.
Funds under paragraphs 1 and 2 of this Article shall be used by the Chamber
for realization of its tasks established by the Law and these Articles of Association,
pursuant to the annual Program of work and Financial plan of the Chamber.

Article 12

The Chamber shall establish, with the consent of the Ministry of Finance, the
amount of the membership fee, benefit compensation for enforcement of exams and
issuance of certificates and licenses, as well as the amount of benefit compensation
for registration and issuance of data from the kept registers.

III ACTIVITIES PERFORMED BY THE CHAMBER

Article 13

The Chamber performs the following activities:
1) monitors the implementation of the International Accounting Standards,
and International Financial Reporting Standards, International Standards on
Auditing, International Standards on Quality Control and Code of Ethics for
Professional Accountants;
2) monitors the process of compliance of the accounting and auditing
regulations with the international professional regulations;
3) launches the program and conducts the training of candidates, organizes
exams and issues certificates for acquiring professional titles, as well as the rules
for continuous advanced training, in compliance with the international
requirements for professional training and the Law;
4) prescribes the requirements for certified auditors for acquiring licenses, and
for renewal and withdrawal of licenses for conducting financial statements
auditing, pursuant to the Law;
5) issues, renews and withdraws licenses to/from certified auditors for
conducting financial statements auditing and keeps the register of issued licenses
to certified auditors for conducting financial statements auditing;
4
6) keeps registers of issued certificates on professional titles;
7) establishes criteria and conducts validation of professional titles acquired
abroad;
8) reports to the Ministry of finance at least once a year on the implementation
of international standards in the area of accounting and auditing and the Code of
Ethics for Professional Accountants employed with legal persons and audit
companies;
9) establishes criteria for pricing of auditing services provided by audit
companies;
10) cooperates with international professional organizations;
11) submits the annual financial statement and the operating report to the
Ministry of finance;
12) conducts activities for which it has been authorized by the International
Federation of Accountants and other international professional organizations;
13) provides conditions for advising on all issues of significance for
acquiring functions within the accounting and auditing activities;
14) conducts other activities established by the Law and these Articles of
Association.
The Chamber shall conduct activities under paragraph 1, items 3) to 7) of this
Article as entrusted.
Enactments under paragraph 1, items 5) and 7) of this Article are final and an
administrative mitigation may be instituted against them.

IV THE AUTHORITIES OF THE CHAMBER

Article 14

The authorities of the Chamber are the Assembly, the Council, the Supervisory
Board and the Disciplinary Commission.

The Assembly

Article 15

The Assembly is the top body of the Chamber.
The Assembly consists of certified auditors employed with the audit company
and certified internal auditors entered into the Chamber Register, as well as audit
companies entered into the Register kept by the Ministry of finance and the Chamber
Register, as well as the representative from the Ministry of finance (hereinafter:
members of the Assembly).

Article 16

The Assembly elects the Chairman of the Assembly from the line of certified
auditors who are members of the Chamber.
A person who is a member of a political party and an official pursuant to the
law preventing conflict of interest in conducting public office, or an official of the
Trade Union organization, cannot be nominated Chairman.
The Minister of finance approves the election of Chairman of the Assembly.
5
The Chairman of the Assembly is elected for a five-year term of office and the
same person cannot be re-elected for the same position.


Article 17

Within its jurisdiction the Assembly:
1. enacts the Chambers Articles of Association, the Rules of Procedure,
establishes the rules for implementation of the Code of Ethics for Professional
Accountants, enacts the Rule Book on the disciplinary proceedings and
professional rules;
2. launches the annual Work Program of the Chamber;
3. elects and recalls members of authorities and bodies within the Chamber
pursuant to the Law and these Articles of Association, except for the members
who are according to the provisions of the Law representatives of certain
authorities and organizations appointed by those authorities and organizations;
4. launches the program for acquiring professional titles under Article 4 of
the Law and rules for continuing professional development, in accordance
with the international guidelines and requirements for professional training
and the Law;
5. forms a commission for enforcement of organization of exams under
Article 6, paragraph 1 of the Law;
6. prescribes requirements for:
) issuance, renewal and withdrawal of licenses to/from certified auditors
for auditing financial statements;
b) issuance of certificates for acquiring professional titles of certified
auditor and certified internal auditor;
c) validation of professional titles acquired abroad;
d) acceptance to membership and termination of membership in the
Chamber;
7. decides on the amount of membership fee paid by the Chambers
members in order to cover the costs of the Chambers activities, as well as on
the amount of benefit compensation for taking exams, issuance of certificates
and licenses, entry into the registers kept by the Chamber and for issuance of
data from these registers;
8. considers and adopts the report on the activities of other authorities;
9. approves the Chambers financial plan;
10. selects audit companies for conducting auditing of the Chambers
financial statements;
11. adopts the annual statement on the Chambers business operations and
the Chambers annual financial statements and submits these together with the
issuance of the auditors opinion to the Ministry of finance;
12. establishes the principles and guidelines for conducting quality control
and verification of work of the Chamber members in the function of
supervision pursuant to Article 63, paragraph 5 of the Law;
13. establishes the regulations for providing cooperation with the local and
international institutions and organizations, as well as public relations;
14. establishes the criteria for pricing of auditing services provided by audit
companies;
6
15.decides on the involvement of the Chamber in the local and international
organizations;
16. decides on benefit compensation for participation in the Councils
work;
17. decides on benefit compensation for participation in the work of
commissions and other bodies elected by the Assembly;
18. decides on business trips of the Assembly members within the country
and abroad, organized in the function of implementing the Chambers
activities;
19. decides on publishing the Chamber journal and on other matters
concerning the issuing thereof;
20. decides on the presentation of the Chamber award and
21. conducts other affairs based on the Articles of Association in
compliance with the Law.


Article 18

The Assembly makes decisions at regular and extraordinary meetings.
The Assembly holds a regular meeting once a year, and not later than by the
end of March and it is convened by the Chamber Council.
An extraordinary meeting of the Assembly is convened at the request of the
Council or at least 10 members of the total Assembly. Members of the Assembly
requesting the convening of an extraordinary Assembly meeting, are obliged to justify
their request and submit it with the proposed Agenda and attached documents to the
Council.
At the request of the members of the Assembly under the previous paragraph
the Council is obliged to decide within 15 days from the day of submission thereof
and to convene an extraordinary Assembly meeting within a months time from the
day of received request for convening.
If the Council does not proceed in accordance with the previous paragraph of
this Article, the members of the Assembly which had submitted the request are
authorized to directly convene the Chamber Assembly.

Article 19

In decision-making, Members of the Assembly have one vote each.
The Assembly may be held and may make decisions if a simple majority out of
the total number of Assembly members or their representatives (quorum for the
Assembly work) takes part in its work.
If the scheduled Assembly meeting could not be held due to lack of quorum, a
new meeting shall be scheduled at the same meeting with the same Agenda within 30
days from the day of cancelled meeting. The quorum for the repeated Assembly
meeting makes 1/3 of the total number of the Assembly members.
The Assembly enacts decisions by a simple majority of votes from the present
Assembly members.
If the votes of the Assembly members are evenly divided, the decisive vote
shall be that of the Chairman of the Assembly.
The Assembly shall decide by public and secret vote.
7
The Secretary General and other invited persons shall take part in the work of
the Assembly.

Article 20

A member of the Assembly may vote personally or through an authorized
person proxy.
A member of the Assembly may have only one proxy for voting in the
Assembly.
A member of the Assembly shall accredit a certain person in writing for
voting in the Assembly. Power of attorney of a natural person as member of the
Assembly shall be verified.
Power of attorney shall be given for one Assembly meeting, and is also valid
for a repeated Assembly meeting which had been adjourned.





The Council

Article 21

The Council is the executive body of the Chamber.
The Council consists of: the Chairman, Vice-Chairman, one representative
from the Ministry of finance, one representative from the National Bank of Serbia,
one representative from the Association of the Banks of Serbia, one representative
from the Commission for securities, one University professor and four certified
auditors employed with audit companies (common title name: members of the
Council).
The first Council of the Chamber shall have a Chairman, Vice-Chairman and 9
members, 5 of which shall be from the line of Preparatory commission for the
preparation of the Articles of Association and other general enactments, preparation
for election of authorities, as well as for conducting other activities required for
commencement of the work of the Chamber of authorized auditors, established by
decree of the Ministry of finance No.: 119-01-137/2006-16 of 15 August 2006, and
the other 4 members shall be appointed by the Assembly of the Chamber.

Article 22

The Chairman and Vice-Chairman of the Council shall be appointed by the
Assembly at proposal of the members of the Chamber from the line of the Chamber
members.
The Assembly shall elect the University professor and four certified auditors,
employed with audit companies, as well as the members of the Council.
A person who is a member of a political party and an official pursuant to the
law preventing conflict of interest in conducting public office, or an official of the
trade union organization shall not be eligible as Chairman or Vice-Chairman.
8
The Ministry of finance gives consent to the appointment of the Council
Chairman and Vice-Chairman.
The Council Chairman and Vice-Chairman are elected for a term of five years
and the same persons cannot be re-elected for the same position, and the other
Council members are elected for a term of five years and the same persons can be re-
elected for the same position without any limitation as to the term of office.

Article 23

Within its powers and duties, the Council:
1. prepares the proposed Articles of Association and other general
enactments, as well as other decisions passed by the Assembly;
2. enacts the Rules of Procedure;
3. prepares the proposed program for acquiring a professional title under
Article 4 of the Law and rules for continuing professional development, in
compliance with the international guidelines and requirements for
professional training, pursuant to the Law;
4. proposes members of the commission for enforcement of exams under
Article 6, paragraph 1. of the Law;
5. proposes requirements for:
) acquisition, renewal and withdrawal of licenses by/to/from certified
auditors for auditing financial statements;
b) issuance of certificates for acquiring professional titles of certified
auditor and certified internal auditor and
c) validation of professional titles acquired abroad;
d) acceptance to membership and termination of membership in the
Chamber;
6. decides on:
) issuance, renewal and withdrawal of licenses to/from certified auditors
for auditing financial statements;
b) issuance of certificates for acquiring the professional titles of certified
auditor and certified internal auditor and
c) validation of professional titles acquired abroad;
7. decides on entry of Chamber members and referent data into and
removal from the Registers kept by the Chamber;
8. establishes procedures for monitoring the implementation of the
International Standards on Auditing and the Code of Ethics for Professional
Accountants with audit companies, as well as for monitoring the process of
compliance of the accounting and auditing regulations with the international
professional regulations;
9. establishes guidelines for internal auditing, in compliance with the
generally accepted international principles for conducting internal auditing;
10. appoints and relieves from duty the Secretary General of the Chamber;
11. launches the Rule Book on the organization and description of job
positions within the Secretariat as part of the Chambers administration;
12. forms commissions and other supporting bodies of the Chamber which
are not within the jurisdiction of the Assembly (hereinafter: Commissions) for
conducting jobs within the Chambers sphere of activities;
13. engages experts, if necessary, from the field of accountancy and
auditing for the implementation of the Chambers activities;
9
14. decides on the benefit compensation for participation in the work of
commissions formed by the Council and for the involvement of experts from
the field of accountancy and auditing;
15. issues professional opinion in reference to issues from the field of
accountancy and auditing;
16. prepares and submits to the Assembly for adoption the report on its
work and annual statement on the Chambers business operations;
17. reports to the Ministry of finance at least once a year, on the
implementation of the International Accounting Standards and International
Standards on Auditing and the Code of Ethics for Professional Accountants
with legal persons and audit companies;
18. prepares reports on request of the Assembly and the Ministry of
finance;
19. considers and adopts reports on the work of the Chambers Secretariat;
20. controls and verifies the quality of the Chamber members work in
accordance with the principles and guidelines of the Assembly under Article
17, paragraph 1, item 12 of these Articles of Association;
21. proposes the Financial plan of the Chamber;
22. considers complaints lodged by the Chamber members regarding its
work, as well as complaints regarding the work of the Chamber members and
makes decisions on taking legal proceedings against these complaints;
23. makes second degree decisions against complaints concerning the
decisions of the Disciplinary commission;
24. proposes pricing criteria for auditing services of audit companies;
25. makes decisions on translating, publishing and harmonizing the
international professional regulations, as well as on other activities entrusted
to the Chamber by the International Federation of Accountants and other
international professional organizations;
26. supervises the implementation of the Chambers annual Program of
Work;
27. executes the decisions of the Assembly;
28. decides on business trips of the Council members in the country and
abroad, organized in the function of implementing the Chambers activities;
29. passes general enactments and conducts other business in the sphere of
the Chambers activities pursuant to the Law and these Articles of Association
which are not within the jurisdiction of the Assembly;
The Council reports to the Assembly on its work.

Article 24

The Council makes decisions at its regular and extraordinary meetings.
Regular meetings are held once quarterly and are convened by the Chairman of
the Council.
Extraordinary meetings of the Council are held according to the working
requirements of the Chamber.
An extraordinary meeting is convened by the Chairman of the Council or at
least 4 members of the Council based on a written justified proposal submitted to the
Chairman, in which case the Chairman is liable to call an extraordinary Council
meeting within 10 days from the day of received proposal.
10
An extraordinary meeting of the Council is also convened by request of the
Assembly and Secretary General of the Chamber, within 10 days from the day of
received written request for convening the meeting.
The Secretary General of the Chamber and other invited persons shall take part
in the Councils work.





Article 25

The Council meeting shall be held and the Council shall make decisions if a
simple majority of Council members (quorum for the Councils work) takes part in its
work.
If the scheduled Council meeting cannot be held due to lack of quorum, a new
meeting shall be scheduled at the same meeting with the same Agenda within 15 days
from the day of cancelled meeting.
The Council passes decisions by simple majority of votes of the present
Council members.
If the votes of the Council members are evenly divided, the decisive vote shall
be the vote of the Council Chairman.
In the procedure in which the Council shall consider the raised objections under
Article 23, paragraph 1, item 22, as well as in the decision-making on a lodged appeal
against the decision of the Disciplinary commission under Article 23, paragraph 1,
item 23 of these Articles of Association, neither the Council member who had raised
the objection, nor the member against whom the objection had been raised, nor the
Council member who had lodged the appeal can take part in decision-making and
voting.
A member of the Council whose right to vote has been excluded in the case
under paragraph 5 of this Article, shall not be taken into account when establishing
the quorum for decision-making.


Supervisory Board

Article 26

The Supervisory Board has five members.
The Supervisory Board consists of: the Chairman, Vice-Chairman, one
representative from the Ministry of finance and two representatives from the audit
company (common title name: members of the Supervisory Board).
The Chamber Assembly proposes the Chairman and Vice-Chairman from the
line of members of the Chamber and elects 2 representatives from the audit company
in the Supervisory Board.
A person who is a member of a political party and an official pursuant to the
law preventing conflict of interest in conducting public office, or an official of the
Trade Union organization is not eligible as Chairman or Vice-Chairman of the
Supervisory Board.
11
The Ministry of finance gives consent to the appointment of Chairman and
Vice-Chairman of the Supervisory Board.
The Chairman and Vice-Chairman are eligible for a five-year term of office and
the same persons cannot be re-elected for the same position, and the other members
of the Supervisory Board are appointed for a five-year term and the same persons are
eligible for the same position without a limitation to the number of terms of office.


Article 27

Within its powers and duties the Supervisory Board:
1) executes supervision over the legitimacy of the Chambers work;
2) inspects the annual statement and financial statements, as well as other
Chamber enactments;
3) enacts the Rules of procedure and
4) conducts other activities in accordance with the Law and these Articles
of Association.

Article 28

The Supervisory Board decides at regular and extraordinary meetings.
Regular meetings of the Supervisory Board are held every six months and are
convened by the Chairman of the Supervisory Board, and extraordinary meetings are
held in accordance with the Chambers needs.
Extraordinary meetings of the Supervisory Board are convened by any member
of the Supervisory Board.

Article 29

A meeting of the Supervisory Board shall be held and the Supervisory Board
can make decisions if a simple majority of the Supervisory Board members (quorum
for the Supervisory Boards work) takes part in its work.
If a scheduled meeting of the Supervisory Board cannot be held due to lack of
quorum, a new meeting shall be convened at the same meeting with the same Agenda,
within 15 days from the day of cancelled meeting.
The Supervisory Board makes decisions by a simple majority of votes of the
present Supervisory members.
If the votes of the Supervisory Board members are evenly divided, the decisive
vote shall be the vote of the Chairman of the Supervisory Board.


Disciplinary commission

Article 30

The Disciplinary commission is a body of the Chamber enforcing the
disciplinary procedure of establishing a discipline offense and discipline
responsibility of the Chamber members and it shall take disciplinary proceedings
pursuant to the Law, these Articles of Association and Rule Book on the discipline
procedure.
12



Article 31

The Disciplinary commission consists of: three members of the Chamber, one
representative of the Ministry of finance and one representative of the Ministry of
Justice, out of which the Chairman and Vice-Chairman shall be elected by a majority
of votes.
The Disciplinary commission is eligible for a five-year term of office and the
same person can be re-elected for another term of office in the Disciplinary
commission without any limitation concerning the number of terms of office.
The Disciplinary commission submits to the Assembly and the Chamber
Council an annual statement on its work and, if required by these authorities,
periodical statements as well.

Termination of office within the authorities and other bodies of the
Chamber

Article 32

In the case of termination of office of any person in the authorities and other
bodies of the Chamber, no matter whether it concerns a recall, termination of office
by personal request or for any other reason, a certain authority the shall be liable to
appoint, as soon as possible, a new person replacing the one whose office has
terminated.





Work of the Chambers authorities

Article 33

The Chambers method of work is regulated by the Rules of Procedure which
include: invitation, time and venue, management of the authorities work, as well as
other issues of significance for the work of the authorities.
The working procedure of the Disciplinary commission is regulated by the
Rule Book on the disciplinary procedure.

V THE CHAMBER SECRETARIAT

Article 34

Professional and administrative activities within the Chambers competence
are performed by the Secretariat as the Chambers administration.
The Secretariat may perform its activities completely or distributed among its
organizational entities.
13
The organizational forms of the Secretariat, the title names, description of jobs,
number of executors, as well as the employment requirements for the Secretariats
employees, shall be prescribed by the Rule Book on the organization and description
of jobs within the Secretariat, in order to provide efficient execution of the Chambers
competence.
The Secretariat consists of experts employed with the Chamber.
The Secretariat submits to the Council semi-annual and annual statements on
its work.
General provisions shall apply to the rights, liabilities and responsibilities of
the Secretariat employees.
Concerning the official language and alphabet, vocational training and
qualifications of the employees performing entrusted jobs of government
administration and concerning office work, regulations pertaining to government
administration shall apply to the administrations work.

Article 35

The Secretary General of the Chamber shall manage and organize the labor and
business procedure thereof.

Article 36

The Secretary General of the Chamber is appointed and relieved from duty by
the Chamber Council.
The Employment contract with the Secretary General of the Chamber shall be
signed by the Chairman of the Council on behalf of the Chamber.

Article 37

The Secretary General of the Chamber is appointed for a four-year term of
office and the same person can be reappointed for the same duty without a limited
number of terms of office.
A person who is a member of a political party and an official pursuant to the
law preventing conflict of interest in performing public office or an official of a Trade
Union organization cannot be reappointed Secretary General of the Chamber.

Article 38

The Secretary General of the Chamber:
1. organizes and manages the labour process and business operations of the
Chambers Secretariat;
2. represents and acts as proxy of the Chamber;
3. provides and is responsible for legitimacy of work performed by the
Chambers Secretariat;
4. organizes, supervises and is responsible for the work of the Chambers
Secretariat;
5. decides on using the Chambers funds in accordance with the financial plan
and is responsible for the Chambers business operations;
6. executes the decisions of the Chamber authorities;
14
7. decides on employment of persons, on termination of employment for
employees as well as their responsibility regarding entrusted jobs, on the
rights and liabilities of the employees pursuant to the provisions and
enactments of the Chamber, as well as on engaging other persons for certain
professional jobs in the Chamber, if the engagement of these persons is not
within the competence of the Assembly and/or the Chamber Council;
8. decides on local and international business trips of the employees of the
Chambers Secretariat;
9. sets up commissions not within the competence of the Assembly and
Council for conducting activities within the Chambers sphere of work
and decides on benefit compensation for taking part in their work;
10. decides on other issues entrusted to him/her by the Law, by-laws and
professional regulations, these Articles of Association, general and
individual enactments of the Chamber authorities and other regulations
within his/her competence and
11. decides on other issues not within the competence of the Chamber
authorities.

Article 39

The Secretary General of the Chamber may entrust certain jobs from the
previous Article to an employee within the Chambers Secretariat or another person,
except for jobs directly entrusted to the Chambers Secretary General by the
Chamber authorities.
Also in the case under paragraph 1 of this Article, the Secretary General of the
Chamber is responsible for the legitimacy of the Chambers work.

Article 40

The Secretary General of the Chamber reports to the Council on his work and
on the business operations of the Chambers Secretariat.

Article 41

The Secretary General of the Chamber can be relieved from duty even before
the expiration of his term of office:

1. by personal request;
2. if the Council estimates that the Chambers Secretariat does business
operations contrary to the Law, other regulations, these Articles of Association or
other general enactments of the Chamber or if this results from the audit report, or if
any other irregularities are found concerning the business operations of the Chambers
Secretariat, and the Secretary General has not taken required proceedings to remove
them.






15
Article 42

The Chamber, or the Chambers Secretariat can have some of their
organizational parts outside their Head Office, with certain authorization in legal
operations, but not in the capacity of a legal person.
The decision on setting up organizational parts outside the Chamber shall be
passed by the Assembly.

VI REPRESENTATION OF THE CHAMBER

Article 43

The Chamber shall be legally represented by the Chairman of the Council
and the Secretary General of the Chamber without any limitation.
The Chamber may also be represented by the procurator for concluding legal
affairs and activities concerning the Chambers sphere of work. The Chamber Council
shall decide on the issuance of collection endorsement.
A proxy with special power of attorney issued by special authorization of the
Council and Secretary General of the Chamber within their jurisdiction may represent
the Chamber in conducting individual jobs and activities.

VII COMMISSIONS

Article 44

The Assembly, Council and Secretary General shall set up a commission,
within their competence, to perform certain activities from the Chambers sphere of
work.
The professional composition, number of members, assignments of the
commission shall be defined by the decision on the establishment thereof in
accordance with the task and work required to be done.
The authority which had set up the commission may change the
assignments and composition of the commission in the course of its work.
Commissions may be set up, in compliance with the assignments, on a
temporary basis, or as commissions in permanent session, or until the adoption of the
decision on the termination of its work.
Commissions submit monthly reports and reports upon completion of their
work to the authority which had established them.
Members of the commission are obliged to perform their duties
conscientiously within the framework of the entrusted assignment.

16




VIII LEGAL DECREES AND OTHER CHAMBER ENACTMENTS

Article 45

The Chamber has legal decrees in accordance with the Law, other regulations,
provisions of these Article of Association, as well as in accordance with the decisions
of the Assembly and Council.
The legal decrees of the Chamber are these Article of Association, Rule-
Books, enactments regulating the general requirements for business operations,
decisions, as well as other enactments regulating certain issues from the Chambers
sphere of activities.
The Assembly and Council shall pass the Chambers legal decrees within its
competence.
The authority which had passed the legal decree shall give an authentic
interpretation thereof and shall establish the revised text.
The amendments and changes of the legal decrees shall be done in the
procedure foreseen for their adoption.
The passed enactments of the Chamber shall be signed by the authority,
namely Chairman of the authority which had passed these enactments, or the person
acting on his/her behalf, as well as other authorized persons in accordance with these
Articles of Associations.

Article 46

The Articles of Assocation are the basic general enactment of the Chamber,
and other general enactments of the Chamber shall be in acdordance with the Articles
of Association.
The Chairman of the Chambers Assembly shall sign the Chambers Articles
of Association and put his abbreviated signature (initials) on each page of the Articles
of Association.

Article 47

The decisions and other enactments of the Chamber which do not have a
general character pursuant to Article 45, paragraph 2 of these Articles of Association,
shall be in accordance with the general enactments of the Chamber.

Article 48

If it is prescribed by the Law that the Ministry of finance shall give an
approval to the Chambers enactment, it shall be published and shall enter into force
upon obtaining this approval. The approval of the Ministry of finance shall be
attached to the corresponding enactment as its integral part.
Until the establishment of its web page, the Chamber shall perform the
publishing of its enactments and other contents within the framework of the
17
Chambers activities on the web page of the Ministry of finance -
www.mfin.sr.gov.yu.

IX BUSINESS BOOKS, FINANCIAL STATEMENTS AND AUDITING


Article 49

The Chamber keeps business books and prepares financial statements in
accordance with the law regulating the accountancy and auditing.
The Chamber shall submit the Annual financial statement with the issuance of
the auditors opinion to the Ministry of finance.
Auditing of the Chambers business operations shall be performed pursuant to
the law regulating the accountancy a auditing.
Auditing under paragraph 3 can be regular and extraordinary. Regular auditing
is performed for each year, and extraordinary by request of the Ministry of finance
and the Chambers Assembly.





Article 50

Internal auditing shall be established by the Chambers legal decree pursuant
to the provisions regulating the principles of internal auditing organization and work,
as well as with the international standards.


X BUSINESS SECRET

Article 51

Documents, data and information on business operations of the Chamber and
its members are considered as a business secret, the disclosure and announcement of
which would be harmful for the interests and business reputation of the Chamber and
its members.

Article 52

Documents, data and information marked as business secret by state and other
authorities and organizations, or marked strictly confidential, confidential, or
internal shall be considered as a business secret in the Chambers activities.

Article 53

Members of the Chamber, its authorities, employees of the Chamber, as well
as other persons taking part in the Chambers work, are obliged to keep a business
secret, if they should in any way find out about the documents, data and information
under Articles 51 and 52 of these Articles of Association. Keeping a business secret is
18
binding even after termination of Membership in the Chamber, termination of term of
office in the Chambers entities and after termination of employment in the Chamber.

Article 54

Documents, data and information which are by law of public character, cannot
be marked as business secret.
A business secret is more closely regulated by a legal decree passed by the
Chambers Council.




XI TRANSPARENCY OF WORK, PUBLISHING AND INFORMING

Article 55

The Chambers transparency of work is provided by holding open meetings of
all Chamber bodies, providing information on the time-schedule of the meetings,
providing information and reports on the work of the Chamber and its bodies, by
publishing the Chambers enactments in the Official Gazette of RS, the Chambers
journal, on the notice board and on the Chambers web page, as well as by advertising
in electronic and printed media.
Providing information and publishing within the framework of the Chambers
activities has been defined by decision of the Chambers competent authority in
accordance with the Law and these Articles of Association.

Article 56

The Chamber is obliged to provide conditions for regularly and fully informing
the members of the Chamber and employees of the Chambers work and the work of
its bodies, as well as of all details significant for acquiring the rights and fulfilling the
commitments of the Chamber members as well as of the Chambers activities.
The Chamber has its web presentation on its web site.

XII THE CHAMBER JOURNAL

Article 57

The Chamber may publish its journal in Serbian, printed in the Cyrillic
alphabet. In the journal, the Chamber shall publish its general legal decrees and
decisions, notices, professional opinion from the field of accountancy and auditing as
advised by the Chamber, as well as other contents which may, in accordance with the
Chambers estimate, have a positive impact on the enforcement of the Law, Code of
Ethics for Professional Accountants, International Standards and the Chambers
activities.
The Assembly of the Chamber shall decide on the journals title name under
paragraph 1 of this Article, its price, periods of its issuance, sources of its financing
the journal, termination of its issuance, program orientation, methods of its
distribution and other issues of significance for publishing the journal.
19

Article 58

The Publishing Council of the Chambers journal consists of: the Chief and
Responsible Editor, who is by virtue of his office the Secretary General of the
Chamber, the Deputy Chief and Responsible Editor and 3 members. The Deputy
Chief and Responsible Editor and members of the Publishing Council shall be
appointed by the Chamber Assembly.
The Chief and Responsible Editor, Deputy Chief and Responsible Editor and
members of the Publishing Council report on their work to the Chamber Assembly.

XIII THE CHAMBER REGISTERS

Article 59

The Chamber shall keep the following registers of the Chamber members:
1. Register of audit companies;
2. Register of issued licenses to certified auditors for auditing work;
3. Register of issued certificates for the professional title of certified internal
auditor;
Other than the Registers under paragraph 1 of this Article, the Chamber shall
also keep the following registers:
1. Register of issued certificates for the professional title of certified auditor;
2. Register of validated professional titles acquired abroad.

Article 60

Entities entered into registers under Article 59 of these Articles of Association
have a duty to inform the Chamber immediately, and not later than within 15 days, of
all changes of data contained in the Chambers registers.

Article 61

The Chambers registers are public books containing data concerning the entry
into and removal from a certain register.
The Chambers registers contain a separate file on each entered entity into the
Chambers register.
The file under the previous paragraph of this Article contains proofs of entry
into and removal from the register, proofs of changes of data and all other proofs
submitted and compiled in the procedure of entry into and removal from the Register.
The contents and method of managing the registers and files shall be more
closely regulated by the Rule Book on managing the Chambers registers, which is
passed by the Council.

XIV THE RIGHTS AND DUTIES OF THE CHAMBER MEMBERS

Article 62

The Chamber members have the following rights and duties:
20
1. to take part in the work of the Chamber and its bodies, submit proposals, elect
and be elected for authorities and other bodies of the Chamber;
2. to initiate decision-making within the Chambers competence, as well as to
propose proceedings and actions for better position and reputation of the
auditors profession;
3. to continue personal professional development on their jobs;
4. to implement the Chambers decisions professionally and conscientiously;
5. to act in accordance with the Law and the legal and professional regulations,
Code of Ethics for Professional Accountants, these Articles of Association and
other general and individual legal decrees of the Chamber;
6. to submit at the Chambers request and in due time accurate and updated
documents, information and data on their status and work;
7. to keep a business secret;
8. to execute due financial liabilities towards the Chamber;
9. to act in due time according to the recommendations of the Chambers Council
under Article 65, paragraph 5, item 3.
10. to protect and improve the Chambers corporate image.
The Chambers members also have other powers and duties stipulated by the Law and
other legal enactments and by-laws, these Articles of Association and other general
and individual enactments and decisions of the Chamber.

XV PROFESSIONAL TRAINING AND CONTINUING PROFESSIONAL
DEVELOPMENT

Article 63

The Chamber organizes and enforces professional development and training for
taking exams in order to acquire the professional titles of certified auditor and
certified internal auditor pursuant to the Law, by-law regulations passed for execution
of the Law, professional regulations, program and requirements prescribed by the
Assembly and the Chamber enactments.
The Chamber realizes continuing professional development through various
forms of professional and educational activities of the Chamber, by organizing
symposia, workshops, panels, round tables and similar, in accordance with the
Chambers Annual Program.

XVI RECOGNITION

Article 64

The Plaque of the Chamber of authorized auditors shall be awarded as a sign
of recognition to members of the Chamber as well as to other entities taking part in
the Chambers work for achieved results and contribution in the achievements within
the Chambers competence and in its development.
The requirements for granting the recognition under the previous paragraph, as
well as the decision on granting the award shall be passed by the Chamber Assembly.

21
XVII QUALITY CONTROL AND VERIFICATION OF THE CHAMBER
MEMBERS WORK

Article 65

The Chamber accepts and considers complaints against the work of the
members submitted in writing.
The Council decides on proper, timely submitted and complete complaints
against the work of the Chamber.
A member of the Chamber is required to give an explanation in writing within
15 days from the day of received notice on the received complaint.
The Chambers Secretariat shall analyze the received complaint and make a
note on the complaint against the Chambers member work and on his statement
thereof, with a conclusion on the breach of the legal provisions, professional
regulations, Code of Ethics for Professional Accountants and the Chambers
enactments and submit to the Council a draft proposal concerning the lodged
complaint.
Concerning the complaint the Council may decide:
1. to reject the complaint as irregular;
2. to reject it as unfounded;
3. to accept the complaint in which case the Council shall take a stand in
reference with the lodged complaint and give appropriate
recommendations for the purpose of removing the causes of the
concerned complaint;
4. to forward the complaint to the Disciplinary commission;
5. to forward the complaint to the Ministry of finance in the form of a
justified proposal for inspection.
Recommendations under paragraph 5, item 3 of this Article may be of
general character or recommendations referring to the behavior of a certain member
of the Chamber. The Council monitors whether the Chamber members or a certain
Chamber member act/s in their/his work in accordance with the given
recommendation.
Should the Council find that the audit company did not proceed in accordance
with the recommendation given in accordance with paragraph 6 of this Article, the
Council may pass a decision on the pronounced reprimand or public summons to the
audit company, depending on the established circumstances in connection with failure
to act according to the Councils recommendation.
The pronounced proceeding of public summons under paragraph 7 of this
Article shall be published on the Chambers web page and/or in a newspaper with a
high circulation and issued on the whole territory of the Republic of Serbia.
The Councils decisions under paragraph 5 of this Article must be justified.


Article 66

In addition to the procedure regulated by Article 65 of these Articles of
Association, the Chambers authorities control and verify the quality of work
performed by the Chamber members in the manner established by the Chamber
22
Assembly pursuant to Article 17, paragraph 1, item 12 of these Articles of
Association.





XVIII DISCIPLINARY LIABILITY

Article 67

The Chamber shall enforce disciplinary proceedings against certified auditors
employed in an audit company and certified internal auditors of the Chamber
members for breach of duty and image of the auditors profession, in order to
establish the existence of disciplinary offence and disciplinary liability, as well as to
take disciplinary measures pursuant to these Articles of Association and Rule Book on
the disciplinary proceedings.
Failure to act accordingly may provide grounds for conducting disciplinary
proceedings only if there is a binding commitment of the Chamber member to act.

Article 68
There is breach of duty and image of the audit profession under Article 67 of
these Articles of Association if:
1. the entry into the registers kept by the Chamber was based on
untruthful and incorrect data;
2. it has been established by decree absolute that the Chamber member
has committed a penal offence which calls in question his reputation
for further auditing;
3. a member of the Chamber performs auditing unconscientiously and
unprofessionally, or does not act in accordance with the law, the
International Standards on Auditing, the Code of Ethics for
Professional Accountants, these Articles of Association and the
Chambers enactments;
4. a member of the Chamber does not fulfill the obligations towards the
Chamber under Article 62 of these Articles of Association.

Article 69

For committed disciplinary offence under Article 68 of these Articles of
Association, one of the following measures shall be pronounced to the member of the
Chamber:
1. reprimand;
2. public summons;
3.prohibition from practicing a profession for a period of one year;
23
4. removal from the Chambers Register.

Measures of reprimand under items 1 and 2 of the above paragraph shall be
pronounced for milder breach of the Law, legal and professional regulations, Code of
Ethics for Professional Accountants, these Articles of Association and the Chambers
enactments.
Measures under paragraph 1, items 3 and 4 of these Articles of Association
may be pronounced only for severe breach of the Law, legal and professional
regulations, Code of Ethics for Professional Accountants, these Articles of
Association and the Chambers enactments. These measures shall be pronounced by
firstly applying the measure under paragraph 1, item 3 of this Article. The measure
under paragraph 1, item 4 of this Article shall be pronounced in the case if, upon
expiration of the measure under item 3, a member of the Chamber repeats a similar or
the same breach within two years from the expiration of the pronounced measure.

Article 70

A disciplinary offence can be reported by the Chamber members, the Chamber
authorities, except for the Disciplinary commission, as well as other entities which
find out about the committed disciplinary offence and the perpetrator.
The report under paragraph 1 of this Article shall be submitted to the
Disciplinary commission. Upon receipt of the report, the Disciplinary commission
shall introduce and conduct the disciplinary proceedings ex officio in accordance with
these Articles of Association and Rule Book on the disciplinary proceedings.
The Disciplinary commission is obliged to act urgently in the decision-making
procedure concerning the disciplinary liability.

Article 71

The member of the Chamber against whom the disciplinary proceedings had
been taken can lodge an appeal to the Chamber Council within 15 days from the day
of received written dispatch of the decision. The Council is obliged to decide on the
complaint within 30 days from the date of its receipt.
In decision-making in reference to the appeal, the Chamber Council may
confirm the decision of the Disciplinary commission, modify or abolish it and return
the subject to the Disciplinary commission for renewed proceedings and decision-
making.

The Chamber member against whom the disciplinary measure had been taken
may introduce proceedings against the Decision of the Chamber concerning the
appeal before the court.

Article 72

Records of the final and decisions absolute on the pronounced disciplinary
measures shall be kept by the Chambers Disciplinary commission.
Records from the above paragraph are not public and data from these records
may be given only by request of the government authorities for the purpose of
conducted proceedings.
24
Article 73

Introduction of disciplinary proceedings expires within 6 months from the day
of the Disciplinary commissions acknowledgement of the committed disciplinary
offence and perpetrator, and not later than within a year from the day of committed
disciplinary offence.
There proceedings shall stay until it is possible to introduce or conduct the
disciplinary proceedings, due to the absence of the Chamber member or for other
justified reasons.
A pronounced disciplinary measure cannot be executed after the expiration of
one year from the date of finality or irrevocability of the decision on the pronounced
disciplinary measure.

Article 74

The statute of limitation of the disciplinary proceedings within the framework
of the subjective 6 months deadline shall be stayed by every action of the Chambers
competent authority taken in order to introduce the disciplinary proceedings. With
each stay the statute of limitation shall be restarted.


XIX SUPERVISION OVER THE CHAMBERS WORK

Article 75

In executing the jobs entrusted to the Chamber by Law, supervision shall be
performed by the Ministry of finance.

XX TRANSITIONAL AND FINAL PROVISIONS

Article 76

The Chamber shall pass, within 30 days from the day of constituting the
Assembly and the Assembly Council, the Articles of Association and enactments
regulating: the requirements for acceptance to and termination of membership within
the Chamber, the membership fee paid by the Chamber members, amount of benefit
compensation for taking exams, for issuance of certificates and licences and entry
into the registers kept by the Chamber, as well as for providing data from these
registers.
Within the timeframe under paragraph 1 of this Article, the Chamber shall set
up a Commission for enforcing the exams under Article 6, paragraph 1 of the Law.
The Chamber shall pass, within 60 days from the date of constituting the
Chambers Assembly and Council, a Financial plan, enactment on the internal
organization and description of job positions, enactments regulating: the program for
acquiring professional titles under Article 4 of the Law, requirements for acquiring,
renewal and withdrawal of licenses for certified auditors for auditing financial
25
statements, requirements for issuance of certificates for acquiring the professional
titles of certified auditor and certified internal auditor.
Other enactments required for the Chambers work shall be passed by the
competent authorities within 3 months from the day of constituting the Assembly and
the Assembly Council.


Article 77

These Articles of Association shall come into force on the eighth day after
publishing the approval of the Ministry of finance given to these Articles of
Association in the Official Gazette of RS.
The given approval of the Ministry of finance shall be attached to these Articles
of Association as an integral part thereof.
After publishing the approval of the Ministry of finance given to these
Articles of Association in the Official Gazette of RS, these Articles of Association
shall be published on the Chambers web page.


CHAIRMAN OF THE CHAMBER ASSEMBLY
Prof.Dr. Jovan Rodic, (signed)