"BH Telecom" Received a Positive Opinion: Financial Statements Compliant with the Law

The Audit Office of the Federation of Bosnia and Herzegovina publishes new reports on the work of institutions and companies in the past year every day. One of the few companies that received a positive opinion is "BH Telecom", writes the Patria News Agency. Namely, the auditors stated that the financial statements of the Joint Stock Company "BH Telecom" Sarajevo, in all material respects, present a true and fair view of the state of assets and liabilities as of December 31, 2013, the results of operations, and cash flows for the year ended on that date, in accordance with International Financial Reporting Standards.

- Financial transactions and information presented in the financial statements of the Joint Stock Company "BH Telecom" Sarajevo, during 2013, were in all significant aspects compliant with the relevant legal and other regulations.

Without prejudice to the expressed opinion, we emphasize that the Company, for the second consecutive year, makes changes to the financial statements from the previous year at the same time, the report states.

- Namely, immediately before the preparation of the financial statements for 2013, changes were made to the financial statements from the previous year. The same procedure was followed in the previous year, when before the compilation of the financial statements for 2012, the financial statements for 2011 were also amended. Decisions on these changes were made solely by the Management, and their users were not informed. The main reason for the changes is the completion of investment projects, put into operation in previous years, which were not previously approved and accounted for in the relevant accounting period - the auditors state.

They further state that this indicates incomplete and insufficient functioning of the internal control system in this process.

- Due to non-compliance with adopted procedures and incomplete cooperation and coordination between the competent sectors, as well as poorly conducted asset inventories in preparation, there is an unrealistic recognition and presentation of assets and period expenses, as well as business results. Bearing in mind the fact that the value of the presented projects is significant and tends to grow, as they are higher by 47.33% compared to the previous year, it is necessary to undertake additional activities in this process in the coming period and to consistently and fully comply with all adopted procedures, in order to overcome the existing weaknesses and to present them in the accounting period in which they were put into use - the report states.