Ministry of finance would issue working licences for minimum ten auditors with experience and education till the end of April and they would be valid for the period of two years, said deputy minister of finance, Ratimir Jovicevic, at the press conference today. He said that licences would be issued for candidates that already had the permission for auditing financial reports and who would, in line with the new Law on accountancy and audits, have to pass the exam for auditors within the period of two years. He said that the licence could also be issued to bachelors of economy under the same conditions if they are members of the Association of accountants or Montenegrin Association of workers in accountancy and finance. "They have to be acquainted with international accountancy standards or posses an international auditors# certificate. They must have at least three years of practical auditing experience or ten years of experience in accountancy, as well as proof that no criminal charges were brought against them," explained Jovicevic. The new Law on accountancy that contains international accountancy and auditing standards would rely more on self-regulation in this field and would eliminate administrative penalties of the state. "The purpose of the Law is to enable objective and simple information on business activities of the company, comparability of the balance, timely risk estimation and increase of invested capital," said secretary general of the Association of accountants and auditors, Zoran Todorovic. He estimated that the implementation of the Law on accountancy and auditing would eliminate the phantom companies, because business activities of companies would be monitored for unlimited period of time. "With implementation of this Law our accountancy regulations would be adjusted with the states of European Union and South-eastern Europe. Balances have so far been directed towards General Clearing House and other companies, and not to internal needs of the company," said Todorovic. He added that the Law was obligatory for all companies except for budget users, such as schools, hospitals and social institutions. "Federal laws on accountancy and auditing have so far been implemented in this field of almost 140 articles. The Law on accountancy has 18 articles that define self-regulation of accountancy through implementation of international accountancy and auditing standards and ethical codes," said Todorovic. According to the new law, as he said, business registers for banks, stock exchanges, financial organizations, economic societies and affiliations of foreign companies that realize income above half a million EUR would be monitored by audits authorised by the Institute for accountancy by the principle of invoiced realization. He announced that this Institute would be founded till the end of 2003. "Auditing of financial reports is obligatory for these companies, and companies whose shares are rated on the stock exchange must have a full-time outer auditor," said secretary general of the Association of accountants. Business registers for independent shops can be managed by an accountant without licence in accountancy by the principle of cash realization, that is, at the moment when the transactions have been paid. Todorovic said that financial reports would include future business activities of companies for at least one year. It would consist of financial statements, reports of auditors and management of the company and other documents of importance for the company#s business. Negative opinion of the auditor on financial report would be a cause of responsibility and resignation of the company#s management. The auditor estimates whether the accountancy of the company is fair and true. The new Law does not contain administrative penalties for legal persons nor state regulation in the field of accountancy and auditing, said Todorovic. Financial reports would include balance sheets, reports on shareholders# capital and financial transactions and notes on the sheets.