We investigate the model of an accretion disk illuminated locally by hard X‐rays. The X‐ray source is in the form of the hot flares most probably produced via magnetic field reconnection. Flares are accompanied by hot spots created at the accretion disk surface by illumination. We compute the local reflected (spot) spectrum using the codes TITAN/NOAR. In our computations we are able to model the change of intensities of X‐ray emission lines from 0.1 keV up to the most prominent iron K&agr;line due to appearance of flares. The global spectrum is obtained assuming a distribution of flares, where each flare has assumed effective life time. In such a case we follow the line profile modified due to relativistic smearing in Kerr metric. © 2004 American Institute of Physics