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The Importance Of Continuous Audit Of Financial Statements Of The Company Of Countries Joining The Eu

Author

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  • SLOBODAN POPOVIĆ

    (INTERNAL AUDITOR, JKP GRADSKO ZELENILO, SUTJESKA 2, 2100 NOVI SAD, SERBIA)

  • JELENA TOŠKOVIĆ

    (AD MlEKARA ŠABAC, KRSMANOVAČA BB, 15000 ŠABAC, SERBIA)

  • ALEKSANDAR MAJSTOROVIĆ

    (NIVERSITY UNION NIKOLA TESLA BELGRADE, FACULTY OF REAL ESTATE MANAGEMENT, 11000 BELGRADE SERBIA)

  • SANDRA BRKANLIĆ

    (FACULTY OF ECONOMICS AND ENGINEERING MANAGEMENT IN NOVI SAD, UNIVERSITY BUSINESS ACADEMY IN NOVI SAD, CVEĆARSKA 2, 21000 NOVI SAD SERBIA)

  • ANDREA KATIĆ

    (UNIVERSITY OF NOVI SAD, FACULTY OF TEHNICAL SCIENCES, TRG DOSITEJA OBRADOVIĆA 6, 21000 NOVI SAD SERBIA)

Abstract

Approaching the Republic of Serbia the EU, an increasing number of operations of Management Company must comply with the laws and regulations of the EU. One of the most important task is to manage companies and do the job of auditing of financial reporting companies. There are two established types of audits. Internal audit work, done throughout the year and external, done by the end of the financial year. Both have an obligation to express opinions, which must have a background in the competence and independence. The scope of the audit, generally speaking depends on the legislation of national economies, then the law governing accounting, and at the end of the law that frames the audit functions. The auditor's opinion is necessary in order to ensure the credibility of financial statements. Considering the focus, audit can be seen as activity of audits essentially activities related to the financial statements that are subject to services performed by certified auditors. An opinion on the financial statements of companies are included in the audit reports. They are prepared and certified by independent auditors. The revision in the economic terminology means testing of accounting statements of business enterprises. Internal audit work is done throughout the year, but external to the end of the financial year. Both have an obligation to express opinions, which must have a background in competence. Auditing activities are performed independently, objectively and with a great deal of independence in the work, by internal and external authorized auditors, so that they can provide the necessary information to the users of audit reports. Internal auditing can be seen in the two main ranges. The first is within the company in which some processes are functioning the same. Another scope is wide level, including observation of the wider society and the state, and includes observation of the entire public sector of a country. This mode of operation of the internal audit, internal audit includes the individual reporting company, means the consideration of internal audit and it has to be lowered to the level of individual companies. In companies, external auditors, who are by definition independent in their work, for their work primarily correspond to shareholders. In contrast to the external auditors, internal auditors work as primary managers of enterprises. This is the essential difference in the observation of external and internal audit. Observation of internal audit as a tool, and internal auditors, can be seen as an extension and a logical continuation of the development of the internal control, which has existed for decades in companies. Therefore, it is quality work of internal control, all the more relevant to the external auditors, as they can be on it more fully and to a greater extent rely on the exercise of the function of external audit and control. Internal audit work in the enterprise can be seen through the answers to the three most common target internal audit in enterprises. Objectives and internal audits provide answers to three key questions that the internal participant auditors should submit to management: • explain the role of internal audit in a single company, • explain how to improve and maintain the quality of the work of internal auditors and • to compare the role of internal and external auditors, primarily through defining how each gathering evidence within their assigned his scope of work. The authors wanted to draw the attention of the professional public on the importance of the organization of internal audit in enterprises, as the same is performed continuously throughout the year and is the basis for all subsequent of audit and control. The authors point out that the auditing activities have to be done and carried out independently, objectively and with a great deal of independence in the work, by internal and external authorized auditors, so that they can provide the necessary information to all users of audit reports.

Suggested Citation

  • Slobodan Popović & Jelena Tošković & Aleksandar Majstorović & Sandra Brkanlić & Andrea Katić, 2015. "The Importance Of Continuous Audit Of Financial Statements Of The Company Of Countries Joining The Eu," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 0, pages 241-246, July.
  • Handle: RePEc:cbu:jrnlec:y:2015:v:special:p:241-246
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    References listed on IDEAS

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    Cited by:

    1. Jelena Vitomir & Bogdan Laban & Ognjen Bakmaz & Nikola Nikolic & Mrdan Colovic, 2019. "Audit As A Possible Way To Improve Corporate Governance With An Overview Of Possible Models Of Determining The Risk Interval And Some Of The Basic Impact Factors Identified By Top Management," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 2, pages 23-29, April.
    2. Slobodan Popovic & Ljubica Ivic & Dragan Duranovic & Ranko Mijic & Mladen Ivic, 2016. "The Importance Of Establishing A Financial Analysis In Serbia," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 5, pages 184-188, October.
    3. Tereshchenko Maryna, 2020. "Conducting an audit using system modeling tools in the development of deposits of flux raw materials," Technology audit and production reserves, Socionet;Technology audit and production reserves, vol. 4(4(54)), pages 4-8.
    4. MAJA JOKIC & BOGDAN LABAN & IVAN ARNAUTOVIc & DRAGANA POPOVIc & SLOBODAN POPOVIc, 2020. "The Importance Of Preparing An Internal Audit Report In Reporting To Top Management Of A Company That Makes Key Management Decisions In Its Work," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 2, pages 37-44, April.
    5. Birsena Duljevic, 2023. "Making Valid Decisions By Top Management And Modern Trends Of Tourism Offer In Small Economies, As An Example Of The Republic Of Serbia," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 5, pages 120-126, October.
    6. Ivan Arnautovic & Goran Vitomir & Veljko Samardzic & Tatjana Davidov & Sanda Nastic & Slobodan Popovic, 2021. "The Importance Of Preparation Of Financial Statements In The Process Of Making Significant Management Decisions By Top Management In Enterprises," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 4, pages 97-103, August.
    7. Slobodan Popovic & Ranko Mijic & Nikola Vojvodic & Vesna Petrovic & Slavica Siljanoska, 2016. "The Importance Of Modeling The Formation And Effectiveness Of Internal Control Mechanism In Transition Countries Such As The Republic Of Serbia," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 4, pages 115-119, August.
    8. Colovic Mrdan & Jakovljevic Sanja & Bogdan Laban, 2018. "The Importance Of The Application Of Fair Value Of The Company'S Property In Transitional Countries On The Way To The Eu," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 2, pages 18-25, April.
    9. Ivanka Vranic & Veljko Samardzic & Tatjana Davidov & Zeljko Grubljesic & Slobodan Popovic, 2021. "Significance Of Consideration Of Internal Control And Internal Audit In The Business Of Companies That Need To Implement The Implementation Mentioned Within The Accounting Policy Of The Company," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 3, pages 37-44, June.
    10. Jelena Vitomir & Milena Lutovac & Sonja Tomas-Miskin & Nemanja Barovic & Drazen Vrhovac & Dragana Popovic, 2020. "The Importance Of Making Important Business Decisions In Industry From The Aspect Of Growth And Development Of Industrial Enterprises In Transition Countries," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 1, pages 28-34, February.
    11. Maja Jokic & Bogdan Laban & Ivan Arnautovic & Dragana Popovic & Slobodan Popovic, 2020. "Making Business Decisions In Industrial Companies In The Transition Country, By The Case Of The Republic Of Serbia," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 2, pages 4-11, April.
    12. Sanda Nastic & Borislav Maric & Bogdan Laban & Vesna Petrovic & Aleksandar Majstorovic, 2019. "Managing A Business Through Valid Business Decision Making With The Goal Of Achieving Positive Results That Can Be Internationally Valued," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 1, pages 14-21, February.
    13. Jelica Eremic-Dodic & Slobodan Popovic & Vera Popovic & Jelena Bosnjak & Vasilije Dodic, 2017. "The Importance Of The Implementation Of It Audits In Agricultural Enterprises Of The Republic Of Serbia In Order To Increase Safety Management And Risk Determination Interval," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 2, pages 91-97, April.
    14. Maja Jokic & Bogdan Laban & Ivan Arnautovic & Ranko Mijic & Dalibor Doncic, 2020. "Decision Of The Top Management After The Decision To Establish An Internal Audit In A Company Operating Basically In The Field Of Agricultural Activity On The Example Of The Republic Of Serbia," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 2, pages 18-24, April.

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