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The Importance Of Preparing An Internal Audit Report In Reporting To Top Management Of A Company That Makes Key Management Decisions In Its Work

Author

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  • MAJA JOKIC

    (MASTER OF INDUSTRIAL ENGINEERING AND MANAGEMENT, FACULTY OF TECHNICAL SCIENCES, UNIVERSITY OF NOVI SAD, TRG DOSITEJA OBRADOVICA 6, 21000 NOVI SAD, SERBIA)

  • BOGDAN LABAN

    (CITY ADMINISTRATION OF THE CITY SUBOTICA, TRG SLOBODE 1, 24000 SUBOTICA, SERBIA)

  • IVAN ARNAUTOVIc

    (HIGH SCHOOL OF ENTREPRENEURSHIP, 11000 BELGRADE, SERBIA)

  • DRAGANA POPOVIc

    (ECONOMIC FACULTY OF SUBOTICA, SEGEDINSKI PUT 9-11,24000 SUBOTICA, SERBIA)

  • SLOBODAN POPOVIc

    (AUTHORIZED PUBLIC SECTOR INTERNAL AUDITOR JKP GRADSKO ZELENILO NOVI SAD, TEMERINSKI PUT BB, 21000 NOVI SAD, SERBIA)

Abstract

Internal audit in a large number of heterogeneous companies contributes to the improvement of the overall business of the company by contributing to the improvement and making new business decisions. This generally improves and modernizes enterprise management. Top management decisions based on the recommendations of internal company auditors are less risky. Management risk with management using the decisions and recommendations of internal auditors has a lower degree of risk. Thus, top management decisions are made with less risk to the survival of the company. Management should be seen as the governing body of the company. He, as the governing body, is constantly looking for a way to improve management in the enterprise. The processes for establishing internal audit mechanisms should be designed to contribute to the structural improvement of the overall management of any enterprise with respect to the business in which it operates, the size of the enterprise, and more. Internal audit can contribute to helping top management by making continuous recommendations that can help top management improve enterprise management. The authors emphasize that their contribution in this paper is primarily focused on demonstrating the importance of introducing internal audit in companies. This becomes part of the management structure of the company by adopting the recommendations of internal auditors from the corporate governance body or top management of the company.

Suggested Citation

  • 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.
    • Handle: RePEc:cbu:jrnlec:y:2020:v:2:p:37-44
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    References listed on IDEAS

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    Cited by:

    1. 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.
    2. 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.
    3. Tatjana Davidov & Ivanka Vranic & Veljko Samardzic & Zeljko Grubljesic & Slobodan Popovic, 2021. "Application Of New And Modern Software Solutions In Companies That Are Considered Developmental In Transition Economies With Reference To The Application Of Internal Audit," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 3, pages 72-79, June.
    4. Václav Kupec & Přemysl Písař & Michal Lukáč & Gabriela Pajtinková Bartáková, 2021. "Conceptual Comparison of Internal Audit and Internal Control in the Marketing Environment," Sustainability, MDPI, vol. 13(12), pages 1-18, June.

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