UTICAJ REVIZIJE NA POUZDANOST FINANSIJSKOG IZVJEŠTAVANJA PREDUZEĆA U FEDERACIJI BOSNE I HERCEGOVINE
THE IMPACT OF AUDITING ON THE RELIABILITY OF FINANCIAL REPORTING OF COMPANIES IN THE FEDERATION OF BOSNIA AND HERZEGOVINA

Summary/Abstract: Business entities constantly conduct audits, controls, adjustments, reviews, analyzes and for the purpose of detecting and eliminating errors. The primary function of an audit of financial statements is to provide reasonable assurance to the users of the financial statements that the audited financial statements are free of material errors and omissions. Auditing of financial reports has recently experienced a great expansion, especially after the major crises that occurred in the world. Revision of financial statements by an independent expert is necessary in conditions of an uncertain market situation, both for the capital owners of the business entity and for their business partners, state institutions, banks, etc., since accounting reporting is subject to subjective assessments and flexibility in reporting Frequent changes in laws, standards, regulations and trends, as well as the need for their continuous monitoring, are imperative for a quality audit. A high level of reliability of financial reports increases the degree of trust of users in financial reports on the basis of which they make business decisions. The purpose of the research in this paper is to determine, based on theoretical and empirical research, the impact of auditing financial statements on the reliability of financial statements of companies in the Federation of Bosnia and Herzegovina, as well as the position and opinion of authorized auditors and business entities on the reliability of financial statements.

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