AUDITIMI I JASHTËM DHE CILËSIA E RAPORTIMIT FINANCIAR
EXTERNAL AUDIT AND QUALITY OF FINANCIAL REPORTING

Summary/Abstract: This paper was created to provide a scientific analysis on the impact of auditing on the achievement of company objectives in Kosovo. In the past, auditing have been considered as a simple administrative procedure comprised mainly of checking accuracy of transactions and financial reporting. Companies are moving towards a higher level of transparency and demonstrate accountability and stewardship in the use of resources entrusted to them. Auditing helps top management manage corporate affairs, providing guidance on various issues ranging from financial accuracy to regulatory compliance. Auditing also help department heads identify tools and methodologies to improve operational activities, putting companies on a more sustainable path. The findings from the literature are based on studies conducted in relatively large enterprises in economically developed countries, therefore reliance on them in terms of Kosovar business should be done carefully and only after verifying that these findings can be generalized to the conditions of Kosovar business. The information obtained from businesses enabled us to identify essential topics related to business perceptions of the benefits of auditing financial statements in Kosovo. The analysis of the obtained data proved that the audited companies are the ones who expect from the audit a significant advantage in terms of quality of financial reporting, improvement of internal control, improvement of errors, detection of abuses, attracting investors and favorable financing. Companies whose audited financial statements are with unqualified audit opinion tend to have greater value, because unqualified audit opinion is the most positive of audit opinion that increases market response and confidence so that company‘s value is also positive.

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