FINANCIAL AUDIT OF THE PUBLIC SECTOR – THE BASIS FOR THE CURRENT BUSINESS ENVIRONMENT
Journal Title: Acta Economica - Year 2011, Vol 9, Issue 15
Abstract
The accounting standards and legal regulations require companies to show property to true and objective manner. Various regulations have been ordered arrangement of relations in public enterprises, in order to materially and formally correct representation of their financial accounting statements. Management of public companies to avoid mass introduction of such property in the property fund company, because it creates an obligation revaluation and depreciation calculation mentioned property, which has the effect of increasing costs, reducing net results, which mainly result in negative financial result. On the preparation and publication of annual financial reports directly affects a number of requirements and those relating to accounting assessment, and requirements for disclosure, ie. Disclosure in the prescribed form. The main objective of these requirements is to create conditions for fair and honest financial reporting of many investors. To understand the true significance of the financial audit function is necessary to bear in mind that is always present a real possibility of a mismatch of interests of management companies which have a decisive impact on the preparation of annual financial reports with the interests of investors whose assets, thus, may be exposed to loss. If we take into consideration the place and role of investors in the overall national economy, it is evident that the importance of financial auditing functions to ensure confidence in the mechanism of capital markets and the state as regulator and controller of the mechanism.
Authors and Affiliations
Спасенија Мирковић
Keywords
Related Articles
- EP ID EP43727
- DOI -
- Views 289
- Downloads 0
Insurance against professional liability in function of protection of the interests and stability of the company business and the managers
On the markets of developed countries, insurance against general and professional liability presents the foundation in protection of stability of the company business. There are various lines of these products which as t...
Interdependence of Economic Value Added, Net Present Value and Market Value of a Company
Economic value added as a method for company performance measurement for time periods of one year is firstly analyzed in the paper. After that we discuss market value added as a difference between company market value and...
Features of the functioning of developed financial markets in the post crisis period
After the recent economic crisis noticeable trends are typical for poslijekrizne periods such as the large number of takeovers, as well as increasing the scope of prohibited activities of participants in the financial ma...
THE GLOBAL CRISIS AND BOSNIA AND HERZEGOVINA
The financial crisis brought about by the break down of the USA mortgage market has affected almost all economies of the world. Its consequences are very severe: they include bankruptcies of major investment banks, great...
Establishing indicators and causes of business failure
Business failure provokes negative implications on economic and social situation in the country. The company’s downfall starts with the lack of action due to failure as to problem identifcation on one hand, or due to the...