Analysis of auditor`s reports and bankruptcy risk in banking sector in the Republic of Serbia

This paper aims to point out the significance of external audit and auditor’s reports. The stability of banks and its operations are vital not only for efficient financial system functioning, but also for overall industry. The banking sector, both in developed and undeveloped countries, experienc...

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Main Authors: Milovan Stanisic, Danka Stefanovic, Nada Arezina, Vule Mizdrakovic
Format: Article
Language:English
Published: Editura ASE 2013-06-01
Series:Amfiteatru Economic
Subjects:
Online Access:http://www.amfiteatrueconomic.ro/ArticolEN.aspx?CodArticol=1211
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author Milovan Stanisic
Danka Stefanovic
Nada Arezina
Vule Mizdrakovic
author_facet Milovan Stanisic
Danka Stefanovic
Nada Arezina
Vule Mizdrakovic
author_sort Milovan Stanisic
collection DOAJ
description This paper aims to point out the significance of external audit and auditor’s reports. The stability of banks and its operations are vital not only for efficient financial system functioning, but also for overall industry. The banking sector, both in developed and undeveloped countries, experienced financial crisis in the last few years. Considering these circumstances and the fact that demands of financial statements users grow in complexity, their control is essential. We provide the empirical evidence on the banking sector auditor’s reports in the Republic of Serbia, with particular reference to auditor’s opinions and audit agencies that had conducted banks audits. The review of the audit legislation and professional standards will be presented, as well as the notion of bankruptcy risk and its relevance for baking sector. Our research results indicate that special attention should be paid to banks which auditor’s report had some explanatory paragraphs or even qualification. In conclusion we highlight the red flags that may damage banks operations and emphasize the importance of keeping the high level of auditor’s independence with the intention to provide confidence to stakeholders who form their decisions based on their reports.
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series Amfiteatru Economic
spelling doaj-art-86309b6da4814c5bae88f76eb1b8fca62025-08-20T03:07:10ZengEditura ASEAmfiteatru Economic1582-91462247-91042013-06-011534431441Analysis of auditor`s reports and bankruptcy risk in banking sector in the Republic of SerbiaMilovan Stanisic0Danka Stefanovic1Nada Arezina2Vule Mizdrakovic 3Singidunum University, Department for Business Economics, Belgrade, SerbiaSingidunum University, Department for Business Economics, Belgrade, SerbiaSingidunum University, Department for Business Economics, Belgrade, SerbiaSingidunum University, Department for Business Economics, Belgrade, SerbiaThis paper aims to point out the significance of external audit and auditor’s reports. The stability of banks and its operations are vital not only for efficient financial system functioning, but also for overall industry. The banking sector, both in developed and undeveloped countries, experienced financial crisis in the last few years. Considering these circumstances and the fact that demands of financial statements users grow in complexity, their control is essential. We provide the empirical evidence on the banking sector auditor’s reports in the Republic of Serbia, with particular reference to auditor’s opinions and audit agencies that had conducted banks audits. The review of the audit legislation and professional standards will be presented, as well as the notion of bankruptcy risk and its relevance for baking sector. Our research results indicate that special attention should be paid to banks which auditor’s report had some explanatory paragraphs or even qualification. In conclusion we highlight the red flags that may damage banks operations and emphasize the importance of keeping the high level of auditor’s independence with the intention to provide confidence to stakeholders who form their decisions based on their reports.http://www.amfiteatrueconomic.ro/ArticolEN.aspx?CodArticol=1211auditbanksfinancial statementsinsolvencyrisk
spellingShingle Milovan Stanisic
Danka Stefanovic
Nada Arezina
Vule Mizdrakovic
Analysis of auditor`s reports and bankruptcy risk in banking sector in the Republic of Serbia
Amfiteatru Economic
audit
banks
financial statements
insolvency
risk
title Analysis of auditor`s reports and bankruptcy risk in banking sector in the Republic of Serbia
title_full Analysis of auditor`s reports and bankruptcy risk in banking sector in the Republic of Serbia
title_fullStr Analysis of auditor`s reports and bankruptcy risk in banking sector in the Republic of Serbia
title_full_unstemmed Analysis of auditor`s reports and bankruptcy risk in banking sector in the Republic of Serbia
title_short Analysis of auditor`s reports and bankruptcy risk in banking sector in the Republic of Serbia
title_sort analysis of auditor s reports and bankruptcy risk in banking sector in the republic of serbia
topic audit
banks
financial statements
insolvency
risk
url http://www.amfiteatrueconomic.ro/ArticolEN.aspx?CodArticol=1211
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AT dankastefanovic analysisofauditorsreportsandbankruptcyriskinbankingsectorintherepublicofserbia
AT nadaarezina analysisofauditorsreportsandbankruptcyriskinbankingsectorintherepublicofserbia
AT vulemizdrakovic analysisofauditorsreportsandbankruptcyriskinbankingsectorintherepublicofserbia