The aim of this paper is to analyze mutual correlation between specific ratios which determinate success of bank business. As determinants of banks profitability we imply: bank capital, size of ...bank, net interest revenue, net revenue from commissions and fees, operating expenses and bank risk. In first part of the paper descriptive statistics for all determinants of bank profitability is presented, and in the second part panel analysis of bank profitability based on selected pattern of 18 largest banks in Republic of Croatia is shown. The results of the research imply that size of the bank does not necessary influence bank profitability, and that more profitable banks are those with larger market share, higher capitalization and better operating expenses management. The results of the research also indicate that net interest revenue still highly influences banks net revenues. PUBLICATION ABSTRACT
Forensic accountants play an extremely important role in preventing and detecting fraud, and demand for this profession has increased after a number of corporate scandals (such as Enron, WorldCom, ...Satyam etc.) that have raised public awareness on the issue of fraud and fraudulent financial reporting. The profession of forensic accountant is an interdisciplinary profession where one of the primary tasks is fraud prevention and detection. However, persons engaged in this area can provide a full range of other services, such as assessing the economic value of assets and liabilities, detecting tax irregularities, expert witnessing in court proceedings, preventing corruption and similar services. In the context of providing complex services in the area of forensic accounting, besides accounting and auditing skills, knowledge of law and investigative techniques is also required. Along with a full range of knowledge and skills that persons engaged in financial and accounting forensics should possess, they should also have certain experience and continuously improve their knowledge and skills. In this paper, authors present the results of research conducted on a sample of 38 experts about the knowledge and skills of forensic accountants in the Republic of Croatia. Analysis of required knowledge and skills of forensic accountants was conducted through "A survey about the occupational standard" in the context of development of occupational standard for the profession of forensic accountant at the University Department of Forensic Sciences in the period from July till September 2016.
FUTURE OF AUDITING PROFESSION Filipovic, Ivica
Economic and Social Development: Book of Proceedings,
04/2014
Conference Proceeding
Auditing profession is exposed to public criticism for a while. That criticism is based on recent numerous corporate scandals which have, among other reasons, additionally flamed always interesting ...debate about auditor's independence. Are public expectations unreal and is there a space for fiirther concerns about auditing profession are some of the questions examined in this paper. In order to anticipate the role of auditing profession ahead of us, this paper focuses on current status of auditors and challenges auditors encounter in their work. Therefore, concentration of audit companies, forming auditor's fees, auditor's independence, providing non-audit services by auditors as well as auditing litigations are also examined in this paper. This paper tries to initiate discussion about auditing future. It is extremely important that auditing profession maintains it position in turbulent business environment. Only independent auditors with their report can enhance the reliability of information presented in companies' financial statements which are basic decision making tool for investors and creditors.
Recent numerous corporate scandals and also severe contemporary economic situation in majority of world countries raise again questions about purpose of external auditing. Since external auditing is ...based on the independence of people engaged in process of external auditing the discussion about issues that can endanger auditor's independence is brought up very often. In correlation with turbulent changes in business environment potential sources of endangering auditor's independence are increasing. With the regard to the fact that only independent auditors can realize goals of external auditing which relate to expressing opinion about validity and objectivity of the financial statements, this paper analyses the impact major threats on auditor's independence. In that context, special focus is put on the analysis of the impact of auditor's fees on auditor's independence.
The main aim of this research was to analyse which financial statements information can be used to deduce distinctive characteristics of companies involved in money laundering. Findings indicate ...several ?red flags? which can potentially implicate fraudulent and unlawful activities. Some of these are significant increase of income while conducting such activities and decrease of income in years after, collaboration with ficticious companies which exist only to aid unlawful activities, using companies which are mostly small entrepreneurs and not subjected to rigorous regulations, internationality of operations usually exists etc. It is important to note that aforementioned ?red flags? are more apparent and easier to detect when analysing financial statements of micro and small entrepreneurs, because medium and large entrepreneurs have large figures in their balance sheets and income statements, which is more suitable for camouflage. The process of auditing has not proved to be very effective in detecting accounting manipulations and unlawful activities related to money laundering. Presumptive reasons for aforementioned fact are absence of auditor's rotation and engaging audit firms which do not belong to ?Big Four?. Considering lack of relevant and available information, inductive approach was optimal for this research given that it enables ?in depth? analysis of financial statements in order to determine distinctive characteristics which can be basis for future researches.
Ovo istraživanje u fokusu razmatranja ima odnos eksterne revizije i nadzornog odbora s ciljem utvrđivanja postojećeg stanja tog odnosa u Republici Hrvatskoj te mogućih smjernica za poboljšanje odnosa ...eksterne revizije i nadzornog odbora u praksi. Osim toga, ono je usmjereno i na analiziranje odnosa između eksterne revizije i nadzornog odbora koji mogu biti u funkciji povećanja učinkovitosti eksterne revizije s jedne, ali i samog nadzornog odbora s druge strane, uključujući i testiranje tih odnosa u praksi naših trgovačkih društava. Korištenjem metode analize i sinteze, te indukcije i dedukcije istražuju se relevantni teorijski i metodološki aspekti eksterne revizije, te se ekspliciraju odnosi eksterne revizije i upravljačkih struktura. Temeljem provedenog empirijskog istraživanja i to metodom ankete analiziraju se odnosi između eksterne revizije i nadzornog odbora, te se potvrđuje polazna hipoteza da optimalni odnosi između eksterne revizije i nadzornog odbora mogu poboljšati učinkovitost rada i eksterne revizije i nadzornog odbora.
Audit report is the output of audit activities and communication tool through which auditors transmit the conclusions drawn on the basis of the collected audit evidence to users of financial ...statements. Through this paper authors analyze the audit reports of companies listed on the Zagreb Stock Exchange in 2014. The goal of this research is to determine the types of opinion that auditors usually express with particular reference on emphasis of matter paragraph and frequency of stating this section in the audit report. Emphasis of matter paragraph is used to focus users' attention to matters presented or disclosed in the financial statements that are of such importance that they are fundamental to users' understanding of the financial statements. According to ISA 706 "Emphasis of matter paragraphs and other matter paragraphs in the independent auditor's report" in the emphasis of matter paragraph are included issues related to an uncertainty relating to the future outcome of exceptional litigation or regulatory action, early application (where allowed) of a new accounting standard that has a pervasive effect on the financial statements and issues related to a major catastrophe that has had, or continues to have, a significant effect on the entity's financial position. Also, in the emphasis of matter paragraph the auditor can highlight the issue of going concern. Going concern is one of the fundamental accounting assumptions, which is based on the fact that the company will continue to operate in the future. The auditor should assess going concern assumption and in an appropriate way, if necessary, include this issue in the audit report. Through this paper authors analyze the frequency of appearance of the emphasis of matter paragraph in the audit reports of companies listed on the Croatian capital market and also analyze issues that the auditors most frequently emphasized in this section. Considering the difficulties that the Croatian economy is facing in recent years and the large number of pre-bankruptcy settlements, it is analyzed how often auditors emphasize the issue of going concern within the framework of the audit report and the way this issue is included in the audit report.
In the last few decades audit committees have been imposed as one of the key mechanisms of corporate governance at the global level and as sub-committees of the supervisory boards they play a key ...role in ensuring the transparency of financial reporting. However, numerous corporate scandals that have occurred suggest that audit committees do not fulfill their tasks in the structure of corporate governance and, in practice, unfortunately, are more a fashion accessory than actual operative body of corporations. In this paper authors examine status and characteristics of audit committees in the Republic of Croatia. It is analyzed whether audit committees operate with the aim of improving the corporate governance system and increasing the financial reporting transparency or they represent only a symbolic gesture created only with purpose of meeting regulatory requirements. Research on the status and role of audit committees in the Republic of Croatia was conducted based on annual survey of the Code of Corporate Governance that companies listed on the Stock Exchange must submit to the Zagreb Stock Exchange. The main goal of this research is to analyze the existing practices of companies listed on Zagreb Stock Exchange in terms of the existence of the audit committee and its independence in order to determine the role of audit committee in corporate governance system on the example of Croatian companies.
