Naslov
Emphasis of matter paragraph - practice of audit reporting in the Republic of Croatia

Autori
Filipović, Ivica ; Bartulović, Marijana ; Filipović, Mario

Vrsta, podvrsta i kategorija rada
Radovi u zbornicima skupova, cjeloviti rad (in extenso), znanstveni

Izvornik
4th International OFEL Conference on Governance, Management and Entrepreneurship / Tipurić, Darko ; Kovač, Ivana - , 2016, 388-400

ISBN
978-953-8079-01-6

Skup
4th International OFEL Conference on Governance, Management and Entrepreneurship

Mjesto i datum
Dubrovnik, Hrvatska, 15.04.2016. - 16.04.2016

Vrsta sudjelovanja
Predavanje

Vrsta recenzije
Međunarodna recenzija

Ključne riječi
audit report ; emphasis of matter paragraph ; going concern

Sažetak
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.

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

POVEZANOST RADA