Naslov
The Effect of Audit Firm Size on its Level of Profitability

Autori
Sever Mališ, Sanja ; Brozović, Mateja

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

Izvornik
An Enterprise Odyssey: Managing Change to Achieve Quality Development / Načinović Braje, Ivana ; Jaković, Božidar ; Pavić, Ivana - Zagreb : Ekonomski fakultet Sveučilišta u Zagrebu, 2018, 227-237

ISBN
978-953-346-057-4

Skup
9th International Conference “An Enterprise Odyssey: Managing Change to Achieve Quality Development”

Mjesto i datum
Zagreb, Hrvatska, 23.05.2018. - 26.05.2018

Vrsta sudjelovanja
Predavanje

Vrsta recenzije
Međunarodna recenzija

Ključne riječi
analysis of financial statements, audit, profitability, audit firm size, Croatia

Sažetak
Survival of a company in the market, regardless of its business activity, is conditioned by a successful business management, which implies meeting two criteria: security and performance. The company's success in accounting terms refers to cost-effective and profitable business, which means that the company has to generate enough revenue to cover its expenditures and to achieve a satisfactory return. Audit of financial statements as s service activity has many specifics in relation to other activities that affect the profitability of audit firms. The main aim of the paper was to investigate if the profitability of audit firms is affected by their size. The profitability of large audit firms in Croatia was compared to the profitability of other audit firms on the basis of standard financial indicators. Research has shown that the median of large audit firms' profitability indicators is significantly higher than the median of other audit firms. Large differences in return on assets arise from a double positive effect of significantly higher profit margins on the one hand and a faster turnover of assets on the other.

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

POVEZANOST RADA