THE IMPORTANCE OF CONTINUOUS AUDIT OF FINANCIAL STATEMENTS OF THE COMPANY OF COUNTRIES JOINING THE EU

Abstract

Approaching the Republic of Serbia the EU, an increasing number of operations of Management Company must comply with the laws and regulations of the EU. One of the most important task is to manage companies and do the job of auditing of financial reporting companies. There are two established types of audits. Internal audit work, done throughout the year and external, done by the end of the financial year. Both have an obligation to express opinions, which must have a background in the competence and independence. The scope of the audit, generally speaking depends on the legislation of national economies, then the law governing accounting, and at the end of the law that frames the audit functions. The auditor's opinion is necessary in order to ensure the credibility of financial statements. Considering the focus, audit can be seen as activity of audits essentially activities related to the financial statements that are subject to services performed by certified auditors. An opinion on the financial statements of companies are included in the audit reports. They are prepared and certified by independent auditors. The revision in the economic terminology means testing of accounting statements of business enterprises. Internal audit work is done throughout the year, but external to the end of the financial year. Both have an obligation to express opinions, which must have a background in competence. Auditing activities are performed independently, objectively and with a great deal of independence in the work, by internal and external authorized auditors, so that they can provide the necessary information to the users of audit reports. Internal auditing can be seen in the two main ranges. The first is within the company in which some processes are functioning the same. Another scope is wide level, including observation of the wider society and the state, and includes observation of the entire public sector of a country. This mode of operation of the internal audit, internal audit includes the individual reporting company, means the consideration of internal audit and it has to be lowered to the level of individual companies. In companies, external auditors, who are by definition independent in their work, for their work primarily correspond to shareholders. In contrast to the external auditors, internal auditors work as primary managers of enterprises. This is the essential difference in the observation of external and internal audit. Observation of internal audit as a tool, and internal auditors, can be seen as an extension and a logical continuation of the development of the internal control, which has existed for decades in companies. Therefore, it is quality work of internal control, all the more relevant to the external auditors, as they can be on it more fully and to a greater extent rely on the exercise of the function of external audit and control. Internal audit work in the enterprise can be seen through the answers to the three most common target internal audit in enterprises. Objectives and internal audits provide answers to three key questions that the internal participant auditors should submit to management: • explain the role of internal audit in a single company, • explain how to improve and maintain the quality of the work of internal auditors and • to compare the role of internal and external auditors, primarily through defining how each gathering evidence within their assigned his scope of work. The authors wanted to draw the attention of the professional public on the importance of the organization of internal audit in enterprises, as the same is performed continuously throughout the year and is the basis for all subsequent of audit and control. The authors point out that the auditing activities have to be done and carried out independently, objectively and with a great deal of independence in the work, by internal and external authorized auditors, so that they can provide the necessary information to all users of audit reports.

Keywords

• Audit
• business
• finance
• enterprise.