MANDATORY AUDIT OF FINANCIAL STATEMENTS: DOES AGRICULTURAL SECTOR DIFFER FROM OTHERS?
DOI:
https://doi.org/10.5937/ekoPolj2102407KKeywords:
agriculture, public companies, audit opinion, Belgrade stock exchange, Big 4Abstract
The main purpose of this paper is to determine if there are any differences when it comes to the type of opinion and content of audit reports between agricultural and other public companies (non-agricultural). Research sample consists of 398 public companies, and this number makes up about 70% of the total number of public companies listed on the Belgrade Stock Exchange. The sample was divided into two groups; one comprising companies from the agriculture, forestry and fishing sector (29); while the second group consists of public companies from other sectors (369). The research results indicate that companies in the first group received unqualified auditors opinions more often than second group companies. The similarity between the first and the second group is the dominant use of auditing services of domestic companies with an average share of 64.70% compared to the international and Big 4 auditing companies.
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2. Bartov, E., Gul, F., & Tsui, J. (2000), Discretionary-Accruals models and audit qualifications, Journal of Accounting and Economics, 30(1), 421–452. https://doi.org/10.2139/ssrn.214996
3. Belgrade Stock Exchange, Information Services, Retrieved from https://www.belex.rs/proizvodi_i_usluge/recnik (October 25, 2019)
4. Bradshaw, M., Richardson, S., & Sloan, R. (2001), Do analysts and auditors use information in accruals?, Journal of Accounting Research, 39(1), 45–74. https://doi.org/10.1111/1475-679X.00003
5. Butler, M., Leone, A., & Willenborg, M. (2004), An empirical analysis of auditor reporting and its association with abnormal accruals, Journal of Accounting and Economics, 37(2), 139-165. https://doi.org/10.1016/j.jacceco.2003.06.004
6. Dencic-Mihajlov, K., & Spasic. D. (2016). Mandatory and Voluntary Disclosures of Serbian Listed Companies – Achieved Level and Some Recommendation for Improving their Relevance. International Journal of Business and Economic Sciences Applied Research, 9(1), 27-38.
7. FAOSTAT (Food and the Agriculture Organization of the UN), Retrieved from http://www.fao.org/faostat/en/#data (October 21, 2019)
8. Fischer, M., & Marsh, T. (2013). Biological assets: Financial recognition and reporting using US and international accounting guidance. Journal of Accounting and Finance, 13(2), 57-74.
9. Francis, J., & Krishnan, J. (1999), Accounting accruals and auditor reporting conservatism, Contemporary Accounting Research, 16(1), 135–165. https://doi.org/10.1111/j.1911-3846.1999.tb00577.x
10. Gabric, D., Bosnjak, Z. (2017), Empirijska analiza obeležja značajnih pogrešnih prikazivanja u fnansijskim izveštajima preduzeća u Federaciji BiH. Zbornik radova Ekonomskog fakulteta Sveučilišta u Mostaru, 23(1), 7-25. Preuzeto sa https://hrcak.srce.hr/202145 (Oktobar 25, 2019) [in English: Gabric, D., & Bosnjak, Z. (2017). An empirical analysis of the characteristics of material misstatements in the financial statements of companies in the Federation of BiH. Journal of Economy and Business Faculty of Economics, University of Mostar, 23 (1), 7-25. Retrieved from https://hrcak.srce.hr/202145 (October 25, 2019)]
11. Hsieh, H.F., & Shannon, S. (2005), Three Approaches to Qualitative Content Analysis, Qualitative Health Research, 15(9), 88-127. https://doi.org/10.1177/1049732305276687
12. Jovkovic, B., & Djurdjevic, M. (2018). Comparative analysis of the cause of modification in auditors opinion in financial sector and real sector companies, Contemporary issues in economics, business and management, Faculty of economics University of Kragujevac, 401-412. Retrieved from http://ebm.ekfak.kg.ac.rs/sites/default/fles/download/EBM%202018.pdf
13. Jovkovic, B. (2018), The analysis of auditors reports of insurance companies in the Republic of Serbia, Teme, 42(4), 1277-1295. https://doi.org/10.22190/teme1804277j
14. Karapavlovic, N., Obradovic, V., & Bogicevic, J. (2020). The use of historical cost and fair value for property and plant and equipment measurement – evidence from the republic of Serbia, Economic Annals, 65(227), 95-118. https://doi.org/10.2298/eka2027095k
15. Kondic, N., & Poljasevic, J. (2015), Adekvatnost pitanja koja dovode do skretanja pažnje u revizorskom mišljenju u Republici Srpskoj. Zbornik radova Ekonomskog fakulteta Sveučilišta u Mostaru, Posebno izdanje 2015, 174-188. Preuzeto sa https://hrcak.srce.hr/204412 (Novembar 5, 2019). [in English: Kondic, N., & Poljasevic, J. (2015). Adequacy of the questions that comes pursuing attention to auditorship opinion in the Republic of Srpska. Journal of Economy and Business Faculty of Economics, University of Mostar, Special edition 2015, 174-188. Retrieved from https://hrcak.srce.hr/204412 (November 5, 2019)].
16. Lin, S., Jiang, Y., & Xu, Y. (2011), Do modified audit opinions have economic consequences? Empirical evidence based on financial constraints, China Journal of Accounting Research, 4(3), 135–154. https://doi.org/10.1016/j.cjar.2011.06.004
17. Ljubisavljevic, S., & Jovkovic, B. (2016). Revizija finansijskih izveštaja. Ekonomski fakultet Univerziteta u Kragujevcu, Kragujevac.
18. Ljubisavljevic, S., Jovkovic, B., & Stancic, V. (2014). Vrste mišljenja iznetih u revizorskim izveštajima privrednih društava grada Kragujevca za period 2010- 2012. Stanje i perspektive ekonomskog razvoja grada, Ekonomski fakultet Univerziteta u Kragujevcu, 487-500. Preuzeto sa http://www.ekfak.kg.ac.rs/images/Nir/ProjekatFakulteta/Zbornik2014.pdf (April 27, 2021). [in English: Ljubisavljevic, S., Jovkovic, B., & Stancic, V. (2014). Types of opinions expressed in the audit reports of companies of the city of Kragujevac for the period 2010-2012. Status and prospects of economic development of the city, Faculty of economics University of Kragujevac, 487-400. Retrieved from http://www.ekfak.kg.ac.rs/images/Nir/ProjekatFakulteta/Zbornik2014.pdf (April 27, 2021)].
19. Lloyd, A., & Malcolm, B. (1997). Agriculture and the family farm in the economy. in J. Lees (Eds.) A legacy under threat? Family farming in Australia, 59-80. The University of New England Press, Armidale.
20. Louwers, T., Blay, A., Sinason, D., & Strawser, J. (2018). Auditing & Assurance Services. McGraw-Hill Education, New York.
21. Melville, A. (2019). International Financial Reporting: A Practical Guide. Person Education Limited, Harlow.
22. Muhammad, K., & Ghani, E. (2014), A fair value model for bearer biological assets in promoting corporate governance: A proposal, Journal of Agricultural Studies, 2(1), 16-26. https://doi.org/10.5296/jas.v2i1.4630
23. Obradovic, V., Cupic, M., & Dimitrijevic, D. (2018), Application of International Financial Reporting Standards in the Transition Economy of Serbia, Australian Accounting Review, 28(1), 48-60. https://doi.org/10.1111/auar.12187
24. Popovic, S., Novakovic, S., Djuranovic, D., Mijic, R., Grubljesic, Z., Anicic, J., & Majstorovic, A. (2017), Application of international accounting standard-16 in a public company with predominantly agricultural activities, Economic research, 30(1), 1850-1864. https://doi.org/10.1080/1331677X.2017.1383171
25. Rosenfeld, P. (2006). Contemporary Issues in Financial Reporting: A useroriented approach. Routledge. New York.
26. SBRA (The Serbian Business Registers Agency), Retrieved from http://www.apr.gov.rs/ (December 3, 2019)
27. Securities Commission Republic of Serbia, Retrieved from http://www.sec.gov.rs/index.php/en/regulations/implementation/opinions (October 10, 2019)
28. Spasic, D. (2018), Do Serbian companies provide relevant disclosures about goodwill?, Economic Themes, 56(1), 127-138. https://doi.org/0.2478/ethemes-2018-0008
29. Stanisic, N., Radojevic, T., & Stanic, N. (2019), Predicting the type of auditor opinion: statistics, machine learning, or a combination of the two?, The European Journal of Applied Economics, 16(2), 1-58. https://doi.org/10.5937/EJAE16-21832
30. Stanković, V., Mrdak, G., & Miljković, M. (2019). Economic-legal analysis of international investments. Oditor – časopis za menadžment, finansije i pravo, 6(3), 89-122. https://doi.org/10.5937/Oditor2003089S
31. Zecevic, M., Pezo, L., Bodroza-Solarov, M., Brlek, T., Krulj, J., Kojic , J., & Maric, B. (2019), A business model in agricultural production in Serbia, developing towards sustainability. Ekonomika poljoprivrede, 66(2), 437-456. https://doi.org/10.5937/ekoPolj1902437Z
32. Zhang, Y., & Wildemuth, B. (2019). Qualitative Analysis of Content, 318-329. Applications of Social Research Methods to Questions in Information and Library Science, Libraries Unlimited, California.
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Published
2021-06-24
How to Cite
Kljajić, M., Mizdrakovic, V., & Milojevic, M. (2021). MANDATORY AUDIT OF FINANCIAL STATEMENTS: DOES AGRICULTURAL SECTOR DIFFER FROM OTHERS?. Ekonomika Poljoprivrede, 68(2), 407–422. https://doi.org/10.5937/ekoPolj2102407K
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