Public companies and their business operations represent an important segment of the economic
system of a country and they could have a significant impact on its further economic growth.
Therefore, these companies should have a stable financial structure and be a model of high-quality
financial reporting, or else they could greatly impede smooth functioning of other stakeholders on
the market. With respect to that, the auditor is expected to provide going concern assessment in his/
her report in order to timely alert any red flags related to this issue. The purpose of this paper is to
analyse the solvency level and its impact on the type of auditor’s opinion. Therefore, the research
sample included 196 auditor’s reports on 50 public companies in Serbia for the period 2010-2013.
The research sample was further divided into two groups, solvent and insolvent, based on which we
have determined the most frequent matter in the auditor’s opinion. Moreover, we have noticed that
unqualified opinions with explanatory language make up half of the total, unqualified audit opinions,
with going- concern issue being most frequently addressed.
N. Arežina, V. Mizdraković, L. Jeremić, “THE ANALYSIS OF AUDITORS’ REPORTS IN RELATION TO THE CLIENTS’ SOLVENCY LEVEL,” in FINIZ 2015 - Contemporary Financial Management, Belgrade, Singidunum University, Serbia, 2015, pp. 88-91. doi: 10.15308/finiz-2015-88-91
Arežina, N., Mizdraković, V., Jeremić, L. (2015). THE ANALYSIS OF AUDITORS’ REPORTS IN RELATION TO THE CLIENTS’ SOLVENCY LEVEL. Paper presented at FINIZ 2015 - Contemporary Financial Management. doi:10.15308/finiz-2015-88-91