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EXPLORINGAVENUES TO IMPROVINGAUDIT QUALITY
IN THE BOSNIANAND HERZEGOVINIANACCOUNTING
FIRMS THROUGHACOMPARISON OFAUDIT
PROC...
Research objectives
• Determining quality of audit in Bosnia and Herzegovina
• Relevance of common determinants of audit q...
Bosnia and Herzegovina
• Comprised of two Entities
• Federation of Bosnia and Herzegovina (FBiH)
• Republic of Srpska (RS)...
Literature review
• Interviews based on literature and structured in the same
way
1) Individual characteristics of auditor...
Primary data collection methods
• Interviews
• Interviews were structured because they were all based
on the literature re...
Analysis of findings
oIndividual characteristics of auditors in BiH
oRegulation at national level
oEducation in BiH
oAudit...
Analysis of findings
FBiH
Number of firms 67
Revenue:
Audit services 10,139,799 63.21%
Accountancy services 2,767,955 17.2...
Recommendations for improvement and
limitations of the research
• Improvement in education
• Regulation at national level
...
Conclusion
• Research can be seen as a general overview of the
current situation with the auditing profession in BiH
• It ...
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Exploring avenues to improving audit quality in the Bosnian and Herzegovinian accounting firms through a comparison of audit processes with international best practice

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Exploring avenues to improving audit quality in the Bosnian and Herzegovinian accounting firms through a comparison of audit processes with international best practice

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Exploring avenues to improving audit quality in the Bosnian and Herzegovinian accounting firms through a comparison of audit processes with international best practice

  1. 1. EXPLORINGAVENUES TO IMPROVINGAUDIT QUALITY IN THE BOSNIANAND HERZEGOVINIANACCOUNTING FIRMS THROUGHACOMPARISON OFAUDIT PROCESSES WITH INTERNATIONALBEST PRACTICE By Mrinal Gaurav 2015
  2. 2. Research objectives • Determining quality of audit in Bosnia and Herzegovina • Relevance of common determinants of audit quality for auditing profession in BiH • Importance of audit for developing countries in attracting foreign investors • Audit in Big 4 offices in BiH
  3. 3. Bosnia and Herzegovina • Comprised of two Entities • Federation of Bosnia and Herzegovina (FBiH) • Republic of Srpska (RS) • Developing country with 3.800.000 inhabitants • Modern auditing profession in existence for 15 years • Two associations of accounting and auditing in existence; One is an IFAC member while another is an associate member
  4. 4. Literature review • Interviews based on literature and structured in the same way 1) Individual characteristics of auditors and their influence on quality 2) Office size, pricing and quality 3) Non-audit service fees and audit quality 4) BiH Framework Accounting and Auditing Law 5) Frameworks of Audit Quality – 3 levels • Engagement level • Firm level • National level
  5. 5. Primary data collection methods • Interviews • Interviews were structured because they were all based on the literature review • However, some interviews had additional questions depending on role and position of an interviewee • In total 6 people were interviewed • Big 4 interviews: - 2 partners, 1 director and 1 senior manager • Other interviews: - Quality Assurance Supervisor in Chamber of Auditors of FBiH and former member of Commission of Accounting and Auditing in BiH
  6. 6. Analysis of findings oIndividual characteristics of auditors in BiH oRegulation at national level oEducation in BiH oAudit quality in Big 4 offices oAudit quality in local firms
  7. 7. Analysis of findings FBiH Number of firms 67 Revenue: Audit services 10,139,799 63.21% Accountancy services 2,767,955 17.26% Other non-audit services 1,964,012 12.24% Other income 1,168,531 7.28% Total revenue 16,040,297 100.00% Number of firms and characteristics of those firms in FBiH
  8. 8. Recommendations for improvement and limitations of the research • Improvement in education • Regulation at national level • Assistance from international community • Limitations of the research 1) Research not conducted in RS 2) Sample size 3) Information about education obtained through opinions and not through research
  9. 9. Conclusion • Research can be seen as a general overview of the current situation with the auditing profession in BiH • It can be used as a basis for further research • Areas for further research • Education in BiH • Research on Laws that are used in BiH • Influence of stakeholders on audit quality

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