| Opis: | The main purpose of the diploma project was to theoretically present the process of auditing financial reports in line with the applicable legislation. In addition, the aim was to discuss the changes brought by the new legislation in this field, and whether the amendments to the Companies Act (Act Amending the Companies Act) and International Auditing Standards (IAS 701, 2017) will bring any significant improvements to this area. In this part, I also defined the Auditing Act (ZRev-2), and presented in greater detail Article 40 of said Act, which defines the scope of the auditor’s report on the financial statements. I continued by presenting the proposed amendments to the content of the Auditing Act, which refers to auditing and appraisal and is still in the process of being adopted (proposal for the Auditing Act).
The entire diploma project is divided into four main parts. The first part presents the legal framework of the companies’ business operations, as well as a brief outline of the annual report and its structure. I described the role of each section of the annual report (accounting, business), along with the rules underlying the drawing up of these sections. The second part focuses on the concept of auditing; it explains who a certified auditor is, what knowledge they must possess, what are the fundamental principles they operate by, and what constitutes the code of professional ethics for external auditors. I also presented the process of drawing up a report based on legal and professional rules, and concluded with a chapter on the adequacy and effectiveness of external auditing. In addition, I focused on presenting key new features in an auditor’s report, which are the result of all of the amendments adopted thus far.
Since the area of auditing has recently seen numerous standards (IAS and SAS) and articles of the Companies Act (ZGD-1) amended and supplemented, I decided, for the practical part of by project, to conduct a survey among experts in this area and analyse their opinions. |
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