Snežana Radojičić

THE ROLE OF AUDIT IN REVEALING THE ECONOMY MISUSES

Summary

Auditing is a complex process of evaluating and assessing financial reports, the goal of which is to express the audit’s opinion on whether the financial reports reflect the real and objective financial state, business results, capital, and obligations. An audit ought to be independent, unbiased, and conscientious as well as to base his/her evaluation on available documents regarding business changes achieved. The procedure of auditing is unjustifiably limited to wrong statements in accounting reports. Namely, criminal actions lead to incorrect financial reports. Criminal actions in the field of accounting lead to different criminal deeds which bring about a great damage. In a situation when the number of criminal deeds is increased it is necessary to direct the auditing process to revealing criminal deeds using modified auditing process and an audit shoul be responsible for revealing criminal deeds.

KEY WORDS: auditing, financial reports, criminal deeds, modified auditing process, responsibility