Sunčica Milutinović, Ivana Medved, Dragomir Dimitrijević

DOI Number
First page
Last page


Investors and other external stakeholders have more confidence in the reliability and quality of financial statements if they have information that entities continuously carry out preventive and comprehensive internal supervision of financial statements. The research was carried out with the aim of identifying factors that have a direct impact on the internal supervision of financial statements. As the key predictors of the internal supervision of financial statements in the Republic of Serbia, the category of entity, the internal supervision of the compliance of financial statements with the regulations, and the internal supervision of the preparation of financial statements have been identified. Two regression models are also defined that best describe the relationship between the observed phenomena.


Supervision, financial statements, compliance, preparation, regulations

Full Text:



Alzeban, A. & Gwilliam, D. (2014). Factors Affecting the Internal Audit Effectiveness: A Survey of the Saudi Public Sector. Journal of International Accounting, Auditing and Taxation. 23 (2014). 74–86. DOI: 10.1016/j.intaccaudtax.2014.06.001

Bruwer, J-P., Coetzee, P. & Meiring, J. (2017). Can Internal Control Activities and Managerial Conduct Influence Business Sustainability? A South African SMME Perspective. Journal of Small Business and Enterprise Development. DOI: 10.1108/JSBED-11-2016-0188

Christ, M.H., Masli, A., Sharp, N.Y. & Wood, D.A. (2015). Rotational Internal Audit Programs and Financial Reporting Quality: Do Compensating Controls Help? Accounting, Organizations and Society. 44 (2015). 37–59. DOI: 10.1016/j.aos.2015.05.004

Clinton, S.B., Pinello, A.S. & Skaife, H.A. (2014). The Implications of Ineffective Internal Control and SOX 404 Reporting for Financial Analysts. Journal of Accounting and Public Policy. 33 (2014). 303–327. DOI: 10.1016/j.jaccpubpol.2014.04.005

Dejnaronk, J., Little, H.T., Mujtaba, B.G. & McClelland, R. (2015). Factors Influencing the Effectiveness of the Internal Audit Function in Thailand. Proceedings of Conference: Business and Social Sciences Research Conference: Research for Development, Bangkok, Thailand, 10-11th December 2015. ISBN: 978-1-922069-90-0

Dmitrović, Lj. & Milutinović, S. (2011). The Control Mechanisms in Accounting. Strategic Management. 16 (2).

Gramling, A.A., O’Donnell, E.F. & Vandervelde, S.D. (2013). An Experimental Examination of Factors That Influence Auditor Assessments of a Deficiency in Internal Control over Financial Reporting. Accounting Horizons. 2 (27). 249–269. DOI: 10.2308/acch-50410

Isaac. A. (1951). Revision und wirtschaftsprüfung. Wiesbaden: Gabler Verlag.

Lin, Y.Ch., Wang, Y.Ch., Chiou, J.R. & Huang, H.W. (2014). CEO Characteristics and Internal Control Quality. Corporate Governance: An International Review. 1 (22). 24–42. DOI: 10.1111/corg.12042

Milutinović, S. & Medved, I. (2017). Supervision of Financial Reporting Through the Prism of the Regulatory Framework and Practice in the Republic of Serbia. Industrija. 45 (1). 99-120. DOI: 10.5937/industrija45-11653

Official Gazette of RS (2013). Accounting Law. No. 62/2013. Belgrade: Author.

Official Gazette of RS (2014). Rulebook on the Manner of Recognition, Evaluation, Presentation and Disclosure of Positions in the Individual Financial Statements of Micro and Other Undertakings. No. 118/2013, 95/2014. Belgrade: Author.

Official Journal of the EU (2013). Directive 2013/34/EU of The European Parliament and of the Council of 26 June 2013. Vol. 56. Brisel: Author. doi:10.3000/19770677.L_2013.182.eng

Yazawa, K. (2015). The Incentive Factors for the (Non-)Disclosure of Material Weakness in Internal Control over Financial Reporting. International Journal of Auditing. 19 (2015). 103–116. DOI: 10.1111/ijau.12035



  • There are currently no refbacks.

© University of Niš, Serbia
Creative Commons License CC BY-NC-ND
ISSN 0354-4699 (Print)
ISSN 2406-050X (Online)