KORUPCIJA U REVIZIJI FINANSIJSKIH IZVJEŠTAJA
CORRUPTION IN AUDIT OF FINANCIAL STATEMENTS

Summary/Abstract: Any social system, independent of the governing property relations, has the need for honest and truthful information about the work of companies. Such interest is increasing with the development of joint stock companies and with the effort to protect the owners of money, potential investors, against possible fraud. Revision appears as an independent institution, which should give a neutral opinion on the assessment of the financial statements and their compliance with legal regulatory. However, with revision comes and corruption, which is trying to present the facts in the best light for the sake of their own interests. Such actions are often justified by difficulties in collecting evidence, using appropriate techniques and test audit. This paper will analyze the basic tasks of the audit, the corrupt actions that the auditor uses but it will also provide suggestions for reducing corruption in the field of auditing. The aim is to support activities related to the objective presentation of business results and financial condition of companies in order to attract investors. The results of this study underscore the need for audit engagements under contract by the maximum of four years, which would prevent the need to certify false testimony in order to extend the audit engagement.

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