The Possibility of Predictions in Auditor’s Opinion: The Case of the Serbian Tobacco Industry
Journal Title: Management: Journal of Sustainable Business and Management Solutions in Emerging Economies - Year 2018, Vol 23, Issue 3
Abstract
Research Questions: This paper investigated whether there is a possibility for predictions of an auditor’s opinion that can be used to predict, in an extremely accurate way, future developments in one company. Motivation: The research of Dopuch, Holhausen and Leftwich (1987); Kirkos, Spathis and Manolopoulos (2007) or Kirskos (2012) and Kim and Upneja (2014) open space for new challenges for using auditing methods.The most trying task is to find a technique that will be able to timely, accurately and with the least waste of resources respond to the challenge. The fact that auditors are forced to expand the scope and purpose of the audit work, respecting new risks that are continually changing represents the primary inspiration for this paper. Idea: Our goal was to explore whether one of the possible techniques for prediction the auditor’s opinion – multivariate discriminant analysis – can precisely predict a correct future audit opinion and whether this analysis is useful for finding solutions to performing predictions. Data: The analysis was conducted using data from financial statements of 4 Serbian tobacco companies of years 2011, 2012, 2013, 2014 and 2015 published by the Serbian Business Registers Agency. Tools: The presented research, based on theoretical and mathematical support, uses statistical software tools Statistica. Findings: The application of discriminant analysis in Serbian tobacco companies showed statistically major variables of the balance sheet, manely “Intangible assets", "Supplies" and "Liabilities". Following these variables, we obtained results which we used as the predictors. The outcome of our preliminary investigation presented accurate and correct prediction which is also confirmed by historical data. The result of this investigation can be used for further more complex investigations when using some variables that will lead to discriminatory analysis for more classification groups to mark and rank the most significant variables for expressing the audit opinion. Contribution: Provided information is important for every business, because every entity that is listed on the business market aims to be as better as possible, and find out and exploit the possibility of avoiding a negative result.
Authors and Affiliations
Nataša Spahić, Bojana Vuković
Keywords
Related Articles
- EP ID EP506641
- DOI 10.7595/management.fon.2018.0015
- Views 72
- Downloads 0
Factors influencing electricity consumption: a review of research methods
Research Question: This paper presents a review of empirical methods used by authors to determine the influence of different groups of factors that influence households’ electricity consumption. Motivation: The question...
Employee and the Self-Employed Job Satisfaction: Similarities and Differences
Research question: This paper investigates if there are differences between employees and the self-employed job satisfaction levels. Motivation: The motive for this research was the desire to determine the validity of th...
Impact of Leadership on Innovation: Evidence from the Hotel Industry
Research Question: The paper investigated a relationship between innovation and transformational/transactional leadership, as well as the impact of these two leadership styles on innovation. Motivation: As there are smal...
Measuring the Potential for Technology Entrepreneurship Development: Serbian Case
Research Question: This paper explores the potential for technology entrepreneurship development at the country level through the creation of a new composite index. Motivation: Motivation for this paper arises from the f...
The Influence of advertising media on brand awareness
In modern business conditions, the company sends its promotional message through various instruments of promotion, and therefore the different media. One of the instruments of promotion is economic propaganda (advertisin...