Dr. Pejović Presented SAI's Contribution to Corporate Financial Reporting Reform

07 December 2018.
Dr. Pejović Presented SAI's Contribution to Corporate Financial Reporting Reform

Insufficiently reliable accounting records, possibility to delete entered data, possibility to change orders without cancellation, unreliable accounting softwares are some of the findings emphasized by the state auditors when conducting financial statements auditing, said Dr. Duško Pejović, President and Auditor General of the State Audit Institution (SAI).

When speaking on International Scientific Conference FINIZ 2018, organized in Belgrade at the Signidunum University, titled "Role of the Financial and Non-Financial Reporting in Operational Accountability", Dr. Pejović highlighted that financial statements provide comprehensive view of the condition of a business entity and its operating results in a summary form.

In long-term sense, without transparent financial reporting it would be impossible to allocate financial assets efficiently, build desirable investment environment and prevent conditions for manipulations and embezzlement of funds by the entity in question, Dr. Pejović highlighted.

According to him, status of professionals preparing financial statements should be resolved, then quality of the statements should be improved, international accounting standards in this area should be implemented and substantive control of financial statements should be prescribed by the management, along with accountability for their regularity.

Dr. Pejović reminded that in future SAI will conduct stand-alone financial statements audit separately from compliance audit, and in such manner better results will be achieved.

We will conduct audit of certain part of compliance audit, and/or the most risky part. For instance, when auditing local authorities' budgets this year we did not conduct compliance audit of entire operations, but three key areas - calculation of salaries, public procurement and assuming obligations above approved appropriations. That makes up 60-80% of overall irregularities in local authorities' budgets, Dr. Pejović said.

When speaking on increasing number of performance audits, Auditor-General emphasized that SAI now has 17% of auditors trained in performance audit, instead of 5% in the past.

Numerous scientists and experts in financial and non-financial reporting in operational accountability presented the latest trends in that field.

Main goal of the conference was to improve overall performance of operational accountability in the Republic of Serbia.

Video link of the plenary session of the Conference may be found on http://finiz.singidunum.ac.rs/