KEY PREDICTORS OF INTERNAL SUPERVISION OF FINANCIAL STATEMENTS

Abstract

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.