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 75
- Downloads 0
Applications of ‘Pitching Research’ in an Emerging Economies Research Journal: Insights and Reflections
Research Question: Can we create a highly structured (but practical) abstract, which communicates the essential elements demanded by an expert scholarly reader? Motivation: A key aim of this journal is to enable “relevan...
Differential advantages of Serbia – internal and external perspective
Research question: This study examines differences and similarities in internal and external perception of differential advantages of Serbia, seen through the eyes of internal (Serbian nationals) and the most important e...
Big data analytics in the health sector: challenges and potentials
Research Question: The introduction of the Big Data concept in the healthcare sector points to a major challenge and potential. Motivation: Our goal is to indicate the importance of analyzing and processing large amounts...
Estimating consultant engagement in the corporate lifecycle: study of the bias in South Eastern Europe
This paper surveys perception bias regarding the timing of proactive consultant engagement. It aims to improve efficiency and effectiveness of consultant engagement. Research is based on the primary dataset from South Ea...
Student Perception of Benefits from Being Engaged in International Case Study Competitions
The main aim of this research paper is to present experience of the students who participated in international business case competitions from Serbia. The findings indicate the six main benefits for students at case comp...