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Preliminary communication
https://doi.org/10.22598/iele.2020.7.2.4

TRENDS ON REPORTING MATERIALITY INFORMATION IN THE INDEPENDENT AUDITOR’S REPORT – CASE OF CROATIA

Boris Tušek   ORCID icon orcid.org/0000-0002-0942-4761 ; Faculty of Economics&Business, University of Zagreb, Zagreb, Croatia
Ana Ježovita   ORCID icon orcid.org/0000-0002-1740-6862 ; Faculty of Economics&Business, University of Zagreb, Zagreb, Croatia

Fulltext: english, pdf (625 KB) pages 85-130 downloads: 146* cite
APA 6th Edition
Tušek, B. & Ježovita, A. (2020). TRENDS ON REPORTING MATERIALITY INFORMATION IN THE INDEPENDENT AUDITOR’S REPORT – CASE OF CROATIA. InterEULawEast, 7 (2), 85-130. https://doi.org/10.22598/iele.2020.7.2.4
MLA 8th Edition
Tušek, Boris and Ana Ježovita. "TRENDS ON REPORTING MATERIALITY INFORMATION IN THE INDEPENDENT AUDITOR’S REPORT – CASE OF CROATIA." InterEULawEast, vol. 7, no. 2, 2020, pp. 85-130. https://doi.org/10.22598/iele.2020.7.2.4. Accessed 30 Nov. 2021.
Chicago 17th Edition
Tušek, Boris and Ana Ježovita. "TRENDS ON REPORTING MATERIALITY INFORMATION IN THE INDEPENDENT AUDITOR’S REPORT – CASE OF CROATIA." InterEULawEast 7, no. 2 (2020): 85-130. https://doi.org/10.22598/iele.2020.7.2.4
Harvard
Tušek, B., and Ježovita, A. (2020). 'TRENDS ON REPORTING MATERIALITY INFORMATION IN THE INDEPENDENT AUDITOR’S REPORT – CASE OF CROATIA', InterEULawEast, 7(2), pp. 85-130. https://doi.org/10.22598/iele.2020.7.2.4
Vancouver
Tušek B, Ježovita A. TRENDS ON REPORTING MATERIALITY INFORMATION IN THE INDEPENDENT AUDITOR’S REPORT – CASE OF CROATIA. InterEULawEast [Internet]. 2020 [cited 2021 November 30];7(2):85-130. https://doi.org/10.22598/iele.2020.7.2.4
IEEE
B. Tušek and A. Ježovita, "TRENDS ON REPORTING MATERIALITY INFORMATION IN THE INDEPENDENT AUDITOR’S REPORT – CASE OF CROATIA", InterEULawEast, vol.7, no. 2, pp. 85-130, 2020. [Online]. https://doi.org/10.22598/iele.2020.7.2.4

Abstracts
It is known that the financial statement audit represents the corporate governance mechanism crucial for ensuring the appropriate quality of the financial reporting process and financial statements. One of the most significant aspects of the financial statement audit process is the application of the materiality concept. Auditors apply the concept in planning and performing the process, as well as in evaluating the effects of identified misstatements. The International Accounting Standards Board (IASB) defines that the information provided in financial statements is material if could reasonably be expected that will influence the business decisions of the stakeholders. Although not mandatory, recent Standards and regulation changes resulted in reporting materiality details by a significant number of auditors in Croatia. The research question is how that practice develops from the implementation year, 2016, to nowadays, 2020, and what can be expected in the future. Following the research problem, the objective of the paper will be to investigate the current state and future perspective of disclosing information regarding materiality in the independent auditor’s report in Croatia. To investigate the research problem, we analyzed independent auditor’s reports of Croatian listed companies (public interest entities - PIEs) from 2016 to 2019. The research is conducted by applying appropriate statistical methodology as descriptive statistics, cluster analysis, and non-parametric tests, and regression analysis.

Keywords
financial statement audit, the International Standards on Auditing, independent auditor’s report; materiality; key audit matters; public-interest entities; the IAASB; communication gap; information gap

Hrčak ID: 250339

URI
https://hrcak.srce.hr/250339

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