THE IMPORTANCE OF PREPARING AN INTERNAL AUDIT REPORT IN REPORTING TO TOP MANAGEMENT OF A COMPANY THAT MAKES KEY MANAGEMENT DECISIONS IN ITS WORK

Maja Jokic, Bogdan Laban, ARNAUTOVIc Ivan, POPOVIc Dragana and POPOVIc Slobodan
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Maja Jokic: MASTER OF INDUSTRIAL ENGINEERING AND MANAGEMENT, FACULTY OF TECHNICAL SCIENCES, UNIVERSITY OF NOVI SAD, TRG DOSITEJA OBRADOVICA 6, 21000 NOVI SAD, SERBIA
Bogdan Laban: CITY ADMINISTRATION OF THE CITY SUBOTICA, TRG SLOBODE 1, 24000 SUBOTICA, SERBIA
ARNAUTOVIc Ivan: HIGH SCHOOL OF ENTREPRENEURSHIP, 11000 BELGRADE, SERBIA
POPOVIc Dragana: ECONOMIC FACULTY OF SUBOTICA, SEGEDINSKI PUT 9-11,24000 SUBOTICA, SERBIA
POPOVIc Slobodan: AUTHORIZED PUBLIC SECTOR INTERNAL AUDITOR JKP GRADSKO ZELENILO NOVI SAD, TEMERINSKI PUT BB, 21000 NOVI SAD, SERBIA

Annals - Economy Series, 2020, vol. 2, 37-44

Abstract: Internal audit in a large number of heterogeneous companies contributes to the improvement of the overall business of the company by contributing to the improvement and making new business decisions. This generally improves and modernizes enterprise management. Top management decisions based on the recommendations of internal company auditors are less risky. Management risk with management using the decisions and recommendations of internal auditors has a lower degree of risk. Thus, top management decisions are made with less risk to the survival of the company. Management should be seen as the governing body of the company. He, as the governing body, is constantly looking for a way to improve management in the enterprise. The processes for establishing internal audit mechanisms should be designed to contribute to the structural improvement of the overall management of any enterprise with respect to the business in which it operates, the size of the enterprise, and more. Internal audit can contribute to helping top management by making continuous recommendations that can help top management improve enterprise management. The authors emphasize that their contribution in this paper is primarily focused on demonstrating the importance of introducing internal audit in companies. This becomes part of the management structure of the company by adopting the recommendations of internal auditors from the corporate governance body or top management of the company.

Keywords: business; decision; enterprise; management; audit. (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (4)

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