Performance Management of Auditing Companies in the Republic of Serbia

Abstract

The aim of this paper is to investigate the state of performance of audit firms registered in the Republic of Serbia, as well as the factors that manage performance. The research is based on the entire population of audit firms, based on financial reports for the period 2019-2020. that are publicly available. The performance of audit firms will be investigated from the aspect of profitability performance, where the indicators of return on assets nad return on equity is most often used. Performance analysis will be presented through descriptive statistical analysis. Performance management will be analyzed in terms of the impact of independent factors on ROA and ROE. The following will be defined as independent factors: the size of the audit firm, liquidity, indebtedness, belonging to the big four, growth and the like. The research of the influence of independent factors on the dependent variables of the performance of audit firms will be conducted on the basis of regression analysis. The results of descriptive analysis should indicate the state and trend of performance of audit firms, while the results of regression analysis should indicate the nature of the factors that drive the performance of audit firms.