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Audit modifications in emerging markets: The Macedonian Stock Exchange

Author

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  • Dusica STEVCEVSKA SRBINOSKA

    (University American College Skopje, ORCID)

Abstract

As a vital external governance mechanism, the audit report transmits important information about the entityb s performance and reporting quality. Benefiting from a novel dataset, this study is the first paper to evaluate audit report modifications in North Macedoniab s emerging economy.Using a sample of 99 nonfinancial listed entities for 2014b 2017, we detect that profitability, leverage and report timeliness are significantly associated with audit modifications. Opinions depict a deteriorating trend, whereby qualifications are principally attributable to disagreements with auditee management.Regulators could further focus on the precision in defining audit materiality, especially in reports with multiple qualifications yet lacking negative opinion.

Suggested Citation

  • Dusica STEVCEVSKA SRBINOSKA, 2022. "Audit modifications in emerging markets: The Macedonian Stock Exchange," Romanian Journal of Economics, Institute of National Economy, vol. 55(2(64)), pages 43-69, December.
    • Handle: RePEc:ine:journl:v:55:y:2022:i:64:p:43-69
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    More about this item

    Keywords

    audit opinion; audit qualifications; audit modifications; financial indicators; Macedonian Stock Exchange;
    All these keywords.

    JEL classification:

    • P41 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Planning, Coordination, and Reform
    • M42 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Auditing

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