Reliability (Accurately Presentation) Of The Quality Of Financial Reports With Emphasis On The Capital Market Of Montenegro

Qualitative characteristics of financial statements are the key assumptions of construction, functioning and maintaining of sound economic and financial system of any economy. Therefore, the main objective of financial statements (according to a new Conceptual framework of financial statements 2010) is to provide financial information about an entity that is the subject of reporting, because because the information is necessary for investors (both existing and potential), lenders and creditors in order to make adequate decisions concerning the financing of a given entity. In this sense, high or satisfactory quality of financial reporting is a process which influences numerous factors, where we believe that successful implementation of this process necessarily depends on the continuous and concerted cooperation activities not only between the authorities and professional accounting associations, but also between accounting professionals and final users. Therefore, reliability (accurately presentation) as a primary characteristic of financial statements and it is substantially determined by the audit, which results in the form of expressed opinions which is (or should be) the secure basis for making strong system of financial markets and economy of every society. Because of the significant effects that produce the quality of financial reports, Montenegro has recognized the importance of the same, so the last few years has intensified efforts of relevant institutions in the direction of improving the financial reporting environment. Proceeding from this, the paper will analyze from several perspectives, and assess the reliability (accurately presentation) of financial statements in the capital market of Montenegro and give some recommendations with a view to improving the environment of financial reporting and the creation of database users (internal and external) to mitigate the risk business and financial decision-making.