A result of Audit Thoughts and opinions on Stock Prices

 Effect of Taxation Opinion in Stock Prices Essay


Issue 2(31)/2012 ISSN: 1582-8859 Effects of Review Opinion on Stock Prices: The case of Croatia and Slovenia

Arbër H. HOTI Teaching Assistant

Faculty of Economics, University or college of Prishtina, [email protected] com

Hysen Ismajli Associate Profesor

Faculty of Economics, University or college of Prishtina, [email protected] com

Skender Ahmeti Associate Profesor

Faculty of Economics, University or college of Prishtina, skender. [email protected] com

Arben Dërmaku Assistant Profesor

Teachers of Economics, University of Prishtina, [email protected] com


The aim of this kind of paper is usually to determine the consequence of stock rates following the announcement of audited financial studies of Slovenian and Croatian public interest entities. Each of our research is to examine the importance of variables and their significance about the audit in explaining the reactions of stock cost movements (fluctuations). In this analyze we have utilized discriminant research and logit models. Discriminant analysis and logit were performed with type of view as the dependent changing and eleven financial ratios as independent variables. Evaluation results show that the review quality, the auditor's thoughts and opinions have an impact for the evolution of stock prices.


Keywords: Audit statement; audit opinion; stock cost; financial transactions; abnormal come back; JEL Category: M42, M40

1 . Advantages In about half of the circumstances of taxation reports you will discover notes together with the most frequent this statement. Without qualifying our opinion, all of us draw focus on: Qualified taxation reports are often issued pertaining to: scope limits, violation of GAAP (i. e. IFRS, US GAAP, IFRS pertaining to SMEs, etc), material misstatements, inadequate disclosure, change in accounting method certainly not justified, etc . There are also " modified" audit reports that warn users of particular issues. Strictly speaking these are unqualified reports, since no misstatements are diagnosed. Modified review reports are usually issued intended for: change in accounting method justified, going-concern, divided responsibility statement (more than one auditor), and justified departure by GAAP (i. e. IFRS, US GAAP, IFRS to get SMEs, etc), emphasis on a certain matter. Auditors use this report(s) to pull attention to an essential accounting issue or a great audit scope/test issue. A pending tax problem may seem like it is a disclosure issue (a contingent legal responsibility that is not likely and considerable so no official documenting is necessary but disclosure is


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Issue 2(31)/2012 ISSN: 1582-8859 necessary). In the event the statement discloses this, the audit statement need not always be altered. Nevertheless , if it is material, this could be an emphasis of the matter. In Croatia and Slovenia, the audit information are grouped as unqualified reports, matters of emphasis, with different, negative opinion, and skilled opinion. In accordance to Spathis (2003) the majority of qualifications monetary statements in Croatia and Slovenia appreciate exception while type of certification which is presented in case when the issues will be material in nature however, not fundamental disagreement or doubt. The motivation of this examine is focused within the following determinant factors with regard to Croatia and Slovenia shown companies: 1 ) The very low rate of qualified review reports (0. 69%) back in 2007 which in turn reduced to 0. 00% in 2008. It was also 0. 00% in 1998, june 2006 and 2004, 2 . The change of strictly untrained reports coming from 58. 04% in 3 years ago to 81. 36% in 2008. It had been 27. 53 in 1998, thirty eight. 42% in 2005 and 8. 4% in 2004)*, 3. The high charge of duty contingent liabilities (35. 3 1%) in the year 2007 which usually reduced to 6. 45% in 2008. It absolutely was 7. 62% in 1998, 47. 60% in 2005 and 49. 86% in 2005, 4. The rise of the rate of " going-concern opinions" from installment payments on your 79% in 2007 to five. 36% in 2008. It had been 3. 19% in june 2006 and no going-concern opinions in 2004, five. audit reviews with remarks about accounting method alterations...

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