Financial audit and audit of financial statements

What a financial audit is and why it matters

A financial audit is an independent examination of a company's financial statements by a licensed auditor, resulting in an opinion on whether they present fairly the financial position, performance and cash flows under IFRS (or IFRS for SMEs) and the Serbian Law on Audit.

The auditor's report is not a formality. It gives your figures credibility with banks, investors, suppliers, regulators and group management. For foreign-owned subsidiaries it is often the one document that lets head office rely on local numbers; for Serbian companies it unlocks better financing terms and smoother transactions.

At Most revizija, every audit is led by a partner. We audit companies of all sizes — from small subsidiaries to large groups — and specialised projects in the film industry.

Types of audit we perform

• Statutory audit of annual financial statements — mandatory for large and medium-sized entities, public companies and entities above the revenue threshold.
• Voluntary audit for companies that want assurance for banks, investors or owners.
• Audit of consolidated financial statements for groups with Serbian parents or subsidiaries.
• Audit of group reporting packages prepared under a foreign parent's policies (IFRS, US GAAP, HGB), with reporting to the group auditor.
• Audit of donor-funded projects (EU, IPA, USAID, GIZ and other donors) under the donor's rules.
• Audit of specific areas or balances, compliance audits and agreed-upon procedures.
• Forensic audit and investigation of suspected irregularities.

Who must be audited in Serbia

Under the Law on Audit, a statutory audit is mandatory for large and medium-sized legal entities, public companies, parent companies preparing consolidated statements, and all legal entities and entrepreneurs with operating revenue above EUR 4.4 million in the previous year. Banks, insurers and other financial institutions are audited under their own laws. Details and thresholds are in our guide: Who must be audited in Serbia in 2026.

How the audit runs

1. Initial meeting and proposal. We learn about your business, structure and reporting framework and agree scope, team and timing.
2. Planning and risk assessment. We analyse your internal control environment, identify areas of material misstatement risk and tailor the audit programme.
3. Interim review. For year-end audits we test controls and transactions before year end, which shortens the final phase.
4. Year-end fieldwork. Substantive testing of balances and transactions, confirmations, inventory observation, review of estimates and disclosures.
5. Communication of findings. We discuss findings and proposed adjustments with management before the report is finalised.
6. Auditor's report and management letter. We issue the report with our opinion, in Serbian and English where required, and a letter with internal control recommendations.

Standards we work to

International Standards on Auditing (ISA) issued by the IAASB, International Financial Reporting Standards (IFRS) and IFRS for SMEs, the Serbian Law on Audit and Law on Accounting, and the Code of Ethics of the Chamber of Authorised Auditors of Serbia, aligned with IESBA.

Types of auditor's opinion

An unmodified opinion confirms the statements are fairly presented. A qualified opinion notes a specific exception. An adverse opinion states the statements are not fairly presented. A disclaimer is issued when sufficient evidence cannot be obtained. Where relevant, the report also includes Key Audit Matters and a management letter with practical recommendations.

Frequently asked questions