Author: Prof. Dr. Sci. Vinko Belak

Revised ISAs and strengthened external control of audit increase the requirements that auditors must meet when performing audits of financial statements. Among the increased requirements, the most prominent is the obligation of auditors to obtain reasonable assurance that the financial statements are free from fraud. In practice, this means that auditors must detect “red flags” indicating possible fraud. In addition, for the purpose of more precise auditing, auditors must examine transactions at several levels of materiality. It is evident that audit procedures will need to change, as it is almost impossible to meet these requirements using traditional approaches. The solution offered is the application of artificial intelligence in auditing. In this context, the research hypotheses are set to answer the following key questions: 1. Why is the introduction of AI in auditing necessary if auditing has functioned thus far without the use of AI? 2. Can the use of AI increase the quality and scope of the audit without a proportional increase in workload and excessive cost growth? 3. Should full automation of the audit be introduced through the application of artificial intelligence (AI)? Based on an analysis of recent literature and the author’s own experience, it is confirmed that the introduction of AI in auditing is necessary, as it will increase the quality and scope of the audit without a proportional increase in workload and without excessive cost growth. However, the introduction of artificial intelligence into auditing also raises certain challenges relating to the transparency, impartiality, privacy and reliability of the results that AI produces. Therefore, the final conclusion is that at the current stage of development of artificial intelligence it is appropriate, and even necessary, to use AI models as a tool in auditing, but that final judgments and decisions must still be made by the auditor. Consequently, full automation of the audit through the use of artificial intelligence (AI) may become achievable in the future.

Authors: Prof. Dr. Senada Kurtanović, Almir Lipovača, BSc (Econ.), Mr. Sci. Ismet Đuzelić

Audit procedures focused on financial expert witnessing increase the effectiveness of detecting irregularities and fraud in real estate transactions. A special focus is placed on the methods and techniques that auditors and financial experts use to identify irregularities, money laundering, manipulations and other unlawful activities in real estate operations. The paper analyses the importance of auditing as a key tool for ensuring the transparency and integrity of financial statements, as well as the contribution of financial expert witnessing in court proceedings and judicial decision-making. The aim of the paper is to show how important precise professional analysis by court-appointed financial experts is in combating economic crime in this area. Financial expert witnessing and auditing significantly contribute to detecting economic crime related to real estate, thereby increasing transparency and trust.

Author: Dr. Sci. Gordana Lazović

Internal audit is an independent function that examines and evaluates the activities of an institution and its organisational units. The purpose of internal audit is to provide independent and objective assurance and consulting services with the aim of improving the institution’s operations. The goal of internal audit is to provide services that support management in effectively carrying out their responsibilities. Internal auditors are independent in their work and are directly accountable to the head of the institution they audit. The authority of internal auditors derives from legal and secondary regulations governing the field of internal auditing. The extent to which internal audit will independently, objectively and professionally examine and assess the enterprise’s operations, the functioning of internal control systems and the achievement of set objectives depends, among other things, on the organisation and management of the internal audit function.

Authors: Assist. Prof. Dr. Sci. Zijad Lugavić, Assist. Prof. Dr. Sci. Edin Jahić, Mr. Sci. Eldina Čustović, Adnan Lugavić, bachelor – electrical engineer

Digital transformation of public administration represents the foundation of the modernisation of the public sector, directed towards more efficient, transparent and higher-quality public service delivery. At the same time, global cyber security is becoming a key requirement for maintaining citizens’ trust and protecting data. The aim of the research is to analyse the basic elements of the digital transformation of public administration and link them to security challenges, with particular reference to the circumstances in Bosnia and Herzegovina. The subject of the research is the relationship between the digitalisation of public processes and the threats arising from the global digital environment. The methodological framework includes qualitative analysis of relevant literature, comparative comparison of EU and regional practices, and an analytical-synthetic approach to examining the situation in BiH. The results show that, despite progress in the development of e-government, BiH still faces shortcomings in institutional coordination, fragmented systems and insufficient implementation of cyber security standards. The conclusions of the research highlight the need for strategic planning of digital transformation, strengthening capacities in the field of cyber security and alignment with EU standards. Particular emphasis is placed on the importance of interoperable platforms and the development of a security culture. As guidelines for future research, the paper proposes analysis of the impact of digital transformation on the quality of public services, assessment of specific cyber threats in BiH, and models of cooperation between the public and private sectors.

Authors: Prof. Dr. Sci. Dijana Vuković, Senada Dupovac, Said Piralić

Directive 2006/43/EC of the European Parliament and of the Council of 17 May 2006 and Directive 2014/56/EU of the European Parliament and of the Council of 16 April 2014 amending Directive 2006/43/EC prescribe, among other things, the minimum requirements for the performance of audit engagements both for auditors and audit firms, while allowing national legislation to impose stricter requirements. The Directives define the authorisation to practise as certified auditors and audit firms, which implies the good reputation of auditors, withdrawal of authorisation, educational qualifications required for auditors, professional examination for auditors (theoretical and practical knowledge), exemptions from examinations, required qualifications for long-term practical experience, continuing education, and the manner of granting approval to certified auditors from other EU countries. The 2021 Law on Accounting and Auditing of FBiH introduced changes in the conditions for obtaining licences/authorisations to practise as certified auditors in FBiH. This paper analyses and compares the prescribed conditions in Southeast European countries (Croatia, Serbia, Montenegro, BiH). It presents similarities and differences, as well as the challenges and dilemmas that arise in the implementation of existing regulations in the field of licensing certified auditors, along with proposals for resolving dilemmas during the transitional period in relation to previous regulations in this area in the Federation of BiH.

Author: Assist. Prof. Dr. Sci. Mirnesa Baraković Nurikić

In the context of growing environmental, social and governance challenges, ESG (Environmental, Social, Governance) standards are becoming a key measure of success for modern companies on the international stage. This paper explores how the application of ESG principles affects the international competitiveness of firms and countries, relying on contemporary literature, available statistical data and examples of good practice. The focus is on the implications of ESG for investment flows, corporate reputation, regulatory changes and the positioning of developing countries in global value chains. Through an analytical and comparative approach, the paper demonstrates that ESG is not merely an additional requirement, but a strategic advantage in the era of sustainable development.

Authors: Assist. Prof. Dr. Sci. Mirjana Nedović, Dr. Sci. Mira Majstorović, Katarina Kulić, BSc (Econ.)

This paper examines the importance of branding of higher education institutions and its impact on students’ attitudes. Building a positive perception of a higher education institution results in a larger number of students and higher satisfaction with studying. Branding in the higher education sector, especially in an environment with strong competition between private and public higher education institutions, can make a crucial difference in students’ choices. The paper provides a detailed exploration and analysis of the elements that build a brand. With a strong visual identity, good reputation and engaging communication strategies, institutions can successfully position themselves on the market and influence students’ preferences when making their choice. The aim and purpose of the paper is to highlight the importance of branding in the context of higher education and to provide recommendations for higher education institutions to improve their branding and better respond to students’ needs and expectations. The research was conducted using a survey questionnaire and interviews. The paper applies scientific methods of description, synthesis, analysis and statistical methods, and then identifies students’ attitudes towards the branding of higher education institutions. This paper contributes to revealing new insights into the importance of branding in the higher education sector and emphasises the need for further research.