The Possibility of Predictions in Auditor’s Opinion: The Case of the Serbian Tobacco Industry

  • Nataša Spahić University of Novi Sad, Faculty of Sciences
  • Bojana Vuković University of Novi Sad, Faculty of Economics


Research Questions: This paper investigated whether there is a possibility for predictions of an auditor’s opinion that can be used to predict, in an extremely accurate way, future developments in one company. Motivation: The research of Dopuch, Holhausen and Leftwich (1987); Kirkos, Spathis and Manolopoulos (2007) or Kirskos (2012) and Kim and Upneja (2014) open space for new challenges for using auditing methods.The most trying task is to find a technique that will be able to timely, accurately and with the least waste of resources respond to the challenge. The fact that auditors are forced to expand the scope and purpose of the audit work, respecting new risks that are continually changing represents the primary inspiration for this paper. Idea: Our goal was to explore whether one of the possible techniques for prediction the auditor’s opinion – multivariate discriminant analysis – can precisely predict a correct future audit opinion and whether this analysis is useful for finding solutions to performing predictions. Data: The analysis was conducted using data from financial statements of 4 Serbian tobacco companies of years 2011, 2012, 2013, 2014 and 2015 published by the Serbian Business Registers Agency. Tools: The presented research, based on theoretical and mathematical support, uses statistical software tools Statistica. Findings: The application of discriminant analysis in Serbian tobacco companies showed statistically major variables of the balance sheet, manely “Intangible assets", "Supplies" and "Liabilities". Following these variables, we obtained results which we used as the predictors. The outcome of our preliminary investigation presented accurate and correct prediction which is also confirmed by historical data. The result of this investigation can be used for further more complex investigations when using some variables that will lead to discriminatory analysis for more classification groups to mark and rank the most significant variables for expressing the audit opinion. Contribution: Provided information is important for every business, because every entity that is listed on the business market aims to be as better as possible, and find out and exploit the possibility of avoiding a negative result.

Author Biographies

Nataša Spahić, University of Novi Sad, Faculty of Sciences

Ph.D. Nataša Spahić is a associate professor at the Faculty of Sciences, Department of Mathematics and Informatics, University of Novi Sad. She teaches at the basic and masters studies in subjects closely related to her scientific interests: Audit, Accounting and Analysis of balance sheet.

Besides to the professors' engagement she performs the function of Director of internal audit in OTP Bank Serbia ad Novi Sad.

Bojana Vuković, University of Novi Sad, Faculty of Economics

Bojana Vuković, Ph.D is a assistant professor at the Faculty of Economics, Subotica, Department of Finance, Banking, Accounting and Auditing. She teaches Auditing, Analysis of Financial Statements and Auditing of Public Sector Entities. The teaching activity is combined with the applied activity working auditing of financial statements and providing consulting services in different projects.

How to Cite
Spahić, N., & Vuković, B. (2018). The Possibility of Predictions in Auditor’s Opinion: The Case of the Serbian Tobacco Industry. Management:Journal Of Sustainable Business And Management Solutions In Emerging Economies, 23(3), 47-56. doi:10.7595/management.fon.2018.0015