FINANCIAL REPORTING OF BUSINESS ENTITIES AND ETHICAL DILEMMAS OF STUDENTS IN BOSNIA AND HERZEGOVINA

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Ševala Isaković-Kaplan
Lejla Demirović
Mahir Proho

Abstract

The fair and reliable financial reporting of business entities is extremely important for strengthening the confidence among business entities, acting positively on the scope of business activities and achieved results. On the other hand, individuals, businesses and the entire society, suffered huge losses, due to the frauds in financial reports, by dropping the confidence in the accounting profession. The public's expectations from the accounting profession are that its professionals consciously reject participation in any fraud activities, and be really fighters for the real financial reporting of the entities. In the light of specified expectations, this paper try to consider the ability of students of economic specialization in Bosnia and Herzegovina in recognizing of cases of false financial reporting among different situations that (no)can include fraud characteristics, and their readiness to take active participation in the fight against frauds in business entities and economic crimes, in general.
The results of the research showed that research participants clearly recognize cases of false financial reporting among various fraudulent activities, that they have a high level of awareness regarding the seriousness of the fraud type and its negative consequences for entities, and that they express their unreserved readiness to report these cases to the competent authorities with the purpose of prosecution.
Keywords: financial reports, fraud, accounting profession, ethics.
JEL: M49

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Author Biographies

Lejla Demirović, Co-Author

Assistant Professor, School of Economic and Business Sarajevo, Trg oslobođenja - Alija Izetbegović 1, Sarajevo

Mahir Proho

Internal Audit, AS Holding, Paromlinska 43, Sarajevo