Accounting and Auditing arose from the need and essence of a market economy system based on the capital of well-known owners. Their primary task is to provide honest and objective information about the financial position of the company so that information users can make optimal decisions.
Unlike developed market economies where auditing has long since taken its place, auditing in the Republic of Croatia is still a young profession, emerging only at the end of the last century with the establishment of a market economy. In order to ensure the impartiality of the audit of the financial statements, the audit is conducted by special audit firms that are not involved in the operations of the entity, thereby enhancing the reliability of the financial information.
The audited financial statements of the company by an authorized auditor (audit firm) and his / her expert opinion should demonstrate the fair and objective financial position of the company. in addition to the audit of the entity’s financial statements, may also be extended to the audit of operations to indicate potential performance reserves and compliance audits.
An audit of an entity’s financial statements is regular. It is carried out for each financial year for all large enterprises and medium-sized enterprises (if organized as a joint stock company) and is intended primarily for external users, while the audit of operations is occasional and is intended primarily for internal users.

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