Archive of Journal - Financing
Financing – scientific journal for economy
ISSUE 2018, No. 1, Article 4, Year of publication: 9, March, 2018
Criminal and civil liability of the auditor in relation to the client’s business
Miroslav Prerad, MSc*
One of the forms of regulation in the business of a corporate entity is introduction of a financial statements audit institute. The Law on Accounting and Auditing of Republika Srpska stipulates that auditing of financial statements is carried out in accordance with International Standards on Auditing. The auditing company may also be a co-perpetrator in the criminal offense with the client, where auditors report produces negative effects for other market participants.The introduction of criminal liability of a legal person in Republica Srpska legal system has led to a significant equalization of the rights and obligations of a natural person. At the same time, the equalization of the responsiveness towards third parties was also achieved. This is particularly important for the protection of participants in a market game, because sanctions in criminal proceedings have the meaning of special and general prevention.
Keywords: business entity, audit of financial reports, responsible person, legal responsibility, criminal liability, civil liability