Abstract
In accordance with the Law on Insurance and the Law on Accounting and Audit, insurance companies in Serbia are required to prepare financial statements. These materials are submitted to the Agency of Business Registers and the National Bank of Serbia from 31st December of the reporting year according to the Law on Accounting and Audit. Insurance companies which undergo a change in a legal position, such as mergers, divisions, i.e. sales, have to submit financial statements with a cut-off on the day determined by the decision on the change of a legal position or on the day determined by the sales contract. Furthermore, financial reports are submitted in the cases of the insolvency proceedings or liquidation of an insurance company. The notion of audit in an insurance company has its importance from the Insurance Law itself, in which the entire Chapter 9 is dedicated to the audit of financial statements. It deals with the performance of the audit, prior consent to the selection of the audit company, liabilities of the audit company, and the check of the audit report and the notification of the body responsible for supervising the audit. The significance and role of audit in an insurance company is far broader, which will be explored later in this paper.
Highlights
Financial statements in the insurance companyAs in other activities, cash reports in insurance provide an overview of the position of the company and the business changes that have occurred in it
The statement of cash flows created by each insurance company represents one of the basic financial statements
There is an external audit and an internal audit
Summary
Cash reports in insurance provide an overview of the position of the company and the business changes that have occurred in it. Their goal is to provide information on the financial statement and success of the company, which will be useful for economic decision-making. Based on the numerous specifics of the insurance industry, financial statements include data on assets, liabilities, equity, income, expenses and cash flows. With regard to international monetary reporting standards, these reports should include income statements, cash flow statement, a statement of changes in equity, necessary remarks and explanations and a statistical appendix. In the continuation of this paper, the most important distinctions of the balance sheet, income statement and cash flow statement will be highlighted
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