The role of audit in the quality management of business entities

Abstract

Nowadays, when the term 'audit' is mentioned, everybody thinks of evaluating presented financial statements. Although the auditor's work is largely based on the financial audit nowadays, and obtaining and evaluating evidence relating to claims by the management with regard to economic activities and events, presented in the form of accounting or financial statements and prepared in accordance with a specific framework for financial reporting, i.e. with generally accepted auditing standards, in the modern environment the significance of operational audit and audit compliance with the legislation has been increasing. Measuring the effects, i.e. evaluating the effectiveness and efficiency of economic entities. is a very serious and difficult task, especially because the contemporary business environment has radically changed during the last few decades and it can be described as very complex, dynamic, uncertain, due to constant changes and all this because of the accelerated process of globalization and development of e-business. In this paper, we will define the term business audit and indicate its increasing importance in the evaluation of performance, and business results as well as the degree to which these objectives are achieved by the management structure and management of these business entities.