The Role of External Audit in Improving the Quality of Financial Statements and Financial Sustainability of LLCs in Kosovo
Session
Management Business and Economics
Description
Nowadays, we have an ever-increasing attention to issues related to the role of external auditing in ensuring the quality of financial reports and the financial stability of businesses, given that LLCs are among the most widespread forms of businesses in our country. This paper will investigate the relations between external auditing, financial reporting quality and financial sustainability by identifying key financial performance indicators derived from the results calculated from financial reports. For a firm to operate in a competitive and dynamic market, financial sustainability is very important for the long-term stability of the company. This study is based on an empirical and analytical approach to understand the impact of external auditing on the quality of financial reports and the financial sustainability of LLCs. The sample will include 150 LLCs which will be selected based on the annual turnover of audited financial statements. From the analysis of the results of the work, we can conclude that increasing the effectiveness of external auditing has a significant impact on the quality of financial reports and financial transparency of businesses, making fair accountability to stakeholders increase trust and influence the strengthening of internal capacities, enabling better financial risk management.
Keywords:
External audit, financial quality, financial stability, LLCs, financial risk
Proceedings Editor
Edmond Hajrizi
ISBN
978-9951-982-41-2
Location
UBT Lipjan, Kosovo
Start Date
25-10-2025 9:00 AM
End Date
26-10-2025 6:00 PM
DOI
10.33107/ubt-ic.2025.441
Recommended Citation
Abdullahu, Dafina, "The Role of External Audit in Improving the Quality of Financial Statements and Financial Sustainability of LLCs in Kosovo" (2025). UBT International Conference. 56.
https://knowledgecenter.ubt-uni.net/conference/2025UBTIC/MBE/56
The Role of External Audit in Improving the Quality of Financial Statements and Financial Sustainability of LLCs in Kosovo
UBT Lipjan, Kosovo
Nowadays, we have an ever-increasing attention to issues related to the role of external auditing in ensuring the quality of financial reports and the financial stability of businesses, given that LLCs are among the most widespread forms of businesses in our country. This paper will investigate the relations between external auditing, financial reporting quality and financial sustainability by identifying key financial performance indicators derived from the results calculated from financial reports. For a firm to operate in a competitive and dynamic market, financial sustainability is very important for the long-term stability of the company. This study is based on an empirical and analytical approach to understand the impact of external auditing on the quality of financial reports and the financial sustainability of LLCs. The sample will include 150 LLCs which will be selected based on the annual turnover of audited financial statements. From the analysis of the results of the work, we can conclude that increasing the effectiveness of external auditing has a significant impact on the quality of financial reports and financial transparency of businesses, making fair accountability to stakeholders increase trust and influence the strengthening of internal capacities, enabling better financial risk management.