ANALYSIS OF VARIATIONS IN THE PERFORMANCE OF AUDIT FIRMS IN THE REPUBLIC OF SERBIA

The paper presents an analysis of the performance of audit firms in the Republic of Serbia in the period 2008-2010. For this period the trend in the number of audit firms in the Republic of Serbia, the size and number of employees in audit firms, and the participation of individual audit firms in total operating revenue, employment, and net income were observed. Further, correlation analysis of variations in operating revenue, employment, and net income of audit firms was carried out. The analysis showed the absence of the expected correlation between operating revenue and net income, as well as between the number of employees and net income. Additional analysis showed that the newly established audit firms achieved lower than average results and a higher level of variation in the level of profitability in relation to the audit firms that have been in the audit service market longer.