Are audit opinions related to bankruptcy forecasting of companies listed on the sector a-agriculture, forestry and fisheries?

Abstract

Audit reports and audit opinions are of great importance to transparency and investors in their decision making. In addition to investors, many users are interested in the operation of a company. Due to their numerosity and the numerousness of their claims, it is important to consider the possibility of overseeing the occurrence of bankruptcy. The paper applies Altman's Z-score model for companies operating in emerging markets, that is, the possibility of bankruptcy on a sample of companies listed on the Belgrade Stock Exchange within the A sector-agriculture, forestry and fishery in the period 2016-2018. At the same time, the auditors' opinions are analyzed and whether there is a correlation between the auditors' opinions and the areas in which the companies operate according to the results of Altman's Z-score model. With all the limitations it presents, this paper offers guidance when looking at the relationship between audit opinions and the types of zones in which companies operate, according to the results of the Z-score model. Through the research done in the paper, questions were raised for future insight and development through the opportunities and specific fields addressed in this paper.