Factors that determine the fees for audit NGOs financial statements in Kosovo

• Author: Bahtijar Berisha - Luan Vardari - Bekim Berisha
• Position: Faculty of Economics, University of Prizren
• Pages: 243-248

ISSN 2410-3918

Acces online at www.iipccl.org

243

IIPCCL Publishing, Tirana-Albania

Academic Journal of Business, Administration, Law and Social Sciences Vol. 2 No. 1

March 2016

Factors that determine the fees for audit NGOs financial statements in

Kosovo

Bahtijar Berisha

Faculty of Economics, University of Prizren

Luan Vardari

Faculty of Economics, University of Prizren

Prizren, 20000, Kosovo

Bekim Berisha

Faculty of Economics, University of Prizren

Abstract

The purpose of this paper is to identify, analyze and evaluate the potential factors that influence

the determinants of the fee/price of the NGOs financial statements audit in Kosovo based and

tested, generally, traditional determinants and known in economic literature on this issue. In

our study, we have chosen the NGO sector in Kosovo to investigate the factors that determine

the fee/price of their financial statements, because the non-governmental organizations are

among the first organizations that have gone through the audit process after war disintegration

of former Yugoslavia, and to our knowledge no similar research was undertaken. The study

is generally based on data collected through a questionnaire, sector financial audit of NGOs

in Kosovo’s reality, focusing on the group of respondents who are professional in this field as

statutory auditors, certified auditors and certified accountants.

By the results of this analysis related to the importance variables of the model, it was found

that the size, complexity, audit risk, NGO audit market, competition, international character

and the number of donors who fund NGOs and the number of projects they develop, have a

significant impact on the fee/price of the financial audit of NGOs Kosovo.

Keywords: NGOs; Financial statements; Financial Audit.

Jel Code: L31, M42, H83

Introduction

In Kosovo, the audit as an economic activity is regarded as a relatively new field,

experience and its development stages are generally associated with the birth and

development of the state of Kosovo after the war and dissolution of the former

Yugoslavia. Therefore, our objective is focused on audit practices and the development

of the audit and assurance services after 1999, and specifically our research will focus

on the research and the impact of factors affecting fee/price of audit services in the

NGO sector in Kosovo. Based on theoretical and empirical literature, most of the

factors affect directly or indirectly the determination of the fees for audit and assurance

services.

Simunic (1980) is among the first authors who gives a comprehensive definition on

audit fees and assurance services, fees / pricing audit is the product of the unit price