PurposeThe purpose of this research is to show the impact of the pandemic on the budget of Bosnia and Herzegovina (BiH) as a developing country. It also aims to give an answer as to how BiH politicians used budgetary measures to respond to the pandemic and what key economic factors influenced the design of those measures.Design/methodology/approachThe study conducted detailed analyses of budgets at level of central government, as well as other publicly available documents of relevant governments bodies, international statistics and media reports up to the end of June 2020.FindingsDecline of economic activity and a number of budgetary measures adopted by central BiH authorities under the influence of characteristics of BiH economy, characteristics of public finance and available source of funding, resulted in less government revenues and sizable government expenditures to assist the economy and public health system. The fiscal stability achieved over the past years and low level of debt allowed BiH authorities to build a deficit into the rebalanced budget. Most of the deficit was covered with the International Monetary Fund (IMF) assistance and in part also through internal borrowing and with surpluses/ deferral revenues from the previous year.Research limitations/implicationsAt this point, it is impossible to predict what kind of impact the pandemic-related crisis will have on BiH public finances and whether further economic interventions will be needed.Originality/valueThis paper shows the measures that developing country governments dependent on external funding sources can take in times of crisis and what their impact is on the budget.

Stabile and functional financial sector is important part for stability and development of national economy. Having on mind specific features of financial system in Bosnia and Herzegovina as bank dominated financial sector we will analyse changes in structure of financial sector and behaviour of major sector in financial system in the period from 2005 to 2017. Changes in financial sector in Bosnia and Herzegovina have been analyzed through a series of indicators for major part of financial sector banking and non-banking financial entities. Also, authors will analyses changes which are made in institutional framework for bank and non-bank financial entities towards integration in the EU financial sector.

Purpose: One of the ways to enhance transparency and usefulness of audit reports is to include information on key audit matters (KAMs). In this paper, based on the presented KAMs, we investigate transparency of audit reports of listed companies in Bosnia and Herzegovina and in Croatia. Methodology: For the purposes of this research, we collected and systematised data from published audit reports and then analysed them by means of descriptive statistical methods. Results: The research results show that in Croatia only a few audit reports lack a section on KAMs and there is no difference between the audit reports issued by the Big Four and the reports of other audit firms. In Bosnia and Herzegovina, most audit reports do not include a section on KAMs, but, unlike the Big Four, who disclose at least one KAM, other audit firms generally do not present any. Additionally, the research results show differences in the number of communicated KAMs between the audit reports prepared by the Big Four in Croatia and their reports for Bosnia and Herzegovina. There are also differences in the type of KAMs used in the two observed countries. Conclusion: Having analysed the situation in the two developing countries, we obtained different results. The discrepancies mainly stem from the varying degrees of transparency of the audit profession in each country.

Revizijski okvir svake zemlje članice EU trebao bi biti usklađen s Direktivom 2014/56/EU i Uredbom (EU) br. 537/2014 koja se odnosi na specifičnosti obavljanja zakonske revizije subjekata od javnog interesa. Države članice dužne su donijeti odgovarajuće odredbe za osiguravanje djelotvorne primjene Uredbe. U okviru Uredbe, državama članicama su dane brojne mogućnosti odabira opcija dostupnih za korištenje u njihovoj lokalnoj provedbi. Cilj istraživanja je napraviti komparativnu analizu između zemalja članica EU s obzirom na implementaciju opcija o posebnim zahtjevima revizije subjekata od javnog interesa iz Uredbe (EU) br. 537/2014 kako bi se utvrdile ključne razlike i sličnosti između zemalja članica EU, koristeći sljedeće kriterije usporedbe: definicija subjekata javnog interesa u zemljama članicama EU, rotacija revizora ili revizijskih društava te glavnih partnera, pružanje nerevizijskih usluga, struktura revizijskih naknada primljenih od subjekata javnog interesa te revizijsko izvještavanje. Koristeći znanstvenu metodu istraživanja za stolom, analiziran je revizijski okvir 28 zemalja članica EU i to za primjenu te iskorištene opcije o posebnim zahtjevima revizije subjekata od javnog interesa iz Uredbe (EU) br. 537/2014. Na temelju provedene analize revizijskog okvira zemalja članica EU, može se zaključiti da je transponiranje Uredbe rezultiralo regulatornim različitostima.