o:5765 The Importance Of Preparation Of Financial Statements In The Process Of Making Significant Management Decisions By Top Management In Enterprises en Abstract: The preparation of financial statements is of great importance for the normal operation of heterogeneous enterprises. Financial reporting can contribute to the improvement of the overall business of the company by enabling the improvement of crucial business decisions made by the top manager. Financial reports that present the company's business in a realistic way can enable top management to better manage the company, because business decisions are made in such a timely manner and with a greater dose of security. At the same time, making new business decisions is safer if the financial statements reflect the real business of the company from the previous business period. In this way, financial reporting can improve and modernize the overall management of companies, which is of great importance in the business of companies in transition countries. Initiating a change in the substance of financial reporting can be very different. The authors point out that in the event of a change in the financial reporting framework, the key role can be played by internal auditors 'reports received by top management in the form of internal auditors' recommendations, but also by internal control reports submitted to top management. The processes of establishing internal control and internal audit mechanisms are aimed at substantially improving the overall management of the company. Keywords: valid financial statements, decision, internal control and audit 1552101 1844-7007 2024-10-22T08:41:53.943Z 44 yes 46 Ivan Arnautović Goran Vitomir person Veljko Samardžić person Tatjana Davidov person Sanda Nastić Fakultet za ekonomiju i inženjerski menadžment u Novom Sadu person 0009-0006-1636-5620 Slobodan Popović person 2021 application/pdf 958424 https://unilib.phaidrabg.rs/o:5765 no yes 16 70 1552253 2021 Annals-Economy Series 4 97 103 2021