TRADITIONAL ACTIVITY INDICATORS IN THE FUNCTION OF DETERMINATION OF MATERIAL MISSTATEMENT IN THE FINANCIAL STATEMENTS OF THE COMPANIES

Sa？etak The financial statements of general purpose are important source of information for purpose of business decision-making. Therefore, it is important to present financial statements fairly and faithfully without material misstatement. The subject of this paper is to explore the impact of traditional indicators of activity on the determination of material misstatements in the financial statements. The main objective of this research is to create a model of an impact of the traditional indicators of activity on determination of material misstatement in financial statements of the companies. Identification of traditional indicators of activity that contribute to the determination of material misstatements in the financial statements is also one of the objectives of this research. The collected data were analysed by inferential statistical methods, and the tables have used to present the research results. Research results revealed that the traditional indicators of the activity contribute to the determination of material misstatements in the financial statements of the companies