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The paper presents an analysis of the performance of audit firms in the  Republic of Serbia in the period 2008-2010. For this period the trend in the  number of audit firms in the Republic of Serbia, the size and number of  employees in audit firms, and the participation of individual audit firms in  total operating revenue, employment, and net income were observed. Further,  correlation analysis of variations in operating revenue, employment, and net  income of audit firms was carried out. The analysis showed the absence of the  expected correlation between operating revenue and net income, as well as  between the number of employees and net income. Additional analysis showed  that the newly established audit firms achieved lower than average results  and a higher level of variation in the level of profitability in relation to  the audit firms that have been in the audit service market longer

Analysis of variations in the performance of audit firms in the Republic of Serbia