As carriers of accounting information, financial reports reflect the success and safety of a company's operations. They provide management with primary guidelines in the business decision-making process, therefore their importance in forming the desired financial basis as a basis for making financial decisions is undeniable. According to the Accounting Law, financial reports consist of: balance sheet, income statement, other comprehensive income, cash flow statement, statement of changes in equiti and notes to financial statements. Their necessity in everyday business activities requires quality, objectivity and credibility of the presentation of all information. In order for the company to meet all the stated conditions, the ability and competence of the management to promptly recognize possible misuse of reports and malfeasance is crucial. Equally important is quality internal and external control, as well as educated and moral employees and auditors. The fact is that mistakes are a daily occurrence in business activities, and that is why a quick reaction and a strong internal control are crucial in order to prevent irregularities, errors and fraud.