Financial accounting in Croatia is based on IFRS (International Financial Reporting Standards) and Croatian tax regulations. However, accounting reporting for listed companies and other entities is not sufficiently defined within IFRS. Additionally, for the sake of harmonization, reporting should be aligned with EU requirements. It can be said that the current forms of reporting do not adequately meet all practical requirements placed upon them. Furthermore, changes in IFRS will significantly impact the presentation of business results. A particular issue is the discrepancies between accounting and tax laws and their impact on reporting. A specific segment of the accounting reporting problem is the verification of compliance with appropriate regulations and the prevention of manipulation. Therefore, the auditing segment and its impact on the quality of reports should also be investigated. The goal is to propose various models of accounting reporting and auditing that will provide higher-quality accounting information for target users. The basic hypothesis is that the proposed financial reporting models will result in more qualitative and suitable information for business decision-making. Scientific evidence is expected to demonstrate that the proposed model will provide higher-quality accounting reports for the targeted user groups. The results will be verified as follows: a) Through the method of comparison (including synthesis and analysis) b) Empirical research of secondary data c) Empirical research using surveys and interviews d) Statistical methods will be used to process the collected data to draw conclusions. With the development of the financial market in Croatia, integration into European structures, and the globalization of business, the issue of accounting reporting, specifically the content, quality, and transparency of reports, has become increasingly important. Improving the quality of financial reporting in Croatia can significantly impact the attraction of foreign capital.