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This study analyzes the impact of auditing on the financial performance of insurance companies in Kosovo. The data of the companies that are used are for the period 2015-2020. The data are panel type. Through Gretl software, with OLS we tested our hypotheses. As a dependent variable (measure of financial performance) we used ROA, while as independent variables we took the leverage, firm age, firm size, firm capital, tangible assets, liquidity and firm growth. We also tested the ROA ratio as a variable dependent on specific factors of insurance companies (independent variables). While their relationship with the audit was tested using the following three variables as representatives for the audit: the size of the audit firm, the mandate / term of the audit firm and the relationship between the audit firm and the insurance firm (rotation). From all the models we have tested, trying to exhaust all the possibilities of testing for the possible impact of external audit on the performance of insurance companies in Kosovo, we have noticed that the most important or statistically significant variables are the size of the firm, leverage, and growth of the firm. From audit variables, only the audit mandate has turned out to be positive and significant, in the performance of audit companies in Kosovo. Therefore, insurance companies in Kosovo should pay significant attention to these variables, of course trying to increase the role of external audit in their performance.

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