Pub Date : 2023-02-14DOI: 10.20869/auditf/2023/169/001
Maria Grosu, C. Mihalciuc, I. Robu
In today's unstable environment, one of the overarching principles for financial reporting of major importance to users of financial statements is going concern. The management of companies is responsible for disclosing information about whether the entity is a going concern or not. In addition, financial auditors must also obtain sufficient and reliable evidence to support their audit opinion on the appropriateness of management's use of the going concern principle in the preparation of financial statements. This study considers the following directions: it first investigates the extent to which financial auditors confirm management's use of the going concern principle in the preparation of the annual financial statements; it then tests the asymmetric relationship between going concern and earnings reporting and between going concern and loss reporting; finally, it seeks to identify the extent to which going concern issues at company level identified by the auditor, loss reporting and negative equity influence the type of audit opinion issued. The sample is represented by companies listed on the regulated market of the BSE in the period 2016-2021 and highlights that the accuracy of the use of the going concern principle in the preparation of financial statements by management is often refuted by financial auditors, that there are business areas in which there are entities for which going concern problems have been reported in one period, but rather gains are reported in the immediately following period, and for other business areas, there are entities for which no going concern problems have been reported and they report losses in subsequent periods. Also, the processing carried out showed that the type of audit opinion depends mainly on the sign of equity and the existence of going concern issues.
{"title":"(Non)Going Concern vs. Gain or Loss and Influence on Audit Opinion","authors":"Maria Grosu, C. Mihalciuc, I. Robu","doi":"10.20869/auditf/2023/169/001","DOIUrl":"https://doi.org/10.20869/auditf/2023/169/001","url":null,"abstract":"In today's unstable environment, one of the overarching principles for financial reporting of major importance to users of financial statements is going concern. The management of companies is responsible for disclosing information about whether the entity is a going concern or not. In addition, financial auditors must also obtain sufficient and reliable evidence to support their audit opinion on the appropriateness of management's use of the going concern principle in the preparation of financial statements. This study considers the following directions: it first investigates the extent to which financial auditors confirm management's use of the going concern principle in the preparation of the annual financial statements; it then tests the asymmetric relationship between going concern and earnings reporting and between going concern and loss reporting; finally, it seeks to identify the extent to which going concern issues at company level identified by the auditor, loss reporting and negative equity influence the type of audit opinion issued. The sample is represented by companies listed on the regulated market of the BSE in the period 2016-2021 and highlights that the accuracy of the use of the going concern principle in the preparation of financial statements by management is often refuted by financial auditors, that there are business areas in which there are entities for which going concern problems have been reported in one period, but rather gains are reported in the immediately following period, and for other business areas, there are entities for which no going concern problems have been reported and they report losses in subsequent periods. Also, the processing carried out showed that the type of audit opinion depends mainly on the sign of equity and the existence of going concern issues.","PeriodicalId":30958,"journal":{"name":"Audit Financiar","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2023-02-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48449690","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-02-14DOI: 10.20869/auditf/2023/169/003
O. Bunget, A. Dumitrescu, Valentin Burca, Oana Bogdan
The recent COVID-19 pandemic has raised various concerns related to firms’ financial vulnerabilities and resilience. The best way to achieve financial resilience is to identify drivers of sustainable economic development, mainly resumed to strategies designed aiming for shareholders’ value creation. The way firms’ resources are allocated indicate the premises for reaching the potential of value creation. This study provides a general picture of firms’ capacity to create value add. For this purpose, was performed a factorial analysis, considering a DuPont model. The analysis is performed on a sample of firms originating from well-developed European economies, considering a four-based DuPont factorial model analysis. For a better understanding of the contribution of each financial ratio of the DuPont financial analysis model, a CHAID decision tree was estimated. The results show generalized effects on the calculated economic valueadded indicator, no matter the country firms considered in the analysis are originated from, or the industry the operate in. However, in 2020, most of the firms have reported significantly better results in terms of economic value-added, so, an essential part of the discussion is related to the impact of savings made on the cost of the economic capital.
{"title":"Financial Implications of Covid-19 Pandemic. An Empirical DuPont Analysis on Economic Value-Added Reported by European Developed Countries","authors":"O. Bunget, A. Dumitrescu, Valentin Burca, Oana Bogdan","doi":"10.20869/auditf/2023/169/003","DOIUrl":"https://doi.org/10.20869/auditf/2023/169/003","url":null,"abstract":"The recent COVID-19 pandemic has raised various concerns related to firms’ financial vulnerabilities and resilience. The best way to achieve financial resilience is to identify drivers of sustainable economic development, mainly resumed to strategies designed aiming for shareholders’ value creation. The way firms’ resources are allocated indicate the premises for reaching the potential of value creation. This study provides a general picture of firms’ capacity to create value add. For this purpose, was performed a factorial analysis, considering a DuPont model. The analysis is performed on a sample of firms originating from well-developed European economies, considering a four-based DuPont factorial model analysis. For a better understanding of the contribution of each financial ratio of the DuPont financial analysis model, a CHAID decision tree was estimated. The results show generalized effects on the calculated economic valueadded indicator, no matter the country firms considered in the analysis are originated from, or the industry the operate in. However, in 2020, most of the firms have reported significantly better results in terms of economic value-added, so, an essential part of the discussion is related to the impact of savings made on the cost of the economic capital.","PeriodicalId":30958,"journal":{"name":"Audit Financiar","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2023-02-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42759048","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2023-02-14DOI: 10.20869/auditf/2023/169/005
M. Mihai
The objective of this paper is to analyze if the financial sector is ready for implementation of Artificial Intelligencebased solutions through a qualitative study. The scope of this paper is to contribute to the spatiality literature by bringing in front of the reader a guide who comprises research of the most important elements of financial domain which will be impacted by the implementation of Artificial Intelligence-based solutions. The used research methodology is the qualitative analysis based on a structured interview, whose responses were analyzed using Grounded Theory. To the interview have answered 27 representatives of top Romanian companies, these representing only a beginning of future wider studies. After analyzing the answers, the author concluded that in the financial field solutions based on artificial intelligence can be implemented very easily because it involves a lot of repetitive tasks that can be easily carried out with the help of these solutions in a shorter time and with fewer errors. The number of jobs involving these repetitive activities will also be significantly reduced over the next ten years.
{"title":"The Corporate Attitude Regading the Impact of Artificial Intelligence in the Financial Sector","authors":"M. Mihai","doi":"10.20869/auditf/2023/169/005","DOIUrl":"https://doi.org/10.20869/auditf/2023/169/005","url":null,"abstract":"The objective of this paper is to analyze if the financial sector is ready for implementation of Artificial Intelligencebased solutions through a qualitative study. The scope of this paper is to contribute to the spatiality literature by bringing in front of the reader a guide who comprises research of the most important elements of financial domain which will be impacted by the implementation of Artificial Intelligence-based solutions. The used research methodology is the qualitative analysis based on a structured interview, whose responses were analyzed using Grounded Theory. To the interview have answered 27 representatives of top Romanian companies, these representing only a beginning of future wider studies. After analyzing the answers, the author concluded that in the financial field solutions based on artificial intelligence can be implemented very easily because it involves a lot of repetitive tasks that can be easily carried out with the help of these solutions in a shorter time and with fewer errors. The number of jobs involving these repetitive activities will also be significantly reduced over the next ten years.","PeriodicalId":30958,"journal":{"name":"Audit Financiar","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2023-02-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44970403","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-11-14DOI: 10.20869/auditf/2022/168/024
D. Ruban, C. Hațegan
Investors' strategic decisions are based on information reported in financial statements. In order to be valid, according to national and international accounting regulations, the reported financial information must be of quality, a fact that can also be ensured by the opinion expressed following the completion of a quality mission. The purpose of this paper is to present the importance of financial audit quality to users of financial information. Several factors influence the quality of the financial audit. They can be structured according to several criteria and were represented by auditor size, audit fees and their evolution, and auditor rotation. To validate the research hypothesis, the authors tested the correlation between these factors based on data collected from 81 audit reports of 17 companies listed on the Bucharest Stock Exchange, the main market, from 2016-2020. To test the probability of issuing an unchanged opinion depending on the determinants, the population was tested using logistic regression and correlation tests. The results show that there is a correlation between the various researched variables. However, of a different intensity depending on the chosen factor, the econometric model was statistically significant, and specific high odds ratios were observed with the auditor's fees variable. The quality of the audit was measured by variables that refer to the auditor's characteristics starting from public information, without considering the internal factors of each auditor.
{"title":"Impact Factors on the Audit Opinion – Case Study","authors":"D. Ruban, C. Hațegan","doi":"10.20869/auditf/2022/168/024","DOIUrl":"https://doi.org/10.20869/auditf/2022/168/024","url":null,"abstract":"Investors' strategic decisions are based on information reported in financial statements. In order to be valid, according to national and international accounting regulations, the reported financial information must be of quality, a fact that can also be ensured by the opinion expressed following the completion of a quality mission. The purpose of this paper is to present the importance of financial audit quality to users of financial information. Several factors influence the quality of the financial audit. They can be structured according to several criteria and were represented by auditor size, audit fees and their evolution, and auditor rotation. To validate the research hypothesis, the authors tested the correlation between these factors based on data collected from 81 audit reports of 17 companies listed on the Bucharest Stock Exchange, the main market, from 2016-2020. To test the probability of issuing an unchanged opinion depending on the determinants, the population was tested using logistic regression and correlation tests. The results show that there is a correlation between the various researched variables. However, of a different intensity depending on the chosen factor, the econometric model was statistically significant, and specific high odds ratios were observed with the auditor's fees variable. The quality of the audit was measured by variables that refer to the auditor's characteristics starting from public information, without considering the internal factors of each auditor.","PeriodicalId":30958,"journal":{"name":"Audit Financiar","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2022-11-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47364305","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-11-14DOI: 10.20869/auditf/2022/168/022
Magdalena Indyk
This article aimed to determine the implications of the Exposure Drafts (ED) IFRS S1 and S2, especially for financial reporting. The novelty of these sustainability standards is the attempt to regulate sustainability and climate-related financial information. Therefore, the article first presents the key aspects of the ED IFRS S1 and S2, and their practical implications. As both EDs represent an ambitious proposal of standard-setters, the author attempted to determine whether companies in Poland are prepared for these changes. For this reason, the EDs were confronted with (1) Poland’s legal and soft sustainability regulations, and (2) empirical research results. An empirical part was performed based on the selection of 177 companies, listed on the Warsaw Stock Exchange (WSE). The evidence represents the collection of their responses to the selected ESG sections of “The Best Practice 2021” WSE Code. The study provides numerous conclusions and observations. ESG undoubtedly became a factor considered by multiple companies in their businesses. However, preparing for the ED IFRS S1 and S2 means a complete ESG integration into a business strategy, processes, and reporting. Only sixty companies (34%) in the examined sample declare ESG integration into a business strategy, and thirty-two companies (18%) claim they disclose the strategic data, including defined goals, measures, and progress (also ESG-related). Considering the progress of the ESG revolution, it will mean reporting transformation for most companies, i.e., building sustainability-related financial reporting from scratch. The biggest challenge will be quantifying the impact of sustainability and climate-related risks and opportunities on financial statements. Such quantification will require advanced risk management tools and the building of an integrated reporting system. The article, with its findings, may be of high interest to standard-setters, companies, and other researchers contributing to ESG and financial reporting.
{"title":"Are the Companies Prepared for Sustainability Reporting under the ED IFRS S1 and S2? Evidence from Poland","authors":"Magdalena Indyk","doi":"10.20869/auditf/2022/168/022","DOIUrl":"https://doi.org/10.20869/auditf/2022/168/022","url":null,"abstract":"This article aimed to determine the implications of the Exposure Drafts (ED) IFRS S1 and S2, especially for financial reporting. The novelty of these sustainability standards is the attempt to regulate sustainability and climate-related financial information. Therefore, the article first presents the key aspects of the ED IFRS S1 and S2, and their practical implications. As both EDs represent an ambitious proposal of standard-setters, the author attempted to determine whether companies in Poland are prepared for these changes. For this reason, the EDs were confronted with (1) Poland’s legal and soft sustainability regulations, and (2) empirical research results. An empirical part was performed based on the selection of 177 companies, listed on the Warsaw Stock Exchange (WSE). The evidence represents the collection of their responses to the selected ESG sections of “The Best Practice 2021” WSE Code. The study provides numerous conclusions and observations. ESG undoubtedly became a factor considered by multiple companies in their businesses. However, preparing for the ED IFRS S1 and S2 means a complete ESG integration into a business strategy, processes, and reporting. Only sixty companies (34%) in the examined sample declare ESG integration into a business strategy, and thirty-two companies (18%) claim they disclose the strategic data, including defined goals, measures, and progress (also ESG-related). Considering the progress of the ESG revolution, it will mean reporting transformation for most companies, i.e., building sustainability-related financial reporting from scratch. The biggest challenge will be quantifying the impact of sustainability and climate-related risks and opportunities on financial statements. Such quantification will require advanced risk management tools and the building of an integrated reporting system. The article, with its findings, may be of high interest to standard-setters, companies, and other researchers contributing to ESG and financial reporting.","PeriodicalId":30958,"journal":{"name":"Audit Financiar","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2022-11-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42378026","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-11-14DOI: 10.20869/auditf/2022/168/026
S. Rîndașu, Victoria Stanciu
The digitalisation of the accounting profession is leading to changes in the accounting education by integrating more IT-related topics in response to the business environment's shifting needs. The relevant literature regarding accounting education currently focuses on introducing more IT-related subjects into the curricula; however, less attention has been paid to the undergraduates' predilection toward digitalisation. As in Romania the accounting faculties offer the specialisation accounting and management information systems, the present study aims to examine the accounting students' attitude toward management information system subjects and provide a glimpse regarding the preference of choosing the research field. A qualitative approach has been selected, organising semistructured interviews, focusing on the undergraduates' experience with IT-related subjects. The findings indicate that the students' experience has been determined by various factors, such as previous education, the online context, personal preferences regarding the professors, sense of connectedness, and English fluency. Although the participants appreciate the importance of the management information systems subjects, they seem to have a limited understanding of the practical use in an accounting context. The study contributes to the understanding of the accounting students’ predilection toward digitalisation and its findings can be leveraged by both educators and management to improve the future practitioners' experience.
{"title":"Accounting Students` Predilection Toward Digitalisation: A Qualitative Approach","authors":"S. Rîndașu, Victoria Stanciu","doi":"10.20869/auditf/2022/168/026","DOIUrl":"https://doi.org/10.20869/auditf/2022/168/026","url":null,"abstract":"The digitalisation of the accounting profession is leading to changes in the accounting education by integrating more IT-related topics in response to the business environment's shifting needs. The relevant literature regarding accounting education currently focuses on introducing more IT-related subjects into the curricula; however, less attention has been paid to the undergraduates' predilection toward digitalisation. As in Romania the accounting faculties offer the specialisation accounting and management information systems, the present study aims to examine the accounting students' attitude toward management information system subjects and provide a glimpse regarding the preference of choosing the research field. A qualitative approach has been selected, organising semistructured interviews, focusing on the undergraduates' experience with IT-related subjects. The findings indicate that the students' experience has been determined by various factors, such as previous education, the online context, personal preferences regarding the professors, sense of connectedness, and English fluency. Although the participants appreciate the importance of the management information systems subjects, they seem to have a limited understanding of the practical use in an accounting context. The study contributes to the understanding of the accounting students’ predilection toward digitalisation and its findings can be leveraged by both educators and management to improve the future practitioners' experience.","PeriodicalId":30958,"journal":{"name":"Audit Financiar","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2022-11-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48025998","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-11-14DOI: 10.20869/auditf/2022/168/025
C. Lungu
In a global financial crisis, access to various investment resources becomes inevitable. Stable economic growth is possible under maximum use of accumulated savings for investment purposes. Ensuring favorable conditions for investing the population's savings in national investment assets remains an urgent problem. Citizens' savings, constituting their private property, should be used in the investment process, considering the differences between their individual preferences, the economic development of regions etc. In countries with developed market economies, individual investors are the main participants in the market for investment resources. By occupying a certain part of the investment market, individual investors serve as an important stabilizing force in times of crisis. Thus, this study aims to evaluate the impact of ROI and EPS indicators on the investment strategy of natural persons on the Bucharest Stock Exchange and to predict the behavior of investors according to the variation of these variables.
{"title":"Influence of the Indicators Return on Investment and Earning per Share on the Decision of the Individual Investor – an Econometric Approach","authors":"C. Lungu","doi":"10.20869/auditf/2022/168/025","DOIUrl":"https://doi.org/10.20869/auditf/2022/168/025","url":null,"abstract":"In a global financial crisis, access to various investment resources becomes inevitable. Stable economic growth is possible under maximum use of accumulated savings for investment purposes. Ensuring favorable conditions for investing the population's savings in national investment assets remains an urgent problem. Citizens' savings, constituting their private property, should be used in the investment process, considering the differences between their individual preferences, the economic development of regions etc. In countries with developed market economies, individual investors are the main participants in the market for investment resources. By occupying a certain part of the investment market, individual investors serve as an important stabilizing force in times of crisis. Thus, this study aims to evaluate the impact of ROI and EPS indicators on the investment strategy of natural persons on the Bucharest Stock Exchange and to predict the behavior of investors according to the variation of these variables.","PeriodicalId":30958,"journal":{"name":"Audit Financiar","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2022-11-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47510837","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-11-14DOI: 10.20869/auditf/2022/168/021
C. Răpan, Andreia Manea, V. Banţa
The concept of “value relevance” was identified in many studies as a significant quality parameter that provides usefulness to investors and other stakeholders regarding the financial and non-financial information to assess the companies’ value. Based on empirical results in the case of the audit-listed companies in emerging countries, the purpose of this study is to analyze the value relevance of the “other comprehensive income” in the context of the business ethics correlated with the type of audit opinion disclosed to the users, with the focus on the investors’ behavior and the impact on the share price.
{"title":"Ethics in Reporting of the Other Comprehensive Income: The Case of Listed European Companies in Emerging Countries","authors":"C. Răpan, Andreia Manea, V. Banţa","doi":"10.20869/auditf/2022/168/021","DOIUrl":"https://doi.org/10.20869/auditf/2022/168/021","url":null,"abstract":"The concept of “value relevance” was identified in many studies as a significant quality parameter that provides usefulness to investors and other stakeholders regarding the financial and non-financial information to assess the companies’ value. Based on empirical results in the case of the audit-listed companies in emerging countries, the purpose of this study is to analyze the value relevance of the “other comprehensive income” in the context of the business ethics correlated with the type of audit opinion disclosed to the users, with the focus on the investors’ behavior and the impact on the share price.","PeriodicalId":30958,"journal":{"name":"Audit Financiar","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2022-11-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47573077","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-11-14DOI: 10.20869/auditf/2022/168/023
Madalin-Mihai Motoc
Due to the increasing confidence of the population in tradable instruments and the opening of horizons towards investment policy, the Bucharest Stock Exchange (BVB) is recording a steady increase in market capitalization, similar to developed capital markets (New York, London, Paris, Tokyo etc.). The financial auditor plays an increasingly active role in the sustainable development of a company, and its opinion is able to influence to a large extent the ability of audited companies to attract capital. The goal of this research is to determine the role of the audit opinion in the sustainable development of a company listed on the Bucharest Stock Exchange and to determine its degree of insolvency using statistical procedures. The results of the research show the importance of financial audit in increasing the financial performance of a company and in the quality of financial reporting, together with determining the influence of audit opinion on the future risk of insolvency.
{"title":"The Influence of Audit Opinion on Companies’ Insolvency Risk. Evidence for Romania","authors":"Madalin-Mihai Motoc","doi":"10.20869/auditf/2022/168/023","DOIUrl":"https://doi.org/10.20869/auditf/2022/168/023","url":null,"abstract":"Due to the increasing confidence of the population in tradable instruments and the opening of horizons towards investment policy, the Bucharest Stock Exchange (BVB) is recording a steady increase in market capitalization, similar to developed capital markets (New York, London, Paris, Tokyo etc.). The financial auditor plays an increasingly active role in the sustainable development of a company, and its opinion is able to influence to a large extent the ability of audited companies to attract capital. The goal of this research is to determine the role of the audit opinion in the sustainable development of a company listed on the Bucharest Stock Exchange and to determine its degree of insolvency using statistical procedures. The results of the research show the importance of financial audit in increasing the financial performance of a company and in the quality of financial reporting, together with determining the influence of audit opinion on the future risk of insolvency.","PeriodicalId":30958,"journal":{"name":"Audit Financiar","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2022-11-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45613495","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2022-11-14DOI: 10.20869/auditf/2022/168/027
Radu-Daniel Loghin, L. Dumitraşcu
The Covid Pandemic has this far been a devastating event for the world economy, but it wasn’t the only crisis of the 2020 financial period. Despite the health emergency, military conflict has not halted since the dawn of the coronavirus plague. In the current paper the authors try to analyze the combined impact of the COVID pandemic and war for a sample of 352 Turkish and Azeri equities during the 2019 and 2020 financial periods. Their findings suggest that the Nagorno-Karabakh war enforced timeliness for Azeri and Turkish issuers while overall the relevance of financial statements has dropped during the crisis period of 2020. IFRS compliance became a significant moderating factor during the crisis period. Overall, the year 2020 has been a turning point for accounting practice.
{"title":"Financial Reporting Quality in a Crisis Period","authors":"Radu-Daniel Loghin, L. Dumitraşcu","doi":"10.20869/auditf/2022/168/027","DOIUrl":"https://doi.org/10.20869/auditf/2022/168/027","url":null,"abstract":"The Covid Pandemic has this far been a devastating event for the world economy, but it wasn’t the only crisis of the 2020 financial period. Despite the health emergency, military conflict has not halted since the dawn of the coronavirus plague. In the current paper the authors try to analyze the combined impact of the COVID pandemic and war for a sample of 352 Turkish and Azeri equities during the 2019 and 2020 financial periods. Their findings suggest that the Nagorno-Karabakh war enforced timeliness for Azeri and Turkish issuers while overall the relevance of financial statements has dropped during the crisis period of 2020. IFRS compliance became a significant moderating factor during the crisis period. Overall, the year 2020 has been a turning point for accounting practice.","PeriodicalId":30958,"journal":{"name":"Audit Financiar","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2022-11-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42557833","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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