Pub Date : 2021-07-29DOI: 10.20869/auditf/2021/163/017
Maria Grosu, A. Cuza, C. Mihalciuc
Risk is one of the most controversial elements that auditors face in audit missions. This refers to the probability that significant misstatements will exist in the financial statements of companies, and the auditor will issue an unqualified opinion, therefore an erroneous opinion. For the auditor, the audit risk can be considered an economic risk, which requires the professional accountant to try to minimize this risk. Accurate identification and evaluation of the risk factors that characterize the three components of the Audit Risk - Inherent Risk, Control Risk and Detection Risk - contribute to a rigorous planning of the audit approach. In other words, the identified risks will be the basis for orienting the auditor's efforts towards those areas where distortions can lead to the alteration of the true image reported by the users' financial statements. In this study are identified and prioritized, based on financial reports in general, and of the audit, in particular the risk factors that characterize Audit Risk on three components: Inherent Risk, Control Risk and Detection Risk. The sample studied is represented by companies listed on the Bucharest Stock Exchange on the regulated market, and the cause-effect analysis, but also cross-sectional analysis takes into account the period 2019-2020, before the crisis caused by Covid-19 and year of installation of the crisis. By testing and validating research hypotheses using regression methods and multivariate data analysis, it is highlighted that a ranking of audit risk components can be made, the inherent risk having a greater influence on audit planning than control risks and detection risks. Also, at the level of the analyzed sample, a company profile is identified, depending on the object of activity, auditor, the size of the audit risk and the opinion formulated in the audit report for the financial year closed at the end of 2020.
{"title":"Audit Risk Assessment and Influence on the Auditor`s Opinion","authors":"Maria Grosu, A. Cuza, C. Mihalciuc","doi":"10.20869/auditf/2021/163/017","DOIUrl":"https://doi.org/10.20869/auditf/2021/163/017","url":null,"abstract":"Risk is one of the most controversial elements that auditors face in audit missions. This refers to the probability that significant misstatements will exist in the financial statements of companies, and the auditor will issue an unqualified opinion, therefore an erroneous opinion. For the auditor, the audit risk can be considered an economic risk, which requires the professional accountant to try to minimize this risk. Accurate identification and evaluation of the risk factors that characterize the three components of the Audit Risk - Inherent Risk, Control Risk and Detection Risk - contribute to a rigorous planning of the audit approach. In other words, the identified risks will be the basis for orienting the auditor's efforts towards those areas where distortions can lead to the alteration of the true image reported by the users' financial statements. In this study are identified and prioritized, based on financial reports in general, and of the audit, in particular the risk factors that characterize Audit Risk on three components: Inherent Risk, Control Risk and Detection Risk. The sample studied is represented by companies listed on the Bucharest Stock Exchange on the regulated market, and the cause-effect analysis, but also cross-sectional analysis takes into account the period 2019-2020, before the crisis caused by Covid-19 and year of installation of the crisis. By testing and validating research hypotheses using regression methods and multivariate data analysis, it is highlighted that a ranking of audit risk components can be made, the inherent risk having a greater influence on audit planning than control risks and detection risks. Also, at the level of the analyzed sample, a company profile is identified, depending on the object of activity, auditor, the size of the audit risk and the opinion formulated in the audit report for the financial year closed at the end of 2020.","PeriodicalId":30958,"journal":{"name":"Audit Financiar","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2021-07-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48038465","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 : 2021-07-29DOI: 10.20869/auditf/2021/163/015
Nicoleta Farcane, O. Bunget, R. Blidişel, A. Dumitrescu, D. Deliu, Oana Bogdan, Valentin Burca
In the sensitive socio-economic context generated by the COVID-19 pandemic, teleworking was, in many fields, a way to continue the activity while complying to the measures imposed by law in order to fight the spread of the new Coronavirus. On the one hand, teleworking offers flexibility in setting the work schedule, eliminates travelling time to and from the worksite and allows to attract competent employees from all over the world, by means of digitalisation. On the other hand, working from home is a challenge. The time required to transfer the activity in the virtual space, and the additional training necessary for the use of innovative information technologies can reduce efficiency and affect the work-life balance. This paper focuses on the audit profession, which had to rethink remote auditing so as to comply with the restrictive measures, but at the same time to avoid affecting the quality of audit missions. The questionnaire distributed among professional practitioners, members of the CFAR, helped us identify the perception of Romanian financial auditors on the variables influencing the efficiency of the audit work carried out in the “new normal” and the extent to which teleworking could become a practice in future financial audit missions.
{"title":"Teleworking in the Field of Financial Audit in the Context Generated by the COVID-19 Pandemic","authors":"Nicoleta Farcane, O. Bunget, R. Blidişel, A. Dumitrescu, D. Deliu, Oana Bogdan, Valentin Burca","doi":"10.20869/auditf/2021/163/015","DOIUrl":"https://doi.org/10.20869/auditf/2021/163/015","url":null,"abstract":"In the sensitive socio-economic context generated by the COVID-19 pandemic, teleworking was, in many fields, a way to continue the activity while complying to the measures imposed by law in order to fight the spread of the new Coronavirus. On the one hand, teleworking offers flexibility in setting the work schedule, eliminates travelling time to and from the worksite and allows to attract competent employees from all over the world, by means of digitalisation. On the other hand, working from home is a challenge. The time required to transfer the activity in the virtual space, and the additional training necessary for the use of innovative information technologies can reduce efficiency and affect the work-life balance. This paper focuses on the audit profession, which had to rethink remote auditing so as to comply with the restrictive measures, but at the same time to avoid affecting the quality of audit missions. The questionnaire distributed among professional practitioners, members of the CFAR, helped us identify the perception of Romanian financial auditors on the variables influencing the efficiency of the audit work carried out in the “new normal” and the extent to which teleworking could become a practice in future financial audit missions.","PeriodicalId":30958,"journal":{"name":"Audit Financiar","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2021-07-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41580718","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 : 2021-07-29DOI: 10.20869/auditf/2021/163/020
Casiana Maria Darie
The digital era affects all the fundamental areas known so far. In meeting the high levels of competition and industry pressures, the organizations used IT systems to help them achieve market advantages by saving resources, developing domestically and adapting to the challenges posed by the external environment. This paper includes in the first part a description of the role of systems such as ERP, Business Intelligence, "Analytics", "Big Data" and Computer Assisted Audit Techniques – CAAT's in the activity of auditors but also in collecting and processing a large volume of data by those in charge with the financial accounting field. In the second part, with the help of the questionnaire, data on the use of these systems by Romanian auditors were collected and analysed.
{"title":"ERP Integrated Instruments – Opportunities and Challenges for Audit","authors":"Casiana Maria Darie","doi":"10.20869/auditf/2021/163/020","DOIUrl":"https://doi.org/10.20869/auditf/2021/163/020","url":null,"abstract":"The digital era affects all the fundamental areas known so far. In meeting the high levels of competition and industry pressures, the organizations used IT systems to help them achieve market advantages by saving resources, developing domestically and adapting to the challenges posed by the external environment. This paper includes in the first part a description of the role of systems such as ERP, Business Intelligence, \"Analytics\", \"Big Data\" and Computer Assisted Audit Techniques – CAAT's in the activity of auditors but also in collecting and processing a large volume of data by those in charge with the financial accounting field. In the second part, with the help of the questionnaire, data on the use of these systems by Romanian auditors were collected and analysed.","PeriodicalId":30958,"journal":{"name":"Audit Financiar","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2021-07-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42810045","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 : 2021-07-29DOI: 10.20869/auditf/2021/163/021
George-Aurelian Tudor, I. Turlea, E. Mitoi
Throughout the evolution of our society, accounting has played an important and sometimes decisive role in making or influencing certain decisions. Accounting research can provide social and cultural studies with important insights into how society and culture is produced and shaped by calculations, technologies and management control practices. An exciting challenge and opportunity for young researchers is to explore the role and impact of accounting in companies as well as in non-governmental organizations, given the many times when the issue of further reform has arisen because of sensitive events in the lives of companies. Increasing quality criteria as well as lowering costs by using leasing as a form of financing has generated part of the evolution of modern society. Thus, the management of companies has constantly had to establish new and new strategies to bring companies to our reputation and esteem through higher performance indicators than in previous periods. The main objective of the article is to understand the concept of leasing financing, to get familiar to the use of leasing, also to validate the hypothesis that leasing means a good manner of financing for small and medium enterprises using a variety of different strategy of economic development and obtaining economic benefits, having as a start point a right interpretation of accounting politics highlighting the true and fair view of the company. In order to validate the hypothesis that leasing is a factor of economic growth, the authors conducted a questionnaire consisting of nine questions in which respondents expressed their opinion on leasing as a form of financing. Following the study, the authors concluded, within the sample analyzed, that the use of leasing is a factor of economic growth, having as a start point the company development strategy, and also, the risk appetite of the shareholders. Also, using the leasing as a manner of finance offered the opportunity for a quickly technological growth and real appearing of the modern historical challenge - globalization.
{"title":"Considerations on the Advantages of Using Leasing in Small and Medium-Sized Enterprises","authors":"George-Aurelian Tudor, I. Turlea, E. Mitoi","doi":"10.20869/auditf/2021/163/021","DOIUrl":"https://doi.org/10.20869/auditf/2021/163/021","url":null,"abstract":"Throughout the evolution of our society, accounting has played an important and sometimes decisive role in making or influencing certain decisions. Accounting research can provide social and cultural studies with important insights into how society and culture is produced and shaped by calculations, technologies and management control practices. An exciting challenge and opportunity for young researchers is to explore the role and impact of accounting in companies as well as in non-governmental organizations, given the many times when the issue of further reform has arisen because of sensitive events in the lives of companies. Increasing quality criteria as well as lowering costs by using leasing as a form of financing has generated part of the evolution of modern society. Thus, the management of companies has constantly had to establish new and new strategies to bring companies to our reputation and esteem through higher performance indicators than in previous periods. The main objective of the article is to understand the concept of leasing financing, to get familiar to the use of leasing, also to validate the hypothesis that leasing means a good manner of financing for small and medium enterprises using a variety of different strategy of economic development and obtaining economic benefits, having as a start point a right interpretation of accounting politics highlighting the true and fair view of the company. In order to validate the hypothesis that leasing is a factor of economic growth, the authors conducted a questionnaire consisting of nine questions in which respondents expressed their opinion on leasing as a form of financing. Following the study, the authors concluded, within the sample analyzed, that the use of leasing is a factor of economic growth, having as a start point the company development strategy, and also, the risk appetite of the shareholders. Also, using the leasing as a manner of finance offered the opportunity for a quickly technological growth and real appearing of the modern historical challenge - globalization.","PeriodicalId":30958,"journal":{"name":"Audit Financiar","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2021-07-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44586573","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 : 2021-07-29DOI: 10.20869/auditf/2021/163/019
Diana-Sabina BRANET (ULICI), C. Hațegan
The financial indicators reported in the budget execution accounts of the local public administrations have implications in the assessment of the level of performance regarding the achievement of the own revenues of these public entities. The objective of the paper is to examine the causal link between the level of performance in achieving own revenues and that of the financial autonomy of local public administrations. The paper includes a summary of the evolution of legal regulations in Romania specific to local public administration and own revenue management, as well as an analysis of information highlighted in budget execution accounts published by entities for 2018-2020, and the latest annual reports published by the Court of Accounts of Romania regarding the deviations found and the audit opinion formulated following the financial audit missions in order to identify the aspects that may influence the level of performance in achieving its own revenues at the level of local public administrations. The sample consists of territorial administrative units classified as cities in the Western Region of Romania, which are not municipalities and are found in Arad County. The results of the study revealed that some cities had a fairly high level of performance in generating their own revenues, and some reported increasing capital expenditures from year to year, but in most cases the degree of achievement of their own revenues still remains quite low. The conclusion is that the degree of achievement of own revenues is in most cases at a level that needs to be improved, and payments for capital expenditures are still quite low, so none of the cities in the selected sample have the opportunity to be financed exclusively from own revenues.
{"title":"Performance Audit of Public Revenues of the Administrative Territorial Units","authors":"Diana-Sabina BRANET (ULICI), C. Hațegan","doi":"10.20869/auditf/2021/163/019","DOIUrl":"https://doi.org/10.20869/auditf/2021/163/019","url":null,"abstract":"The financial indicators reported in the budget execution accounts of the local public administrations have implications in the assessment of the level of performance regarding the achievement of the own revenues of these public entities. The objective of the paper is to examine the causal link between the level of performance in achieving own revenues and that of the financial autonomy of local public administrations. The paper includes a summary of the evolution of legal regulations in Romania specific to local public administration and own revenue management, as well as an analysis of information highlighted in budget execution accounts published by entities for 2018-2020, and the latest annual reports published by the Court of Accounts of Romania regarding the deviations found and the audit opinion formulated following the financial audit missions in order to identify the aspects that may influence the level of performance in achieving its own revenues at the level of local public administrations. The sample consists of territorial administrative units classified as cities in the Western Region of Romania, which are not municipalities and are found in Arad County. The results of the study revealed that some cities had a fairly high level of performance in generating their own revenues, and some reported increasing capital expenditures from year to year, but in most cases the degree of achievement of their own revenues still remains quite low. The conclusion is that the degree of achievement of own revenues is in most cases at a level that needs to be improved, and payments for capital expenditures are still quite low, so none of the cities in the selected sample have the opportunity to be financed exclusively from own revenues.","PeriodicalId":30958,"journal":{"name":"Audit Financiar","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2021-07-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42160502","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 : 2021-07-29DOI: 10.20869/auditf/2021/163/018
R. Igna, B. Ionescu
Through this paper, the authors wanted to highlight how important and useful are ERP systems for any company that requires internal auditing. ERP - Enterprise Resource Planning systems are intelligent software that can be adapted to the needs of each company allowing the combination of all business processes in a single database. They are also a way of internal control over the data entered and employees. From an internal audit perspective, these systems can be considered an appropriate solution because they provide an opportunity to more effectively manage internal and external audit risks. The main objective of this paper is to demonstrate the satisfaction of internal audit needs with the help of integrated systems. These systems facilitate the operation of data and their security. Another objective was to analyse how much these systems can reduce certain risks. The risks of significant misstatement may be mitigated by these systems, and any operation introduced may be analysed, verified and approved / disapproved. Therefore, a quantitative research was conducted, using the questionnaire as an analysis tool. Based on the answers received, the profile of the respondents was outlined and at the same time a statistical analysis was performed. The results obtained demonstrate that respondents appreciate ERP systems’ utility. They perceive a reduction in financial and operational risk but also an increase in technical risk. Of course, these technical risk issues can be mitigated by the internal audit department's ability to assess and manage any issues that may arise. However, respondents also emphasize the need of training employees in using the system and understanding the data generated by it. Without well-trained employees, performance at the company level, as well as at the internal audit level would not be achieved. It is essential to have training at employees’ level who manage data in an ERP system. This training is also valid for internal auditors who can recommend this system to reduce audit risks.
{"title":"Internal Audit in ERP Systems Context","authors":"R. Igna, B. Ionescu","doi":"10.20869/auditf/2021/163/018","DOIUrl":"https://doi.org/10.20869/auditf/2021/163/018","url":null,"abstract":"Through this paper, the authors wanted to highlight how important and useful are ERP systems for any company that requires internal auditing. ERP - Enterprise Resource Planning systems are intelligent software that can be adapted to the needs of each company allowing the combination of all business processes in a single database. They are also a way of internal control over the data entered and employees. From an internal audit perspective, these systems can be considered an appropriate solution because they provide an opportunity to more effectively manage internal and external audit risks. The main objective of this paper is to demonstrate the satisfaction of internal audit needs with the help of integrated systems. These systems facilitate the operation of data and their security. Another objective was to analyse how much these systems can reduce certain risks. The risks of significant misstatement may be mitigated by these systems, and any operation introduced may be analysed, verified and approved / disapproved. Therefore, a quantitative research was conducted, using the questionnaire as an analysis tool. Based on the answers received, the profile of the respondents was outlined and at the same time a statistical analysis was performed. The results obtained demonstrate that respondents appreciate ERP systems’ utility. They perceive a reduction in financial and operational risk but also an increase in technical risk. Of course, these technical risk issues can be mitigated by the internal audit department's ability to assess and manage any issues that may arise. However, respondents also emphasize the need of training employees in using the system and understanding the data generated by it. Without well-trained employees, performance at the company level, as well as at the internal audit level would not be achieved. It is essential to have training at employees’ level who manage data in an ERP system. This training is also valid for internal auditors who can recommend this system to reduce audit risks.","PeriodicalId":30958,"journal":{"name":"Audit Financiar","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2021-07-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46397601","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 : 2021-07-29DOI: 10.20869/auditf/2021/163/016
C. Hațegan, C. Imbrescu
The going concern of an entity's activity is a fundamental accounting principle. The practical application of this principle has accounting, legal and financial implications. From an accounting point of view, the management of the entities shall be responsible for drawing up the financial statements in accordance with this principle. From a legal perspective, entities that go into liquidation are no longer obliged to respect the going concern principle. When auditing financial statements, auditors shall be responsible for assessing the adequacy of compliance with the principle of going concern and for including the appropriate references in their report. The objective of the paper is to analyse the reasons for including in the auditors' report the paragraph on going concern uncertainties, in the light of their evolution over time, their frequency and diversification. The sample included 120 companies listed on European stock exchanges, included in the main stock indexes for the period 2010-2020. The data was gathered from reports published by auditors that were included in the Audit Analytics database. The results showed that there was an average trend of 20 reported situations per year, but with a significant increase over the last two years analysed mainly due to the situations arising from the impact of the Covid-19 pandemic. The most common reasons were liquidity risk, substantial liabilities and the refinancing of activities. In recent years there has been a diversification of reasons, but with a reduced frequency, such as the working capital, the decrease in stockholder equity and competitor threat. Reporting on going concern issues is of particular importance so that increasing transparency in the publication of this information can contribute to a higher degree of investor confidence in the entities' financial statements.
{"title":"Evolution and Diversification of the Going Concern Uncertainties Disclosed in the Auditor’s Report","authors":"C. Hațegan, C. Imbrescu","doi":"10.20869/auditf/2021/163/016","DOIUrl":"https://doi.org/10.20869/auditf/2021/163/016","url":null,"abstract":"The going concern of an entity's activity is a fundamental accounting principle. The practical application of this principle has accounting, legal and financial implications. From an accounting point of view, the management of the entities shall be responsible for drawing up the financial statements in accordance with this principle. From a legal perspective, entities that go into liquidation are no longer obliged to respect the going concern principle. When auditing financial statements, auditors shall be responsible for assessing the adequacy of compliance with the principle of going concern and for including the appropriate references in their report. The objective of the paper is to analyse the reasons for including in the auditors' report the paragraph on going concern uncertainties, in the light of their evolution over time, their frequency and diversification. The sample included 120 companies listed on European stock exchanges, included in the main stock indexes for the period 2010-2020. The data was gathered from reports published by auditors that were included in the Audit Analytics database. The results showed that there was an average trend of 20 reported situations per year, but with a significant increase over the last two years analysed mainly due to the situations arising from the impact of the Covid-19 pandemic. The most common reasons were liquidity risk, substantial liabilities and the refinancing of activities. In recent years there has been a diversification of reasons, but with a reduced frequency, such as the working capital, the decrease in stockholder equity and competitor threat. Reporting on going concern issues is of particular importance so that increasing transparency in the publication of this information can contribute to a higher degree of investor confidence in the entities' financial statements.","PeriodicalId":30958,"journal":{"name":"Audit Financiar","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2021-07-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49228755","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 : 2020-10-29DOI: 10.20869/auditf/2020/160/026
Costel Istrate, O. Bunget, I. Popa
The purpose of this paper is to identify and to comment the main justifications of modified audit opinions and the main observations included in the emphasis of matter paragraphs from the audit reports of Romanian companies listed on the regulated market of Bucharest Stock Exchange (BSE). The authors analyze a sample of more than 1,000 observations-year for the 2007-2019 period. They found that 25% of these reports contain a modified opinion and the main explanations relate to the revaluations of fixed tangible assets, to the provisions, to the impairment of the fixed assets, to some legal issues, to items concerning the closing inventory and, to a lesser extent, to the going concern matters. In 30% of the reports analyzed, there was identified emphasis of matter paragraphs; the main observation is by far related to the going concern, followed by the financial and operating difficulties of companies and by the effects of different global crisis (financial or others).
{"title":"Justifications for the Modified Opinions and for Other Observations in the Audit Reports","authors":"Costel Istrate, O. Bunget, I. Popa","doi":"10.20869/auditf/2020/160/026","DOIUrl":"https://doi.org/10.20869/auditf/2020/160/026","url":null,"abstract":"The purpose of this paper is to identify and to comment the main justifications of modified audit opinions and the main observations included in the emphasis of matter paragraphs from the audit reports of Romanian companies listed on the regulated market of Bucharest Stock Exchange (BSE). The authors analyze a sample of more than 1,000 observations-year for the 2007-2019 period. They found that 25% of these reports contain a modified opinion and the main explanations relate to the revaluations of fixed tangible assets, to the provisions, to the impairment of the fixed assets, to some legal issues, to items concerning the closing inventory and, to a lesser extent, to the going concern matters. In 30% of the reports analyzed, there was identified emphasis of matter paragraphs; the main observation is by far related to the going concern, followed by the financial and operating difficulties of companies and by the effects of different global crisis (financial or others).","PeriodicalId":30958,"journal":{"name":"Audit Financiar","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2020-10-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42064877","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}
The premise of the research is represented by the importance of the external public audit, as a specific activity that the supreme audit institutions carry out at the level of the public sector entities, in order to provide to interested parties, assurances regarding the management of the public resources of these entities. The research objectives are two-dimensional and the research methodology is qualitative and interpretive. The first dimension aims to identify the conceptual connotations of the external public audit in the specialized literature. The second dimension represents a multicriteria comparative analysis regarding the typology of the external public audit carried out by the supreme institutions of the European Union member states. The study is carried out regarding all the 27 member states, information regarding the United Kingdom, which has recently left the European Union, being also presented and analyzed. The research results showed that, although the applied audit methods vary, convergent elements have been identified, so that the typology of the external public audit also validates the European Union "unity in diversity" motto, at the level of the specific activities of the supreme audit institutions in the community area. On the background of an area of undoubted importance, but limited in terms of research, this scientific demarche represents a major challenge for both the academic and the socio-economic environment. Thus, the conceptual valences of the external public audit will be complemented and an increase of credibility and relevance will be generated in the manner of supervising the public financial resources’ management of the public sector entities at the level of the European Union member states, in the context of the economic turbulences and the rising demand for public services manifested at European and international level.
{"title":"The External Public Audit in the Member States of the European Union: Between Standard Typology and Diversity","authors":"Cristina-Petrina Trincu-Drăgusin, Aurelia Ștefănescu","doi":"10.20869/auditf/2020/159/019","DOIUrl":"https://doi.org/10.20869/auditf/2020/159/019","url":null,"abstract":"The premise of the research is represented by the importance of the external public audit, as a specific activity that the supreme audit institutions carry out at the level of the public sector entities, in order to provide to interested parties, assurances regarding the management of the public resources of these entities. The research objectives are two-dimensional and the research methodology is qualitative and interpretive. The first dimension aims to identify the conceptual connotations of the external public audit in the specialized literature. The second dimension represents a multicriteria comparative analysis regarding the typology of the external public audit carried out by the supreme institutions of the European Union member states. The study is carried out regarding all the 27 member states, information regarding the United Kingdom, which has recently left the European Union, being also presented and analyzed. The research results showed that, although the applied audit methods vary, convergent elements have been identified, so that the typology of the external public audit also validates the European Union \"unity in diversity\" motto, at the level of the specific activities of the supreme audit institutions in the community area. On the background of an area of undoubted importance, but limited in terms of research, this scientific demarche represents a major challenge for both the academic and the socio-economic environment. Thus, the conceptual valences of the external public audit will be complemented and an increase of credibility and relevance will be generated in the manner of supervising the public financial resources’ management of the public sector entities at the level of the European Union member states, in the context of the economic turbulences and the rising demand for public services manifested at European and international level.","PeriodicalId":30958,"journal":{"name":"Audit Financiar","volume":null,"pages":null},"PeriodicalIF":0.0,"publicationDate":"2020-07-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44866618","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 : 2020-07-15DOI: 10.20869/auditf/2020/159/018
Florentin-Emil Tanasă, F. Nuţă
With a strong expansion of the competitive environment in almost all sectors, the key resource for competitiveness is information, which becomes a value for the economic entity and society at large when it contributes positively to the objectives. This article has as its primary objective the presentation of an approach to the documentation and risk assessment by financial auditors using the method of trust functions. In the area of financial audit, risk assessment and quantification shall form the basis for planning, carrying out of the mission, obtaining audit evidence and expressing opinion. Based on the literature synthesis, the research undertaken aimed to ensure that audit evidence is represented as a network of interconnected variables, statements about the synthesis documents for which the mission team collects evidence to determine whether or not they are correctly presented. The method of the services of assignment gives an important role to professional judgment when planning and during the course of the mission.
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