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In the audit of financial statements, the main objective of the auditor is to express an opinion on the accuracy of the reported information, in all significant aspects, in relation to the applicable accounting framework. Although international auditing standards state that auditors are not required to detect financial fraud in audited companies, they must ensure during their engagement that the risk of fraud will not affect the audit opinion. To detect the risk of fraud and reports of accounting manipulation, auditors can use several signal indicators. Practice and literature support that the use of indices to detect accounting manipulation can be achieved through various linear scoring functions including the Beneish Model (1999). In Romania, the problem of assessing the risk of audit fraud has not been adequately addressed, until now. The purpose of this scientific approach is to prevent, analyze and evaluate the risk of fraud, based on the estimated score function and the defined classification interval. [ABSTRACT FROM AUTHOR]

Like any business process, auditing is a process that can be perfected, technology complementing a set of advanced data processing skills and techniques. The objective of this paper is to research the way how Romanian auditors work and perceive the impact of IT on audit missions. The results of the conducted survey, based on 102 responses, highlight a series of working tools (Data Analytics, Microsoft Excel, Data Automation) which, through the analysis of the Big Data phenomenon, facilitate the audit process. Regarding the software category, Ciel Audit and Revision, Gaudit, CaseWare are among the most frequently used, auditors considering ready to work with emerging technologies. Continuous professional training is ensured by participation in professional training courses, along with severe documentation about new technologies. In Romania, the current level of performing audits based on new technologies is average, for the future a higher level and a higher forecasting and analysis capacity are expected. The auditing profession will be perfected more and more, the current tasks will be gradually replaced by the new technologies, auditors becoming more appreciated by the external environment. Professional skepticism remains the basic quality of the auditor, along with the understanding of the competitive environment. Uncertainty characterizes the amendment of the International Standards on Auditing (ISA). This paper contributes to the literature by bringing to the fore the current technological context for the audit profession, namely the impact perceived by auditors during the fourth industrial revolution. [ABSTRACT FROM AUTHOR]

The main objective of this paper is to realize a comparative study regarding the theory and practice of financial audit in Romania and Spain. To achieve this goal, we performed a documentary research of the main papers in this area and of the applicable regulations research that allowed us to identify convergences and differences as concerns the financial audit in Romania and Spain. There are many divergences, on different levels: the perimeter of regulations, the conditions for becoming a financial auditor, but also regarding the evolution of the financial audit markets, the mandatory limits for auditing the financial statements, etc. Although Spain has a longer tradition in the area of financial audit, in Romania, there were also conducted financial audit missions in accordance with the international audit standards since the recognition of this activity, in 1999. [ABSTRACT FROM AUTHOR]

The article, having as theme on "the necessity of a right accounting in Romania in the current context" brings into the reader's attention some aspects connected with the accounting law issues in the current context. In this respect, we presented a general argumentation on the subject of interest to the object referring to the scientific researches object. In the same time, we followed to show the norms and regulations which are fixing the nowadays juridical frame of Romanian accounting and which put together the first source of what specialists call proposed accounting law able to identify the factors having influence in the view of creating an accounting law. We aimed to identify the factors they have influenced the emergence of the accounting law. [ABSTRACT FROM AUTHOR]

This paper deals with the issue of materiality called the threshold of meaning in the context of financial audits missions made by the Romanian Court of Accounts. After presenting some preliminary issues relating to auditing standards implemented in the specific activities undertaken by the European Institute of Audit from Romania, including the standard of materiality which is a specific component of the financial audit standards, the author focuses on clarifying the concept of materiality, presenting the materiality typology, and on how to determine the materiality as absolute value through nature and context. Below are highlighted some issues regarding the relationship between the materiality and the audit risk and the use of materiality in assessing the effect of misrepresentations, key area which falls within the remit of public external professional auditors. At the end of the work echoes the author's considerations on specific materiality in financial audits from the public sector, the necessity to revise the materiality level set at the beginning of the audit and the auditor's desire to process such findings and conclusions on the materiality of the working papers. [ABSTRACT FROM AUTHOR]

At the beginning of this study I have determined the way in which have been taken the European Directive2006/43/CE concerning the International Standards of Audit in the national legislation in Romania and Spain. Then i have realised a comparative analyses International Standards of Audit which refer to the audit Report, applicable in Romania and the Technical audit norm applicable in Spain, analyses where i have identified a series of differences. At the end of research we found out that the identified differences are not significant and therefore it has been demonstrated the research hypothesis, according to which in Romania and Spain have been made important steps in harmonising the financial audit process, so that the juridical and professional frame in the two countries presents several similitude. [ABSTRACT FROM AUTHOR]

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The paper analyses the complex concept and tools of performance audit. It explains the way companies or public institutions appraise their programs, functions, operations or the management systems in order to achieve economy, efficiency and effectiveness in the employment of existing resources. The case study refers to the recent efforts of Romania to implement the INTOSAI standards, striving to comply also with the procedures of the European Court of Auditors. [ABSTRACT FROM AUTHOR]

Over time, the internal audit activity has evolved, and from a source of information for managers to work with external audit, which provides them some already processed information, thus becoming a standalone business. [ABSTRACT FROM AUTHOR]

Recent years have emphasized focus on risk management, and it became clear that there is an urgent need for a robust framework to effectively manage risk. The financial and economic crisis showed the importance of a strong risk management process and forced banks to take a critical look at how they manage risks. Romanian banking system has known significant changes determined by the implementation of Basel II requirements. These requirements determined an important effort of the banks to improve their risk management process. Operational risk is considered a significant risk and has an important impact on banks activity and results. Now, there is a clear effort of the banks for applying more advanced methods on operational risk so that their control and management to be improved. The present paper presents the specificity of the operational risk management and the author's solution for the operational risk management in banks. [ABSTRACT FROM AUTHOR]

Copyright of Quality - Access to Success is the property of Romanian Society for Quality Assurance (SRAC) and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)