IDEAS home Printed from https://ideas.repec.org/a/aan/journl/v2y2020i1p17-24.html
   My bibliography  Save this article

Audit Opinion : Modern World and Economic Interactions in The Light of The Science of Economics As Well As Finances and Accounting

Author

Listed:
  • Grazyna Musial

    (University of Economics in Katowice, Poland)

Abstract

Purpose: The purpose of this paper is to present the complexity of the modern world and the multitude of economic interactions that occur in it. The aim is to show to what extent managers make decisions in conditions of uncertainty using the achievements of economics and related economic sciences, i.e. finance and accounting. Methodology Approach: The paper uses a hypothetical-deductive method. It starts with a hypothesis, regardless of whether it concerns a single fact or an event, whether it expresses a general law or an even more general belief. Universal names (symbols, ideas) are used for the description. Each statement is a theory or hypothesis. There is a certain role of induction. The induction rules serve as the principles for validating scientific truths. Findings: The paper takes into account the latest achievements of the theory and the results of research conducted in recent years in the world in connection with changes taking place in the economy and society at the turn of the 20th and 21st centuries and still. Changes in the modern economy are given at several levels, mainly at the theoretical level by the science of economics and at the practical level by the applied sciences which include finance and accounting. At the turn of the 20th and 21st century, a new group of managers is being shaped on a global scale. Managers are hoped that they can agree on the interests of the company and other communities (local, national and regional), where these contradictions could lead to the crisis and all its negative consequences. The complexity of the modern world is expressed in the fact that capitalist economies are based on a foundation of debt. Borrowing is a condition for economic growth. Financial claims arising as a result of the interaction of consumers, producers, savers and investors in each economy are sustainable, provided that the expected future revenues are higher than the expected debt repayments. Practical Implications: Expectations regarding future financial flows are uncertain. Market conditions change unexpectedly. There are shocks in the economy and investors' expectations are changing. Originality: Even before 2020, the history of capitalism in the 20th and 21st centuries is marked by the sequence: debt, uncertainty, shocks. The deepening of financial connections brings inevitable problems, the solution of which requires collective and joint action by managers on a global scale.

Suggested Citation

  • Grazyna Musial, 2020. "Audit Opinion : Modern World and Economic Interactions in The Light of The Science of Economics As Well As Finances and Accounting," Finance, Accounting and Business Analysis, University of National and World Economy, Institute for Economics and Politics, vol. 2(1), pages 17-24, May.
  • Handle: RePEc:aan:journl:v:2:y:2020:i:1:p:17-24
    as

    Download full text from publisher

    File URL: http://faba.bg/index.php/faba/article/view/30/20
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aan:journl:v:2:y:2020:i:1:p:17-24. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Yanko Hristozov (email available below). General contact details of provider: https://edirc.repec.org/data/ienwebg.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.