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Qualitative Analysis on the Interference and Causality between Accounting and Auditing for Romanian Companies “Top Traded” Listed at the Bucharest Stock Exchange

Author

Listed:
  • Ramona-Ionela Haraguș

    (“1 Decembrie 1918” University, Alba-Iulia, România)

  • Attila Szora Tamaș

    (“1 Decembrie 1918” University, Alba-Iulia, România)

Abstract

The instability generated by legislative changes, price volatility, difficulties in obtaining and maintaining financial stability are realities that characterize the current economic situation, and the first indications of significant uncertainties regarding the continuity of an entity’s activity can be obtained from the financial statements and the audit report, consequently, it becomes essential to assume the responsibilities that administrators and financial auditors have in assessing the adequacy of the going concern principle. The objective of the research is the analysis of how the auditor, by belonging to the Big 4 or Non-Big 4 category, the audit opinion, the number of key audit aspects included in the audit report, confirms the positive or negative implications on the principle of business continuity. The research methodology involved qualitative analysis by manually extracting data from the audit reports issued for the period 2018-2022, for a sample that includes 45 companies „top traded” from Romania listed on the Bucharest Stock Exchange (BSE). Following the analysis, it was found that the assumption of continuity of activity in the preparation of the individual annual financial statements, assumed by the management of the company, is adequate in 78% of the cases for the studied sample.

Suggested Citation

  • Ramona-Ionela Haraguș & Attila Szora Tamaș, 2024. "Qualitative Analysis on the Interference and Causality between Accounting and Auditing for Romanian Companies “Top Traded” Listed at the Bucharest Stock Exchange," Journal of Financial Studies, Institute of Financial Studies, vol. 16(9), pages 176-193, May.
    • Handle: RePEc:fst:rfsisf:v:16:y:2024:i:9:p:176-193
    DOI: 10.55654/JFS.2024.9.16.10
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    References listed on IDEAS

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    1. Hian Chye Koh & Chan Kee Low, 2004. "Going concern prediction using data mining techniques," Managerial Auditing Journal, Emerald Group Publishing Limited, vol. 19(3), pages 462-476, April.
    2. Bhimani, Alnoor & Gulamhussen, Mohamed Azzim & Lopes, Samuel, 2009. "The effectiveness of the auditor's going-concern evaluation as an external governance mechanism: Evidence from loan defaults," The International Journal of Accounting, Elsevier, vol. 44(3), pages 239-255, September.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Going concern principle; audit opinion; key audit issues; auditor.;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M42 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Auditing

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