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Correction of Accounting Errors through Post Balance Sheet Event Analysis for Romanian Companies

Author

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  • Monica Laura Zlati

    (Department of Accounting, Audit and Finance, Stefan cel Mare University, 720229 Suceava, Romania)

  • Valentin Marian Antohi

    (Departament of Business Administration, Dunarea de Jos University/Faculty of Economics and Business Administration, 800001 Galati, Romania)

  • Petronela Cardon

    (Departament of Business Administration, Dunarea de Jos University/Faculty of Economics and Business Administration, 800001 Galati, Romania)

Abstract

The study scope is to present the typology of the events analyzed through our research and their impact on the quality of reported financial data. The objectives of the study are to analyze the vulnerability of enterprises according to methodological criteria such as risks and calculations of the risk profile, as well as to establish the necessary measures for correcting the accounting errors based on the conclusions drawn from the analysis. The method used is prospective, financial analysis of the data taken from the financial statements of the companies included in the sample, dynamic for a period of 6 years (2011–2016). Based on the method used, a risk model has been conceptualized to identify the vulnerabilities and risks reported in the financial statements and to define a company risk profile based on which error correction measures can be adopted. Considering the amplitude of the necessary check-ups and the methodology of the imposed accounting treatments, we believe that the topic addressed is a real area of interest for the professional accountants because it organizes the application procedures and limits the impact of errors on the quality of financial reporting in Romania.

Suggested Citation

  • Monica Laura Zlati & Valentin Marian Antohi & Petronela Cardon, 2019. "Correction of Accounting Errors through Post Balance Sheet Event Analysis for Romanian Companies," Economies, MDPI, vol. 7(2), pages 1-22, April.
    • Handle: RePEc:gam:jecomi:v:7:y:2019:i:2:p:29-:d:219097
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    References listed on IDEAS

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    1. Jana Skálová & Ladislav Mejzlík & Marcel Bareš, 2020. "Vykazování jiného výsledku hospodaření minulých let v českých společnostech [Reporting of Prior Period Errors and Changes in Accounting Policies by Czech Companies]," Politická ekonomie, Prague University of Economics and Business, vol. 2020(3), pages 245-266.

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