The role of the audit report in the enterprise evaluation

Enterprise evaluation has an economic and financial character. The evaluator’s investigations regarding the enterprise financial situations as well as the numerous economic, technical and strategic analyses are finally meant to establish the real enterprise values reflected in the market value. Going from the accountant information to the analysis one represents a stage imposed by the vocation of the two activities; the accounting vocation is that of observing a layout pursuing the respect of various strict rules and principles, while the vocation of the financial analysis is to formulate an appreciation of the performance of the analyzed entity, being preoccupied with the pertinence of the valuable judgments that were enunciated. The information offered by the accounting department and mostly by the financial accounting department constitutes a material adapted to the needs of the financial analysis, a material used essentially for the financial diagnosis as it provides the most elaborate, systematical, synthetic and homogeneous information, required to evaluate the enterprise financial situation, its performance and the risks associated to obtaining all these. In evaluating the enterprise, the financial diagnosis must provide the information needed in estimating the incomes and the expenses, so that the evaluation methods depend on the pertinence of the diagnosis. The credibility of the accounting information is offered by the auditors in their auditing missions which bring the added value and a better protection for the shareholders, investors, creditors and other interested parties.