IDEAS home Printed from https://ideas.repec.org/a/zan/ygzier/v25y2016i1p3-10.html
   My bibliography  Save this article

Ifrs Adoption In Romania And The Importance Of Auditor Size

Author

Listed:
  • Inesa TOFANICA

    (PhD student at Doctoral School of Economics and Business Studies, “Al.I.Cuza” University of Iasi, Romania)

  • Emil HOROMNEA

    (PhD student at Doctoral School of Economics and Business Studies, “Al.I.Cuza” University of Iasi, Romania)

  • Alin CHELARIU

    (PhD student at Doctoral School of Economics and Business Studies, “Al.I.Cuza” University of Iasi, Romania)

Abstract

The recent accounting regulations in Romania have made mandatory the use of IFRS in the individual financial statements of the companies listed on stock exchange. The aim of this study is to see to what extent the figures in the statements have been influenced by this new enforcement. We have studied the companies affected by this regulation and publicly traded on the Bucharest Stock Exchange. Our findings showed that, on average, Romanian companies did not comply with IFRS practices, as they prefer the practices that do not differ from national regulation. Moreover, the study has shown that the companies audited by a Big 4 have adopted practices closer to the Anglo Saxon accounting system.

Suggested Citation

  • Inesa TOFANICA & Emil HOROMNEA & Alin CHELARIU, 2016. "Ifrs Adoption In Romania And The Importance Of Auditor Size," THE YEARBOOK OF THE "GH. ZANE" INSTITUTE OF ECONOMIC RESEARCHES, Gheorghe Zane Institute for Economic and Social Research ( from THE ROMANIAN ACADEMY, JASSY BRANCH), vol. 25(1), pages 3-10.
    • Handle: RePEc:zan:ygzier:v:25:y:2016:i:1:p:3-10
    as

    Download full text from publisher

    File URL: http://ices.ro/RePEc/zan/ygzier/2016/YGZIER_2016_V25_ISS1_3to10.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Costel Istrate, 2014. "Impact of IFRS on the accounting numbers of Romanian listed companies," Journal of Accounting and Management Information Systems, Faculty of Accounting and Management Information Systems, The Bucharest University of Economic Studies, vol. 13(3), pages 466-491, September.
    2. Ioannis Tsalavoutas & Lisa Evans, 2010. "Transition to IFRS in Greece: financial statement effects and auditor size," Managerial Auditing Journal, Emerald Group Publishing, vol. 25(8), pages 814-842, September.
    3. Niskanen, Jyrki & Kinnunen, Juha & Kasanen, Eero, 2000. "The value relevance of IAS reconciliation components: empirical evidence from Finland," Journal of Accounting and Public Policy, Elsevier, vol. 19(2), pages 119-137, June.
    4. DeAngelo, Linda Elizabeth, 1981. "Auditor size and audit quality," Journal of Accounting and Economics, Elsevier, vol. 3(3), pages 183-199, December.
    5. Hellmann, Andreas & Perera, Hector & Patel, Chris, 2013. "Continental European accounting model and accounting modernization in Germany," Advances in accounting, Elsevier, vol. 29(1), pages 124-133.
    6. Costel Istrate, 2014. "Impact Of Ifrs On The Accounting Numbers Of Romanian Listed Banks," The Journal of Accounting and Management, Danubius University of Galati, issue 2, pages 45-49, August.
    7. Caramanis, Constantinos & Lennox, Clive, 2008. "Audit effort and earnings management," Journal of Accounting and Economics, Elsevier, vol. 45(1), pages 116-138, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Inesa TOFĂNICĂ & Emil HOROMNEA, 2020. "The effect of IFRS application on turnover figures of Romanian companies," CES Working Papers, Centre for European Studies, Alexandru Ioan Cuza University, vol. 12(2), pages 156-166, September.
    2. Ines Kateb & Ines Belgacem, 2024. "Navigating governance and accounting reforms in Saudi Arabia's emerging market: impact of audit quality, board characteristics, and IFRS adoption on financial performance," International Journal of Disclosure and Governance, Palgrave Macmillan, vol. 21(2), pages 290-312, June.
    3. Kitto, Andrew R., 2024. "The effects of non-Big 4 mergers on audit efficiency and audit market competition☆," Journal of Accounting and Economics, Elsevier, vol. 77(1).
    4. Nurul Nazlia Jamil, 2020. "The Power of Political Connections: Review on the Impacts of Audit Committee and Corporate Governance," Journal of Public Administration and Governance, Macrothink Institute, vol. 10(1), pages 333347-3333, December.
    5. Hye‐Jeong Nam, 2018. "The Impact of Mandatory IFRS Transition on Audit Effort and Audit Fees: Evidence from Korea," Australian Accounting Review, CPA Australia, vol. 28(4), pages 512-524, December.
    6. Hwang, Seokyoun & Sarath, Bharat & Han, Seung-youb, 2022. "Auditor independence: The effect of auditors’ quality control efforts and corporate governance," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 47(C).
    7. Sarowar Hossain & Jeff Coulton & Jenny Jing Wang, 2023. "Client Importance and Audit Quality at the Individual Audit Partner, Office, and Firm Levels," Abacus, Accounting Foundation, University of Sydney, vol. 59(2), pages 650-696, June.
    8. Cao, June & Ee, Mong Shan & Hasan, Iftekhar & Huang, He, 2024. "Asymmetric reactions of abnormal audit fees jump to credit rating changes," The British Accounting Review, Elsevier, vol. 56(2).
    9. Abdulrahman Alomair & Alan Farley & Helen Hong Yang, 2022. "The impact of IFRS adoption on the value relevance of accounting information in Saudi Arabia," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 62(2), pages 2839-2878, June.
    10. Schelker, Mark, 2012. "Auditor expertise: Evidence from the public sector," Economics Letters, Elsevier, vol. 116(3), pages 432-435.
    11. Tsipouridou, Maria & Spathis, Charalambos, 2012. "Earnings management and the role of auditors in an unusual IFRS context: The case of Greece," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 21(1), pages 62-78.
    12. Blankley, Alan I. & Hong, Keejae P. & Kerr, David & Wiggins, Casper E., 2014. "A note on the effect of PCAOB inspections on the audit quality of triennial CPA firms," Research in Accounting Regulation, Elsevier, vol. 26(2), pages 212-216.
    13. Xianjie He & Jeffrey Pittman & Oliver Rui, 2016. "Reputational Implications for Partners After a Major Audit Failure: Evidence from China," Journal of Business Ethics, Springer, vol. 138(4), pages 703-722, November.
    14. Kevin Koh & Li Li & Xuejiao Liu & Chunfei Wang, 2023. "The Effect of Audit Partner Diversity on Audit Quality: Evidence from China," Abacus, Accounting Foundation, University of Sydney, vol. 59(1), pages 340-380, March.
    15. Lino, André Feliciano & Azevedo, Ricardo Rocha de & Aquino, André Carlos Busanelli de & Steccolini, Ileana, 2022. "Fighting or supporting corruption? The role of public sector audit organizations in Brazil," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 83(C).
    16. El Ghoul, Sadok & Guedhami, Omrane & Pittman, Jeffrey, 2016. "Cross-country evidence on the importance of Big Four auditors to equity pricing: The mediating role of legal institutions," Accounting, Organizations and Society, Elsevier, vol. 54(C), pages 60-81.
    17. Silvia Ferramosca & Giulio Greco & Marco Allegrini, 2017. "External audit and goodwill write-off," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 21(4), pages 907-934, December.
    18. Jian Cao & Feng Chen & Julia L. Higgs, 2016. "Late for a very important date: financial reporting and audit implications of late 10-K filings," Review of Accounting Studies, Springer, vol. 21(2), pages 633-671, June.
    19. Dang, Man & Puwanenthiren, Premkanth & Truong, Cameron & Henry, Darren & Vo, Xuan Vinh, 2022. "Audit quality and seasoned equity offerings methods," International Review of Financial Analysis, Elsevier, vol. 83(C).
    20. Tsipouridou, Maria & Spathis, Charalambos, 2014. "Audit opinion and earnings management: Evidence from Greece," Accounting forum, Elsevier, vol. 38(1), pages 38-54.

    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:zan:ygzier:v:25:y:2016:i:1:p:3-10. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Alecu Ionel Ciprian (email available below). General contact details of provider: https://edirc.repec.org/data/icessro.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.