scholarly journals Statutory audit in Slovakia – significant phenomenon of global European changes

2020 ◽  
Vol 74 ◽  
pp. 06006
Author(s):  
Denisa Domaracká ◽  
Veronika Kňažková
Keyword(s):  
Financial Reporting ◽  
Global Economy ◽  
Financial Statements ◽  
Legislative Regulation ◽  
Significant Phenomenon ◽  
The Subject ◽  
The Impact ◽  
Regulation Changes ◽  
Audit Performance

The changing global economy environment also affected the area of statutory audit. Nowadays, statutory audit faces the significant changes not only because of the processes of digitization and automation in accounting and auditing, but because of increased and tightened legislative regulation, too. The most important aspects of financial reporting and auditing are subject to EU Regulations and EU Directives. For this reason, the issue of legislative regulation changes in field of statutory audit in Slovakia has become the subject of our article. Currently, the proposal of amending and supplementing Act. No 431/2002 Coll. on Accounting, as amended underwent an interdepartmental comment procedure. The proposal includes the changes on requirements for statutory audit. This article examines the current proposal to change (mainly increase) the conditions for performing the mandatory statutory audit of financial statements in Slovak audit environment. Our goal is to clarify the reasons and implications behind the changes of Slovak legislation as well as the impact of these changes on audit performance in Slovakia. We believe conducting statutory audits in accordance with the applicable legislation accepted and implemented at international European level can contribute to transparency and improve the quality of audit performance. In order to achieve the goal, it was necessary to choose a purposeful work methodology and research methods.

scholarly journals A literature review on the impact of IAS/IFRS and regulations on quality of financial reporting

2016 ◽  
Vol 6 (4) ◽  
pp. 102-114 ◽  
Author(s):  
Newman Wadesango ◽  
Edmore Tasa ◽  
Khazamula Milondzo ◽  
Ongayi Vongai Wadesango
Keyword(s):  
Financial Reporting ◽  
Accounting Standards ◽  
Reporting Quality ◽  
Financial Statements ◽  
Conclusive Evidence ◽  
Financial Reporting Quality ◽  
International Accounting Standards ◽  
Ifrs Adoption ◽  
The Impact

The International Accounting Standards Board (IASB) in its objectives and preamble, presume that IFRS adoption and perceived compliance to regulatory framework is associated with increased financial reporting quality. Based on these assumptions, this desktop study reviewed several documents to determine whether the IFRS adoption has led to increased financial reporting quality in Zimbabwe. The researchers reviewed literature on how the IAS/IFRS and regulations affect the financial reporting quality of listed companies. The factors around IFRS adoption were identified (mandatory, voluntary and convergence) and discussed in relation to the financial reporting quality. Evidence from previous studies conducted in line with this same issue shows that there is no conclusive evidence on how IFRS and regulations affect the financial reporting quality. Issues to be addressed in further studies include the importance of financial statements prepared under IFRS framework and the importance of compliance with accounting and auditing requirements.

scholarly journals Analysis on the Effects of Quality of Financial Statements, Over GDP Forecasting Models. An Empirical Cross-Country Approach

2020 ◽  
Vol 15 (3) ◽  
pp. 236-260
Author(s):  
Burca Valentin ◽  
Mates Dorel ◽  
Bogdan Oana
Keyword(s):  
Economic Growth ◽  
Financial Reporting ◽  
Structural Changes ◽  
Causal Relation ◽  
Forecast Error ◽  
Financial Statements ◽  
Institutional Framework ◽  
Gdp Growth ◽  
The Impact

Abstract Under increasing macroeconomic uncertainty, governments base their economic policies on high-precision GDP estimates. The models considered based on building-up government budgets incorporate main drivers of economic growth, identified along a large range of empirical studies, mostly focused on economic productivity, factor accumulation, human capital, innovation and transfer of technology, structural changes, or institutional framework. However, there is little evidence related to the impact of accounting and assurance regulation on economic growth. Our study attempts to assess the significance of causal relation between forecasting error on GDP growth and quality of accounting standards, respectively quality of financial statements. The study analyzes the causal relation between country level measures of quality of financial reporting, synthetized by Isidro et. al. (2019), and the measure of GDP growth estimate mean error. Our results confirm a significant impact of quality of the output of financial reporting practice, related to disclosure quality and asymmetric timeliness. The results remain similar, even after controlling for accounting convergence influence. Checking for robustness of the model, we observe the main drivers of one year ahead GDP forecast error are related to institutional framework to issue high quality standards and enforce them properly. The results emphasize once again the role of economic development and corresponding complexity of economic activities and political framework impact on accounting regulation and subsequently on macroeconomic measures.

scholarly journals ASSESSMENT OF THE POTENTIAL OF AUDITING FIRMS IN THE CONTEXT OF DEVELOPING ECONOMIC CRIMES

2020 ◽  
Author(s):  
Dimitriy Grytsyshen ◽  
◽  
Zhanna Prokopenko ◽  
Tetiana Kochyn ◽  
Volodymyr Tsependa ◽  
...  
Keyword(s):  
Financial Reporting ◽  
Financial Statements ◽  
Legal Framework ◽  
Audit Firm ◽  
Corporate Scandals ◽  
Functional Value ◽  
Functional Features ◽  
Labor Resources ◽  
The Impact

The article proves that the number one issue in the development of the information society is not the amount of information, but its quality, and it is the audit of confirmation of this quality through the assessment of the risks of its reduction. It is specified that in this direction it is important both the innovative method of auditing the financial statements for quality, and the resources needed to perform all defined audit procedures. It is revealed that according to the model the content of audit tasks changes, and there is a need to transform its methodology. The impact of negative financial reporting and auditing results on the securities markets was assessed by studying corporate scandals in Ukraine and the world. The characteristics of corporate scandals in terms of falsification of financial statements and methodology and organization of audit are given. The directions of transformation of institutional audit support as a tool for evaluating financial statements and its results as components of the information resource for internal and external users are identified. The analysis of the legal framework in the field of quality control of services provided by audit entities allowed to form the institutional aspects of quality assurance of audit activities and to establish the functional features of the relevant institutions. The organizational-hierarchical interrelations are defined, and also the functional value in system of maintenance of quality of auditing activity of subjects of regulation of auditing activity in Ukraine is defined. The relationship between the quality of the audit and the audit of the quality of financial statements is substantiated. It is established that the key resource of economic activity of the audit firm is the labor resources that form the human resources and determine the quality of the audit service. It is characterized that the quality of the audit service depends on the effectiveness of the audit entity as a subject of external independent financial control in the context of the relevant public functions and as a business entity whose main purpose is to make a profit. It was found that the efficiency of use and formation of economic resources by the audit firm depends on all the effects associated with its operation.

scholarly journals ФОРМУВАННЯ ОБЛІКОВОЇ ПОЛІТИКИ ЗА ПРИНЦИПОМ БЕЗПЕРЕРВНОСТІ ДІЯЛЬНОСТІ ПІДПРИЄМСТВ

2021 ◽  
pp. 74-81
Author(s):  
Олена Сергіївна Юрченко
Keyword(s):  
Financial Reporting ◽  
Information Needs ◽  
Accounting Standards ◽  
Financial Statements ◽  
Fair Value ◽  
The Real ◽  
Real Value ◽  
The Impact ◽  
Accounting Policy

Formulation of the problem. Based on the study, the prerequisites, features and components of the formation of accounting policies in the context of business continuity are revealed. The purpose of the article is to substantiate the theoretical and methodological and organizational provisions of accounting policy formation in the context of the implementation of the concept of continuity. The object of research is the process of formation of accounting policy and its impact on the quality of corporate financial reporting information. Methods used in the study: scientific knowledge, method of generalization, comparison, logical - meaningful, methods of induction and deduction. The main hypothesis is that the formation of accounting policies aimed at determining the regulations of accounting and reporting from the standpoint of reflecting complete and reliable information about the real value of assets and liabilities will help reconcile the interests of all stakeholders. Presenting main material. The article identifies the prerequisites, directions and elements of the formation of accounting policies on the principle of continuity of enterprises. Provisions on the development of theoretical and methodological foundations for the formation of accounting policies of enterprises on the basis of risk-oriented approach are revealed. The necessity of valuation of assets and liabilities according to the criteria: fair, discounted and market value of enterprises is substantiated and the methodological support of valuation of financial instruments in accounting is revealed. Originality and practical significance are proposals for the formation of methodological and organizational support and recommendations for the measurement of assets and liabilities at fair value in order to improve the quality of financial statements. Research findings. The formation of accounting policy in the context of the principle of continuity is based on the requirements of International Accounting Standards and National Accounting Standards and depends on the needs of management, methods and techniques of accounting. In the process of developing an accounting policy, it is necessary to take into account the information needs of various stakeholders to disclose information in corporate financial statements. The introduction of theoretical and methodological provisions for the formation of elements of accounting policy on the principle of continuity will meet the information needs of different users, improve the quality of financial reporting and assess the impact of accounting policies on the real value of enterprises in the future.

Empirical Study on the Effect of Adopting the International Financial Reporting Standards (IFRS) on the Quality of Earnings using Beneish Model in a Sample of Banks Listed in the Iraqi Stock Exchange

2021 ◽  
Vol 39 (11) ◽  
Author(s):  
Zahraa Nasser Ali ◽  
Hakeem Hammood Flayyih
Keyword(s):  
Financial Reporting ◽  
Commercial Banks ◽  
Stock Exchange ◽  
Financial Statements ◽  
International Financial Reporting Standards ◽  
Reporting Standards ◽  
Global Capital ◽  
Financial Reporting Standards ◽  
The Impact

The need for international financial reporting standards (IFRS) emerged due to the increasing degree of interdependence between global capital markets and the need for investors to obtain reliable and honest financial information in expressing economic events, in order to find a common financial language, and this is what IFRS provide. Nevertheless, the research aimed to measure the impact of the adoption of IFRS on the quality of earnings in the Iraqi banks listed in the Iraqi Stock Exchange for a sample of 30 banks. The Beneish model was used to measure the quality of earnings, while Mann-Whitney was used to measure and prove the hypothesis of the research. However, the research reached a set of conclusions, including that although the IFRS should contribute to improving the quality of financial reporting, the adoption of these standards in commercial banks listed in the Iraq Stock Exchange did not contribute to achieving quality in earnings even after adopting those standards. Furthermore, a Beneish model is an important tool for auditors, financial analysts, investors, and creditors who have the ability to understand the financial statements or those who have a reasonable understanding of the nature of those financial statements in measuring the quality of earnings, because it is a simple and easy to implement tool.

scholarly journals Accounting processes and their impact on the profitability of companies

2021 ◽  
pp. 1-10
Author(s):  
Vanessa Mariuxi Quezada-Pacheco ◽  
María Magdalena Soto-Aguilar ◽  
Milca Naara Orellana-Ulloa
Keyword(s):  
Financial Statements ◽  
Financial Information ◽  
Correct Execution ◽  
The Subject ◽  
Descriptive Approach ◽  
The Impact

The objective of the following study is to analyze the importance of accounting processes and the impact that financial statements have on the profitability of companies through a qualitative and descriptive approach, in which it is described how important it is for companies the carrying out an efficient accounting process that leads to the correct execution of the financial statements, so that it allows the managers to make better decisions, through the different criteria of authors on the subject of study it was possible to have as the Accounting processes are of great importance for every company, since by means of the efficiency that is had, the quality of the information that will be presented in the financial statements will be given, which leaves us as a conclusion that both the accounting processes and the financial statements allow to detail the financial information that is obtained by transactional operations in this way to know in a real way the company situation.

scholarly journals ACCOUNTІNG POLІCY AND ORGANІZATІON: ELEMENTS AND OBJECTS

2021 ◽  
Author(s):  
Lyudmila Kushnir ◽  
Oleg Korkushko ◽  
Volodymyr Kushnir
Keyword(s):  
Global Economy ◽  
Minimum Cost ◽  
Financial Statements ◽  
Job Descriptions ◽  
Financial Activity ◽  
Financial Condition ◽  
Methodological Principles ◽  
The Impact ◽  
Accounting Policy

In the article is considered the problem of accounting policy of the enterprise, the organization of accounting, and the peculiarities of the impact on them of their objects and elements. The urgency of the study is due to the fact that functioning in the global economy as a business entity; each company must provide a state of its financial results and resources, in which it would stably retain the ability to continuously carry out its financial resources to its employees. Accounting policy is not only a set of methods for reporting, but also a tool for organizing and managing accounting in the enterprise. Along with highlighting the features of the accounting policy of a particular enterprise, it is recommended to use conventional accounting materials and workflow charts, job descriptions, automated accounting projects, plans for what will be the organization of accounting in this industry. At the same time, the use of constituent documents, which are devoted to the basic principles and structure of economic and organizational activities, which overlap with the organization of accounting and accounting policy, their objects and elements, has become important. Acquiring in market conditions not imaginary, but real financial independence, bearing real economic responsibility for efficiency of managing and for timely performance of financial obligations, the enterprises are capable to reach stability of the finances, only at strict observance among which principles, obtaining maximum profit at minimum cost and rationally organized accounting and accounting policy. This condition is decisive for the formation of the financial condition of the enterprise – a complex, integrated in many respects characteristics of the quality of its activities. The accounting policy of the enterprise regulates the method of accounting, and the organization of accounting provides for the organization of the accounting process and the work of the accounting staff. The accounting policy is prescribed by the order on the accounting policy of the enterprise, which contains a description of methodological principles, issues of technology and organization of accounting. The accounting policy of the enterprise contains a number of elements on which the result of financial activity depends. The objects of accounting policy in most cases coincide with the objects of accounting, the elements of accounting policy are alternative options for accounting of individual objects provided by regulations; accounting estimates include the amounts of financial statements that were calculated by the management of the enterprise, and are acceptable in accordance with the provisions of accounting for the impossibility of determining their exact values. In the article proposed the directions of influence of the elements of accounting policy in the formation of certain indicators at financial statements and financial results in order to make operational management decisions.

scholarly journals A POSSIBLE IMPACT OF CULTURAL FACTORS ON THE EXPECTATIONS ON THE CONTENT OF ISLAMIC FINANCIAL STATEMENTS

2019 ◽  
pp. 21-31
Author(s):  
Malgorzata M. Czerny ◽  
Marta Mazurowska
Keyword(s):  
Financial Reporting ◽  
Financial Statements ◽  
Cultural Factors ◽  
Homo Oeconomicus ◽  
Universal Language ◽  
Muslim Countries ◽  
Cultural Conditions ◽  
Real People ◽  
The Subject ◽  
The Impact

The financial reporting is considered to be a ‘universal’ language of business, the efforts to harmonize and standardize it are dictated by conviction, that the usefulness of financial and non-financial information delivered this way can be improved and might facilitate comparisons of companies operating around the world, etc. However, the real perception of information generated by financial statements is made by real people, not by the economic model of homo oeconomicus, that is why psychological and cultural factors are extremely important in the analysis of this process. There is a lack of comprehensive studies on this subject. Most of publications are contributory. The research is based on the critical review of the subject literature and using mostly the method of induction, the impact of selected cultural conditions on the formulation of expectations on the content of the financial statements is examined and proved. The example of Muslim countries is used as the beginning of series of articles in the taken subject. Keywords: accounting harmonization, cultural factors, decision-making, financial reporting, Islam.

Утицај трезорског система на финансијске извјештаје у јавном сектору // The Influence of Treasury System on Financial Statements in the Public Sector

2018 ◽  
Vol 14 (24) ◽  
pp. 171
Author(s):  
Бобана Чегар
Keyword(s):  
Public Sector ◽  
Financial Reporting ◽  
Theoretical Basis ◽  
Financial Statements ◽  
The Public ◽  
The Third ◽  
The Subject ◽  
The Republic ◽  
The One

Резиме: Организација трезорског система доста је сложена с обзиром на многобројне функције које се обављају у оквиру трезора. Извршење једне од тих функција подразумијева и евидентирање трансакција у вези са прикупљањем и трошењем буџетских средстава што свакако има посљедице и на финансијске извјештаје буџетских корисника. Предмет овог рада је управо сагледавање утицаја трезорског система на финансијске извјештаје. На основу података прикупљених техником анкетног упитника и на основу метода анализе, индукције и дедукције на примјеру Републике Српске дошло се до резултата који показују да је увођење трезорског система олакшало доношење одлука и повећало квалитет финансијског извјештавања у јавном сектору, али да би превазилажењем техничких недостатака који тренутно постоје ефекти били још већи. У прва два дијела рада пружа се теоријски преглед основа финансијског извјештавања у јавном сектору и трезорског система пословања, док је у трећем дијелу приказана методологија истраживања и резултати до којих се дошло истраживањем.Summary: The organization of the treasury system is quite complex due to the fact that many functions performed within the treasury system. The execution of the one of these functions involves recording transactions relating to the collection and spending budget funds, which certainly will affect the financial statements of budget users. The subject of the paper is a consideration of the treasury system impact on the financial statements. Based on the data collected using the questionnaire technique and based on the methods of analysis, induction and deduction on the example of the Republic of Srpska, we came to the result that indicates the treasury system facilitate decision-making and in the same time increase the quality of financial reporting in the public sector, but if overcome technical deficiencies that currently exist, effects will be even greater. The first two parts of the paper provides an overview of the theoretical basis of financial reporting in the public sector and the treasury system, while the third section presents the methodology and the results obtained during research.

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