scholarly journals NEW REQUIREMENTS FOR STATUTORY AUDITORS IN EUROPEAN UNION

2014 ◽  
Author(s):  
Daniel Botez
Keyword(s):  
European Union ◽  
Public Interest ◽  
Audit Committee ◽  
Financial Statements ◽  
European Parliament ◽  
Audit Report ◽  
Consolidated Financial Statements ◽  
The Subject ◽  
Audit Reports ◽  
Supplementary Report

Statutory audit missions are completed through the drawing up of audit reports. The elements of an audit report are standardized by International Standard on Audit ISA 700 “Forming an opinion and reporting on financial statements”. In April 2014, Directive 2006/43/EC on statutory audits of annual accounts and consolidated financial statements has been amended by Directive 2014/56/EU of the European Parliament and of the Council of April 2014. All in the month of April 2014, the European Parliament and the Council adopted Regulation No 136/66/EEC. 537/2014 Regarding specific requirements relating to statutory audits of public interest entities. These documents provide for expanded content for the report of the Audit Board and some additional requirements. In this way the Directive 2014/56/EC lays down mandatory items in the report of the Audit Board additional to those laid down by international reference. Regulation lays down the duty of auditor’s entities of public interest to include in the report of the Audit Board items additional to those laid down by the Directive. Furthermore, lays down an obligation for them to send, in addition to the report of the Audit Board, Other reports content well specified: a supplementary report addressed to the audit committee of the entity audited; a report to the supervisory authority of the entity of public interest; a report of transparency, which will be published on their web site; and, A report by the authority to the monitoring by reporting list of entities of public interest audited and of revenue. Such reports together with some comments, is the subject of article.

scholarly journals EUROPEAN REQUIREMENTS REGARDING THE AUDIT REPORTING

2017 ◽  
Author(s):  
Daniel Botez
Keyword(s):  
European Union ◽  
Public Interest ◽  
Audit Committee ◽  
Financial Statements ◽  
The European Union ◽  
Consolidated Financial Statements ◽  
The Public ◽  
Supervisory Authority ◽  
Additional Information ◽  
Reporting Requirements

In recent years, reporting requirements on the statutory audit have been revised and amended to increase the audit report’s communication value. In addition to the stipulations of the International Auditing Standards Package on reporting, revised and enforceable on 15 December 2016, the European Union issued the Directive 2014/56 / EU amending Directive 2006/43 / EC on statutory audits of annual financial statements and consolidated financial statements and EU Regulation no. 537/2014 on specific requirements for the statutory audit of public interest entities, both of which were published on the same date, June 17, 2014 and with the same application deadline, June 17, 2016. These normative acts foresee increased requirements for the reporting procedure in the statutory audit. Thus, the Directive provides for additional content requirements for the audit report, and the regulation requires additional information in the report but also the issuance and provision of other reports by the auditor: report to the audit committee of the public interest entity; In some cases, a report to the public-interest entity's supervisory authority or to the auditor's supervisory authority, and a transparency report published annually on the auditor's website. Our article details this information with direct reference to the content of these European official documents.

scholarly journals Impact of Transposition of the Directive 2013/34/EU into the National Laws of EU Member States Emphatically V4

2017 ◽  
Vol 65 (2) ◽  
pp. 631-639
Author(s):  
Jana Gláserová ◽  
Milena Otavová ◽  
Anna Bušovová ◽  
Eliška Dřínovská
Keyword(s):  
European Union ◽  
Competitive Advantage ◽  
Financial Statements ◽  
European Parliament ◽  
The European Union ◽  
Consolidated Financial Statements ◽  
Member States ◽  
National Accounting ◽  
Eu Member States ◽  
The Eu

The European Union has published the Directive 2013/34/EU of the European Parliament and of the Council of 26 June 2013 on the annual financial statements, consolidated financial statements and related reports of certain types of undertakings for reasons of increasing of the competitive advantage and productivity of small and medium‑sized enterprises. The EU Member States have to incorporate the rules of the Directive with their national law by 20 July 2015 at the latest during the year 2016. The intention of this paper is to determine and to evaluate the impacts of transposition of the Directive into the Czech Accounting Law and into the national accounting laws of EU Member States chosen. There is an identification of main differences of Czech Accounting Law and of amended Czech Accounting Law issued 1st of January 2016. There is an impact of implementation of the Directive 2013/34/EU on financial statements and at the same time on requirements of audit for individual categories of Czech accounting entities. In this paper, there is also an analysis of impact of the Directive 2013/34/EU on national accounting laws V4 States and on several further EU Member States. On the basis of comparison of differences recognized, there is an deduction of findings for companies falling into the same group.

scholarly journals The Consequences of “Options” in the Directive 2013/34/Eu of the European Parliament and of the Council on the Financial Statements

2017 ◽  
Vol 65 (4) ◽  
pp. 1349-1357
Author(s):  
Eva Hýblová ◽  
Alena Kolčavová
Keyword(s):  
European Union ◽  
Financial Reporting ◽  
Financial Statements ◽  
European Parliament ◽  
The Other ◽  
Financial Statement ◽  
The European Union ◽  
Consolidated Financial Statements ◽  
Other Hand ◽  
The One

Directive 13/34/EC of the European Parliament and of the Council of 26 June 2013 on the annual financial statements, consolidated financial statements and related reports of certain types of undertakings is an instrument of the harmonisation of accounting in member states of the European Union. The Directive contains a number of various ways for recognition and measurement of financial statements, alternative forms of statements or simplifications for small and medium sized enterprises, worded as “permit or require”. On the one hand, these differing ways can facilitate application of the Directive in national legislations; on the other hand, they can significantly reduce the comparability of information published in financial statements. The aim of the paper is to verify the relation between the options to be chosen and the variability of the resulting values of the financial statement items. Based on the findings, the results are evaluated in relation to the informative function of financial reporting.

Obywatele Unii Europejskiej – wyborcy Parlamentu Europejskiego – parlamentu ponadnarodowego

2016 ◽  
Vol 14 (3) ◽  
pp. 147-162
Author(s):  
Stefan Marek Grochalski
Keyword(s):  
European Union ◽  
Subject Matter ◽  
European Parliament ◽  
Legal Regulations ◽  
The European Union ◽  
Democratic State ◽  
The Subject ◽  
Direct Elections

Parliament – an institution of a democratic state – a member of the Union – is not only an authority but also, as in the case of the European Union, the only directly and universally elected representative body of the European Union. The article presents questions related to the essence of parliament and that of a supranational parliament which are vital while dealing with the subject matter. It proves that the growth of the European Parliament’s powers was the direct reason for departing from the system of delegating representatives to the Parliament for the benefit of direct elections. It presents direct and universal elections to the European Parliament in the context of presenting legal regulations applicable in this respect. It describes a new legal category – citizenship of the European Union – primarily in terms of active and passive suffrage to the European Parliament, as a political entitlement of a citizen of the European Union.

scholarly journals Issues related to the regulation of the content of the audit reports

2021 ◽  
pp. 77-89
Author(s):  
Irina V. Panina
Keyword(s):  
Public Interest ◽  
Financial Statements ◽  
Information Value ◽  
Public Utility ◽  
International Standards ◽  
Federal State ◽  
State Control ◽  
Federal Law ◽  
Audit Reports ◽  
Laws And Regulations

Introduction. Currently, the procedure for providing audit services to public interest entities is being reformed. The main goal of these reforms is to provide more effective protection of legally protected values associated with the activities of such economic entities. The changes also apply to the content of audit reports on their financial statements. The process of revising the relevant regulatory document is still ongoing. Not all of the revised provisions are consistent with each other and the International Standards on Auditing. This will complicate their practical application by auditors and affect the informational value and public utility of audit reports. In addition, since 2017, when the modern format for audit reports was adopted, its application has revealed shortcomings in terms of its content and terminology. This explains the need to develop proposals to eliminate these “sticking points” when regulating the content of the auditor's report. Purpose. The development of recommendations to harmonise the provisions of laws and regulations governing the content of audit reports and federal state control (supervision) of the activities of audit organisations providing services to public interest entities with the International Auditing Standards in order to increase the information value of audit reports. Methods. The research results were obtained using analysis, synthesis, analogy, historical and logical approaches, classification, etc. Results. It was proposed to introduce changes to the text of the Federal Law “On Auditing Activities” of 30.12.2008 No. 307-FZ in order to eliminate contradictions in its provisions regarding the content of audit reports, to ensure their consistency with the International Standards on Auditing and laws and regulations in the field of controlling the activities of audit organisations that provide audit services to public interest entities. The content of the requirements of the International Standards on Auditing regarding the content of audit reports was clarified as well as their official translation into Russian to make the documents more informative and easy to use. Conclusions. The proposed clarifications can be taken into account when making changes to the texts of the Federal Law “On Auditing Activities”, the original version of the International Standards on Auditing and its official translation. They can also be further discussed by specialists.

Audit committee ownership and audit report lag: evidence from Australia

2020 ◽  
Vol 28 (1) ◽  
pp. 96-125
Author(s):  
Md. Borhan Uddin Bhuiyan ◽  
Mabel D’Costa
Keyword(s):  
Financial Reporting ◽  
Audit Committee ◽  
Reporting Quality ◽  
Financial Statements ◽  
Audit Committees ◽  
Financial Reporting Quality ◽  
Audit Report ◽  
Content Type ◽  
External Auditors ◽  
Using Data

Purpose This paper aims to examine whether audit committee ownership affects audit report lag. Independent audit committees are responsible for overseeing the financial reporting process, to ensure that financial statements are both credible and released to external stakeholders in a timely manner. To date, however, the extent to which audit committee ownership strengthens or compromises member independence, and hence, influences audit report lag, has remained unexplored. Design/methodology/approach This paper hypothesizes that audit committee ownership is associated with audit report lag. Further, the author hypothesize that both the financial reporting quality and the going concern opinions of a firm mediate the effect of audit committee ownership on audit report lag. Findings Using data from Australian listed companies, the author find that audit committee ownership increases audit report lag. The author further document that financial reporting quality and modified audit opinions rendered by external auditors mediate this positive relationship. The results are robust to endogeneity concerns emanating from firms’ deliberate decisions to grant shares to the audit committee members. Originality/value The study contributes to both the audit report timeliness and the corporate governance literatures, by documenting an adverse effect of audit committee ownership.

scholarly journals Fair value in the measurement of assets and liabilities of selected banks

2020 ◽  
Vol 107 (163) ◽  
pp. 119-136
Author(s):  
Jerzy Gierusz ◽  
Karolina Dąbrowska
Keyword(s):  
Stock Exchange ◽  
Financial Statements ◽  
Fair Value ◽  
Consolidated Financial Statements ◽  
Warsaw Stock Exchange ◽  
The Subject ◽  
The One ◽  
Subjective Estimates ◽  
The Impact ◽  
Financial Result

The main purpose of this article is to determine the impact of changes in the fair value of assets and liabilities on the overall net result of selected banks listed on the Warsaw Stock Exchange. The research covered the consolidated financial statements of five banks, for the years 2014-2018. Methods of analyzing the literature on the subject, financial statements, and legal acts, including selected IFRS, were used. It has been shown that, on the one hand, fair value revaluations have a significant impact on the financial result of the described entities; on the other hand, the fair value in these entities is determined mainly at the 1st level of the hierarchy. This means that the basis for determining the fair value is observable prices on the market, and that the impact of subjective estimates on the financial result is small.

scholarly journals The concept and system of crimes committed by the auditor as a special subject

2020 ◽  
pp. 394-398
Author(s):  
Olena Vashchuk
Keyword(s):  
Civil Liability ◽  
Financial Statements ◽  
Legal Regulation ◽  
Criminal Code ◽  
The State ◽  
Goods And Services ◽  
State Audit ◽  
The Subject ◽  
Audit Reports ◽  
Market Relations

The article distinguishes between state and non-state audit, and also defines the features of the last one. The main features of nonstateaudit include: a) the audit reports on financial statements, which is used mainly by customers, reduces their risks of making wrongdecisions when using it; b) the audit not only detects violations in the activities, but also provides assistance in their elimination; c) theauditor works on a contractual basis with the client, and therefore has the appropriate obligations to him and in case of non-performanceor improper performance is primarily a civil liability; d) during the audit it is necessary to pay for the services of auditors, which areincluded in the gross costs and cost of production, and ultimately paid by the buyer of goods and services; e) the auditor prepares areport in which he provides recommendations for the elimination of identified deficiencies and violations.Audit relations have a complex subjective system, which is characterized by its own means of legal regulation. The subject compositionof the audit relationship is not exhaustive, since the users of the information obtained as a result of the audit are an indefinitecircle of participants in market relations, including individuals, the state, foreign and international entities. It is concluded that professionalaudit crimes are socially dangerous guilty acts (action or inaction) that are committed by the auditor and are aimed at the legalrelations arising from the qualified provision of audit services, protected by the Criminal Code, and are in violation of professionalduties. Among the crimes provided for in the Criminal Code, it is expedient to single out professional audit crimes, taking into accountthe specifics of the subject of their commission. At the same time, it is necessary to classify these professional audit crimes accordingto the appropriate criteria, which can serve as a certain algorithm for qualification in case of their commission.

scholarly journals Consolidated Financial Statements – in IAS 27 perspective

2012 ◽  
Author(s):  
Mihai Deju
Keyword(s):  
Accounting Standards ◽  
Financial Statements ◽  
International Accounting ◽  
International Accounting Standards ◽  
Loss Of Control ◽  
Consolidated Financial Statements ◽  
The Subject

The aspects concerning the preparation and publication of the consolidated financial statements have been the subject of the settlement by the Committee for International Accounting Standards (IAS) even since 1976 with the publication of IAS 3 “Consolidated financial statements”. Subsequently, the standard has been amended and revised successively, on several occasions. The latest version issued in 2008 includes changes on the accounting of interests that do not control and the loss of control on a subsidiary. The actual version also includes the subsequent amendments resulting from IFRS issued until 31st of December 2010. This paper presents the essential aspects of IAS 27 (the actual version) and a practical example of how to elaborate consolidated accounts in accordance with this standard.

scholarly journals ABOUT THE FINANCIAL REPORTING ON THE CAPITAL MARKETS IN THE EUROPEAN UNION: REQUIREMENTS OF USING THE IFRS AND THE EQUIVALENCE OF THIRD COUNTRY ACCOUNTING STANDARDS

2013 ◽  
Author(s):  
Aristita Rotila
Keyword(s):  
European Union ◽  
Financial Reporting ◽  
Capital Markets ◽  
Accounting Standards ◽  
Financial Statements ◽  
National Standards ◽  
The European Union ◽  
Consolidated Financial Statements ◽  
Community Capital ◽  
Single European Market

The need to build a single European market and to ensure the competitiveness of the community capital markets led to the involvement of European Union in the convergence process taking place on a global level in the realm of financial reporting. This paper is a study on financial reporting for the capital markets in the European Union by analyzing the accounting standards that need to be applied. Specifically, this paper highlights a number of issues concerning: the adoption of IAS / IFRS in the European Union and their compulsory aspect in preparing the consolidated financial statements for the companies listed on a regulated market; the requirement’s extension of using the IFRSs adopted in the European Union to the issuers of certain third countries involving a public offer of securities in European Union or performing transactions with securities on a community regulated market; the establish of a mechanism for the determination of equivalence of certain third country accounting standards with IFRSs in force at European level and, consequently, the possibility of using by some third country issuers, in preparing the consolidated financial statements submitted to the European markets, recognized national standards as equivalent to adopted IFRS.

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