scholarly journals Key audit matters in audit reports of selected public interest entities

2019 ◽  
Vol 2019 (105 (161)) ◽  
pp. 9-16
Author(s):  
Bartłomiej Iwanowicz
Keyword(s):  
Stock Exchange ◽  
Inductive Reasoning ◽  
Financial Statements ◽  
Financial Statement ◽  
Annual Reports ◽  
Synthesis Methods ◽  
Consolidated Financial Statements ◽  
Warsaw Stock Exchange ◽  
Analysis And Synthesis ◽  
Audit Reports

The main purpose of the article is to categorize key audit matters (KAM) of a financial statement and to determine the frequency of their occurrence. The research method is based on analyzing annual consolidated financial statements (annual reports) and the reports of the independent auditor, which were published in the last 12-month period available as at the day of examination (the periods mainly ended December 31, 2017, and March 31, 2018). Deductive and inductive reasoning, using analysis and synthesis methods, were used to formulate the results. The research was performed for 156 companies listed on the Warsaw Stock Exchange. The analysis covered all companies from the following ten sector indices (WIG): construction, IT, real estate, food, utilities, oil & gas, mining, energy, automotive and chemicals. Targeting the scope of the research to all entities listed within the ten sector indices (WIG), and conducting the analysis based on the latest market data, demonstrates the originality and usefulness of the article.

scholarly journals Key research issues – a new element in auditor reporting

2019 ◽  
Vol 2019 (101 (157)) ◽  
pp. 79-94 ◽  
Author(s):  
Małgorzata Kutera
Keyword(s):  
Stock Exchange ◽  
Inductive Reasoning ◽  
Synthesis Method ◽  
Financial Statements ◽  
Total Sample ◽  
Consolidated Financial Statements ◽  
Research Issues ◽  
Independent Auditors ◽  
Auditor Reporting ◽  
Verification Techniques

Significant changes are being made to the way independent auditors report audit results. They are generally oriented towards the broader context in which the auditors worked to analyse their conclusions more effectively. What is particularly interesting in this context is the auditor's duty to present Key Audit Matters (KAMs) concerning areas of the highest risk. In light of the above, the purpose of this article is to present the extent to which changes have been implemented in independent auditors' reports from the audits of the financial statements of the largest companies on the Polish market and to identify both the key audit matters as well as the verification procedures applied by auditors. Auditors' opinions from the audits of consolidated financial statements of the 30 largest companies listed on the main market of the Warsaw Stock Exchange for the years 2014–2016 were analysed in detail. The total sample comprised 90 opinions. The research methodology consisted mainly of case studies, with deductive and inductive reasoning used to formulate conclusions based on the analysis and synthesis method. The results of this research indicate that some independent auditors have been implementing new elements of reporting on a current basis. An analysis of the contents of their opinions has shown that the auditors mainly include the estimates of asset impairment, the recognition of sales, the disclosure of claims, disputed matters and con-tingent liabilities as well as accounting for deferred income tax assets in Key Audit Matters. Auditors also give quite detailed reasons for selecting the specific KAM and the verification techniques used.

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 PENGARUH PROFITABILITAS, LIKUIDITAS, SOLVABILITAS DAN UKURAN PERUSAHAAN TERHADAP KETEPATAN WAKTU PENYAMPAIAN LAPORAN KEUANGAN PADA PERUSAHAAN MANUFAKTUR DI BEI

2019 ◽  
Vol 3 (2) ◽  
pp. 45
Author(s):  
Jessica Carolina ◽  
Vargo Christian L. Tobing
Keyword(s):  
Capital Market ◽  
Sampling Method ◽  
Financial Institution ◽  
Stock Exchange ◽  
Manufacturing Sector ◽  
Secondary Data ◽  
Financial Statements ◽  
Financial Statement ◽  
Annual Reports ◽  
Public Companies

The timeliness of submitting financial statements is a rule that must be applied by all companies. Based on the Decree of the Chairperson of the Capital Market and Financial Institution Supervisors with number: KEP-431/BL/2012 stating that public companies that have effective registration must submit annual reports to BAPEPAM and LK no later than four months after the end of the financial year. This study aims to examine the effect of profitability, liquidity, solvency and firm size on the timeliness of financial statement submission. The population in this study is a consumer goods manufacturing sector manufacturing company listed on the Indonesia Stock Exchange. The sample was selected as many as 21 companies using the purposive sampling method. The analytical method is logistic regression. The data used is secondary data obtained through the web.idx.id website in the form of annual financial statements for the periode 2013-2017. The results of the study were tested using the SPSS version 24 application which showed that partial profitability (ROA), liquidity (CR), solvency (DAR) dan company siz

scholarly journals Using the Beneish M-score model: Evidence from non-financial companies listed on the Warsaw Stock Exchange

2020 ◽  
Vol 17 (4) ◽  
pp. 389-401
Author(s):  
Artur Hołda
Keyword(s):  
Factor Model ◽  
Stock Exchange ◽  
Financial Statements ◽  
Small Sample ◽  
Financial Information ◽  
Financial Statement ◽  
Control Group ◽  
Warsaw Stock Exchange ◽  
History Of ◽  
Score Model

The risk of distortion of financial statements has been growing. Following the 2008 crisis, recipients of financial information are increasingly focusing on the likelihood of financial statements being distorted through fraudulent presentation of financial information. Therefore, scientific research pays more attention to models capable of detecting financial statement manipulation.The paper aims to present the principles of functioning and the possibility of using the Beneish M-score model in Polish realities. It analyzes the history of more than 30 companies listed on the Warsaw Stock Exchange to select those whose history indicates that they can be classified as manipulators, and to select the same number of companies from the control group that are considered as non-manipulators.The research method involves the analysis of empirical data on companies listed on the Warsaw Stock Exchange. The analysis showed the 8-factor Beneish model identified manipulators with 100% accuracy and succeeded in identifying non-manipulators. The effectiveness of the 5-factor model was much lower. To serve the purpose of the study, the effectiveness of the Beneish model was tested on a small sample of Polish listed companies as an introduction to a planned larger scale research. The results obtained are consistent with the results of numerous studies by authors from various countries and confirm the effectiveness of the Beneish model in detecting financial statement manipulation. AcknowledgmentThe publication is sponsored by funds from the Cracow University of Economics for the maintenance and development of research potential.

scholarly journals Accounting regulation and enforcement mechanisms: the auditor's role in the portuguese listed groups

2003 ◽  
Vol 14 (spe) ◽  
pp. 88-105
Author(s):  
Ana Fialho Silva ◽  
Ana Maria Rodrigues ◽  
Leonor Fernandes Ferreira
Keyword(s):  
Stock Exchange ◽  
Financial Statements ◽  
Consolidated Financial Statements ◽  
Accounting Regulation ◽  
General Obligation ◽  
Accounting Rules ◽  
Group Concept ◽  
Enforcement Mechanisms ◽  
Correct Application ◽  
Audit Reports

The purpose of this article is to examine the extent to which the clauses for the exclusion of subsidiaries from consolidation are used, in order to assess the degree of compliance with accounting regulation and the effectiveness of the statutory auditor as an enforcement mechanism in case of observed non-compliance. The presentation of consolidated financial statements by Portuguese companies was not regulated in detail before the implementation of the EU's Seventh Directive and the general obligation to prepare consolidated accounts had not applied to Portuguese companies until 1991. Regulators have been responsible for the endorsement of accounting rules and managers are responsible for the information disclosed by Portuguese companies regarding the scope of group accounting. In practice, the scope of consolidation depends on the judgment of makers and managers of the parent company. Auditors may play a key role in the process of guaranteeing the correct application of prevailing standards and thus encompassing the enforcement of accounting regulations and contributing to the quality of disclosed information. Our sample includes the consolidated financial statements of all the Portuguese companies listed in the Lisbon Stock Exchange on December 31st for the year 1999, to which the Official Accounting Plan is applicable. Our conclusion is that diversity exists among accounting practices regarding the adopted group concept and the use of the clauses for excluding subsidiaries from consolidation. The role of the auditors as enforcement actors seems to be minor, as we did find few qualifications in their audit reports in the cases of observed non-compliance with the accounting regulation.

scholarly journals LINKS BETWEEN FINANCIAL STATEMENTS AND MANAGEMENT COMMENTARY

2021 ◽  
pp. 19-28
Author(s):  
Małgorzata Garstka
Keyword(s):  
Financial Reporting ◽  
Descriptive Analysis ◽  
Inductive Reasoning ◽  
Internal Audit ◽  
Financial Statements ◽  
Relevant Information ◽  
Financial Statement ◽  
Additional Information ◽  
Analysis And Synthesis ◽  
Management Report

The author's aim is to identify the links between two reporting systems: financial and nonfinancial.In this article, the connection between the financial statements and the management report will be shown. The work concerns the management report after the introduction of theobligation of non-financial reporting in the form of additional information in this report, or by means of a separate statement on non-financial information.The objective was achieved by means of literature studies in the field of accounting, as well as the analysis of legal acts, based on which the relations between the two reports should bedetermined. Deductive and inductive reasoning and the method of critical, comparative and descriptive analysis and synthesis were used to formulate conclusions. The existence of linksbetween the management report and the financial statement has been demonstrated. These links may pose a risk of repetition and non-compliance. It is desirable that these links should be madeclear to people responsible for drawing up both reports. Particular attention should be paid to the presentation of this information and steps should be taken in the accounting internal controlprocedures and internal audit, perhaps to confirm that the relevant information has been reconciled and to avoid unnecessary repetition.The results of the research show that there are so many connections, including non-financial information, that it is worthwhile to provide them and their verification as a conscious andorganized activity. This will build the image of the company in the eyes of the report readers.

Environmental Issues in Reporting of Public Interest Entities

2020 ◽  
pp. 57-76
Author(s):  
Anna Spoz ◽  
Marian Żukowski
Keyword(s):  
Environmental Policy ◽  
Research Methods ◽  
Public Interest ◽  
Critical Analysis ◽  
Environmental Issues ◽  
Financial Statements ◽  
Financial Information ◽  
Financial Statement ◽  
Synthesis Methods ◽  
Analysis And Synthesis

Public interest entities are socially and economically important elements of the economy. Since 2017 some of them have been obliged to prepare non-financial statements, which should contain among others a description of the policies pursued by the entity with regard to environmental issues. In this chapter, the authors analyzed the scope of environmental matters disclosed with non-financial statement and positively verified the hypothesis according to which the environmental issues in reporting of public interest entities increase the usefulness of the financial statement for stakeholders. Public interest entities fulfil their duties, but the scope and specificity of data contained in the statement on non-financial information differed between entities. Imposing requirement to annually present activities undertaken in environmental matters can make entities more sensitive to these issues and raise efficiently of implementation of the environmental policy. The research methods used in the study are a critical analysis of the literature, description, analysis, and synthesis methods.

scholarly journals Analiza porównawcza znaczenia wyników finansowych i przepływów pieniężnych dla wartości rynkowej w polskim sektorze bankowym

2015 ◽  
Vol 2 (3) ◽  
pp. 51-62
Author(s):  
Piotr Bolibok
Keyword(s):  
Regression Analysis ◽  
Linear Regression ◽  
Banking Sector ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Financial Statements ◽  
Cash Flows ◽  
Consolidated Financial Statements ◽  
Warsaw Stock Exchange

The paper compares the relevance of earnings and cash flows for market valuein the Polish banking sector. The study used linear regression analysis based onthe data from separate and consolidated financial statements of 18 domesticallybasedcommercial banks listed on the Warsaw Stock Exchange over the period1998–2013. The results indicate that net earnings reported by the examined banksare more value-relevant than both net cash flows and cash flows to equity.

scholarly journals Analisis Faktor-Faktor yang Mempengaruhi Keterlambatan Laporan Audit

Owner ◽  
2022 ◽  
Vol 6 (1) ◽  
pp. 147-159
Author(s):  
Robby Krisyadi ◽  
Noviyanti Noviyanti
Keyword(s):  
Firm Size ◽  
Stock Exchange ◽  
Sampling Technique ◽  
Financial Statements ◽  
Good News ◽  
Annual Reports ◽  
Timely Manner ◽  
Financial Reports ◽  
Analysis Technique ◽  
Audit Reports

This study aims to determine the factors that affect delay of audit report. The population of research are companies listed in Indonesia Stock Exchange in 2016 – 2020. The sampling technique used purposive sampling method with 1870 annual report processed.  The data analysis technique of this research uses multiple regression and assisted by SPSS  software and Eviews software. The result of this research showed that audit opinion and profitability is significantly negative to audit delay, and firm size is significantly positive to audit delay, whereas audit effort, public accounting firm size, debt and ownership concentration have no effect to audit delay. The results of this study are expected to contribute to strengthening agency theory in safeguarding the interests of agents and principals by submitting financial statements in a transparent and timely manner to prevent information asymmetry, as well as strengthening signal theory in explaining the factors for the spread of good news and bad news of companies to investors. In addition, practical contributions for company management can be used as a source of information to find solutions to improve the timeliness of submitting financial reports, for auditors it is expected to be a guide in preparing audit procedures that are more effective in overcoming factors that cause delays in audit reports, and for service authorities. The financial statements are expected to be the basis for policies to strengthen supervision of companies listed on the IDX in submitting annual reports in a timely manner.

scholarly journals Earning Per Share Under International Accounting Regulations and Based on the Example of Companies Listed on the Warsaw Stock Exchange

2017 ◽  
Vol 8 (1) ◽  
pp. 57
Author(s):  
Piotr Prewysz-Kwinto ◽  
Grażyna Voss
Keyword(s):  
Stock Exchange ◽  
Financial Statements ◽  
Financial Statement ◽  
International Accounting ◽  
International Accounting Standards ◽  
Accounting Standard ◽  
Analysis And Evaluation ◽  
Earnings Per Share ◽  
Warsaw Stock Exchange ◽  
A Company

Earnings per share is one of the most important financial ratios facilitating investors make decisions about the choice of a company to invest in. To fulfill this role, it should be calculated according to the same rules by all companies, so that the results can be compared correctly. Therefore, the IASB (International Accounting Standards Board) issued a special standard comprehensively regulating the rules of its calculation and presentation in financial statement. It is International Accounting Standard 33 – Earning per share, which was released in December 2003. It was first applied to financial statements prepared for the reporting period starting after January 1, 2005. The standard was revised once – in 2008. This standard requires calculation and presentation in financial statement basic and diluted earnings per share and accurately specifies how to do it. The aim of this paper is to describe the rules of calculating, presenting and disclosure information about earning per share under IAS 33 as well as to analyze the presentation of such information in financial statements of the largest companies listed on the Warsaw Stock Exchange. The main methods used include the analysis and evaluation of legal acts and subject-related literature as well as the analysis of information disclosed in financial statements of the largest companies listed on the Warsaw Stock Exchange.

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