The crisis situations that have affected the oil and gas market have had a significant impact on the companies’ performance from this sector and especially on their customers. In these circumstances, ...many companies faced increasing difficulties and in some cases, in order to survive, they had to restructure their business or even leave the market. Considering this context, this kind of situations are also manifesting in Romania where we can identify companies facing the erosion of their competitive position, with economic, financial and capital consequences, while other companies still managed to react positively to the crisis generated by the energy sector through innovation and internationalization. This article analyses the sustainability of the operational activity of oil and gas extraction companies from Romania, based on financial and economic data and information, having the aim of investigating the way in which the performance of different markets has influenced the economic and financial results and consequently, the implications of this influence for the structure of the activity and on the financial-economic sustainability. The research methodology is specific to a quantitative research, based on a sample of financial and economic data reported by all 29 oil and gas extraction companies from Romania over the period of 2008–2022. The data collected from the financial reports formed the basis for the calculation of the financial indicators and ratios considered relevant in forecasting the economic and financial sustainability of these companies. The results obtained are materialised in the development of a model whose aim is to assess the financial and economic sustainability, its independent variables being grouped into performance, activity and risk indicators. The usefulness of the results obtained is relevant both for the companies concerned and for their customers and suppliers who will show a visible dependence on energy costs, but also for investors and financiers directly interested in performance and sustainability information, on the basis of which they will determine the value of their own economic benefits.
The nature, opportunity and value of provisions should be disclosed in the explanatory notes to provide full information to interested parties. This work focused in particular on the analysis of ...provisions, because over time, provisions have been difficult to interpret due to their subjective and cashless nature, and these features describe their vulnerability to manipulation. The research objectives of the authors are aligned along the following lines: on the one hand, to present the aspects concerning the recognition and valuation of provisions, i.e., to detail the main peculiarities of provisions, according to IAS 37, and, on the other hand, to analyse the implementation of the international standard IAS 37 ,,Provisions, contingent liabilities and contingent assets" in entities listed on the BSE. Another objective is to detail the specifics of provisions, i.e. the recognition and measurement of environmental provisions under IAS 37. Thus, the authors aim to analyse the presence of provisions reported by entities listed on the BSE, as well as the areas in which these items are of significant importance. The part allocated to the research methodology aims at a three-year analysis, from 2019 to 2021, of BSE-listed entities on the implementation of IAS 37 "Provisions, Contingent Liabilities and Contingent Assets" by these entities, by presenting the values and reported elements of provisions.The subject under review is a topical one, of interest to all stakeholders, and has been extensively analysed, with different views expressed on the importance of provisions within a company, both nationally and internationally.
Revenue is known to be one of the most important performance indicators of a company. Revenue recognition policy involves a high level of management judgment and, not infrequently, management may ...feel some pressure to achieve the planned results. Based on these issues, it is found that revenue recognition is a key audit issue frequently encountered in auditors' reports. Auditors justify this classification by the fact that the principles that an entity must apply regarding the nature, value, timing and uncertainty of revenue generated by a contract with a client are quite complex, according to IFRS 15 “Revenue from Contracts with Customers” and important for users to understand the financial statements. This study aims, on the one hand, to demonstrate that revenue recognition is the most common key audit aspect reported by auditors in the last five years, being influenced, in particular, by the object of activity. On the other hand, the risk factors that determine the classification of revenue recognition to key audit issues are identified, and the regression model applied highlights the fact that the audit opinion is influenced, in particular, by the professional reasoning regarding the time of revenue recognition. Depending on these aspects, a company profile is also identified in the analyzed sample. The sample studied is represented by companies listed on the BSE on the regulated market, analyzing the audit reports published in the period 2016-2020, with a number of 344 observations.
Almost half of the Romanian companies have been victims of economic crime in the last two years, and over 50% of the economic crimes committed globally were caused by the inefficiency of internal ...control mechanisms, according to a PwC Report of May 2018. Under these conditions, it was necessary for economic entities to develop procedures that prevent, combat, but also report fraudulent behavior. The financial auditor has an important role to play in this direction, both for assessing the risk of fraud, in general, and for assessing the risks of money laundering and terrorist financing, in particular. In this regard, recent changes were made to regulations issued at European and national level on the obligations of financial auditors for the establishment of measures to prevent and combat money laundering and terrorist financing in the missions in which they are involved. This article aims, on the one hand, to highlight the financial audit procedures for assessing the risks of money laundering and terrorist financing identified in the audit missions of companies listed on the BSE, and on the other, to test the influence these risks on the reporting by the financial auditors of the suspicious transactions, but also on the audit opinion.
Risk is one of the most controversial elements that auditors face in audit missions. This refers to the probability that significant misstatements will exist in the financial statements of companies, ...and the auditor will issue an unqualified opinion, therefore an erroneous opinion. For the auditor, the audit risk can be considered an economic risk, which requires the professional accountant to try to minimize this risk. Accurate identification and evaluation of the risk factors that characterize the three components of the Audit Risk - Inherent Risk, Control Risk and Detection Risk - contribute to a rigorous planning of the audit approach. In other words, the identified risks will be the basis for orienting the auditor's efforts towards those areas where distortions can lead to the alteration of the true image reported by the users' financial statements. In this study are identified and prioritized, based on financial reports in general, and of the audit, in particular the risk factors that characterize Audit Risk on three components: Inherent Risk, Control Risk and Detection Risk. The sample studied is represented by companies listed on the Bucharest Stock Exchange on the regulated market, and the cause-effect analysis, but also cross-sectional analysis takes into account the period 2019-2020, before the crisis caused by Covid-19 and year of installation of the crisis. By testing and validating research hypotheses using regression methods and multivariate data analysis, it is highlighted that a ranking of audit risk components can be made, the inherent risk having a greater influence on audit planning than control risks and detection risks. Also, at the level of the analyzed sample, a company profile is identified, depending on the object of activity, auditor, the size of the audit risk and the opinion formulated in the audit report for the financial year closed at the end of 2020.
In today's unstable environment, one of the overarching principles for financial reporting of major importance to users of financial statements is going concern. The management of companies is ...responsible for disclosing information about whether the entity is a going concern or not. In addition, financial auditors must also obtain sufficient and reliable evidence to support their audit opinion on the appropriateness of management's use of the going concern principle in the preparation of financial statements. This study considers the following directions: it first investigates the extent to which financial auditors confirm management's use of the going concern principle in the preparation of the annual financial statements; it then tests the asymmetric relationship between going concern and earnings reporting and between going concern and loss reporting; finally, it seeks to identify the extent to which going concern issues at company level identified by the auditor, loss reporting and negative equity influence the type of audit opinion issued. The sample is represented by companies listed on the regulated market of the BSE in the period 2016-2021 and highlights that the accuracy of the use of the going concern principle in the preparation of financial statements by management is often refuted by financial auditors, that there are business areas in which there are entities for which going concern problems have been reported in one period, but rather gains are reported in the immediately following period, and for other business areas, there are entities for which no going concern problems have been reported and they report losses in subsequent periods. Also, the processing carried out showed that the type of audit opinion depends mainly on the sign of equity and the existence of going concern issues.
In recent years, the scale of criminal activity has reached alarming levels and the globalisation of the financial services industry and advances in technology have made the financial aspects of ...crime increasingly complex. Money laundering and terrorist financing are most often carried out by economic entities. Accounting professionals in general and financial auditors in particular occupy positions that enable them to fight criminal acts of this nature. The overall aim of the research is to assess the extent to which the financial auditor can contribute to the prevention or mitigation of money laundering and terrorist financing at the level of audited companies, following the adoption of legislative changes. More specifically, the first direction of this research consists in identifying and analyzing the variables that characterize the susceptibility of the involvement of companies, listed on the BSE on the regulated market, in acts of money laundering and terrorist financing in the period 2019-2020 by sector of activity. The second direction of the research aims to assess the extent to which the financial auditor can contribute to preventing and combating money laundering and terrorist financing by identifying and reporting the factors of occurrence of risks of this nature as key audit issues. Statistical methods of multivariate data analysis are used to test the research hypotheses.
DECISIONAL MODEL UNDER UNCERTAINITY CONDITIONS Camelia Cătălina MIHALCIUC; Veronica GROSU; Alina MUSTEAŢĂ
USV Annals of Economics and Public Administration,
06/2018, Letnik:
18, Številka:
1(27)
Journal Article
Recenzirano
Odprti dostop
The notions of risk and uncertainty are the subject of countless studies and specialized papers, being treated by both Romanian and foreign researchers, whose considerations have been taken as ...reference in the realization of the theoretical and methodological basis of this paper.Unforeseen events influence the present and the future results of businesses, the risk being part of their economic life. In order to have successful businesses, managers need to learn how to manage the risks to which societies are subjected, to understand them, and to prevent them. Starting from the approached subject, the scientific demarche of this paper begins with the identification of a decisional model that highlights the idea that the variability of the results is imprinted, on the one hand, by the decision of the decision-maker and by the eventualities (uncontrollable elements), therefore under uncertainty the result of a decision will have both a part that can be controlled and a part that cannot be controlled.
Social, economic and environmental factors contribute to the companies’ sustainable development. Social and financial dimensions have an important contribution to sustainable performance, through ...assurance of transparency in the information communication requested by stakeholders in order to substantiate their decisions. Social transparency is ensured by presenting organization’s actions in the field of social responsibility, and financial transparency takes into account the most accurate, complete and neutral presentation of information, both in the annual financial statements and in the audit reports. The present study aims to assess the influence of financial transparency and gender equality on the sustainable corporate performance, thus contributing to increasing SDGs awareness and achievement required by 2030 Agenda. Through a sample of 1133 observations (Romanian listed companies/years) to the period 2008–2020, the obtained research results emphasis that gender equality and absence/presence of transparency in financial reporting have a significant influence on corporate sustainable performance.
