FACTORS INFLUENCING THE QUALITY OF FINANCIAL AUDIT
Investors’ decisions are based on financial and non-financial information. To be useful, the information provided by the financial reports must be accurate, which is also ensured by the opinion expressed by the auditors. The purpose of the paper is to show the importance of the quality of audit serv...
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| Format: | Article |
| Language: | English |
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University of Oradea Publishing House
2019-09-01
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| Series: | Oradea Journal of Business and Economics |
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| Online Access: | http://ojbe.steconomiceuoradea.ro/wp-content/uploads/2019/10/OJBE_vol-42-7-15.pdf |
| Summary: | Investors’ decisions are based on financial and non-financial information. To be useful, the information provided by the financial reports must be accurate, which is also ensured by the opinion expressed by the auditors. The purpose of the paper is to show the importance of the quality of audit services both for investors and for professional accountants and auditors. Audit quality factors can be structured according to several criteria and were represented by the size of the auditor, rotation, duration of the contract, types of services provided. In order to support this hypothesis, the correlation between the variables was tested on the basis of a sample of seven companies listed at Bucharest Stock Exchange in the energy field and utilities included in index BET, for period 2013 - 2018. The data was collected from the annual financial statements and reports issued by financial auditors. The results show that there is a correlation between variables, but of different intensities depending on the indicators chosen. Increasing the quality of financial reporting and the quality of audit leads to increased investor confidence in professional accountants. |
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| ISSN: | 2501-3599 2501-3599 |