Justifications for the Modified Opinions and for Other Observations in the Audit Reports

The purpose of this paper is to identify and to comment the main justifications of modified audit opinions and the main observations included in the emphasis of matter paragraphs from the audit reports of Romanian companies listed on the regulated market of Bucharest Stock Exchange (BSE). The author...

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Format: Article
Language:English
Published: Chamber of Financial Auditors of Romania 2020-10-01
Series:Audit Financiar
Subjects:
Online Access: http://revista.cafr.ro/temp/Article_9654.pdf
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spelling doaj-ad6af9bdd2304a8bb0d8a535d9aefa2f2020-11-25T03:36:09ZengChamber of Financial Auditors of RomaniaAudit Financiar1844-88012020-10-011816078580010.20869/AUDITF/2020/160/7859654Justifications for the Modified Opinions and for Other Observations in the Audit ReportsThe purpose of this paper is to identify and to comment the main justifications of modified audit opinions and the main observations included in the emphasis of matter paragraphs from the audit reports of Romanian companies listed on the regulated market of Bucharest Stock Exchange (BSE). The authors analyze a sample of more than 1,000 observations-year for the 2007-2019 period. They found that 25% of these reports contain a modified opinion and the main explanations relate to the revaluations of fixed tangible assets, to the provisions, to the impairment of the fixed assets, to some legal issues, to items concerning the closing inventory and, to a lesser extent, to the going concern matters. In 30% of the reports analyzed, there was identified emphasis of matter paragraphs; the main observation is by far related to the going concern, followed by the financial and operating difficulties of companies and by the effects of different global crisis (financial or others). http://revista.cafr.ro/temp/Article_9654.pdf audit reports; (un)modified opinion; justifications; emphasis of matter paragraphs; romanian listed companies
collection DOAJ
language English
format Article
sources DOAJ
title Justifications for the Modified Opinions and for Other Observations in the Audit Reports
spellingShingle Justifications for the Modified Opinions and for Other Observations in the Audit Reports
Audit Financiar
audit reports; (un)modified opinion; justifications; emphasis of matter paragraphs; romanian listed companies
title_short Justifications for the Modified Opinions and for Other Observations in the Audit Reports
title_full Justifications for the Modified Opinions and for Other Observations in the Audit Reports
title_fullStr Justifications for the Modified Opinions and for Other Observations in the Audit Reports
title_full_unstemmed Justifications for the Modified Opinions and for Other Observations in the Audit Reports
title_sort justifications for the modified opinions and for other observations in the audit reports
publisher Chamber of Financial Auditors of Romania
series Audit Financiar
issn 1844-8801
publishDate 2020-10-01
description The purpose of this paper is to identify and to comment the main justifications of modified audit opinions and the main observations included in the emphasis of matter paragraphs from the audit reports of Romanian companies listed on the regulated market of Bucharest Stock Exchange (BSE). The authors analyze a sample of more than 1,000 observations-year for the 2007-2019 period. They found that 25% of these reports contain a modified opinion and the main explanations relate to the revaluations of fixed tangible assets, to the provisions, to the impairment of the fixed assets, to some legal issues, to items concerning the closing inventory and, to a lesser extent, to the going concern matters. In 30% of the reports analyzed, there was identified emphasis of matter paragraphs; the main observation is by far related to the going concern, followed by the financial and operating difficulties of companies and by the effects of different global crisis (financial or others).
topic audit reports; (un)modified opinion; justifications; emphasis of matter paragraphs; romanian listed companies
url http://revista.cafr.ro/temp/Article_9654.pdf
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