Importance and Necessity of Financial Audit for the Merger of Economic Entities

Author:Associate Prof. Camelia-Daniela HAŢEGAN, Ph. D., Associate Prof. Carmen-Mihaela IMBRESCU, Ph. D.

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Keywords:financial audit, merger, financial statements, independent auditor’s report

Abstract:
The merger is considered by the jurists an operation of reorganization. The purpose of reorganization depends on some factors, like the competition seizure, cost reduction, development and expansion of the sales markets. The operations of reorganization, especially of merger, are achieved starting from financial statements drawn by the participating entities at the merger. One of the important steps in the achievement of the merger could be the financial audit of financial statements of merger, if there is a legal binding audit.\r\nThe importance of the financial audit of financial statements is to express a reasonable opinion on the financial statements of merger and to assess the correct evaluation of the contribution of the entities who participate to the merger in the purpose of establishing exchange parity and merger premium. Expressing the auditor’s opinion is done by a report who must comply with the procedures applied and the missions of contracted audit.\r\nThe paper is based on situations encountered in practice on the merger of different categories of economic entities, like commercial companies, credit cooperative organizations, whose procedures of merger have different features. Through this article the authors want to bring some further clarification on financial audit of financial statements of merger, seen mainly in accounting or financial terms.\r\n\r\n

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