The Audit of Physical Capital Performance Depending on the Structure of Fixed Costs

Author:Professor Constantin STAICU, Ph. D., Professor Magdalena MIHAI, Ph. D., Associate Professor Cristian DRĂGAN, Ph. D.

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Keywords:audit, physical capital maintenance, performance, fixed costs

Abstract:
The audit of physical capital requires the use of several methods and modern techniques of acquirement and correct interpretation of the evidence relating to its effective performance. Such evidence or information should be sufficient to express a documented opinion. Regarding this work, the authors and the consultant practicing specialists considered that the methods of analysis based on costs structure and on costs-effectiveness relationship are appropriate and also easy to apply. If the first method mentioned is applied, it was mentioned that firstly it is determined the result of the research, as a difference between sellers and total costs, and then it was outlined the method of determining and interpreting the productivity threshold, considering, to this effect, the production level whose turnover severely compensates the total cost. In what concerns the audit based on cost-effectiveness analysis, it is noted that it was reflected the evolution of the resources spending efficiency, and hence of shareholder`s equity, for economic actions, using effect and effort indicators.\r\n

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