Transparency and strictness in the audit of leasing entities

Author:Şerban TOADER, KPMG

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Keywords:leasing market, taxation, regulation, rigors, audit

Abstract:
The Romanian leasing market is currently growing significantly, and developing into new areas, taking over some of the territory traditionally held by banks. At the same time, the sector is maturing, with smaller companies likely to merge into larger ones, encouraged by BNR rules on minimum social capital. \r\n\r\nAs part of the general modernization of the Romanian financial sector, leasing companies have become more regulated under recent measures set by the National Bank, which require greater transparency and higher standards of financial reporting. It will consequently be highly beneficial for these companies to ensure that their auditing is carried out professionally, by an auditor with specialist knowledge of the sector to ensure compliance with the new reporting standards and transparency requirements. At the same time, a professionally conducted audit will enhance the credibility of their financial statements, acting as a badge of financial probity and good corporate governance. \r\n\r\nThe move to greater transparency and professional auditing can only generate a virtuous spiral of development for this growing sector of the Romanian financial market.\r\n\r\n

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