Independence and objectivity

Author:Urania MOLDOVANU

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Keywords: provision, audit evidence, management statements, legal opinion, material uncertainty, auditor report

Abstract:
Case study: The client company has troubles concerning the existence of the ownership for some important plant, equipments and properties with significant values. Consequently, the conditions described in IAS 16 „property, equipments and plants”, to present these assets at their accounting value in the financial statements.\r\nAt the same time, for some properties there is litigation in process with the subject of their give back to the former owners in accordance with the provisions of Law 10/2001.\r\nGiven these situations, the company managements disagree to establish some provisions for risks and expenses, defined by IAS 37 „provisions contingent assets and liabilities” as the current obligations of the entity resulting from previous events of which settlement is expected to generate a resources reduce with maturity or with an uncertain value at the audit date.\r\n

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