The financial audit from the perspective of the world economy globalization

Author:university professor, PhD. Florin GEORGESCU

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Keywords:audit committee, international Accounting Standards, corporate governance, capital markets regulation, financial investments, audit process, financial audit, independent regulation of the profession, audit firms rotations

Abstract:
Results that as far as concerns the quality of the audit activity performed by the specialized firms it is not opportune to adopt any measure to determine the reduce of the related activities allowed to be performed by these. Such a measure would act against the quality of the new employees and of those wishing to become partners in the specialized firms, provided that it should be very clearly defined the conflict of interest in the financial audit profession and, implicitly, the incompatibilities which results from such situations.\r\n\r\nBecause the process of the worldwide economy globalization generates multiple implications in the activities performed by the cross-border companies and capital markets functioning, in order to avoid any sound failures which cam generate a redistribution of fortune of the individuals or economic groups, on this market which is very important but also very sensitive, the accounting profession, in special, along other important segments of the international economy should act in a consensus at the global level for the ‚regulatory globalization” and implicitly for „regulating the globalization”.\r\n\r\nAdoption of some improved standards at the worldwide level will not generate immediately a more effective corporate control, a higher quality financial audit and accounting if the individuals involved in these areas will not have a good professional and ethic status, an important role having in this process he independent regulatory institutions of the accounting and financial audit profession in each country.\r\n

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