Using the financial analysis in the audit engagements

Author:university professor, PhD Alexandru ŢUGUI

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Keywords:professional judgment, indicators interpretation, financial health, dyagnosis, structure indicators, management indicators

Abstract:
Accounting, taxation, financial analysis, financial management, regulation, communicating, negotiation, audit, information systems etc represent area a financial auditor should learn to „manage” in order to express an opinion on the financial statements of an entity. In other words, the financial auditor qualifications ask for an interdisciplinary practical and theoretical training. \r\n\r\nAs far as concerns the financial analysis for a financial auditor, this represents one of the most important instruments in his/her endeavor to issue a responsible opinion on the financial statements of an audited entity, because this allows us to measure the entity performances but also the risks it experiences. \r\n\r\nMost of the times, however, in the financial analysis we lack the values which are considered as being optimal for a given indicator values in the area of activity in which the audited company operates. In the current study, we suggest to the practitioners in the financial audit to use the theoretical and practical results of a research grant financed by CNCSIS, in which we collected information of a financial nature from over 12000 economic agents in Romania. Having such a data basis, we started to determine the most important financial indicators. This data of the financial nature processed have been collected and published in the Catalogue of the Financial Indicators on Areas of Activities – CIFRA in Romanian.

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