Statutory Audit – Granting Consolidation to Economic Governance within the European Union

Author:Univ. Lecturer Eugen NICOLĂESCU, Ph. D.

JEL:H83, M42

DOI:

Keywords:economic governance, corporate governance, statutory audit, institutionalization, management, communication, transparency

Abstract:
Particularly for the past five years, the European Union has had to cross a period of institutional reconstruction to get a better understanding of the fact that economy, finance and the euro, in a logical order, cannot be approached only politically, in terms of good intentions, or contextual decisions.\r\nStrategic coherence and correlation are still unsolved and are still relevant priorities and to obtain significant results, the specific use of operational tools in private practice which are generated by the same common interest, stands for the creation of certain mechanisms which are capable of positive effects while meeting the expectations.\r\nOver several years, the economic governance is clearly an important concern, but the simple establishment of some supervisory institutions cannot guarantee the success of the application.\r\nIn addition, the statutory audit by the fundamental European legislation exists and works only for certain purposes, particularly for private companies open to the large audience, reporting not being explicitly related to the European financial systems with major effects on the Member States` economies.\r\nWhat could we anticipate and then, construct? \r\nAn institutionalized connection between the two concepts and activities – economic governance and statutory audit – subsequently developed into standards and professional norms, with targeted reporting, based on professional reasoning, towards the major professional decision making organizations at the European Union level, can stand for:\r\n- setting up a unitary and uniform standardized mechanism for reporting and informing the decision makers and the public, a transparent behavior which, I think, can be accepted by all Member States,\r\n- creating real conditions for improving the quality of the information provided and necessary to the European decision makers’ processing (Parliament, Council, Commission, functional bodies in the field of economic governance), using the experience gained as the result of the implementation of corporate governance and good practice in this field,\r\n- constructing some operative intervention tools at the European level in order to maintain a single market in accordance with the existing legal and professional framework, by improving the economic governance.\r\nObviously, the first step is the acceptance of serious debates about the possibility of combined, conceptualized and practical use of two of the most recent theories of accounting management, communication and institutional construction.\r\n

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