Determining a Relevant Scoring of External Audit Practices on Companies Listed on Bucharest Stock Exchange, in the Context of Corporate Governance

Author:Assistant Cristina BOŢA-AVRAM, Ph. D.

JEL: M40, M42, M21, M14

DOI:

Keywords:corporate governance, financial audit, financial audit practices, financial auditor’s independence, scoring of external audit practices

Abstract:
The present study is the result of a more complex research activity which intends to bring the spotlight for both, theoreticians and practitioners, a detailed analysis over the audit practices used by major companies listed on Bucharest Stock Exchange (BSE), in the context of corporate governance. For developing such a study, there have been taken into account the existing international and national trends about the critical need to address the audit function from a trilateral perspective (external audit, internal audit, audit committee) in the context of corporate governance. The main idea underlying the developing of this study is based on a potential methodology used to determine a scoring of audit practices in the area of corporate governance. Based on the information disclosed by the entities listed at BSE it was determined a possible scoring for audit practices for each of the three audit pillars: external audit, internal audit and audit committee. The main scientific objective of this first study, of a series of three separate studies, is to determine an appropriate scoring for external audit practices used by major companies listed on BSE. By presenting on overview of the main conclusions resulting from this study, the author hopes to stimulate further research and to initiate constructive and fructuous debates when speaking about the good audit practices that should be considered for ensuring good corporate governance.\r\n\r\n\r\n\r\n

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