Statistical Evidence on the Selection Decision of Financial Auditors, in the Case of the Romanian Listed Companies
Author:
Professor Emeritus Elisabeta JABA, PhD; Assistant Ioan-Bogdan ROBU, PhD ; Lecturer Christiana Brigitte BALAN, PhD
JEL:
C38, M42
DOI:
Keywords:
audit services, financial auditor, auditor selection, selection criteria, Bucharest Stock Exchange
Abstract:
Through his expressed opinion on the financial statements reported by the listed companies, the role of the financial auditor is to maintain the transparency in financial reporting, to give credibility to the financial information and trust to investors. Therefore, companies must meet the informational requirements of the stakeholders by choosing the best auditors. Starting form a series of auditors’ choosing criteria, displayed in the literature, the study proposes the identification of a profile for the Bucharest Stock Exchange Romanian listed companies, depending on which choosing decision of a certain type of auditor can be based on. The study was carried out on a sample of 67 listed companies, during the financial exercise corresponding to the year 2013. In order to obtain the research results, the correspondence analysis and its generalized version were used. Research results indicate the existence of a profile of the Romanian listed companies, based on the associations between the field of activity of the audited company, the territorial repartition, its financial position and performance, and the affiliation to a certain auditor.\r\n \r\n