The Quality of Independent Auditors Reports – Is it Room for Improvement?
Author:
Assistant Professor Mirela PĂUNESCU, Ph. D
JEL:
M42
DOI:
Keywords:
audit report, audit quality, Romanian listed companies, financial statement
Abstract:
This study investigates if the quality of the auditor’s report is lower (when it comes to the layout and content) in case of auditors that are considered to be small and medium sized practices. In order to prove that indeed there is a link between the quality of the audit report and the size of the auditor, the author selected the Romanian BSE listed companies that are required to prepare financial statements according to IFRS and analyzed the auditor’s report in order to see if, at least with regard to respecting the content imposed by International Standards on Auditing, the auditor complies with the obligations. The results show that in case of small auditors, the quality of the auditor’s report suffers. As an extension of its previous studies, the author tried then to see which are the most common mistakes and if there was any improvement over time of the quality. Also the author was able to identify a widespread feature of the auditors issuing not complying audit reports.\r\n