Significant Vulnerabilities in the Romanian Investment Firms’ Activity - Major Challenges in the Context of Regulations Applicable for Statutory Auditors
Author:
Univ. Prof. Tatiana DĂNESCU, Ph. D.; Lecturer Ovidiu SPĂTĂCEAN, Ph. D.
JEL:
M42
DOI:
Keywords:
investment firms, statutory audit, financial investment services, corporate governance, significant vulnerabilities, relevant internal controls
Abstract:
The new regulation applicable for statutory auditors of Romanian investment firms requires a more effective communication with those in charge with governance (Audit Committee), in the spirit of European regulations, particularly the Directive 2014/56 / EC and the Regulation (EU) no. 537/2014. In this context, the research objective was to analyze and evaluate significant vulnerabilities identified and sanctioned by the regulatory and supervisory authority (F.S.A./N.S.C.) in financial intermediation activity performed during 2005-2015 by Romanian investment firms. These vulnerabilities are an expression of the significant risks associated with relevant internal controls over the financial reporting process in these types of entities. In light of these considerations, it is considered that the analyzed vulnerabilities provide a reasonable basis in designing and implementing adequate responses by statutory auditors, in the context of more stringent requirements imposed in the spirit of the new regulations. \r\n