Accounting truth and its assurance in entities from the Republic of Moldova
Author:
Viorel ŢURCANU, Irina GOLOCIALOVA
JEL:
M41; M11; G21.
DOI:
10.20869/AUDITF/2016/139/769
Keywords:
Accounting truth, accounting technique,
qualitative characteristics, normalisation, audit control
Abstract:
The multiple users will not be able to make correct
decisions, unless the information provided by accounting
is exact and transparent. Otherwise we cannot state that
it communicates the accounting truth with regard to the
activity of a company. The accounting truth is
determined by several factors, like the accounting
technique, the principles and the qualitative
characteristics, the accounting normalization and the
audit.
The objective of the study is to provide a general
analysis of these factors, as well as to investigate the
manner in which these support the assurance of the
accounting truth in the Republic of Moldova (RM) in the
context of the IFRS concept of true and fair view, also
relying on practical examples from the banking system.
The results of the study show that the accounting truth in
RM entities is ensured to a large extent, due to the
positive impact of these factors. At the same time, there
is still room for improvement in theoretical matters of
accounting and financial reporting, as well as for the
development of the accounting legal framework, with the
purpose of expanding the financial analysis potential of
the disclosed information.
The situation of the banking system shows that, if no
adequate attention is paid to the operative and strategic
analysis of the financial position and results, including
based on audit, economically destructive phenomena
can take place, both at entity-level, and at country-level.
Abstract(105KB)
Article(310KB)