The Influence of the Independent Auditor’s Proposed Adjustments on the Opinion Expressed in the Audit Report
Author:
Univ. Prof. Nicolae TODEA, Ph. D., Ana Maria JOLDOŞ (UDREA), Ph. D. Student, Ionela Cornelia STANCIU, Ph. D. Student
JEL:
M 42, N 40, O 10
DOI:
Keywords:
adjustments, audit report, financial statements, fixed assets, provisions
Abstract:
When making the investment decision, the external users of financial statements are interested in the reality of the information provided by the entity, being able to rely on independent auditors’ report that accompanies financial statements. An important feature of any type of audit is to provide guarantees to external users regarding the regularity and sincerity of the information produced by the entity. This paper aims to present in terms of theory and practice the influence of quantitative and qualitative adjustments recommended by the independent auditor to the audit client regarding the result of the exercise, as well as the reflection of acceptance or non-acceptance of these recommendations by the management of the audit client over the report of the independent auditors. The presented study case aims to present the adjustments identified by the auditor during the audit process within an audited entity and to present them to management with a proposal for acceptance or non-acceptance. The research directions included: a presentation of types of audit opinions, which can be expressed by a financial auditor and may be influenced by the acceptance or non-acceptance of audit adjustments, as well as the identification of adjustments at the level of the entity and the influence that they might have over the assets of the audited entity. \r\n\r\n\r\n