The Role of Financial Audit in Evaluating and Consolidating the Internal Control of the Audited Entities

Author:Professor Maria MANOLESCU, Ph.D., Associate Professor Aureliana Geta ROMAN, Ph.D., Professor Constantin ROMAN, Ph.D., Mihaela MOCANU, Ph.D. Student



Keywords:communication, corporate governance, internal control, significant deficiency, materiality, professional judgment

It is a known fact that good corporate governance in an entity ensures a better financial performance, improves access to capital markets and to financing sources and implicitly increases the shareholders’ wealth and the sources of incentives for employees. For this reason, in the present article the authors aim to emphasize: the role of the auditor’s communication with those charged with governance and with the entity’s management, the necessity of identifying, based on the audit activity, of the significant deficiencies in internal control that need to be object of communication, as well as the results of a research carried out during the third quarter of 2009 among public interest entities in Romania with regard to the level attained in building a culture of corporate governance in those entities and the importance given to organising and exerting internal control. \r\n