Template-Type: ReDIF-Article 1.0 Author-Name: Alain BURLAUD Author-Email: - Author-Workplace-Name: Conservatoire National des Arts et Métiers, France Author-Name: Maria NICULESCU Author-Email: - Author-Workplace-Name: Centre for Advanced Sustainability Studies, Romania Title: Expectation Gap: the Story of the Auditor's Necessary and Impossible Mission Abstract: The expectation gap, the gap between what the public expects from auditors and what auditors can deliver, is a key issue. This gap can call into question the trust necessary for contemporary societies to function. After providing a historical overview to help understand the issues and the development of the "expectation gap" concept, the article shows the mechanisms by which auditors are subjected to contradictory or incompatible pressures and paradoxical injunctions that can lead to such gaps. It then describes the ways and means of reducing the expectation gap: essentially, guaranteeing the independence of auditors and extending the tasks entrusted to them so that they can better contribute to defending the public interest. In this second area, the case of sustainability auditing is special, given its great complexity, the great diversity of stakeholders and their expectations, and the ability of a new profession, "sustainability auditor", to respond, which is "bubbling up". These reflections are based on historical and documentary research, dealing with international standards, European law and its impact on French and Romanian accounting law, as well as secondary analysis of various reports and official documents. Classification-JEL: M42, M48, N01 Keywords: expectation gap; audit; auditors; statutory auditors; auditing standards; audit directive; sustainability directive; Pages: 695-723 Volume: 22 Issue: 176 Year: 2024 Month: October File-URL: http://revista.cafr.ro/temp/Article_9780.pdf File-Format: Application/pdf Handle: RePEc:aud:audfin:v:22:y:2024:i:176:p:695 Template-Type: ReDIF-Article 1.0 Author-Name: Delia DELIU Author-Email: delia.deliu@e-uvt.ro Author-Workplace-Name: West University of Timisoara, Romania Title: Professional Judgment and Skepticism Amidst the Interaction of Artificial Intelligence and Human Intelligence Abstract: Artificial Intelligence (AI) has revolutionized various industries by learning from data, mimicking human behavior, and making autonomous decisions. However, despite AI's advancements in data processing and decision-making, it cannot fully replicate human attributes such as emotional understanding and ethical judgment. This paper explores the intersection of AI and Human Intelligence (HI) within the audit profession, focusing on the implications for the auditor’s professional judgment and skepticism. The integration of AI in auditing promises enhanced efficiency, precision, and data processing capabilities beyond human limits. However, it also raises ethical concerns regarding data privacy, algorithmic bias, and accountability. These concerns highlight the importance of maintaining human oversight and ethical standards in audit practices. Through a comprehensive literature review, this study compares the cognitive abilities, functional capabilities, and ethical implications of AI and human auditors. Key findings underscore AI's potential to complement human auditors by improving accuracy and uncovering anomalies, while recognizing the irreplaceable role of human judgment in complex decision-making processes. The study provides insights into the transformative impact of AI on the audit profession, advocating for a balanced approach that harnesses AI's capabilities while preserving the integrity and critical thinking of human auditors. The findings contribute to a deeper understanding of AI's integration into auditing, informing best practices and guiding future research in maintaining the profession's standards amidst technological advancements. Classification-JEL: M42, O33, L84 Keywords: digitalization; digital transformation; Artificial Intelligence; human intelligence; professional judgment; professional skepticism; auditor; audit profession; Pages: 724-741 Volume: 22 Issue: 176 Year: 2024 Month: October File-URL: http://revista.cafr.ro/temp/Article_9781.pdf File-Format: Application/pdf Handle: RePEc:aud:audfin:v:22:y:2024:i:176:p:724 Template-Type: ReDIF-Article 1.0 Author-Name: Oana-Cristina STOICA Author-Email: oana.stoica@cig.ase.ro Author-Workplace-Name: Bucharest University of Economic Studies, Romania Author-Name: Liliana IONESCU-FELEAGA Author-Email: liliana.feleaga@cig.ase.ro Author-Workplace-Name: Bucharest University of Economic Studies, Romania Title: A Qualitative Approach Regarding the Impact of Digitalization and Automation on the Accounting and Auditing Profession Abstract: In recent years, companies worldwide have faced a rapid pace of digitization and automation, which has led to change and adaptation of business models. From this point of view, new technologies have revolutionized the field of accounting and auditing, having both positive and negative effects on companies and employees. This paper highlights how changes brought about by technological progress influence the accounting and auditing profession and the role of other factors in this direction, using a qualitative method based on semi-structured interviews. The study results show that the benefits are visible at the company level. However, certain obstacles still exist, such as employees' resistance to change, the size of the initial costs or the systems used. On the other hand, professionals expect some entry-level jobs to disappear. Instead, other opportunities will be available for practitioners in the field. In this sense, universities will have a unique role in training the new generations by developing skills for the digital age. The present study may be of interest to researchers examining related issues. From a practical point of view, this paper could be helpful to professionals as it highlights several current needs of the business environment due to the impact of technological innovations. Classification-JEL: M41, M42 Keywords: digitalization; automation; accounting profession; auditing; impact; Pages: 742-757 Volume: 22 Issue: 176 Year: 2024 Month: October File-URL: http://revista.cafr.ro/temp/Article_9782.pdf File-Format: Application/pdf Handle: RePEc:aud:audfin:v:22:y:2024:i:176:p:742 Template-Type: ReDIF-Article 1.0 Author-Name: Andreea Georgiana PASCARU Author-Email: andreea.pascaru96@yahoo.com Author-Workplace-Name: West University of Timisoara, Romania Author-Name: Camelia-Daniela HATEGAN Author-Email: camelia.hategan@e-uvt.ro Author-Workplace-Name: West University of Timisoara, Romania Title: Audit Quality and Audit Market at European Level Abstract: Because the quality of the audit cannot be directly determined, over time, researchers have tried to analyze this subject indirectly through various indicators, such as the quality of financial reporting and audit fees. The financial audit is a subsystem of financial reporting and the main quality of the auditor is its independence from the audited company. The objective of the paper is to analyze the audit market at European level. The analysed sample includes 1080 listed companies in Europe during 2016-2022. The dominant industry in Europe is production, with production companies accounting for 50% of the sample. The auditor's independence measured by audit fees does not appear to be threatened, with a proportion of industry audit fees in the average of total company assets below 0.2% in all industries. The audit services market is highly concentrated, with 98% of all audit fees collected by the four largest audit and advisory service providers. The quality of audit services is important for financial markets because it answers to the question „how trust can one have in the credibility of the reported accounting information?”. Classification-JEL: M42 Keywords: audit quality; audit market; audit fee; results management; Pages: 758-768 Volume: 22 Issue: 176 Year: 2024 Month: October File-URL: http://revista.cafr.ro/temp/Article_9783.pdf File-Format: Application/pdf Handle: RePEc:aud:audfin:v:22:y:2024:i:176:p:758 Template-Type: ReDIF-Article 1.0 Author-Name: Ovidiu Constantin BUNGET Author-Email: ovidiu.bunget@e-uvt.ro Author-Workplace-Name: West University of Timisoara, Romania, Faculty of Economics and Business Administration Department of Accounting and Audit Author-Name: Alin-Constantin DUMITRESCU Author-Email: alin.dumitrescu@e-uvt.ro Author-Workplace-Name: West University of Timisoara, Romania, Faculty of Economics and Business Administration Department of Accounting and Audit Author-Name: Valentin BURCA Author-Email: valentin.burca@e-uvt.ro Author-Workplace-Name: West University of Timisoara, Romania, Faculty of Economics and Business Administration Department of Accounting and Audit Author-Name: Oana BOGDAN Author-Email: oana.bogdan@e-uvt.ro Author-Workplace-Name: West University of Timisoara, Romania, Faculty of Economics and Business Administration Department of Accounting and Audit Author-Name: Mario-Alexandru SOCATIU Author-Email: mario.socatiu@gmail.com Author-Workplace-Name: West University of Timisoara, Romania, Faculty of Economics and Business Administration Department of Accounting and Audit Title: Comparative Analysis Regarding the Sustainability Reporting Practice in Romania at the Level of Sustainability Reports Abstract: There is currently a heated debate surrounding the proliferation of non-financial reporting regulations, which is why there is great concern about the less likely scenario of harmonization of the various reporting frameworks. Increasing efforts to define global or at least regional non-financial reporting regulations and their implementation through reliable corporate reporting systems is limited by the barriers and challenges raised by specific country, industry and company characteristics. The question is how companies adapt to this confusing corporate reporting landscape. The purpose of this paper is to perform a reference analysis regarding the completeness of the reports drawn up from the perspective of the degree of coverage of the GRI checklist. Thus, the Global Reporting Initiative, respectively GRI, developed a template in the form of a checklist for sustainability reporting called the GRI Content Index template, considered a reference element in our analysis regarding sustainability and sustainable development and the mapping of the various SDGs (respectively Sustainable Development Goals known in Romania as Sustainable Development Goals), on a sample of companies listed on the Bucharest Stock Exchange. The purpose of the research is to provide an image of the level of transparency of companies listed on the stock exchange, regarding the sustainability of business models. The methodology used is based on the quantitative analysis of the GRI index and the practical implications of the study mainly reveal the best practices in the field of sustainability reporting, viewed from the perspective of neo-institutional theory, which highlights the coercive, normative and mimetic forces related to sustainability disclosures. Classification-JEL: M21, M40, M41, M42 Keywords: sustainability; sustainable reporting; GRI; Pages: 769-782 Volume: 22 Issue: 176 Year: 2024 Month: October File-URL: http://revista.cafr.ro/temp/Article_9784.pdf File-Format: Application/pdf Handle: RePEc:aud:audfin:v:22:y:2024:i:176:p:769 Template-Type: ReDIF-Article 1.0 Author-Name: Laura-Eugenia-Lavinia BARNA Author-Email: laura.barna@cig.ase.ro Author-Workplace-Name: Management Information System Department, Bucharest University of Economic Studies, Romania Title: ERP Systems - Reliable Tools in Corporate Reporting of Organizations Abstract: In the digital age, integrated ERP solutions are the best way to efficiently manage an organization's business and resources, as they contain a number of specific modules for accounting, human resources, production, sales and purchasing. This system is designed to provide efficiency and transparency to all operations performed by organizations. The aim of this paper is to explore how ERP systems are a reliable solution in the context of corporate reporting. The modules of this system facilitate the collection, storage, and analysis of an organization's financial and operational data, building a solid foundation for accurate and correct reporting of results, especially its performance. The case study in this paper is summarized as a quantitative analysis based on a questionnaire, which aims to highlight the advantages and challenges of using an ERP system in the context of financial and operational reporting of organizations. The conclusion of the paper emphasizes the importance of using ERP systems in the corporate reporting of organizations, highlighting the main benefits they bring in terms of operational efficiency, data transparency and correct decision making. Classification-JEL: M15, M40, M41, M42, M54 Keywords: ERP systems; corporate reporting; decision transparency; reliable solution; operational efficiency; decision-making process; Pages: 783-790 Volume: 22 Issue: 176 Year: 2024 Month: October File-URL: http://revista.cafr.ro/temp/Article_9785.pdf File-Format: Application/pdf Handle: RePEc:aud:audfin:v:22:y:2024:i:176:p:783 Template-Type: ReDIF-Article 1.0 Author-Name: Catalin MOS Author-Email: catalin.mos@econ.ubbcluj.ro Author-Workplace-Name: Faculty of Economics and Business Administration, Babes-Bolyai University, Cluj-Napoca, Romania Title: Economic Policy Uncertainty, Financial Reporting Quality, and Audit Fees: Examining the Role of Industry Characteristics and International Accounting Standards Abstract: Using a large international sample, the author investigated the effects of economic policy uncertainty (EPU) on financial reporting quality (FRQ) and audit (AF). For this analysis, he used the Baker et al. (2016) EPU index and find a negative association between EPU and FRQ. Furthermore, that this impact was found to be more pronounced for firms operating in sensitive industries and less pronounced for firms that report under the International Financial Reporting Standards (IFRS). However, for firms operating in sensitive industries, reporting under IFRS does not weaken the impact of EPU on FRQ. The results also showed that the EPU is negatively associated with audit fees. Furthermore, the interaction term between IFRS and the EPU is positively associated with AF while the interaction term between the EPU and firms operating in sensitive industries is negative. The present study has important implications for policymakers, investors, auditors, and capital markets, as it provides strong evidence of the impact of the EPU on FRQ and AF. In addition, it enriches the literature by examining the influence of IFRS and industry characteristics on the interaction between EPU, FRQ, and AF. Classification-JEL: M41, M42, M48 Keywords: financial reporting; uncertainty; IFRS; sensitive industry; audit fees; Pages: 791-802 Volume: 22 Issue: 176 Year: 2024 Month: October File-URL: http://revista.cafr.ro/temp/Article_9786.pdf File-Format: Application/pdf Handle: RePEc:aud:audfin:v:22:y:2024:i:176:p:791