Template-Type: ReDIF-Article 1.0 Author-Name: Darko DACHEVSKI Author-Email: darko_dc@yahoo.com Author-Workplace-Name: University of South Africa, College of Accounting Sciences, Department of Auditing, Pretoria, South Africa Author-Name: Barry ACKERS Author-Email: ackerb@unisa.ac.za Author-Workplace-Name: University of South Africa, College of Accounting Sciences, Department of Auditing, Pretoria, South Africa Title: Sustainability Reporting and Assurance: A New Challenge for the Audit Profession in Europe Abstract: This study investigates the familiarity of auditors with sustainability reporting and assurance concepts across different sizes of audit firms in Europe. Utilizing extensive literature and quantitative surveys deployed at auditors and audit firms in Europe, the research reveals that auditors associated with international audit networks and larger audit firms demonstrate a greater familiarity with sustainability reporting and assurance concepts and practices compared to auditors associated with smaller, local audit firms. The findings suggest that this familiarity gap stems from the predominant involvement of larger audit firms in providing sustainability reporting services and assurance for their clients. To narrow this familiarity gap, the study proposes collaborative efforts involving academia and professional audit associations to deliver training on sustainability reporting and assurance concepts and practices. Recognizing auditor proficiency and knowledge as crucial factors in ensuring the quality of assurance services in this domain, the study emphasizes the importance of enhancing external auditors’ competencies in sustainability reporting and assurance. Furthermore, the study advocates for the implementation of stringent regulations by national authorities to secure the market for sustainability reporting and assurance, aligning with previous scholarly calls for clearer regulatory frameworks in this sphere. However, the study underscores the need for further research to assess the impact of such regulations on the professional market for sustainability reporting and assurance. For the European audience, the study underscores the significance of collaborative training initiatives led by academia and professional audit associations to equip external auditors with the requisite skills necessary for delivering assurance services on sustainability reporting of satisfactory quality. The study recommends the adoption of stringent regulatory frameworks to safeguard the sustainability reporting and assurance market. These measures are essential for ensuring credibility and reliability in sustainability reporting practices. Classification-JEL: Q56, M49 Keywords: audit profession; sustainability assurance; sustainability reporting; Pages: 116-140 Volume: 23 Issue: 177 Year: 2025 Month: February File-URL: http://revista.cafr.ro/temp/Article_9787.pdf File-Format: Application/pdf Handle: RePEc:aud:audfin:v:23:y:2025:i:177:p:116 Template-Type: ReDIF-Article 1.0 Author-Name: Antonella Maria TIMIS Author-Email: timisantonella19@stud.ase.ro Author-Workplace-Name: Bucharest University of Economic Studies, Romania Author-Name: Aurelia STEFANESCU Author-Email: aurelia.stefanescu@cig.ase.ro Author-Workplace-Name: Bucharest University of Economic Studies, Romania Title: Internal Audit Aspects of Companies' Sustainability Reporting Abstract: In the current context, dominated by the increasing importance of credible, relevant and timely sustainability information for stakeholders, internal audit is expanding its scope as a key corporate governance actor. Thus, internal audit actively contributes to strengthening corporate governance on optimizing sustainability strategies within companies. The research is two-dimensional. The first dimension includes review of the literature in the field. The second dimension includes a quantitative research aimed at identifying the degree of compliance of companies in the pharmaceutical industry listed on the Bucharest Stock Exchange with corporate governance requirements, in the pandemic and post-pandemic period, complemented by the development of a framework for internal auditing of sustainable corporate governance. The results of the research highlighted the heterogeneity of compliance of the analysed companies with the requirements of sustainable governance but also the need to strengthen internal auditing as a key actor of a solid sustainable governance. They also provide a relevant perspective on how recent events have influenced the corporate behaviour and accountability of these entities in relation to ESG requirements in the pandemic and post-pandemic period. Classification-JEL: M42, M48 Keywords: internal audit; ESG (Environmental, Social, Governance); corporate governance; disclosure index; Bucharest Stock Exchange; pharmaceutical industry; Pages: 141-151 Volume: 23 Issue: 177 Year: 2025 Month: February File-URL: http://revista.cafr.ro/temp/Article_9788.pdf File-Format: Application/pdf Handle: RePEc:aud:audfin:v:23:y:2025:i:177:p:141 Template-Type: ReDIF-Article 1.0 Author-Name: Dragos Ovidiu TOFAN Author-Email: ovidiu.tofan@uaic.ro Author-Workplace-Name: "Alexandru Ioan Cuza" University of Iasi, Romania Author-Name: Dinu AIRINEI Author-Email: adinu@uaic.ro Author-Workplace-Name: "Alexandru Ioan Cuza" University of Iasi, Romania Title: Digitalization Directions within Financial Audit Missions Abstract: The current economic dynamics as well as the volatility of the markets or of certain sectors of activity explain the current increasingly pressing need to access complete and updated information on the financial statements of the analyzed organizations. The financial auditor has the necessary expertise to respond to such a desire, but he must rely on new tools dedicated to data processing in order to overcome certain barriers determined by the current information complexity. The paper captures some of the directions of digitalization in carrying out audit missions by revealing advantages and also challenges specific to such innovations. Thus, concrete examples are given, depending on the stages of the financial audit, such as the auditor's own controls or the collection of evidence, processes to which digitalization contributes significantly but also a series of conditions regarding the opportunity, ethics or legal compliance of such technologies. Classification-JEL: M1, M2, M4, O3 Keywords: Data Analytics; Process Automation; Business Intelligence; digital audit; Pages: 152-163 Volume: 23 Issue: 177 Year: 2025 Month: February File-URL: http://revista.cafr.ro/temp/Article_9790.pdf File-Format: Application/pdf Handle: RePEc:aud:audfin:v:23:y:2025:i:177:p:152 Template-Type: ReDIF-Article 1.0 Author-Name: Daniel BOTEZ Author-Email: daniel63331@yahoo.com Author-Workplace-Name: “Vasile Alecsandri” University of Bacau, Romania, Faculty of Economic Sciences Author-Name: Oana-Ancuta STȂNGACIU Author-Email: stangaciu@ub.ro Author-Workplace-Name: “Vasile Alecsandri” University of Bacau, Romania, Faculty of Economic Sciences Author-Name: Anatol MELEGA Author-Email: melega.anatol@usm.ro Author-Workplace-Name: “Stefan cel Mare” University of Suceava, Romania, Faculty of Economics Author-Name: Mihaela ENACHI Author-Email: enachi_mihaela@yahoo.com Author-Workplace-Name: “Vasile Alecsandri” University of Bacau, Romania, Faculty of Economic Sciences Title: Key Audit Matters and their Impact on the Financial Statements of Listed Entities Abstract: This research examines how the implementation of International Auditing Standard 701 - Communicating Key Audit Matters in the Independent Auditor’s Report (ISA 701), introduced by the International Auditing and Assurance Standards Board (IAASB) in 2015 and mandatory since December 2016, affects the transparency and integrity of financial reports of companies listed on the Bucharest Stock Exchange (BSE). ISA 701 encourages more effective communication of key audit matters, emphasizing their importance in strengthening the quality of statutory audit. This study focuses on how these key matters are identified and communicated in the audit reports and on their impact on investor behavior and management decisions. The paper had as starting point 83 entities listed on the Bucharest Stock Exchange, and following the application of strict criteria, in order to ensure the relevance and comparability of information, the sample was reduced to 40 entities for which the trends in presentation of key audit matters between 2020 and 2022 were analyzed. The results suggest a significant link between the clarity and breadth of communication of these matters and strategic management decisions, which are directly reflected in the financial evolution of companies. This analysis contributes to the literature by highlighting the role of effective communication of key audit matters in promoting transparency and accountability within listed entities, highlighting the positive potential for investor confidence and capital market stability. Classification-JEL: M21, M41, M42, O16 Keywords: key audit matters (KAM); financial statements; transparency; auditor’s opinion; management decisions; investors’ confidence; Pages: 164-179 Volume: 23 Issue: 177 Year: 2025 Month: February File-URL: http://revista.cafr.ro/temp/Article_9791.pdf File-Format: Application/pdf Handle: RePEc:aud:audfin:v:23:y:2025:i:177:p:164 Template-Type: ReDIF-Article 1.0 Author-Name: Silviu-Ionut BABTAN Author-Email: silviu.babtan@econ.ubbcluj.ro Author-Workplace-Name: Accounting and Audit Department, The Faculty of Economics and Business Administration, Babes-Bolyai University, Cluj-Napoca, Romania Title: Reforming Real Estate Valuation for Financial Auditors With AI: An In-Depth Exploration of Current Methods and Future Directions Abstract: Artificial Intelligence (AI) is changing real estate valuation with innovative approaches. This article examines several AI methods – Regression Models, Decision Trees, Random Forests, Artificial Neural Networks, and XGBoost – and explores their applications for improving property valuation accuracy and efficiency, with implications for other professions involved, e.g. audit. The author starts by investigating traditional valuation methods' limitations, such as data constraints and subjectivity, and presents how these AI techniques, which are translated in property valuation field as automated valuation methods, tackle these challenges. Regression Models quantify attributes, Decision Trees provide clear insights, Random Forests improve predictions, Artificial Neural Networks design elaborate relationships, and XGBoost furnishes advanced boosting techniques for higher performance. Underscoring that AI is meant to support, not substitute, human assessors, the paper presents how these methods can enhance valuation processes, deliver more reliable valuation reports, and decrease errors, while also exploring future innovations and evolving trends in artificial intelligence for real estate industry and related professions. Classification-JEL: R30, C40, M40 Keywords: artificial intelligence; real estate valuation; audit, automated valuation techniques methods; Pages: 180-196 Volume: 23 Issue: 177 Year: 2025 Month: February File-URL: http://revista.cafr.ro/temp/Article_9792.pdf File-Format: Application/pdf Handle: RePEc:aud:audfin:v:23:y:2025:i:177:p:180 Template-Type: ReDIF-Article 1.0 Author-Name: Georgiana-Iulia LAZEA (TRIFA) Author-Email: georgiana.lazea87@e-uvt.ro Author-Workplace-Name: West University of Timisoara, Romania Author-Name: Ovidiu-Constantin BUNGET Author-Email: bunget.ovidiu@e-uvt.ro Author-Workplace-Name: West University of Timisoara, Romania Author-Name: Anca-Diana BALAN Author-Email: anca.sumanaru94@e-uvt.ro Author-Workplace-Name: West University of Timisoara, Romania Author-Name: Mircea Stefan SOLOVASTRU Author-Email: mircea_solovastru@yahoo.com Author-Workplace-Name: Bucharest Stock Exchange, Romania Title: Navigating Auditing Risks in the Crypto Asset Landscape Abstract: The rise of crypto assets presents unique challenges and risks for auditors, requiring a revaluation of traditional auditing practices. This paper explores the inherent, control, valuation, and related risks associated with crypto assets, emphasising the complexities of valuation, compliance, and fraud detection. Starting from a bibliometric visualisation in VOSviewer, it points out thematic trends and key concepts in crypto auditing. The database was downloaded from the Web of Science Core Collection (2000-2024 Q3). The findings offer valuable insights for auditors, policymakers, investors, researchers, and practitioners who rely on accurate audits to make informed decisions and build trust and transparency in the crypto ecosystem. Classification-JEL: M42, G32, K34, O33 Keywords: cryptocurrency; crypto assets; risk; audit risk; inherent risk; control risk; Pages: 197-209 Volume: 23 Issue: 177 Year: 2025 Month: February File-URL: http://revista.cafr.ro/temp/Article_9793.pdf File-Format: Application/pdf Handle: RePEc:aud:audfin:v:23:y:2025:i:177:p:197 Template-Type: ReDIF-Article 1.0 Author-Name: Alexandru Adrian TUNSU Author-Email: tunsualexandru19@stud.ase.ro Author-Workplace-Name: Bucharest University of Economic Studies, Romania Title: Fraud Research in Economic Entities – A Conceptual Perspective Abstract: In the growing complex and mutualistic context of global economies, addressing the circumstances in which fraud is observed is becoming of fundamental importance. National and global economies are severely affected by fraud by economic entities through significant financial losses, diminished investor confidence and the creation of financial market imbalances. From this perspective, the research objective is to identify and analyse multidimensional conceptual approaches to fraud. Using a bibliometric analysis of articles published in the Scopus database in the period 1982-2023, the research directions in the literature, the frequency and relevance of the topics addressed, the authors and papers with major influence, as well as the collaboration networks among researchers were identified. The results of the research highlighted the continuing interest in addressing fraud but also its multiple connotations. Considering the economic, governmental and social implications of fraud, the research is deemed to add value to the literature and the changing economic context is a premise for further research on fraud. Classification-JEL: M42, M48, G38 Keywords: fraud; bibliometric analysis; literature review; Scopus; Pages: 210-222 Volume: 23 Issue: 177 Year: 2025 Month: February File-URL: http://revista.cafr.ro/temp/Article_9794.pdf File-Format: Application/pdf Handle: RePEc:aud:audfin:v:23:y:2025:i:177:p:210