eng Chamber of Financial Auditors of Romania Audit Financiar 18448801 2016-05-01 14 137 518 525 10.20869/AUDITF/2016/137/518 9471 article Emilia VASILE rector@univath.ro 101 Daniela MITRAN danielamitran@yahoo.com 101 “Athenaeum” University of Bucharest Audit committees, governance type or otherwise, are a less common feature in EU Member States, where only few countries have extended audit committees or “governance” or similar such committees . Audit committees in the private sector focus on ensuring the reliability and the internal and external reporting, and therefore on the internal and external audit, the quality of internal control systems and risk management processes. For many countries applying this type of public sector audit committee may be too sophisticated, because there are no preconditions for its existence. The existence of audit committees does not automatically mean that organizations function properly and have no governance, internal control and external reporting problems. Because of the importance of communication between the internal auditors and the audit committee, the paper addresses issues such as planning discussions with internal auditors, analysis and conclusions as a result of communication, questionnaire models for the addressed areas and planning the meetings with external auditors. http://revista.cafr.ro/temp/Article_9471.pdf Management internal auditors internal control external auditors audit committee board of directors eng Chamber of Financial Auditors of Romania Audit Financiar 18448801 2016-05-01 14 137 526 539 10.20869/AUDITF/2016/137/526 9473 article Cristina Lidia MANEA lidia.manea@cig.ase.ro 100 Bucharest University of Economic Studies Economic and financial environment characterized by risks and uncertainties greatly influences the decision depositors as consumers of banking products. Often, the disadvantages of traditional deposits are the reasons that lead depositors to look for dangerous financial products that can provide the preservation of the purchasing power of the currency, the currency hedging, but assuming unknown additional risks due to the lack of information. In this context, increasing the safety of depositors appears as an undisputed necessity, which translates to our approach in the development of a constructive type applied research that takes into account the following stages: short description of risks and uncertainties characterizing the economic environment with emphasis on the importance of the financial instruments; analysis of empirical data on deposits in lei and euro at national level, identifying possible causes which led to one preference or another and finding the causes underlying the different options manifested in the capital, as compared to other counties; identifying the products that offer a dangerous alternative to traditional deposits from the Romanian banking market and describing these products and their related risks; the proposal of a new product, demonstrating its effectiveness by testing and confirmation of two hypotheses. http://revista.cafr.ro/temp/Article_9473.pdf Dangerous financial products deposits foreign currency risk preserve purchasing power risks and uncertainty eng Chamber of Financial Auditors of Romania Audit Financiar 18448801 2016-05-01 14 137 540 550 10.20869/AUDITF/2016/137/540 9474 article Mirela Elena Nichita mirela.nichita@gmail.com 99 Marcel VULPOI Marcel.Vulpoi@cig.ase.ro 99 Bucharest University of Economic Studies The purpose of financial reports is to provide useful information to users; the utility of information is defined through the qualitative characteristics (fundamental and enhancing). The financial crisis emphasized the limits of financial reporting, which has been unable to prevent investors about the risks they were facing. Due to the current changes in business environment, managers been highly motivated to rethink and improve the risk governance philosophy, processes and methodologies. The lack of quality, timely data and adequate systems to capture, report and measure the right information across the organization are fundamental challenges to implementing and sustaining all aspects of effective risk management. Starting from ‘80s, the investors have become more interested in narratives (from the Notes to financial statements), than in primary reports (which disclose financial position and performance). In this research, we aim to identify whether the accounting services entities disclose risk information in their financial statements. The research will use a regression model for the assessment of the relationship between the size, profitability, leverage ratios and risk reporting by the accounting and taxation services providers in Romania during the period 2009-2013 http://revista.cafr.ro/temp/Article_9474.pdf Risk financial reports risk management risk reporting notes to financial statements eng Chamber of Financial Auditors of Romania Audit Financiar 18448801 2016-05-01 14 137 551 563 10.20869/AUDITF/2016/137/551 9475 article Cheok MUI YEE edwardwong@um.edu.my 98 Edward WONG SEK KHIN edwardwong@um.edu.my 98 Kamisah ISMAIL lidia.manea@cig.ase.ro 98 University of Malaya, Malaysia This study proposes a conceptual review of how budgetary goals impact organizational performance. The aim of this study is to get a better understanding of the direct and indirect relationship between the organization’s decision-making process and operational performances. Setting the budget particularly influences subordinates’ budget goal levels and motivations (i.e., budget goal acceptance and budget goal commitment), which ultimately enhances the organization’s performance. To test these relationships, data were collected using the three perspectives approach: budgetary goal, budgetary participation and budgetary evaluation. The study provided evidence that perception of fairness mediates the relation between the levels of budget participation and goal commitment, whereas goal commitment mediates the relation between fairness perceptions and performance. At the end of the article, there are some implications for SMEs industries and some suggestions for future studies. http://revista.cafr.ro/temp/Article_9475.pdf Budgetary goal budgetary participation budgetary evaluation organization performance. eng Chamber of Financial Auditors of Romania Audit Financiar 18448801 2016-05-01 14 137 564 574 10.20869/AUDITF/2016/137/564 9477 article Maria Cristina RĂDULESCU maria.radulescu@cig.ase.ro 97 Bucharest University of Economic Studies This paper provides a set of guidelines that can be used for prescribing a methodology or a detailed process for selecting and prioritizing security projects or solutions. It is based on the idea that costs of security solutions should be justified by their contribution to ensuring adequate protection of information resources in the organization which implements them. The article reviews general issues of security risks and costs, arguing the need for explicit consideration of information resources security requirements in order to validate decisions concerning security projects implementation. In such an approach, security requirements of information resources are used as a reference system to quantify the benefits and limitations of security solutions defined as alternative or complementary responses to certain security risks as their implementation faces budget constraints. http://revista.cafr.ro/temp/Article_9477.pdf Information security; security solution; information resource; security risk; efficiency