eng Chamber of Financial Auditors of Romania Audit Financiar 18448801 2016-10-01 14 142 1101 1113 10.20869/AUDITF/2016/142/1101 9501 article Ioana Iuliana GRIGORESCU ioanaiuliana69@yahoo.es 11 Camelia Daniela HATEGAN camelia.hategan@e-uvt.ro 12 School Inspectorate of the Cluj County West University of Timisoara The paper mainly approaches the social audit, an insufficiently developed field in our country. The social audit concept is defined in Romania by the Social Assistance Law no. 292/2011 and its application is limited to this scope. At international level, the concept has a much wider application area. The research methodology is a qualitative one. The objectives of the paper consist in the theoretical development of the social audit concept: the definition of the social audit, the description of the stages and the goals of this process, the identification of the connections between sustainable development, corporate social responsibility and social audit, the performance of a comparative analysis between the social audit, the financial audit and the internal audit, the explanation of the advantages of applying the social audit in the business environment, in social institutions and in the public administration, the illustration of qualitative and quantitative indicators that can be employed in social audit engagements, as well as the proposal of an application model of the social audit in Romania. http://revista.cafr.ro/temp/Article_9501.pdf Social audit corporate social responsibility sustainable development financial audit social indicators eng Chamber of Financial Auditors of Romania Audit Financiar 18448801 2016-10-01 14 142 1114 1126 10.20869/AUDITF/2016/142/1114 9502 article Sorin DOMNISORU domnisorusorin@yahoo.com 10 Radu OGARCA rfogarca@yahoo.com 10 Cosmin BALOI baloimg@gmail.com 10 University of Craiova The paper starts from the persisting uncertainties regarding the use of the term “control”. In order to mitigate such ambiguities, after a brief subject exposure, a range of questions are proposed, whose adapted answers may help us to refine a correct understanding and perception of control, of course in relation with a plethora of similar concepts. Our argumentation includes the elaboration and presentation of a range of conceptual pillars or vectors regarding the control in its widest meaning, in contrast with other more restricted forms, equivocal or even altered explanations. The text is enriched with some assertions of the authors regarding the assurance of the appropriate control, with its meaning of a state of harmony, which can successfully meet honest expectations. At the end, we conclude that, in the current conditions, control can only be defined in a holistic style and we proposed a conceptual profile, through which we can easily explain what the control actually includes. http://revista.cafr.ro/temp/Article_9502.pdf Control undulating management risk administration controlling audit review eng Chamber of Financial Auditors of Romania Audit Financiar 18448801 2016-10-01 14 142 1127 1135 10.20869/AUDITF/2016/142/1127 9503 article Ionela IVAN ivan_v_ionela@yahoo.com 9 Bucharest University of Economic Studies Guidance has always been welcome in terms of applying professional judgement in the context of the principles-based accounting standards – International Financial Reporting Standards. This fact is the result of the complexity and diversity of some situations, which might give rise to difficulties in terms of choosing the appropriate accounting policies and methods (depreciation, inventory valuation on hand at the end of an accounting period, the recognition of revenues and expenses from a construction contract, accounting for lease contracts by the proper determination of the type of lease: financing or operating), and respectively the need to verify if the criteria set by the principles-based accounting standards are met. This “freedom” of choice and disclosure might create problems in terms of accounting information quality. The possibility to select accounting methods based on the Standards’ provisions is meant to generate a true and fair view of the company’s financial position and financial performance. In these cases it is recommended to use professional judgement in order to reach a conclusion which is in accordance with the accounting principles and is not enforced by any accounting rules, since the exercise of individual professional judgement is preferred against the “pure” compliance with prescriptive legal requirements. http://revista.cafr.ro/temp/Article_9503.pdf Professional judgement principle-based accounting true and fair view disclosures financial reporting lease accounting. eng Chamber of Financial Auditors of Romania Audit Financiar 18448801 2016-10-01 14 142 1136 1148 10.20869/AUDITF/2016/142/1136 9504 article Flavius-Andrei GUINEA flavius.guinea@cig.ase.ro 8 Bucharest University of Economic Studies Once implemented, a managerial accounting system will also attract the manifestation of creative accounting phenomena, especially in times of crisis and fiscal pressure. Having a more relevant set of information at their disposal, managers are tempted to employ more or less ingenious, questionable or legal techniques, in order to improve the presentation of the financial statements. In the current Romanian economic context, a direct link may be observed between the creative accounting practices, the incompetence of managers, the decline in activity, the crisis periods and the fiscal optimizations. A national emphasis is placed on the use of creative accounting in order to mislead the users of the financial statements. The study of the Romanian managerial accounting system is characterized by a relatively small number of field research studies, especially with regard to organization and implementation. In fact, our research intends to warn about the major challenges in the perceived benefits of organizing a modern system of management accounting in the Romanian context. Although management accounting has evolved continuously during recent decades, its progress depends highly on the extent to which the academia and managers will be able to improve various methods and the effectiveness of decision processes. Implementation difficulties should be identified in a manner that is much clearer and without neglecting the social and behavioural implications. Emphasis should be placed on the central role of the behavioural issues in managerial accounting. http://revista.cafr.ro/temp/Article_9504.pdf Managerial accounting creative accounting production cost change in managerial accounting altering costs removal from stock eng Chamber of Financial Auditors of Romania Audit Financiar 18448801 2016-10-01 14 142 1149 1156 10.20869/AUDITF/2016/142/1149 9505 article Luminita Gabriela ISTRATE istrate_luminita@yahoo.com 7 Bogdan Stefan IONESCU ionescub@gmail.com 7 Maria-Monica HARALAMBIE haralambie.monica@gmail.com 7 Academy of Economic Studies from Bucharest The acceptance of banking risks and their control is one of the key moments in banking activity. Success in banking management is possible only if the risks accepted by banks are reasonable, can be controlled and do not exceed the financial resources and their expertise. The occurrence of the interest rate risk is due to the holding a portfolio of assets and liabilities with fixed interest, different in terms of maturities and price and in terms of ownership of assets and liabilities with variable interest that adapts differently to interest rate fluctuations. The estimation of the probability of default is the first step to determine and assess risk. The major issues in the estimation of PD are generated by the limitation of the required information. This work captures the impact of interest rate on the PD at maturity of loans. The analysis covers the period January 2013 - December 2015 using data on interest rates in the interbank market, the type of loans granted and the number of people that recored outstanding loans. http://revista.cafr.ro/temp/Article_9505.pdf Probability of default (PD) interest rate credit risk financial institutions interest rate risk