eng Chamber of Financial Auditors of Romania Audit Financiar 18448801 2018-02-28 16 149 89 100 10.20869/AUDITF/2018/149/89 9562 article Alain Burlaud Alain.Burlaud@cnam.fr 12 Geneviève Causse 13 Conservatoir national des arts et métiers Université Paris-Est Creteil et ESCP Europe The question regarding the universal or contingent character of accounting is essential because it determines one of the dimensions of the governance of organizations. The first part of the article shows the dynamics of universality, that is, the movement towards a single set of global standards. The second part shows the limits of this movement and, conversely, the relevance of standards adjusted to local contingencies and coercions. Finally, the third part deals with the balance between these two concepts of accounting. http://revista.cafr.ro/temp/Article_9562.pdf accounting; universality; contingency eng Chamber of Financial Auditors of Romania Audit Financiar 18448801 2018-02-28 16 149 101 110 10.20869/AUDITF/2018/149/101 9563 article Marilena Mironiuc marilena@uaic.ro 9 Mihaela Chiriac mihaela.chiriac13@gmail.com 10 Maria Carmen Huian maria.huian@uaic.ro 11 "Alexandru Ioan Cuza” University of Iasi, Romania “Alexandru Ioan Cuza” University of Iasi, Romania Alexandru Ioan Cuza” University of Iasi, Romania This paper analyses the association between earnings management and value relevance of accounting information, for a number of 556 observations from a sample of 65 companies listed on the Bucharest Stock Exchange during a 10 year period: 2006-2015. Sampled companies are classified according to the method used for the reporting of operating cash flows. Findings confirm that entities using the indirect method have a higher level of discretionary accruals and are more tempted to opportunistically increase their earnings. As far as value relevance is concerned, results show that participants on the Romanian capital market place more weight on the information reported by entities experiencing higher levels of discretionary accruals. http://revista.cafr.ro/temp/Article_9563.pdf accounting quality earnings management value relevance cash flows eng Chamber of Financial Auditors of Romania Audit Financiar 18448801 2018-02-28 16 149 111 121 10.20869/AUDITF/2018/149/111 9564 article Tatiana Danescu tatiana.danescu@gmail.com 8 Ovidiu Spatacean ovidiu.spatacean@ea.upm.ro 8 “Petru Maior” University from Tirgu Mures, Romania The integrity and credibility of financial statements are sensitive aspects that significantly influence the investors’ confidence in the capital market efficiency. Recent research in the area of (re)establishing effective communication between the auditor and the investors have brought into the attention of audit practitioners the provisions of International Standard on Auditing (ISA) 701 “Communicating Key Audit Matters in the Independent Auditor’s Report.” This approach proves that investors demand more information that accompanies the audit opinion, when forming a decision to buy, hold or sell equity instruments. Our research is focused on identifying, isolating and analyzing the significant changes in financial asset trading prices, as a consequence of publishing the auditor report. Thus, the overall objective is to assess the impact of the modified opinion, expressed by the auditor in accordance with ISA 705 “Modifications to the Opinion in the Independent Auditor’s Report”, upon the prices of financial assets. Subsequently, the specific objectives aim to identify quantifiable adjustments in the financial position of the entities and to analyze its impact on trading prices. Research is focused on a sample that consists of 32 listed entities, of which 25 entities are included in the BET-XT index and seven entities are traded on the alternative trading system AeRO, selected in relation to the liquidity degree measured by the BVB market operator. Our observations upon changes in financial asset prices were focused on 2009-2017 period, while the analized audit reports addressed the reporting periods from 2008 to 2016, included. http://revista.cafr.ro/temp/Article_9564.pdf Audit opinion misstatement audit adjustments financial statements’ reliability investors’ perception eng Chamber of Financial Auditors of Romania Audit Financiar 18448801 2018-02-28 16 149 122 130 10.20869/AUDITF/2018/149/122 9565 article Kamisah Ismail 6 Cheok Mui Yee 7 Edward Wong Sek Khin edwardwong@um.edu.my 7 "Faculty of Business and Accountancy "Faculty of Business and Accountancy, University of Malaya, Malaysia The existence of budgetary slack permeates every level of private sector organisations. Employees (i.e., budget makers) usually request excessive budgetary resources in the budgeting process. Due to its dysfunctional nature, existing researchers had extensively examined the relationship between budgetary slack and employees’ performance. This study adopted a survey questionnaire approach to examine the relationship between determinants of psychological ownership and employees’ intention to create slack in budgeting. There were 475 budget makers from private sector organisations in the Klang Valley, Malaysia who participated in this study through a questionnaire survey. Preliminary data analysis was performed using normality, multi-collinearity, variance inflation index (VIF), common method variance, and reliability analysis. Multiple regression analysis was also applied to investigate the relationships of each dimension of employees’ psychological ownership on budgetary slack. This paper is considered a pioneer empirical study that investigates the determinants of psychological ownership on budgetary slack among budget makers from the psychological perspective in the context of private sector organisations in Malaysia, where slack activities in budgeting existed. http://revista.cafr.ro/temp/Article_9565.pdf Budgetary slack psychological ownership private sector organisations eng Chamber of Financial Auditors of Romania Audit Financiar 18448801 2018-02-28 16 149 131 139 10.20869/AUDITF/2018/149/131 9566 article Sinziana-Maria Rindasu sinziana_rindasu@yahoo.com 5 Bucharest University of Economic Studies, Romania The accounting profession is in a continuous process of change as ERP applications and emerging technologies such as cloud computing continue to bring improvements into the accounting and financial areas. Nevertheless, beside the variety of benefits, these technologies carry specific risks that can affect the fundamental characteristics and security aspects of data. This paper aims to highlight the most common vulnerabilities of ERP applications and cloud computing platforms in the context of digital accounting. At the same time, in addition to the technical aspects and good practices used to prevent and correct these vulnerabilities, the study focuses on a critical component of data security: the human factor. Moreover, the empirical research conducted has highlighted the fact that young professionals understand the need for sensitive data protection, but they do not always display the best behavior to prevent security incidents. This article aims to provide an overview of ERP applications and cloud computing platforms that are currently used in the financial and accounting field, focusing on the main technical vulnerabilities and the human factor, which is one of the most important aspects of data security. http://revista.cafr.ro/temp/Article_9566.pdf information security ERP cloud computing human factor eng Chamber of Financial Auditors of Romania Audit Financiar 18448801 2018-02-28 16 149 140 147 10.20869/AUDITF/2018/149/140 9567 article Gheorghe N. Popescu Gheorghe.Popescu@cig.ase.ro 3 Cristina Raluca Gh. Popescu 4 Bucharest University of Economic Studies, Bucharest, Romania University of Bucharest, Bucharest, Romania Simultaneously with increasing the speed and precision of data processing, multiple connectivity, fast transmission over long distances, and their results, the development and generalization of automatic processing, brought many new vulnerabilities and deficiencies, otherwise inevitable, the basis of new risk categories. The risks of cyber attacks on financial auditing involve the risk management of information systems security. Identifying, mitigating or eliminating the effects are mandatory requirements without which a high-quality financial audit can not be achieved in a highly computerized environment. To substantiate specific risk management actions on information systems security, in this study we analyzed the main types and techniques used in cyber attacks by making their radiography, identifying the strengths and weaknesses of new technologies and systems that are or not favoring security systems. At the same time, we analyzed the security system of an information system, organized it in layers, and revealed the specific areas for the security evaluation of the Mehari method. Finally, some of the results of a survey based on a questionnaire made with the support of master students of the "Information Systems Audit and Control" course were revealed, with three of the most common weaknesses identified for each security domain. http://revista.cafr.ro/temp/Article_9567.pdf risk financial audit IT security risk management cyber attack. eng Chamber of Financial Auditors of Romania Audit Financiar 18448801 2018-02-28 16 149 157 170 10.20869/AUDITF/2018/149/157 9568 article Jatinder Pal Singh jpsiitr@gmail.com; jatinder_pal2000@yahoo.com 2 Indian Institute of Technology, Roorkee, India IFRS 9 has introduced certain radical changes to the hedge effectiveness assessment criteria of IAS 39 for entities desirous of availing hedge accounting. It is necessary for business entities contemplating the use of financial derivatives for hedging purposes to appreciate the nuances associated with the upstaged provisions of hedge accounting of IFRS 9 in context of hedge effectiveness requirements envisaged therein. The present article addresses this issue and provides a threadbare analysis of the fundamental model on which the IFRS 9 hedge effectiveness assessment is premised. http://revista.cafr.ro/temp/Article_9568.pdf IAS 39 IFRS 9 hedge accounting hedge effectiveness risk management. eng Chamber of Financial Auditors of Romania Audit Financiar 18448801 2018-02-28 16 149 148 156 10.20869/AUDITF/2018/149/148 9569 article Oana Chirica o.chirica@gmail.com 1 Bogdan Puscas 1 Bucharest University of Economic Studies, Romania The formation of public institutions income has been approached nationally and internationally alike. In concrete terms, the dependence on a single financing source can cause financial instability at the level of public universities. That is the reason why strategic management in education institutions needs to focus on attracting revenue sources, other than subsidies from state budget, and their use in the context of financial autonomy can ensure the achievement of goals in the institutional strategy. This research is based on literature review on the need to diversify universities’ financing sources and the means to achieve that. The identification of complementary sources for financing education – a real challenge for universities – can lead to an increase of their competitiveness nationally and internationally. Our research highlights the relevance and the problematic of diversifying financing sources of public universities. To this end, it centralizes types of extra-budgetary revenue sources: revenues from educational taxes, from registration and enrolment taxes, from resits taxes, from services taxes, etc. Various policies on educational taxes are also analysed, in the context of the competition among universities, as well as ways of ensuring provisions in the case of a decrease in the attractiveness of programs. http://revista.cafr.ro/temp/Article_9569.pdf Public sector education financing education budget higher education