eng Chamber of Financial Auditors of Romania Audit Financiar 18448801 2018-02-01 16 150 239 248 10.20869/AUDITF/2018/150/239 9574 article As virtual currencies became more common and utilized by various users, companies or individuals, the question about if and how to tax for them could no longer be ignored. The rise and fall of Bitcoin in the last year, the increasing number of Initial Coin Offerings and the growing number of virtual currencies being launched recently, made everyone alert to the topic. This is why, lately, more and more regulators chose to come up with clarifications about how to account (and tax) for virtual currencies. Romania, unfortunately, is not one of those countries that chose to adapt their legislation to take into account virtual coins. Ambiguity governs the use of virtual currencies, their nature and the rules to account for transactions involving virtual currencies. In this paper, we analyze the difficulties faced by the corporate entities which use virtual currencies in their activity and so have to pay corporate tax. http://revista.cafr.ro/temp/Article_9574.pdf Virtual currency Bitcoin accounting and reporting taxation eng Chamber of Financial Auditors of Romania Audit Financiar 18448801 2018-02-01 16 150 249 260 10.20869/AUDITF/2018/150/249 9575 article The study presents relevant aspects regarding the evolution of the audit reporting after the economic recession. The motivation of the author to tackle this topic about the new tendencies in audit reporting was the actuality and importance granted to the new extended audit report. Thus, at the level of the speciality literature, a variety of studies on the evolution of the reporting in audit and the role it has were analysed. Following the conceptual delimitation and the presentation of the speciality literature’s study, the author undertook empirical research which targeted the amendments made to the audit report for the years 2015 respectively 2016. The result of this analysis shows that the majority of the entities listed on the stock exchange have respected the new structure of the audit report for the year 2016. http://revista.cafr.ro/temp/Article_9575.pdf Reporting in audit Big 4 key matters of audit audit opinion eng Chamber of Financial Auditors of Romania Audit Financiar 18448801 2018-02-01 16 150 261 269 10.20869/AUDITF/2018/150/261 9576 article The liability of the financial auditor has to be treated distinctively based on his relationship with the audited entity: internal auditor or external auditor. The logic behind this aspect results from the fact that, based on its relationship with the audited company, the liability has its source either in the Labour law, in what concerns the internal auditor, or it is a contractual liability, in case of the external auditor, even in the situation when this engages in internal auditing work through a contract. In both cases, the sanctions applied by the professional bodies to which they belong are applicable. The liability of the financial auditor is distinguished in categories as disciplinary, administrative, civil and criminal, the auditors having at their disposal methods to limit the liability, methods that will be displayed in the paper. This paper is concerned with the liabilities that the financial auditors can have, distinguished based on whether they are internal or external to the audited company, using in the analysis of the topic the method of deduction and induction, starting from the content analysis of the legislation and regulations in force. The role of this article is not only to present the situations which can attract the liability of the financial auditors and the types of liabilities, but also to support them with a presentation of and methods for limiting the liability, determined with the help of an analysis of these liabilities, and to protect them from a professional point of view. http://revista.cafr.ro/temp/Article_9576.pdf Financial auditor liability conditions of liability conditions of liability of the internal auditor conditions of liability of the external auditor limitations of liability. eng Chamber of Financial Auditors of Romania Audit Financiar 18448801 2018-02-01 16 150 270 277 10.20869/AUDITF/2018/150/270 9577 article Most EU Member States have initiated reforms to improve public sector management by introducing and promoting the public internal control system focusing on the implementation of core principles on an internationally recognized internal control model. In most countries in the European Union, national control systems are based on the COSO and INTOSAI models. The paper aims to provide a radiography of good practices regarding the implementation of internal control systems in the countries of the European Union for the implementation of healthy financial management as an integral part of good governance, both from the perspective of historical evolution and the current situation. http://revista.cafr.ro/temp/Article_9577.pdf Internal control European Union governance transparency COSO INTOSAI eng Chamber of Financial Auditors of Romania Audit Financiar 18448801 2018-02-01 16 150 278 284 10.20869/AUDITF/2018/150/278 9578 article This paper studies the CSR taxonomy of customer satisfaction and their trust and loyalty activities to the local SMEs credit and lending industry in Malaysia. The data was collected from 365 customers based on convenience sampling and data analysed using structural equation modelling. The results show that all the items (customer satisfaction, trust and loyalty construct) have high factor loadings (0.7) and the composite reliability of all the construct is acceptable (around 0.8) CAR. This paper also reaffirms that quality services which satisfy customer, increase bank image, and customer trust and loyalty. The findings of this study are to investigate credit firms’ managers to decide upon resource allocation and planning for their future service in order to enhance their customers’ satisfaction and loyalty. Satisfied customers are the ones who will continue using service and will not change to the other banks or they will be loyal and will recommend the credit firms to others. Therefore managers should think about constant improvement of quality services, which meet the expectations of customers. http://revista.cafr.ro/temp/Article_9578.pdf CSR customer satisfaction image loyalty structural equation modelling trust. eng Chamber of Financial Auditors of Romania Audit Financiar 18448801 2018-02-01 16 150 285 292 10.20869/AUDITF/2018/150/285 9579 article As regards the decision-making process, there are two general principles accepted in decision-making: 1) the decision is made in terms of gain-loss; 2) a decision depends on the context; even if the decision-making rules are known, the context of the decision may be different, which means that the meaning of the concepts involved in the decision-making rules changes. The article attempts to introduce the idea that the specification of rules and constraints of concept use should be part of the level of knowledge modeling on the principle of data level separation of the logical level of the application. Specifying constraints at the place and time of manifestation of their knowledge characterizes the context and adapts the decision model. The article addresses the issue of interest and presents examples of accounting. http://revista.cafr.ro/temp/Article_9579.pdf accounting decision pieces of knowledge information knowledge rules eng Chamber of Financial Auditors of Romania Audit Financiar 18448801 2018-02-01 16 150 293 300 10.20869/AUDITF/2018/150/293 9580 article The purpose of this paper is to demonstrate the importance of the auditors ‘role in validating the appropriate application of the International Financial Reporting Standards as a result of numerous changes and the complex situations from day to day, from the perspective of choosing the right method, respectively from the perspective of verifying compliance with these standards. The harmonization of the provided information facilitates the comparison in time and between companies, ensuring consistency a more granular discipline in reflecting the economic transactions. The aim is to achieve the harmonization of the accounting methods and principles by adopting the same set of Accounting Standards. Having the normalization process as a starting point, the harmonization can be achieved through a convergence process built by gathering all the useful and constructive information from the past experiences. The main objectives are to use the same language and to quantify the impact of change using the same set of tools. The distinctive element relates to the culture of each organization, but the way in which the financial statements are prepared and the way in which they are presented will remain the same if the full harmonization is achieved. Most of the time, the auditor has to assess the impact of an accounting selection at the expense of another option and to decide whether the results obtained, respectively the information provided by the entity are accurate and do not include misstatements that could significantly affect the financial statements. The selection process involves evaluating the results compared to the objectives set by the regulatory system. The role of the auditor is to assess the degree of compliance of the financial statements with an applicable financial reporting framework. The auditor's objectives are to obtain reasonable assurance that the financial statements taken as a whole are free from material misstatements which may be caused by error or fraud and to issue an audit report that includes the audit opinion. The auditor’s integrity and objectivity are directly related to the freedom from any constraint, which could affect the expression of the audit opinion. In other words, the auditor should never be affected by the influences that might compromise the professional judgment. The speed of the changes from accounting may compromise the way in which the professional judgment is applied due to the complexity of certain cases. The International Auditing Standards provide the following guideline: when the auditor is no longer in a position to evaluate a case, a specialist/ expert may be contracted. The loss of independence occurs when the auditor is influenced by the client to "overlook" certain deviations from the provisions of the International Financial Reporting Standards. The evolution of the accounting standards directly impacts the auditor's activity, as it is also shown in the study presented below. The results obtained can be extrapolated as the study focuses on a research related to the quantification of the impact of regulatory developments on the auditor's work. http://revista.cafr.ro/temp/Article_9580.pdf the evolution of the regulations principles based accounting fair value presentation financial reporting and financial statements.