eng Chamber of Financial Auditors of Romania Audit Financiar 18448801 2018-08-01 16 152 527 543 10.20869/AUDITF/2018/152/527 9584 article The auditing profession is based on serving the public interest and the exact knowledge regarding the public interest notion is a condition of its advancement. The professions’ commitment to support public interest is factual, a condition of its presence. The individual interest should not be predominant over the public interest and the reconciliation between them is conditional on the application of ethical and professional standards according to the public’s expectations. The ethical values promoted by the ethics code guide the auditors when a conflict arises. Thus, the Ethics Code of the profession protects as much the public interest as the private interest. The study conducted by IFAC in 2010 enables to analyse the position of member bodies in order to outline the significance of the public interest and its association with the auditing profession. The definition of the public interest confers homogeneity to a notion with a broad sense and its evaluation is done through three criteria among which the costs and benefits analysis is the main criterion. The statistical analysis performed, whose starting point was the IFAC study regarding the public interest framework, confirms the extensive meaning of the public interest significance as well as the evaluation criteria. Following the statistical analysis, the appreciation of the public interest definition as ‘too large’ does not meet consensus among the majority of participants to the study. At the same time, the mediation between criteria and their re-ranking represent the main elements of dissension. The authors conclude that the trust generated by defending the public interest is reflected upon strengthening the legitimacy of the profession. http://revista.cafr.ro/temp/Article_9584.pdf ethics public interest private interest evaluation criteria ethical conduct eng Chamber of Financial Auditors of Romania Audit Financiar 18448801 2018-08-01 16 152 544 552 10.20869/AUDITF/2018/152/544 9593 article Public internal audit is asked to provide assurance that the public money is well managed and the existing resources are directed, efficiently and in line with the law, towards the real problems and in respect with the public interest. The research objective was to provide an insight in the status of Romanian public internal audit by identifying its strong points and weaknesses and suggesting a set of measures aiming at improve the public internal audit and willing to help in the implementation of a strong public internal audit function. The author’s investigation has scientific and practical implications aiming at attenuate the gap in the previous research, enriching the literature on the topic and suggesting ways of improvement of the public internal audit function in Romania. http://revista.cafr.ro/temp/Article_9593.pdf public internal audit UCAAPI public sector compliance Romania eng Chamber of Financial Auditors of Romania Audit Financiar 18448801 2018-08-01 16 152 553 570 10.20869/AUDITF/2018/152/553 9595 article The conceptual definition of "expectations gap" considering all engagements governed by the International Standards is hereby proposed. There is elaborated the chain of study of the level of users’ satisfaction with the engagements provided by certified auditors. There is considered the algorithm for the consideration of the information needs of the users of the results of the auditor’s work while performing different types of engagements, classification and characteristics of information needs. There are analyzed the expectations of the users of engagements provided by certified auditors. There are grounded the characteristics of the different levels of service («desired» and «minimum» services, and the «zone of tolerance») while performing engagements provided by certified auditors. There are substantiated the five levels of the gap (in formation of expectations of users, in knowledge, in standards, in service and communications), the causes of their occurrence and ways of overcoming them. A distinctive feature of the proposed model is the selection of two components of the “gap in the formation of expectations” and “gap in communication”: level of society and level of interaction of auditors with intended users, responsible party and management. The research findings will serve as the basis for determining the directions of development of the engagements provided by certified auditors (audit, review, other assurance engagements, related services) and improving its quality. http://revista.cafr.ro/temp/Article_9595.pdf assurance engagements expectations gap user information needs user expectations eng Chamber of Financial Auditors of Romania Audit Financiar 18448801 2018-08-01 16 152 571 583 10.20869/AUDITF/2018/152/571 9597 article The article aims to highlight the importance of reporting of subsequent events in financial statements, the factors that influence their reporting and the implication in statutory audit. The purpose of the article is to research the theoretical and legal basis which regulates the accounting and audit of subsequent events, but also research practical cases on this subject. The case study was based on the study of the 62 companies, listed on the Bucharest Stock Exchange, from which were analyzed the financial statements and the independent auditor’s reports, grouping the subsequent events which was found, depending on their type and the domain in which that company operates, and were compared the types of events that occurred in each domain of activity. From empirical research resulted that reporting of subsequent events can be influenced by various factors such as: the auditor’s category, the audit opinion, the performance and the size of company. The main conclusion which resulted from the study case is that the subsequent events are more frequent presented in financial statements of an entity, influencing in some cases the auditor’s opinion related to these financial statements. http://revista.cafr.ro/temp/Article_9597.pdf subsequent events financial statements audit opinion audit evidence eng Chamber of Financial Auditors of Romania Audit Financiar 18448801 2018-08-01 16 152 584 598 10.20869/AUDITF/2018/152/584 9598 article The purpose of the present article is to analyse the connection between the protection of minority shareholders and International Financial Reporting Standards’ (IFRSs’) adoption. Thus, the authors estimate the status of IFRSs’ adoption for 109 countries and involve the Protecting Minority Investors’ ranking (as a component of Ease of Doing Business Index provided by World Bank). In order to deal with the reverse causality issues, a GMM methodological framework was adopted. The results reveal that the impact of IFRSs’ adoption on a country’s rank (in respect to the status of minority investors’ protection) is reverse U-shaped and statistically significant. These findings are robust, even if we consider different control variables (legal system features, conditions of borrowed financial resources’ markets and insolvency resolution procedures) and estimation methodologies. In addition, the authors compare OECD versus non-OECD countries and find that the strongest impact of IFRSs’ adoption is in the case of the latter group. http://revista.cafr.ro/temp/Article_9598.pdf minority shareholders IFRSs legal system insolvency OECD and non-OECD countries eng Chamber of Financial Auditors of Romania Audit Financiar 18448801 2018-08-01 16 152 599 609 10.20869/AUDITF/2018/152/599 9599 article The objective of this study is to examine the effect of firms` characteristics and audit quality in Turkey. This study provides additional insights for audit quality literature by examining how firms characteristic effect on clients’ incentives and abilities to demand high audit quality in Turkey. Turkey is one of the less developed and most under-researched capital markets in the world. This study used the data of 146 firms listed on Borsa Istanbul (BIST) over the period from 2011 to 2015. Using logistic regression, the findings explained that clients’ incentives and abilities to demand high audit quality weaken because of control-ownership wedge, which an unfavourable outcome for minority shareholders. Thus, this study proposes that regulators, particularly the Capital Market Board of Turkey (CMBT), should increase law enforcement to enhance good corporate governance in Turkey to accommodate the unique features of wedge firms and provide a protected environment for minority shareholders. http://revista.cafr.ro/temp/Article_9599.pdf statutory audit audit quality listed firms Turkey eng Chamber of Financial Auditors of Romania Audit Financiar 18448801 2018-08-01 16 152 610 618 10.20869/AUDITF/2018/152/610 9600 article Among the factors affecting the quality of internal auditing in banks are the auditors’ competence, objectivity and performance. In order to verify this assertion, the authors have reviewed the relationship between the internal auditor`s competence, objectivity and performance and the quality of internal audit in the commercial banks of Kosovo. To reach the research objectives and test the hypotheses, a questionnaire was compiled, which was sent to internal auditors of all Commercial Banks of Kosovo. The results of this research provide evidence that the internal auditors in Kosovo`s commercial banks consider the objectivity, competence and performance as major factors that affect the quality of the internal audit (IA) function. Based on these papers results the authors recommend that Kosovo`s commercial banks should ensure the availability of main resources to achieve a better functioning of the internal audit department and its function. http://revista.cafr.ro/temp/Article_9600.pdf internal auditing characteristics of the auditor internal audit quality internal control system Kosovo