eng Chamber of Financial Auditors of Romania Audit Financiar 18448801 2020-07-20 18 159 513 531 10.20869/AUDITF/2020/159/513 9644 article In the context of assessing the impact of IT concern on financial audit missions, the purpose of this paper is to investigate how new Big Data technologies shape the auditor profession, the methods and tools used. Motivation: technology has put its mark on all fields of activity and professionals tend, step by step, to experiment within auditing by testing new technologies; taking into account the hypothesis of large-scale adoption of modern technologies offered by IT, Big Data development and Data Analytics (BDA) represent a highly interesting case, on which the author pleads for debating. The two qualitative and fundamental research methods, together with the critical observation that consisted in manual selections of the online publications of the professional bodies in audit and accounting, the specialized literature and discussions with IT and audit Big Four specialists support the analysis of Big Data impact, completing previous specialized papers, given the fact that the need for (extended) documentation in this regard is further pointed out. The results of this investigation propose Data Analytics, Hadoop, NoSQL as Big Data top technologies applicable on financial audit missions, in order to simplify audit procedures, improve the organizational performance and reduce the level of risk. http://revista.cafr.ro/temp/Article_9644.pdf financial audit; Big Data; Data Analytics; Hadoop; NoSQL; emerging technologies mapped to audit eng Chamber of Financial Auditors of Romania Audit Financiar 18448801 2020-07-20 18 159 532 541 10.20869/AUDITF/2020/159/532 9645 article The paper examines whether auditors’ identification with the organization or with the profession will influence the use of outcome knowledge when reviewing audits. In addition, the study examines whether the conflict between organizational identity and professional identity influences evaluators’ use of outcome knowledge. The study participants consisted of 63 auditing experts in managerial ranks. Auditors completed an instrument containing randomized audit review scenarios developed to evaluate the effects of identification and outcome knowledge on decisions. Results showed that organizational identification can minimize the effect of outcome knowledge on decisions while professional identification results in an increase in biases. http://revista.cafr.ro/temp/Article_9645.pdf auditor judgement; organizational identification; professional identification; organizational-professional conflict; outcome knowledge; audit eng Chamber of Financial Auditors of Romania Audit Financiar 18448801 2020-07-20 18 159 542 554 10.20869/AUDITF/2020/159/542 9646 article With a strong expansion of the competitive environment in almost all sectors, the key resource for competitiveness is information, which becomes a value for the economic entity and society at large when it contributes positively to the objectives. This article has as its primary objective the presentation of an approach to the documentation and risk assessment by financial auditors using the method of trust functions. In the area of financial audit, risk assessment and quantification shall form the basis for planning, carrying out of the mission, obtaining audit evidence and expressing opinion. Based on the literature synthesis, the research undertaken aimed to ensure that audit evidence is represented as a network of interconnected variables, statements about the synthesis documents for which the mission team collects evidence to determine whether or not they are correctly presented. The method of the services of assignment gives an important role to professional judgment when planning and during the course of the mission. http://revista.cafr.ro/temp/Article_9646.pdf audit risk; trust functions; audit mission; audit objectives; professional judgment eng Chamber of Financial Auditors of Romania Audit Financiar 18448801 2020-07-20 18 159 555 567 10.20869/AUDITF/2020/159/555 9647 article The premise of the research is represented by the importance of the external public audit, as a specific activity that the supreme audit institutions carry out at the level of the public sector entities, in order to provide to interested parties, assurances regarding the management of the public resources of these entities. The research objectives are two-dimensional and the research methodology is qualitative and interpretive. The first dimension aims to identify the conceptual connotations of the external public audit in the specialized literature. The second dimension represents a multicriteria comparative analysis regarding the typology of the external public audit carried out by the supreme institutions of the European Union member states. The study is carried out regarding all the 27 member states, information regarding the United Kingdom, which has recently left the European Union, being also presented and analyzed. The research results showed that, although the applied audit methods vary, convergent elements have been identified, so that the typology of the external public audit also validates the European Union "unity in diversity" motto, at the level of the specific activities of the supreme audit institutions in the community area. On the background of an area of undoubted importance, but limited in terms of research, this scientific demarche represents a major challenge for both the academic and the socio-economic environment. Thus, the conceptual valences of the external public audit will be complemented and an increase of credibility and relevance will be generated in the manner of supervising the public financial resources’ management of the public sector entities at the level of the European Union member states, in the context of the economic turbulences and the rising demand for public services manifested at European and international level. http://revista.cafr.ro/temp/Article_9647.pdf external public audit; public sector; supreme audit institutions; member states; European Union; typology eng Chamber of Financial Auditors of Romania Audit Financiar 18448801 2020-07-20 18 159 568 577 10.20869/AUDITF/2020/159/568 9648 article In this study, the author analyzes the issue of transparency of financial information at the level of entities listed on the financial markets, as a solution to the process of optimizing management strategies in increasing the information users’ confidence and in attracting investors. The research consisted in analyzing the financial statements of 120 companies listed on 8 capital markets. In constructing the sample, it was assumed that the degree of transparency of the information presented by the companies is directly proportional to the weight they occupy in the structure of the stock indices. Finally, 10 stock indices were analyzed. It was concluded that in order to meet transparency and regular reporting requirements, listed entities need to adapt their organization and communication according to good governance practices and accounting rules so that they are always engaged in an open market dialogue. The level of transparency also comes from the way in which the management of each entity knows how to take responsibility and build that optimal information system, based on the cost-benefit ratio and also to ensure that all shareholders and investors are treated equally. http://revista.cafr.ro/temp/Article_9648.pdf IFRS; US GAAP; accounting; transparency; stock exchange; stock indices eng Chamber of Financial Auditors of Romania Audit Financiar 18448801 2020-07-20 18 159 578 584 10.20869/AUDITF/2020/159/578 9649 article The current economic context, as well as previous research, highlights the importance of corporate governance over the financial performance expected by companies. Therefore, the study of the current practices in the field of corporate governance, the impact that it has on the results of the companies, but also vice versa - the identification if the financial performance achieved puts its mark on the degree of compliance with the requirements established for good corporate governance - is a representative approach in opening new priorities for the interests of companies. This is the objective of the present research in which, applying quantitative research methods, the authors tested some hypotheses that demonstrate the corporate governance and the financial performance causality of companies on the Romanian capital market. http://revista.cafr.ro/temp/Article_9649.pdf emerging markets; corporate governance conformity; Corporate Governance Code; financial performance; Bucharest Stock Exchange eng Chamber of Financial Auditors of Romania Audit Financiar 18448801 2020-07-20 18 159 585 598 10.20869/AUDITF/2020/159/585 9650 article Assuming that there is a potential conflict between true and fair view and conservatism, the authors aimed to identify, by means of a survey, the perception of the representatives of the accounting profession from Romania, namely chartered certified accountants, licensed accountants, financial auditors and accountants other than chartered certified and licensed accountants, on the following aspects: the meaning of true and fair view, the need to assign a universally accepted definition to this concept, the meaning of creative accounting, the use of conservatism as a way to manipulate earnings and, last but not least, on the relationship between conservatism and true and fair view. The result indicated that the most representative interpretation of true and fair view is „the application, in good faith, of all accounting principles”. Regarding creative accounting, this was perceived mainly as a way to manipulate earnings within the law, most of the respondents considering that the current accounting regulations facilitate the existence of such practices. Within the limit of the analyzed sample, the relation between true and fair view and conservatism has been perceived as complementary, in the sense that it implies the use of conservatism in order to obtain an image that represents the economic reality. http://revista.cafr.ro/temp/Article_9650.pdf true and fair view; conservatism; creative accounting; questionnaire; accounting principles; earnings management