eng Chamber of Financial Auditors of Romania Audit Financiar 18448801 2020-10-26 18 160 731 751 10.20869/AUDITF/2020/160/731 9651 article The IT impact can be noticed in all activity fields of this world, and the audit is no exception from the evolution of this technological trend. Motivation: Given that professionals are progressively pursuing experimentation in working with new technologies, the development of Artificial Intelligence (AI), Blockchain, RPA, Machine Learning through the Deep Learning subset is a particularly interesting case, on which the researcher argues for debate. The objective of the article is to present the latest episode of the new technologies impact that outline the auditor profession, the methods and tools used. The quantitative, applied and technical research method allows the analysis of the emerging technologies impact, completing a previous specialized paper of the same author. The results of this paper propose the integration of AI, Blockchain, RPA, Deep Learning and predictive analytics in financial audit missions. The projections resulted from discussions with auditing and IT specialists from Big Four companies show how the technologies presented in this paper could be applied on concrete cases, facilitating current tasks. Machine Learning and Deep Learning would allow a development for prescriptive analytics, revolutionizing the data analytics process. Both the analysis of the literature and the conducted interviews admit AI as a business solution that contributes to the data analytics in an intelligent way, providing a foundation for the development of RPA. http://revista.cafr.ro/temp/Article_9651.pdf AI; Machine Learning; RPA; Blockchain; predictive analytics eng Chamber of Financial Auditors of Romania Audit Financiar 18448801 2020-10-26 18 160 752 770 10.20869/AUDITF/2020/160/752 9652 article Nowadays, Information Technology (IT) is part of virtually every business, and companies that cannot keep the pace with new technologies will disappear over time. Due to their nature of specific activities and exceeding other areas, professional accounting and auditing services can improve their performance through Robotic Process Automation (RPA). Furthermore, RPA can contribute to increasing the credibility of the accounting profession, as well as streamlining the activity in order to comply with the requirements imposed by professional standards but with much lower costs. This study is based on a review of the literature and through an exploratory approach opens a discussion on the concept of RPA and customises it in the field of professional accounting services by analysing robotics models specific to accounting and audit. http://revista.cafr.ro/temp/Article_9652.pdf RPA; audit; accounting; accounting profession eng Chamber of Financial Auditors of Romania Audit Financiar 18448801 2020-10-26 18 160 771 784 10.20869/AUDITF/2020/160/771 9653 article One of the important factors that determined the dynamic of the accounting profession is represented by information technology. The article puts a spotlight on some facilities offered by technologies such as blockchain, big data and artificial intelligence, highlighting the way they can be used in accounting and auditing processes. We face a new paradigm in accounting and auditing, as a result of this consistent set of technologies integration in the work of professional accountants. Some of the information technologies are still emerging and others have already started to be used and therefore the issue of training professional accountants to acquire the knowledge and skills required by these technologies is becoming a major priority. The research carried out on the teaching of these information technologies in European faculties highlights a slow development in this regard. Although the awareness of the need is constantly declared, the actual teaching of those technologies is done in an extremely small number of universities. The authors appreciate that a more consistent and effective collaboration between the accounting faculties and the professional bodies is necessary for the alignment of the university curricula to the new requirements of the profession aiming at ensuring the fast integration of the graduates in the labor market. http://revista.cafr.ro/temp/Article_9653.pdf information technology; accounting profession; universities; sustainability in accounting; blockchain; big data; artificial intelligence eng Chamber of Financial Auditors of Romania Audit Financiar 18448801 2020-10-26 18 160 785 800 10.20869/AUDITF/2020/160/785 9654 article The purpose of this paper is to identify and to comment the main justifications of modified audit opinions and the main observations included in the emphasis of matter paragraphs from the audit reports of Romanian companies listed on the regulated market of Bucharest Stock Exchange (BSE). The authors analyze a sample of more than 1,000 observations-year for the 2007-2019 period. They found that 25% of these reports contain a modified opinion and the main explanations relate to the revaluations of fixed tangible assets, to the provisions, to the impairment of the fixed assets, to some legal issues, to items concerning the closing inventory and, to a lesser extent, to the going concern matters. In 30% of the reports analyzed, there was identified emphasis of matter paragraphs; the main observation is by far related to the going concern, followed by the financial and operating difficulties of companies and by the effects of different global crisis (financial or others). http://revista.cafr.ro/temp/Article_9654.pdf audit reports; (un)modified opinion; justifications; emphasis of matter paragraphs; Romanian listed companies eng Chamber of Financial Auditors of Romania Audit Financiar 18448801 2020-10-26 18 160 801 811 10.20869/AUDITF/2020/160/801 9655 article Investor relations and financial communication are an ongoing challenge for a company`s governance. Good communication and a close relationship with the investors contribute to strengthening the company`s image and confidence of all stakeholders. Research on this topic has identified the requirements underlying the effective communication of companies, namely the existence of a department on investor relations, communication strategy, practices used, the content of the communication and its effects. The purpose of the paper is to make an assessment of the level of communication registered by the Romanian companies listed on the main market at the Bucharest Stock Exchange, starting from the assessment made by the Romanian Investor Relations Association in correlation with factors that may influence communication, respectively the trading category in which the company is listed, profitability, dividends paid, form of ownership of the majority shareholder, existence of non-financial reporting. From the proposed econometric model, it resulted that all the variables tested influence the level of communication, of which the trading category and the existence of non-financial reporting are most closely related. The level of communication with investors of Romanian companies is still low, but it has an upward evolution over time, so that at the next evaluation it will be possible to ascertain the amplitude of this evolution and other influencing factors will be identified. http://revista.cafr.ro/temp/Article_9655.pdf investor relations; financial communication; performance; governance; evaluation eng Chamber of Financial Auditors of Romania Audit Financiar 18448801 2020-10-26 18 160 812 820 10.20869/AUDITF/2020/160/812 9656 article Through this study, the author aimed to analyze the evolution of international and American auditing standards on accounting estimates following the recent amendments initiated by the IAASB and PCAOB and to determine the degree of convergence between them. The results of the statistical tests show an increase in the level of convergence between the two referential (ISA 540 & AS 2501) and an improvement of the new ISA 540 compared to the old standard. This analysis demonstrates the similarity between the risk approaches specific to the estimates for the two measures, but also the existence of differences regarding the fair value and the use of external sources by the management or the auditor. http://revista.cafr.ro/temp/Article_9656.pdf audit; accounting estimates; fair value; ISA 540; AS 2501 eng Chamber of Financial Auditors of Romania Audit Financiar 18448801 2020-10-26 18 160 821 830 10.20869/AUDITF/2020/160/821 9657 article The issue of greenhouse gas emissions and climate change cannot be overlooked from the scope of concern essential to develop the financial audit profession and implicitly the activity of the financial auditor. Within its professional field, the analysis of data quality on these issues requires applying divers analytical review methods, which incorporates unique statistical or mathematical rules. One of these is the analytical review procedure based on testing compliance of data distribution with Benford’s Law. We present a practical case for testing the verisimilitude of data represented by greenhouse gas emissions, based on the Eurostat database. We applied the Benford`s Law method for the first four digits, and the results were tested for likelihood by statistical methods such as Chi-square test or the Kolmogorov-Smirnov test. Information on greenhouse gas emissions is the basis for specific environmental policy decisions, which can be considered at the micro- or macroeconomic level. If this information is affected by subjective influences, then economic decisions or environmental policies will also be affected. Therefore, the objective of this research to test the plausibility of published data on greenhouse gas emissions proves its usefulness in relation with the actions performed by the economic and social players towards a sustainable development of the economy. http://revista.cafr.ro/temp/Article_9657.pdf financial audit; ISAE 3410; assurance missions; greenhouse gases; environmental policy; Benford’s Law eng Chamber of Financial Auditors of Romania Audit Financiar 18448801 2020-10-26 18 160 831 854 10.20869/AUDITF/2020/160/831 9658 article The epitome of sustainable development resides in the process of transformation through which resource exploitation, investment direction, technological development orientation, and institutional changes are in harmony and lead to the enhancement of the potential to meet present and future human needs and aspirations, based on the motto “Leaving no one behind” (UN, 2015). This is materialised into the 2030 Agenda for Sustainable Development, “Transforming Our World”, defined by 17 Sustainable Development Goals (SDGs) with 169 related targets. The objective of the present research consists in addressing the need to determine to what extent a sample of companies listed on Bucharest Stock Exchange (BSE) in the Premium Tier, and operating in different industry sectors, disclose information related to SDGs in their annual reporting. This investigation covers the period 2017 – 2019. The longitudinal analysis points out the progress in implementing the SGSs throughout the three years, whereas the cross – industry analysis underlines the similarities and differences in disclosing generated by the industry sectors. It is envisaged that the findings of this study are to increase awareness and stimulate debate among businesses, government and regulatory agencies, civil society members, and other stakeholders on aspects referring to sustainable development and the SDGs. http://revista.cafr.ro/temp/Article_9658.pdf Sustainable Development Goals (SDGs); Romania; content analysis; listed companies; longitudinal analysis; cross-industry analysis