Beruflich Dokumente
Kultur Dokumente
In this article, we intend to examine the importance of external audit on the reliability of financial
statements issued by small and medium-sized entities. We study the impact of auditor size on the
procedures of the entity, the different types of risks they may face, an additive in the exercise of
engagement and expression of his responsibilities after the audit opinion. The article is structured in
three parts: the first part we performed an econometric analysis to study the evolution of GDP and the
number of small and medium sized entities in Romania, for example, we chose the period 2000 to 2007
to define a univariate regression model. In the second part, we present some aspects of the
environment in which small and medium-sized entities operating in Romania, supplemented by results
of investigations. Then, we analyzed the general risks related entity specific risks, related to the nature
of operations, the materiality, the continuity of the operation-specific factors that impact SMEs and
scope of an audit. In the last part of the article, we present findings on the usefulness of the external
auditor's report, especially regarding the decision to grant bank loans of small and medium enterprises.
Key words: Small and medium-sized entities, audit risk, materiality, going concern.
INTRODUCTION
Methodological norms based on 1005 International
Auditing "special considerations for auditing small
entities" will analyze how these provisions apply to small
entities in Romania features. The first finding is the fact
that the International Standards on Auditing issued by the
International Auditing and Assurance Standards Board
(IAASB) are applicable to auditing small entities, how the
application of certain requirements of ISA is influenced by
the size of the audited entity subject to the
Methodological Norms 1005.
Need to develop separate recommendations for small
entities deriving their just large share of all economic
entities in both numbers and in terms of their contribution
to GDP. According to official data, the average density of
SMEs in services is approx. 70 SMEs per 1,000
inhabitants in EU countries (according to "Annual Report
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Table 1. Evolution of GDP number of small and medium enterprises (SMEs) in Romania during 2000 to 2007.
Year
2000
2001
2002
2003
2004
2005
2006
2007
Number SMEs
412.429
412.332
415.491
459.369
404.300
434.847
463.504
487.628
PIB SMEs
Data source: National Bank, Monthly Bulletin December 2007, Statistics section: nominal data, current prices.
Number SMEs
Linear (PIB)
Linear
(Number SMEs)
Year
Figure 1. Evolution of GDP The proportion of small and medium enterprises
(SMEs) in Romania during 2000 to 2007.
PIB SMEs
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Number SMEs
Year
Figure 2. GDP and the number SMEs in Romania during 2000 to 2007.
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ISA
320
BUSINESS CONTINUITY
Economic risk of the auditor if the continuity of a small
entity for at least 12 months of each financial year cannot
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