Financial Audit in Romanian Enterprises: Coming Across Tendencies, Profits, Further Tasks, and Improvement of Business Strategies

Financial Audit in Romanian Enterprises: Coming Across Tendencies, Profits, Further Tasks, and Improvement of Business Strategies

Andreea Marin-Pantelescu (The Bucharest University of Economic Studies, Romania)
Copyright: © 2020 |Pages: 20
DOI: 10.4018/978-1-7998-0178-8.ch006

Abstract

The chapter proposes an interdisciplinary perspective and explores from the theoretical and practical point of view approaches of management accounting and their impact on different companies in Romania. Also, the chapter examines the role of management accounting related to accounting and auditing and offers a number of new insights into management accounting. Romanian companies in the accounting, auditing, and tax consultancy fields use computer-assisted auditing techniques (CAAT) to find better solutions for generating profits, avoiding risks and improving the companies' business strategies. The chapter will help the academia, business environment, specialty organizations, and business analysts in identifying new trends in management accounting, building on existing research and new expert assertions.
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Background

Financial services are provided by banks, credit card companies, insurance companies, finance companies, stock brokers, and investment funds. The financial services industry is relatively new, but certain parts of it, such as insurance coverage and banking services, go a long way in history. Insurances have arisen from the need to protect people and their assets against various unpredictable events such as accidents, illnesses and natural disasters. Ever since ancient times, people have been trying to find solutions to these problems (Dutta et al., 2019; Rizvi, 2013; Shi & Frees, 2010; Chen et al., 2018; Chang, 2018).

Zeyneloglu (2018) says that there is a strong link between consumer and financial insurer, trust and professionalism. Insurance companies have the opportunity to form natural and lasting relationships with consumers.

Key Terms in this Chapter

Financial Audit: Represents the review activity for the financial auditors to express an opinion on the financial statements in accordance with the auditing standards that are in line with international auditing standards and adopted by the Chamber of Financial Auditors of Romania.

Quality Audits: Auditors are required to apply a rigorous audit process and quality control procedures in accordance with the applicable laws, regulations, and standards.

Life Assurance: That form of insurance on the basis of which the insurer undertakes, in exchange for the sums received from the insured, to pay to the insured or the beneficiary the insurance, a sum of money stipulated in the insurance contract, in case of his death or his survival after exceeding the age stated in the contract.

Insurance Audit: Consultancy services by which, based on the discussions with the client and the information provided by him/her, understanding the business carried out by the firm or the group of companies to which it belongs, an insurance program is designed to respond best customer protection needs.

Financial Accounting: The way to measure, evaluate, knowledge, manage, and control the company's assets, liabilities, and equity.

Insurance Program: It is made up of several types of policies or may be a single policy that will contain all the insurance lines agreed with the client for the desired insurance protection: property insurance, vehicle damage and theft, RCA, cargo, civil liability, etc.

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