Implications of change management in public administration

Finances - Accounting
CURRENT VIEWS AND DIRECTIONS REGARDING THE AUDIT OF CONSOLIDATED
ACCOUNTS
Lect. Daniel Goagără, Ph.D
Prof. Sorinel Domnişoru, Ph.D
Assist. Sorin Vinătoru Ph.D Student
University of Craiova
Faculty of Economics and Business Administration
Craiova, Romania
Abstract: Financial audit consists of collecting and evaluating some tests
regarding information in order to determine and return the accordance
degree of that information with a series of preestablished criteria,
performed by a competent and independent person. Doing this activity at
the level of consolidated accounts implies the existence of a verifiable
informational basis and of accounting and audit norms that guide the
auditor in the process of information evaluation.
JEL classification: M41, F23.
Key words: critical; financial audit; information evaluation; consolidated accounts,
group structure, particular risks.
1. Introduction
Finalizing the analysis regarding the making and features of consolidated
accounts requires, among other things, emphasizing the aspects concerning the
accounting audit of these references, seen as specific activity of insuring the reality and
the accuracy of the information given by the financial situations drawn up and
presented according to the accounting frame accepted by each specific country.
The insurance services are performed by independent professionals and allow
improving the quality of the information provided to the external users (primarily) as
well as to the internal users, especially to the entity‟s management. They are mainly
done by the financial auditors authorized by CAFR.
In the category of insurance services we can also register the certification
activity which is materialized through written insurance conclusions formulated by
authorized persons and addressed towards the entity‟s management.
Through these written conclusions opinions are provided concerning the
accordance of consolidated financial situations, the significant aspects, coinciding with
the generally accepted accounting principles.
In the category of certification services of the financial situations we register the
following types of activities: the audit of financial situations, revision of financial
situations and other certification services. In this last category we usually find details of
some activities from the area of accounting audit, analysis of internal control efficiency,
drawing up provisionary financial situations and others.
Financial audit consists of collecting and evaluating some tests regarding
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