Audit Report

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THE FINANCIAL AUDIT – THE GUARANTOR OF THE TRUE
AND FAIR VIEW SUPPLIED BY THE FINANCIAL STATEMENTS
Boa-Avram Florin
Babe-Bolyai University, Cluj-Napoca, Faculty of Economical Science and Business Administration, St. Teodor Mihali, No. 58-60, 400591, Romania, [email protected], Tel: 0740-886491 Mati Dumitru

Babe-Bolyai University, Cluj-Napoca, Faculty of Economical Science and Business Administration, St. Teodor Mihali, No. 58-60, 400591, Romania, [email protected], Tel: 0264-418652 Abstract Financial audit has the finality the issue of an opinion regarding the measure in which the financial statements are in according with the supreme scope of true and fair view and the respecting the referential of relevant accounting norms. Because of the subjectivity of this concept of “true and fair view” we can’t say that there are relevant instruments for measuring the level of fidelity reflected by the financial statements. Despite the fact that the auditors know that there is no formula, mathematical or other nature, through which to measure, quantify the level of the fidelity, but they have the knowledge and the capacity needed to identify at least those situations in which the true and fair view is not respected, using the professional judgment for establishing the level in which the financial statements gives a true and fair image.

Key words: financial audit, financial auditor, true and fair view, financial statements The role of the financial auditor is to increase the trust of the users in the financial information presented in the financial statements, to give a reasonable assurance that the accounting information was managed and presented in conformity with the accounting standards and with the general accepted accounting principles. In this way, International Audit Standard (ISA) I20 “General framework of the audit standards” says at the third paragraph:

“… the financial statements are made and presented annually and are designated to the common needs of informing of a large number of users. Most of these users take their decision based on these financial statements, being the only source of information, because they have no possibilities to get additional information which should satisfy the specifically informational needs. So, the financial statements should be made in according with one or combination of: International Accounting Standards, National Accounting Standards; and another general framework of financial reporting compulsory and comprehensive, which was settled for using in financial reporting and which is identified in the financial statements”.

For underling the essence of the financial audit, the sense of containing and his scope, we consider that one of the relevant definitions of the financial audit is that one issued by the famous American specialist 294

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“The audit consists in collecting and evaluating some evidence regarding information, in the scope of determination and reporting the level of conformity of the information regarding to a series of pre established criteria. The audit should be realized by a competent and independent person.” In our opinion we consider that a definition which could completely reflects the essence of the financial audit would be:

„The financial audit is an examination realized by a competent and independent professional person, in that manner in which he can express an opinion very well argued and independently issued, regarding the validity and fairly applying of the standards and accounting principles from the initially referential system agreed and regarding the true and fair view, clearly, coherent and completely expressed in the final financial statements established and presented by a company, the supreme objective of the audit is that one to contribute at the improving of the quality of audit using.”

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Arens A.& Loebbecke K.,...
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