Volume 7, Issue 2, August 2014, Pages 421–433
Andra Gajevszky1
1 The Bucharest University of Economic Studies, The Institute of Doctoral Studies, Faculty of Accounting, Bucharest, Romania
Original language: English
Copyright © 2014 ISSR Journals. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
The aim of this research is to investigate the association between the audit quality and financial reporting disclosure in Romania for the companies which adopted the International Financial Reporting Standards for the first time. Due to the fact that the year 2012 represents the year in which Romanian entities listed on the regulated market had to prepare their individual financial statements in accordance with the International Financial Reporting Standards (IFRS), the research methodology investigates the financial statements for the year 2012 for 61 companies listed on the Bucharest Stock Exchange. After conducting univariate and multivariate tests, the results indicate that in the case of Romanian listed companies, there are significant differences in terms of disclosure exposure and disclosure quality between the companies audited by a Big 4 audit firm and those audited by a non-Big 4 external auditor.
Author Keywords: International Financial Reporting Standards (IFRS), Disclosure, Audit, External Auditor, Romania.
Andra Gajevszky1
1 The Bucharest University of Economic Studies, The Institute of Doctoral Studies, Faculty of Accounting, Bucharest, Romania
Original language: English
Copyright © 2014 ISSR Journals. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Abstract
The aim of this research is to investigate the association between the audit quality and financial reporting disclosure in Romania for the companies which adopted the International Financial Reporting Standards for the first time. Due to the fact that the year 2012 represents the year in which Romanian entities listed on the regulated market had to prepare their individual financial statements in accordance with the International Financial Reporting Standards (IFRS), the research methodology investigates the financial statements for the year 2012 for 61 companies listed on the Bucharest Stock Exchange. After conducting univariate and multivariate tests, the results indicate that in the case of Romanian listed companies, there are significant differences in terms of disclosure exposure and disclosure quality between the companies audited by a Big 4 audit firm and those audited by a non-Big 4 external auditor.
Author Keywords: International Financial Reporting Standards (IFRS), Disclosure, Audit, External Auditor, Romania.
How to Cite this Article
Andra Gajevszky, “AUDITOR TENURE AND FINANCIAL REPORTING DISCLOSURE: EVIDENCE FROM THE BUCHAREST STOCK EXCHANGE,” International Journal of Innovation and Applied Studies, vol. 7, no. 2, pp. 421–433, August 2014.
