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Attracting European Funds in the Romanian Economy and Leverage Points for Securing their Sustainable Management: A Critical Auditing Analysis

Author

Listed:
  • Valentin-Marian Antohi

    (Department of Business Administration, Dunarea de Jos University, 800001 Galati, Romania)

  • Monica Laura Zlati

    (Department of Accounting, Audit and Finance, Stefan cel Mare University, 720229 Suceava, Romania)

  • Romeo Victor Ionescu

    (Department of Administrative Sciences and Regional Studies, Dunarea de Jos University, 800201 Galati, Romania)

  • Mihaela Neculita

    (Department of Economics, Dunarea de Jos University, 800001 Galati, Romania)

  • Raluca Rusu

    (Department of Economics, Dunarea de Jos University, 800001 Galati, Romania)

  • Aurelian Constantin

    (Institute of National Economy, Romanian Academy, 050711 Bucharest, Romania
    Department of Accounting and Finance, Valahia University, 130004 Targoviste, Romania
    Finance and Business Administration Department, Danubius Univesity, 800654 Galati, Romania)

Abstract

Against the backdrop of Romania’s successive negative performance in attracting European funds (coming last in the EU top), as indicated by audit reports for projects that have been funded so far, this paper proposes a new approach in relation to analysis and performance improvement in securing EU funds, while identifying viable solutions for the betterment of the current situation. Furthermore, the authors develop a new audit performance analysis model (NOP), described as a dynamic and flexible model, based on reducing the fraud and error risk in the structural fund management of European-funded projects. The analysis methods encompass literature reviews, observational studies, database management, statistical analysis, and the synthesis of the whole findings. The main conclusion of the analysis is the critical necessity of integrity improvement in the context of managing the non-reimbursable funds through audit activities based on ISA805, the international standard on auditing European-funded projects.

Suggested Citation

  • Valentin-Marian Antohi & Monica Laura Zlati & Romeo Victor Ionescu & Mihaela Neculita & Raluca Rusu & Aurelian Constantin, 2020. "Attracting European Funds in the Romanian Economy and Leverage Points for Securing their Sustainable Management: A Critical Auditing Analysis," Sustainability, MDPI, vol. 12(13), pages 1-27, July.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:13:p:5458-:d:381263
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    References listed on IDEAS

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    3. Ionel Bostan, 2021. "Special Issue “Audit and Financial Control Tools Aimed at Ensuring the Sustainable Performance of Organizations”," Sustainability, MDPI, vol. 13(18), pages 1-4, September.
    4. Ionel Bostan & Mihaela Brindusa Tudose & Raluca Irina Clipa & Ionela Corina Chersan & Flavian Clipa, 2021. "Supreme Audit Institutions and Sustainability of Public Finance. Links and Evidence along the Economic Cycles," Sustainability, MDPI, vol. 13(17), pages 1-24, August.

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