The Impact of Financial Crisis over the Audit Reports Issued for Listed Companies in Romania

The current global financial crisis began in 2007 and is considered one of the worst financial crises national economies had suffered. Romanian economy still struggles to pass over this crisis and it is not the only one not recovering from the recession. Romanian companies suffered and reported important losses due to the downturn. Many entities declared bankruptcy while others found the power to stay in business. The going concern assumption is an essential principle used to prepare financial statements issued by an entity. The auditor has the responsibility to evaluate the appropriateness of management’s use of the going concern assumption in the preparation of the finan-cial statements. If the management assessment is not appropriate (which is more likely in the times of financial downturns), the auditor may modify his opinion expressed in the audit report. In this article we intend to analyzed the Romanian listed companies for the years 2010-2013 and to quantify how many used the going concern assumption and also how many audit reports were modified due to uncertainties regarding the going concern principle.