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Considerations On The Practical Application Of International Auditing Standards Regarding The Environment Of Control


  • Marioara Avram

    (University of Craiova Faculty of Economics and Business Administration)


In the research contract, no.60C from 21.12.2009, concluded between the University of Craiova and EURO TYRES MANUFACTURING LTD. from Drobeta Turnu Severin, in the section International Auditing Standards regarding the Environment of Control, the aspects of how auditors approach the environment of control within the audit mission were analyzed. The responsibilities of top management include maintaining some adequate accounting and internal control systems, selecting and applying accounting policies and preserving safe the entity’s assets. To achieve these objectives auditors apply the provisions of the International Standard on Auditing 315, "Knowing and Understanding the Entity and Its Environment and Assessing the Risks of Material Misstatement" that became effective after December 15, 2004 and was restated in December 15, 2008 as "Identification and Assessment of Risks of Significant Misrepresentations by Knowing and Understanding the Entity and its Environment." The financial auditor's responsibility is to identify and assess the risks of material misstatement, whether due to some frauds or errors, in the financial statements and in the declarations, by understanding the entity and the environment in which he operates, including the entity's internal control. Internal control is the process designed and put in practice by those charged with governance by the top management and other personnel, so to provide a reasonable assurance about achieving the entity's objectives regarding the credibility of financial reporting, the effectiveness and efficiency of operations and the compliance with applicable laws and regulations.

Suggested Citation

  • Marioara Avram, 2011. "Considerations On The Practical Application Of International Auditing Standards Regarding The Environment Of Control," Annals of University of Craiova - Economic Sciences Series, University of Craiova, Faculty of Economics and Business Administration, vol. 3(39), pages 1-7.
  • Handle: RePEc:aio:aucsse:v:3:y:2011:i:39:p:1-7

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    References listed on IDEAS

    1. Ursino Giovanni, 2015. "Supply Chain Control: A Theory of Vertical Integration," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 15(4), pages 1831-1866, October.
    2. Carroll, Archie B., 1991. "The pyramid of corporate social responsibility: Toward the moral management of organizational stakeholders," Business Horizons, Elsevier, vol. 34(4), pages 39-48.
    3. Wang, Li Ming & Liu, Li Wen & Wang, Yong Jie, 2007. "Capacity decisions and supply price games under flexibility of backward integration," International Journal of Production Economics, Elsevier, vol. 110(1-2), pages 85-96, October.
    4. Vladimir Dvoracek, 2009. "Vertical Integration and Sunk Capital in Transition Economies," Oxford Development Studies, Taylor & Francis Journals, vol. 37(1), pages 19-32.
    5. Didier Laussel, 2008. "Buying Back Subcontractors: The Strategic Limits of Backward Integration," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 17(4), pages 895-911, December.
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    Cited by:

    1. Serban Claudiu Valentin & Nastasie Mihaela – Andreea, 2015. "Annual Financial Statements Of Economic Entity - Adjusted For The Effects Of Inflation?," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 3, pages 146-150, June.
    2. Serban Claudiu Valentin, 2015. "Influence Of Revenues And Expenditures On The Performance Of The Economic Entity Inflationary Conditions," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 4, pages 114-118, August.

    More about this item


    environment of control; international audit standards; financial auditor; internal control;

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • M42 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Auditing


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