IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

Preference Of The Listed Entities Regarding The Selection Of The External Auditor

Listed author(s):
  • Fulop Melinda Timea


    (Babes Bolyai, Stiinte Economice si Gestiunea Afacerilor)

  • Tiron-Tudor Adriana


    (Babes Bolyai, Stiinte Economice si Gestiunea Afacerilor)

  • Span Georgeta Ancuta


    (Babes Bolyai, Stiinte Economice si Gestiunea Afacerilor)

  • Popa Irimie Emil


    (Babes Bolyai, Stiinte Economice si Gestiunea Afacerilor)

The present research aims to highlight the importance of the external auditing in supporting corporate governance and the preference of the listed entities to be audited by the big audit companies. Given the proposed objectives of the research, our scientific method is based on a deductive approach from general to particular that combines quantitative and qualitative studies. The role of the external audit was analyzed by conducting a study of literature on two levels: a theoretical-conceptual level in terms of economic theories and an empirical-practical level based on literature from which we extracted through a content analysis the defining elements of the audit work quality. Falling within the scope of the study, we evaluated the preference of the listed entities to be audited by the Big Four. To this end we used the content analysis of the publicly posted audit reports for the period 2005-2009. Our research results show that although we are a country with an emerging capital market development, the entities in the I-st category on the Bucharest Stock Exchange tend to an audit conducted by one of the big audit companies. Another result arising from our study is that the entities of the I-st category on the Bucharest Stock Exchange become more transparent from a year to another. Whether for the year 2005 we find only 12 audit reports publicly posted, in 2007 we can find 21 audit reports publicly posted. The trend of the large entities audited shows that the preference of the entities to be audited by one of the Big Four is higher from a year to another. The preparation of the financial statements and their audit must be done according to regulations for the currently period. The presumption found in the literature according to which the large entities are audited by the big audit companies which provide higher audit quality is confirmed in the case of our national country as well.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
Download Restriction: no

Article provided by University of Oradea, Faculty of Economics in its journal The Annals of the University of Oradea. Economic Sciences.

Volume (Year): 1 (2011)
Issue (Month): 2 (December)
Pages: 503-509

in new window

Handle: RePEc:ora:journl:v:1:y:2011:i:2:p:503-509
Contact details of provider: Postal:
Universitatii str. 1, Office F209, 410087 Oradea, Bihor

Phone: +40259408799
Fax: 004 0259 408409
Web page:

More information through EDIRC

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:ora:journl:v:1:y:2011:i:2:p:503-509. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Catalin ZMOLE)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.