IDEAS home Printed from https://ideas.repec.org/a/ora/jrojbe/v4y2019i2p91-101.html
   My bibliography  Save this article

The Information Content Of Audit Opinion For Users Of Financial Statements

Author

Listed:
  • Andreea Claudia Crucean

    (East European Center for Research in Economics and Business, West University of Timisoara, Romania.)

Abstract

In a market economy with frequent changes, audit is an area that can provide some stability at the economic and social lever, even if the economic and financial crises have questioned the audit work and led to a decrease in the trust of the intended users in the auditors work, leading to a distortion of the primary purpose of the financial audit. The article presents the relevant aspects of the evolution of audit reporting, especially on the underlying issues that expressing qualified opinions or disclaimer of opinion. The content of paper includes a review literature, national and international, and a case study that identified and analyzed the qualified opinions expressed in the auditor’s independent reports, after analysis the financial statements of companies listed on the Bucharest Stock Exchange for the period 2015, 2016 and 2017. The entities were grouped on 9 sectors of activity and researched for each industry if the auditors expressed an unqualified opinion or a modified opinion and if the auditor is part of a Big4 company or belongs to another auditor category. The reasons behind the modified opinions were analyzed and grouped according to the frequency of their appearance in the audit reports. The most important conclusion of the case study was that in all cases, the reasons that led to express modified opinions, was detailed in the auditor’s report, this being considered as a reference guide for the future auditor’s missions, as well as, a recommendation for improving the highlighted aspects.

Suggested Citation

  • Andreea Claudia Crucean, 2019. "The Information Content Of Audit Opinion For Users Of Financial Statements," Oradea Journal of Business and Economics, University of Oradea, Faculty of Economics, vol. 4(2), pages 91-101, September.
    • Handle: RePEc:ora:jrojbe:v:4:y:2019:i:2:p:91-101
    as

    Download full text from publisher

    File URL: http://ojbe.steconomiceuoradea.ro/wp-content/uploads/2019/10/OJBE_vol-42-91-101.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ioan-Bogdan ROBU & Maria GROSU & Costel ISTRATE, 2016. "The Effect of the Auditors’ Rotation on the Accounting Quality in the Case of Romanian Listed Companies under the Transition to IFRS," The Audit Financiar journal, Chamber of Financial Auditors of Romania, vol. 14(133), pages 1-65, January.
    2. Melinda Timea FULOP, 2018. "New tendencies in audit reporting, examples of good practices BVB," The Audit Financiar journal, Chamber of Financial Auditors of Romania, vol. 16(150), pages 249-249.
    3. Camelia-Daniela HATEGAN & Andreea-Claudia CRUCEAN, 2018. "Reporting of subsequent events in financial statements – between obligation and necessity," The Audit Financiar journal, Chamber of Financial Auditors of Romania, vol. 16(152), pages 571-571.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Sailendra SAILENDRA & Etty MURWANINGSARI & Sekar MAYANGSARI, 2019. "The Influence of Free Float Shares and Audit Quality on Company Performance: Evidence from Indonesia," The Audit Financiar journal, Chamber of Financial Auditors of Romania, vol. 17(154), pages 274-274.
    2. Mariana-Cristina Bulucea, 2022. "Audit firm rotation and audit quality: a literature review," Journal of Financial Studies, Institute of Financial Studies, vol. 13(7), pages 29-36, November.
    3. repec:fst:rfsisf:v:7:y:2022:i:13:p:29-36 is not listed on IDEAS
    4. IOAN-BOGDAN ROBU & Costel ISTRATE & Mihai CARP & CRISTIAN POPESCU & MIHAELA-ALINA ROBU, 2016. "The Value Relevance Of Financial Information Under The Influence Of Country Risks. The Case Of The Indian Listed Companies," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 18, pages 77-93, December.
    5. Veronica Grosu & Dorel Mateș & Monica-Laura Zlati & Svetlana Mihaila & Marian Socoliuc & Marius-Sorin Ciubotariu & Simona-Maria Tanasă, 2020. "Econometric Model for Readjusting Significance Threshold Levels through Quick Audit Tests Used on Sustainable Companies," Sustainability, MDPI, vol. 12(19), pages 1-32, October.
    6. Mihai Carp & Costel Istrate, 2021. "Audit Quality under Influences of Audit Firm and Auditee Characteristics: Evidence from the Romanian Regulated Market," Sustainability, MDPI, vol. 13(12), pages 1-16, June.

    More about this item

    Keywords

    auditor’s report; modified opinion; disclaimer of opinion; financial statements; financial reporting; Big4.;
    All these keywords.

    JEL classification:

    • M40 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - General
    • M42 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Auditing

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ora:jrojbe:v:4:y:2019:i:2:p:91-101. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tomina SAVEANU (email available below). General contact details of provider: https://edirc.repec.org/data/feoraro.html .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.