Harmonizing Audit of Financial Situations to Romanian Companies with European Legislation

• Author: Marius-Daniel Moscu
• Position: Hagiu & Moscu Full Expert Finance SRL, Romania
• Pages: 256-265

European Integration - Realities and Perspectives. Proceedings 2019

256

Harmonizing Audit of Financial Situations

to Romanian Companies with European Legislation

Marius Daniel Moscu1

Abstract: Regardless of the form of ownership or social capital, companies registered in Romania must prepare

annual financial statements. Depending on the size criteria, these are mandatory to be audited. At thesame time,

the auditing of the financial statements can be made outside the established size criteria. Given the development

of the Romanian society and the integration of Romania into the European Union, the need to harmonize the

legislation of our country wit h the European one has emerged. An important role for this purpose is the

application of the European legislation in the Romanian legislation through the implementation of the European

Regulations and the European Directives. Harmonizing national and European legislation, along with

international accounting and financial reporting standards, lead to a better implementation of methods and

techniques for detecting tax fraud and combating money laundering and terrorist financing. The need for

auditing financial statements comes from the need for insurance - both for shareholders and for state institutions

and business partners of companies - that financial reports objectively reflect the clarity and reality of the

information contained, that they are prepared in accordance with legal requirements in the field and that the

significant dangers of the information presented are excluded

Keyword: audit; fraud; statements; accounting; money

Introduction

In order to be able to talk about the harmonization of the audit of financial situations in Romania with

the one in the European Union, I consider it necessary to make a minimal review of the “history” of the

postdecembrist appearance of both commercial companies and accounting - and not only of institutions

professionalism in the matter. At the same time, it is necessary to understand the regulation of drawing

up and reporting the financial statements. The Aba under these conditions consider that reference can be

made to the audit of the financial stat ements and the harmonization of the financial audit with the

European legislation.

I. Historical and Legal Framework of Association Forms

The Revolution of December 1989 led to the liberalization of national economies, to the emergence of

different forms of association - specific to democratic societies and market economies - and to the need

to regulate them. Since 1990 Romania has gone through a transition phase, from the centralized

economy to the market economy, which will be seen in the regulations that will appear in the next period

of time. It is trying to destroy t he old society and lay the foundations of a society based on democratic

1 Hagiu & Moscu Full Expert Finance SRL, Romania, Corresponding author: mos cudaniel @yahoo.com.