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
SUMMARY

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 ... (see full summary)

 
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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 “historyof 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.

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