Benefits and Weaknesses of External Audit of the Financial Statements Prepared by the Czech Small Business Units

Kód výsledku v IS VaVaI

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Výsledek na webu

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DOI - Digital Object Identifier

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Jazyk výsledku

angličtina

Název v původním jazyce

Benefits and Weaknesses of External Audit of the Financial Statements Prepared by the Czech Small Business Units

Popis výsledku v původním jazyce

The paper deals with the issue of external audit of the financial statements prepared by the small accounting unis that represents the joint stock companies or trusts and that at the balance sheet date of the accounting period and accounting period immediately preceding achieved or exceed one of the set criteria, and other small accounting units if they achieved or exceed during previously defined period two of three set criteria. These criteria are defined as: total sum of assets - 40 million CZK, annual total net turnover - 80 million CZK and average number of employees higher than 50. Due to the amendment of the accounting rules were changed also the set three criteria (total sum of assets brutto was replaced by total sum of assets netto, annual total net turnover was adjusted for items like changes in inventories caused by own company activities or activation). Objective of the contribution was to identify benefits and weaknesses caused to such a business units by external audit of financial statements and to find out opinions on suitability of criteria selection and their value setting that determines the audit obligation for these businesses. The research was conducted using the questionnaire survey, respondents (internal and external) consisted of accounting data users from small enterprises. The research revealed that the most significant benefit for all users is the increase of financial statements credibility. The most significant weakness is audit time requirement followed by the cost demands of audit. 48 % of respondents agree with the current level of set criteria, 9,53 % of respondent describe them as low and 42,86 % of respondents is not sure if the criteria are set suitably.

Název v anglickém jazyce

Benefits and Weaknesses of External Audit of the Financial Statements Prepared by the Czech Small Business Units

Popis výsledku anglicky

The paper deals with the issue of external audit of the financial statements prepared by the small accounting unis that represents the joint stock companies or trusts and that at the balance sheet date of the accounting period and accounting period immediately preceding achieved or exceed one of the set criteria, and other small accounting units if they achieved or exceed during previously defined period two of three set criteria. These criteria are defined as: total sum of assets - 40 million CZK, annual total net turnover - 80 million CZK and average number of employees higher than 50. Due to the amendment of the accounting rules were changed also the set three criteria (total sum of assets brutto was replaced by total sum of assets netto, annual total net turnover was adjusted for items like changes in inventories caused by own company activities or activation). Objective of the contribution was to identify benefits and weaknesses caused to such a business units by external audit of financial statements and to find out opinions on suitability of criteria selection and their value setting that determines the audit obligation for these businesses. The research was conducted using the questionnaire survey, respondents (internal and external) consisted of accounting data users from small enterprises. The research revealed that the most significant benefit for all users is the increase of financial statements credibility. The most significant weakness is audit time requirement followed by the cost demands of audit. 48 % of respondents agree with the current level of set criteria, 9,53 % of respondent describe them as low and 42,86 % of respondents is not sure if the criteria are set suitably.

Druh

D - Stať ve sborníku

CEP obor

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OECD FORD obor

50205 - Accounting

Projekt

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Návaznosti

S - Specificky vyzkum na vysokych skolach

Rok uplatnění

2018

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název statě ve sborníku

Proceedings of the 31th International Business Information Management Association Conference (IBIMA): Innovation Management and Education Excellence through Vision 2020

ISBN

978-0-9998551-0-2

ISSN

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e-ISSN

neuvedeno

Počet stran výsledku

11

Strana od-do

3070-3080

Název nakladatele

BUSINESS INFORMATION MANAGEMENT ASSOC-IBIMA, 34 E GERMANTOWN PIKE, NO. 327, NORRISTOWN, PA 19401 USA

Místo vydání

Milano, Italy

Místo konání akce

Milano, Itálie

Datum konání akce

25. 4. 2018

Typ akce podle státní příslušnosti

WRD - Celosvětová akce

Kód UT WoS článku

000449306700123