Experiences of auditors and tax advisors with accounting errors: Empirical evidence from the Czech Republic

Kód výsledku v IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F70883521%3A28120%2F20%3A63525258" target="_blank" >RIV/70883521:28120/20:63525258 - isvavai.cz</a>

Nalezeny alternativní kódy

RIV/61384399:31110/20:00055486

Výsledek na webu

<a href="https://link.springer.com/article/10.1007%2Fs11294-020-09797-x" target="_blank" >https://link.springer.com/article/10.1007%2Fs11294-020-09797-x</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.1007/s11294-020-09797-x" target="_blank" >10.1007/s11294-020-09797-x</a>

Jazyk výsledku

angličtina

Název v původním jazyce

Experiences of auditors and tax advisors with accounting errors: Empirical evidence from the Czech Republic

Popis výsledku v původním jazyce

Accounting provides a wide range of quantitative information for decision making of General purpose of financial reports is to represent the economic phenomena in numbers and words. A faithful representation of these phenomena is one of the fundamental requirements for accounting information presented through the financial reports. Information is expected to be complete, neutral and free of error. Avoiding errors is impossible. The errors in accounting occur from time to time in any company. The errors may scale from insignificant to material errors; they can appear intentionally or unintentionally. Auditors and tax advisors are usually the first to come in contact with the financial reports. They are also usually the ones who identify the accounting errors. Neither auditors nor tax advisors are able to identify all errors. Some errors remain in accounting and financial statements of companies and these errors are identified only in subsequent periods. The paper focuses on the experiences of auditors and tax advisors from the Czech Republic with the accounting errors. The authors wanted to investigate whether the accounting errors occurred in the companies, how often they occurred, how large the errors were on average, and how management of companies responded to this error detection. The questionnaire survey was made in 2019. We received the answers from 45 auditors and 57 tax advisors from the Czech Republic. We used the methods of observation and the method of synthesis of partial conclusions to analyze the research data. The descriptive statistics, the chi-square test of independence and the proportional tests were applied for the statistical data analysis. The results showed that the errors in accounting did not occur regularly. We found out that 87 % of auditors and tax advisors almost never revealed these errors and only 13 % of them revealed the errors occasionally. We did not confirm the statistical dependence between the frequency of occurrence of errors and the average size of errors. On the other hand, we found out that two-thirds of auditors and tax advisors revealed unimportant errors and a third of them revealed minor errors. The errors in accounting were detected only once in 94 % of cases. We concluded that neither the detection of errors or inaccuracies nor the average size of these errors have no connection with who is responsible for reviewing the financial statements. Most auditors and tax advisors agreed that management of companies in which the errors occur are willing to correct most of errors identified in their financial reports.

Název v anglickém jazyce

Experiences of auditors and tax advisors with accounting errors: Empirical evidence from the Czech Republic

Popis výsledku anglicky

Accounting provides a wide range of quantitative information for decision making of General purpose of financial reports is to represent the economic phenomena in numbers and words. A faithful representation of these phenomena is one of the fundamental requirements for accounting information presented through the financial reports. Information is expected to be complete, neutral and free of error. Avoiding errors is impossible. The errors in accounting occur from time to time in any company. The errors may scale from insignificant to material errors; they can appear intentionally or unintentionally. Auditors and tax advisors are usually the first to come in contact with the financial reports. They are also usually the ones who identify the accounting errors. Neither auditors nor tax advisors are able to identify all errors. Some errors remain in accounting and financial statements of companies and these errors are identified only in subsequent periods. The paper focuses on the experiences of auditors and tax advisors from the Czech Republic with the accounting errors. The authors wanted to investigate whether the accounting errors occurred in the companies, how often they occurred, how large the errors were on average, and how management of companies responded to this error detection. The questionnaire survey was made in 2019. We received the answers from 45 auditors and 57 tax advisors from the Czech Republic. We used the methods of observation and the method of synthesis of partial conclusions to analyze the research data. The descriptive statistics, the chi-square test of independence and the proportional tests were applied for the statistical data analysis. The results showed that the errors in accounting did not occur regularly. We found out that 87 % of auditors and tax advisors almost never revealed these errors and only 13 % of them revealed the errors occasionally. We did not confirm the statistical dependence between the frequency of occurrence of errors and the average size of errors. On the other hand, we found out that two-thirds of auditors and tax advisors revealed unimportant errors and a third of them revealed minor errors. The errors in accounting were detected only once in 94 % of cases. We concluded that neither the detection of errors or inaccuracies nor the average size of these errors have no connection with who is responsible for reviewing the financial statements. Most auditors and tax advisors agreed that management of companies in which the errors occur are willing to correct most of errors identified in their financial reports.

Druh

J_SC - Článek v periodiku v databázi SCOPUS

CEP obor

—

OECD FORD obor

50205 - Accounting

Projekt

—

Návaznosti

V - Vyzkumna aktivita podporovana z jinych verejnych zdroju

Rok uplatnění

2020

Kód důvěrnosti údajů

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

Název periodika

International Advances in Economic Research

ISSN

1083-0898

e-ISSN

—

Svazek periodika

23

Číslo periodika v rámci svazku

3

Stát vydavatele periodika

US - Spojené státy americké

Počet stran výsledku

2

Strana od-do

323-324

Kód UT WoS článku

—

EID výsledku v databázi Scopus

2-s2.0-85089402466