Exploratory Study Regarding the Impact of IFRS on the Audit Opinion in the Case of Romanian Listed Companies

Author:Associate Prof. Maria GROSU, Ph.D.; Assistant Prof. Ioan-Bogdan ROBU, Ph.D.; Associate Professor Costel ISTRATE, Ph.D.

JEL:C14, K22, M42, M48

DOI:

Keywords:audit engagement, audit opinion, transition to IFRS, Bucharest Stock Exchange

Abstract:
The transition to the IFRS in the European Union and in other countries in the world is frequently justified by a growth of the financial information quality: relevance, reliability and comparability. In this conditions it can be appreciate that transition to the IFRS of the Romanian listed companies, starting from 2012, could increase the quality of the accounting information reported in financial statements, with direct impact on the audit opinion. The purpose of this study is represented by the analysis of the impact of the IFRS adoption on the audit opinion at the level of the Romanian BSE listed companies. The study was carried out on a sample of 63 BSE listed companies, between 2011 and 2014. To reach the research results, multiple correspondence analysis and the ordinal logistic regression analysis were used. The results of the study show the existence of a significant association between the type of the audit opinion, the affiliation to a category of auditors (Big 4 or non Big4) and the applicable accounting framework. Thus, the probability of issuing a certain type of audit opinion is significantly influenced by the affiliation to an auditors’ category, by the applicable accounting framework and by the activity of the audited company.\r\n\r\n

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