Abstract
This paper aims at comparing the management perspectives with the audit conditions in the Visegrad Group (V4) countries (the Czech Republic, the Slovak Republic, Poland, and Hungary) in the following areas: legislation governing the auditing, statutory duty of auditing, mandatory rotation of auditors in public interest entities, requirements on auditors and professional activities, and audit supervision organizations. The paper also tests the hypothesis whether there is a relationship between the size of the accounting entity and the auditor’s opinion.The methodology is based on the statistical analysis of the data using the Chi-square test of independence applied to a sample of 800 randomly selected accounting entities from all V4 countries (200 per each country in question).The results demonstrated significant differences in the management approaches to financial reporting, especially in the area of the statutory duty of auditing. In addition, quantitative research was conducted to determine whether there is a relationship between the size of the accounting entity and the auditor’s opinion. At the 5% significance level, no such dependence has been found for any of the V4 countries, but at the 10% significance level, the dependence has already been proved in case of the Republic of Poland and Hungary. The practical value of the obtained results is the knowledge of how to manage accounting standards for business entities in the V4 countries, as well as to determine the statutory duty to audit financial statements. These results might be of a special practical importance for business managers, tax authorities, and auditors operating in the EU countries.
Highlights
This paper deals with the management of financial statement auditing in the Visegrad Group (V4) countries
The null hypothesis is not rejected in this case either, since the Slovak Republic does not use the α < p-value (0.05 < 0.2143)
If a higher probability category of medium-sized accounting entities, of type I error was defined at it results from the methodology of this research the beginning of testing, testing would result in that Directive 2013/34/EU was followed in order different values
Summary
This paper deals with the management of financial statement auditing in the Visegrad Group (V4) countries It examines the differences in the audit conditions for the V4 countries and studies the dependence of the auditors opinion on the size of accounting entities. While internal audit pri- Műllerová and Králíček (2017) who state that in the marily serves the needs of internal users, external European Union there are two Directives, which audit is useful to an array of external users – for ex- represent the basic tool for audit harmonization: ample, when granting a loan, which is analyzed in Directive 2014/56/EU and Directive 2013/34/EU These Directives set out the objectives to The comparison of the legal regulations and standbe achieved by the member states in auditing, the ards governing audit activities in the V4 countries way how to achieve these objectives is the respon- is provided, which contains the main sibility of the EU member states.
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