COULD BE THE FISCAL RISK MINIMIZED THROUGH FINANCIAL AUDIT?

• Published in: Economica Vol. 3; no. 97; pp. 59 - 72
• Main Authors: Alina DOMNIŞOR, Daniela Nicoleta MEDINȚU, Radu PRODAN
• Format: Journal Article
• Language: English
• Published: Academy of the Economic Studies of Moldova 01.09.2016
• Subjects: audit objectives; audit procedures; financial audit; fiscal risk; tax on profit
• ISSN: 1810-9136

The article approaches a useful theme,for the academic environment, specialists in tax and accounting regulations, but also for the practitioners in the private sector. Our scientific aim is to demonstrate the usefulness of the financial audit for the fiscal component also of the entities which, at present,have no legal requirement to audit the financial statements. Why such a research? Because the fiscal size of businesses represents a continuous risk on the agenda of the management and our empirical study will demonstrate the hypothesis according to which the fiscal risk is minimized through financial audit. The true and fair view of the financial statements depends also of the auditor’s objectives as concerns the total tax summary. It is a new approach of the financial audit that the entities may audit only the components in the financial statements,where these show high risks. It is an approach for the entities that, at present, have no legal requirements of auditing due to the fact that they do not fulfil the size criteria for audit. The scientific step shall be centred on the analysis of the salary, fiscal and social costs by using the financial audit.