ACCOUNTING JUDGMENTS AND RULES ON THE OUTCOME OF THE AUDITED ENTITY’S ACTIVITY DEPENDING ON THE INCORPORATED/ UNINCORPORATED EXPENSES IN THE COST OF PRODUCTS

Camelia Cătălina Mihalciuc () and Aurelian Bacinschi ()
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Camelia Cătălina Mihalciuc: Stefan cel Mare, Suceava, Romania
Aurelian Bacinschi: Camera de Conturi, Suceava, Romania

European Journal of Accounting, Finance & Business, 2017, vol. 5, issue 14, 22-28

Abstract: In the Romanian accounting system, the costs incurred for obtaining the products (assimilated here: semi-finished products, finished products, residual products, agricultural products, products in progress) are compensated by registering of certain incomes when they are handed over to the warehouse, and then adjusted registering price differences at the end of the month. Due to this fact and to the more complex function of the account 711 - "Revenues related to product inventory costs", the auditing of finished product accounts, of price differences in finished products accounts and of related revenues (acc. 711), usually present a high degree of risk. Also, the specificity of these accounts requires a good knowledge of the system used to calculate production costs, respectively of correctly identifying the categories of expenses which will be included/not included into the cost of the products. Thus, in the present study, the main objective aims to establish certain working hypotheses, which identify situations related to the inclusion/non-inclusion of the certain expenses in the cost of the products, that will influence the result of the activity (taking into account the present laws) and based on the stated hypotheses to draw the related rules.

Date: 2017
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