The Use of Audit Opinion in Estimating the Financial Reporting Transparency Level

Ioan-Bogdan Robu (), Costel Istrate and Ionut Viorel Herghiligiu ()
Additional contact information
Ioan-Bogdan Robu: “Alexandru Ioan Cuza” University of Ia?i, Romania
Ionut Viorel Herghiligiu: “Gheorghe Asachi” Technical University of Ia?i, Romania

The Audit Financiar journal, 2019, vol. 17, issue 153, 79

Abstract: Information presented to stakeholders through a system of standardized indicators and transparency in financial reporting are the basis in the decision-making process for a sustainable development of the companies. The purpose of this study is to analyze and assess the transparency in financial reporting, assessed based on the audit opinion, and the influence of determinant factors on transparency, using logistic regression. The determinant factors are expressed by principal dimensions of financial statements identified through the Principal Component Analysis applied on the indicators of position and performance. The observed sample consists of 62 companies listed on Bucharest Stock Exchange during the period 2011-2016. The main results reveal the existence of three principal components of the financial statements, Cash flow component, Return component and Current assets structure component; among these dimensions, only the return component has significant influence on transparency in financial reporting assess through the audit opinion.

Keywords: sustainable development; transparency; financial reporting; audit opinion; principal component analysis; logistic regression (search for similar items in EconPapers)
JEL-codes: C58 M41 M42 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://revista.cafr.ro/temp/Article_9601.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aud:audfin:v:17:y:2019:i:153:p:79

Access Statistics for this article

More articles in The Audit Financiar journal from Chamber of Financial Auditors of Romania
Bibliographic data for series maintained by Dumitru Valentin Florentin ().