EIRP Proceedings, Vol 14, No 1 (2019)

Abstract

Regardless of the form of ownership or social capital, companies registered in Romania must prepare annual financial statements. Depending on the size criteria, these are mandatory to be audited. At thesame time, the auditing of the financial statements can be made outside the established size criteria. Given the development of the Romanian society and the integration of Romania into the European Union, the need to harmonize the legislation of our country with the European one has emerged. An important role for this purpose is the application of the European legislation in the Romanian legislation through the implementation of the European Regulations and the European Directives. Harmonizing national and European legislation, along with international accounting and financial reporting standards, lead to a better implementation of methods and techniques for detecting tax fraud and combating money laundering and terrorist financing. The need for auditing financial statements comes from the need for insurance - both for shareholders and for state institutions and business partners of companies - that financial reports objectively reflect the clarity and reality of the information contained, that they are prepared in accordance with legal requirements in the field and that the significant dangers of the information presented are excluded