The Impact of IFRS on Audit Quality in Romania

Abstract

Given the current economic uncertainties in the capital market, there is a heightened need for quality audit engagements to maintain the credibility of financial statements and the trust of users. In these circumstances, it is important to use the best practices in order to carry out quality audit engagements, in accordance with professional standards. Aligned with the global push for accounting harmonization through IFRS adoption, our study evaluates how implementing IFRS impacts financial audit quality, focusing on auditor opinions and key audit matters. The research was carried out on a sample of companies listed on the Bucharest Stock Exchange, both in the main and AeRO segments, whose annual reports were studied for the period 2016-2022. Preliminary results reveal that the application of IFRS has a significant influence on the quality of financial audit in Romania in terms of audit opinion and key audit matters.

Keywords

• audit quality
• ifrs
• harmonization
• audit engagement