Management of financial statements auditing in the Visegrad Group countries

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This paper aims at comparing the management perspectives with the audit conditions in the Visegrad Group (V4) countries (the Czech Republic, the Slovak Republic, Poland, and Hungary) in the following areas: legislation governing the auditing, statutory duty of auditing, mandatory rotation of auditors in public interest entities, requirements on auditors and professional activities, and audit supervision organizations. The paper also tests the hypothesis whether there is a relationship between the size of the accounting entity and the auditor’s opinion.
The methodology is based on the statistical analysis of the data using the Chi-square test of independence applied to a sample of 800 randomly selected accounting entities from all V4 countries (200 per each country in question).
The results demonstrated significant differences in the management approaches to financial reporting, especially in the area of the statutory duty of auditing. In addition, quantitative research was conducted to determine whether there is a relationship between the size of the accounting entity and the auditor’s opinion. At the 5% significance level, no such dependence has been found for any of the V4 countries, but at the 10% significance level, the dependence has already been proved in case of the Republic of Poland and Hungary.
The practical value of the obtained results is the knowledge of how to manage accounting standards for business entities in the V4 countries, as well as to determine the statutory duty to audit financial statements. These results might be of a special practical importance for business managers, tax authorities, and auditors operating in the EU countries.

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    • Figure 1. Auditor’s opinions on small accounting entities
    • Figure 2. Auditor’s opinions on medium-sized accounting entities
    • Figure 3. Auditor’s opinions on large accounting entities
    • Table 1. Names of public registers in the V4 countries and links to them
    • Table 2. Comparison of the legal regulations and standards in the V4 countries
    • Table 3. Comparison of the statutory duty of auditing in the V4 countries
    • Table 4. Comparison of the mandatory rotation of auditors at public-interest entities
    • Table 5. Comparison of requirements on auditors in the V4 countries
    • Table 6. Basic information about professional organizations and audit supervision organizations in the V4 countries
    • Table 7. Main activities of professional and audit supervision organizations
    • Table 8. Categorization of accounting entities and auditor’s opinions in the V4 countries
    • Table 9. Contingency table of research values for the Czech Republic
    • Table 10. Final testing results for the Czech Republic
    • Table 11. Contingency table of research values for the Slovak Republic
    • Table 12. Final testing results for the Slovak Republic
    • Table 13. Contingency table of research values for the Republic of Poland
    • Table 14. Final testing results for the Republic of Poland
    • Table 15. Contingency table of research values for Hungary
    • Table 16. Final testing results for Hungary