SIGNIFICANT DOUBT ABOUT THE GOING CONCERN ASSUMPTION IN AUDIT

The purpose of this paper is to survey the going concern principle and its applicationin auditor’s work. The management of an entity is responsible for the assumption of the goingconcern principle in the compilation of the financial statements. We study the auditor’sresponsibilities in the audit of the financial statements relating to management’s use of the goingconcern assumption in the preparation of the financial statements. We analyze the events andconditions that may cause significant doubt about the ability of an entity to continue as a goingconcern.Professional judgment, Audit evidence, Management’s use of going concern assumption.

LOAN LOSSES PROVISIONING PROCESSES IN ROMANIAN BANKS DURING JANUARY 2007 – FEBRUARY 2011

The paper presents the loan loss provisioning phenomenon at the level of Romanianbanks, based on a very detailed set of rules in the area. Using data collected by National Bank ofRomania, we find evidence of the significantly increase in the banking loan loss provisions in the lastanalyzed years. We investigate the dynamics of the loan losses provisioning processes and present thenational regulatory framework. The paper concludes that the actual situation in the field forceRomanian banks to react and improve their risk management.Loan Loss Provisions, Loan Classification in Romanian Banking System, Provision Coefficient

The importance of monitoring the operational risk at the level of banking companies

The purpose of this paper is to analyze the potential operational banking risk losses and to introduce the key operational risk indicators. We present a possible matrix of the operational risk monitoring indicators and the correlations between the main types of the operational banking risks and the measures to prevent and diminish the operational risks. The majority of operational risk events should be prevented with the adequate procedures and for this reason, operational banking risks events need to be identified and monitored. It is very important for a bank to develop loss events tracking and reporting, that represent early warning signals in the banking risks management.operational risk, monitoring indicators, banking risk management

MEASURING MODEL FOR BAD LOANS IN BANKS. THE DEFAULT PROBABILITY MODEL.

The banking sectors of the transition countries have progressed remarkably in the last 20 years. In fact, banking in most transition countries has largely shaken off the traumas of the transition eraAt the start of the 21st century banks in these countries look very much like banks elsewhere. That is, they are by no means problem free but they are struggling with the same issues as banks in other emerging market countries during the financial crises conditions. The institutional environment differs considerably among the countries. The goal we set with this article is to examine in terms of methodology the most important assessment criteria of a measuring model for bad loans.assessment criteria, "Default" model, collateral, Basel II Accord

STUDY OF CORRELATION BETWEEN AVERAGE INTEREST RATE AND NON-PERFORMING LOANS IN THE ROMANIAN BANKING SYSTEM DURING 2006- FEBRUARY 2010

This paper aims to examine the correlation between average interest rate and non-performing loans in the Romanian banking system during 2006-February 2010. We based our approach on the Pearson correlation coefficient and we realized an empirical study, which demonstrates how these relevant banking elements are connected. Also, the result of this research suggests that there are other indirect channels which affect the non-performing loans.Pearson correlation coeficient, Non-performing loans, Average interest rate, Credit-risk provisions

The audit risk associated to the depreciation adjustments of the tangible assets during the financial instability period

The research object of this article is the connection between the presentations of the tangible fixed assets at the fair value, according to the international standards for the presentation of the financial statements, especially during the crises periods, and the audit risks taken by the financial auditors and by the users of the audited financial statements. The results of the research are a few suggestions related to the change of the assessment method for audit risks, as well as the elaboration of certain reduction measures of these audit risks.tangible fixed assets, fair value, audit risk, measuring the audit risk

AN EMPIRICAL STUDY OF CORRELATION BETWEEN NET ASSETS AND OWN FUNDS IN THE ROMANIAN BANKING SYSTEM DURING 2001-2008

In this paper we explore the correlation between net assets and own funds in theRomanian banking system during 2001-2008. We based our approach on the Pearson correlationcoefficient and we realized an empirical study, which demonstrates how the relevant elements of thecapital ratio are connected. The study puts forward the concept that the banking capital adequacyis a subject of great significance to bankers, shareholders and depositors, and of course to banksupervision and central banks.Pearson correlation coeficient, Elements of capital ratio, Required banking capital

AN ANALYSIS OF THE SEPA CARDS FRAMEWORK (SINGLE EURO PAYMENTS AREA) ADOPTION IN ROMANIA

The study examines the actual status and the future application of Single Euro Payments Area SEPA Cards Framework, based on Romanian experience. The paper highlights the fact that there is no national card scheme in Romania and that the local cards marketSingle Euro Payments Area (SEPA) Cards Framework SCF, National card scheme, Challenges of the SCF implementation in Romania

LIQUIDITY RISK MANAGEMENT IN BANKING

The objective of this paper is to provide a global perspective of the liquidity risk from a banking societies‘ viewpoint. Our paper belongs to the technical studies that analyze the concrete way in measuring the liquidity risk at the level of the banking societies from Romania. The study is structured on chapters that present the theoretical background in liquidity risk management and new trends in measuring, monitoring and controlling liquidity risk. Also, the paper contains a study cases part, which presents the actual stage and the challenges of the measuring the liquidity risk. We try to underline the importance of a flexible banking system, which should be able to measure and forecast its prospective cash flows for assets, liabilities, off-balance sheet commitments and derivatives over a variety of time horizons, under normal conditions and a range of stress scenarios, including scenarios of severe stress.liquidity risk,, simple net liabilities, cumulated net liabilities, liquidity, rate, average maturities transformation, immediate liquidity