Challenges of wine chain in Romania

The purpose of this paper is to identify new challenges of wine chain in Romania, referring mostly to wine safety and traceability. The reason why the research was underpinned is that many unauthorised products or products obtained using forbidden substances exist on the wine market. In this paper, food safety and traceability principles and requirements are applied to wine chain. Food safety and protecting consumers interests represent concerns for people, professionals and organizations. Wine is a product for which consumers manifest lack of trust in those regarding the content and methods of production. The research method consists in documentation and legislation analysis. The main results show that problems on the wine chain, including consumers lack of trust, might be overcome by implementing and respecting the principles of traceability

Reframing business reporting in a Big Data world

This paper investigates the challenges raised by the “datafication” of the business environment in the area of performance management. Big Data and its powerful analytics are now essential elements of the business landscape, and the mindset of managers and decision-makers has a crucial impact on how the opportunities offered by these new technologies can be capitalised. Our focus is on how and to what extent business performance management models need to be reviewed and reframed in this era of Big Data. We propose a model, called Balanced ScoreCard System Thinking, that may insure an integrative, highly dynamic and agile construction. This “top-down-bottom-up” approach assess the way in which every segment of the Balance Score Card is affected by Big Data and Business Analytics. These findings may enable business leaders to develop a more agile and forward-looking approach to performance management, which is only made possible through these new technologies of data analytics

IMPACT OF IFRS ADOPTION ON ROMANIAN COMPANIES

Accounting globalization follows the transformation of the accounting system into an economic and financial model, able to inform more correctly and rapidly the users of the accounting information, amongst which the investors and the creditors are clearly delimited. Within this context, the need of a harmonized and well oriented accounting system has become imperative. The adoption of a set of international accounting standards in Europe is intended to provide uniform and high quality financial information on the financial markets which would consolidate the global market efficiency, reducing the cost of capital accessing for European companies. There are numerous opinions according to which the IFRS adoption could be an element of abolishing the discrepancies between the accounting systems, offering at the same time a high level of transparency of the financial information. Our objective is to analyze the opportunity of implementing the IAS/IFRS referential by the Romanian companies, as well as their instant reaction within this context

USING DEPENDENCY STRUCTURE MATRIX IN OPTIMAZING FINANCIAL AUDIT PROCESS

This paper presents a new approach in evaluating risks of material misstatements in financial audit using dependency structure matrices (DSM). This perspective allows the identification of significant audit risks and can be used by audit managers to optimise resource allocation by focusing on higher risk areas. DSM matrix is widely used in other areas such as industrial production, design engineering and risk management. This approach is not used in financial audit so far. The financial crisis has diminished the activity of the audit clients and has imposed smaller audit fees. The auditors have to optimize their processes in order to maintain the quality of audit, even to improve it for the same audit remuneration. DSM matrix is a solution for this problem. This article points out have to use DSM matrix in financial audit process in order to optimize the allocation of resources, while maintaining audit quality. Our research aims to improve the risk evaluation stage in the financial audit process using DSM matrix to evaluate higher risk areas. We used the Project DSM Tool for representing significant accounts in the Purchase to pay process for a financial audit. Dependencies between accounts were used for creating a DSM matrix that depicts higher risk areas. Also, for each account, several resource allocation parameters such as costs and number of hours to be used for performing audit procedures on that account (from both audit team and client personnel). Our research suggests that DSM can provide useful information in detecting risk areas in significant classes of transactions identified in a risk based audit and we recommend using DSM matrix in the planning phase of the audit in order to avoid redundancies in the audit execution phase. This is important considering that the European Commission recommends in the Green Paper for Audit to improve the quality of audits following the setbacks to the profession caused by the financial crisis