CREDIBILITY VERSUS MEASUREMENT OF VALUE OF A FINANCIAL STATEMENT CONSTITUENTS IN THE CONTEXT OF AUDITING RISK
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Keywords

financial statement
audit risk
credibility

How to Cite

Świeboda, W. (2016). CREDIBILITY VERSUS MEASUREMENT OF VALUE OF A FINANCIAL STATEMENT CONSTITUENTS IN THE CONTEXT OF AUDITING RISK. Scientific Journal of Bielsko-Biala School of Finance and Law, 21(2), 107-116. https://doi.org/10.19192/wsfip.sj2.2017.7

Abstract

Preparing financial statements is essential for each business entity in order to transmit information necessary for the intended user. The statements must reflect current financial situation of the company on the basis of which it will be possible to take appropriate decisions. Information is only reliable when it is useful. Preservation of credibility of financial statements in business practice raises doubts relating to the possibility, allowed by the International Accounting Standards, to present estimates. Another concern is connected with the increasing usage of fair value measurement instead of the principle of prudence1 . The aim of the paper is to define the notion of credibility with respect to elements of financial statement, auditing risk of these elements and application of estimates. The author also highlights the essence of fair value measurement and the impact of financial auditing on shaping the credibility of information in the financial statement. For the purposes of the paper the author researched the legal acts in force and used the case study method.
https://doi.org/10.19192/wsfip.sj2.2017.7
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The papers published in the ASEJ Journal (alternate title: Zeszyty Naukowe Wyższej Szkoły Finansów i Prawa w Bielsku-Białej) are free and online open access distributed (Creative Commons Attribution CC-BY-NC 4.0 license). The Publisher cannot be held liable for the graphic material supplied. The printed version is the original version of the issued Journal. Responsibility for the content rests with the authors and not upon the Scientific Journal or Bielsko-Biala School of Finance and Law.

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