The Impact of External Public Audit on the Budget Deficit
Objectives: Public imbalances can cause extensive problems both on public finances and economy. Regardless of the constitution and destination of funds it is absolutely necessary to verify their correct accounting, collection type and expense in accordance with applicable regulations, and if due a...
Main Authors: | , , , |
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Format: | Article |
Language: | English |
Published: |
Danubius University
2014-05-01
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Series: | EIRP Proceedings |
Subjects: | |
Online Access: | http://proceedings.univ-danubius.ro/index.php/eirp/article/view/1527/1413 |
Summary: | Objectives: Public imbalances can cause extensive problems both on public finances and economy.
Regardless of the constitution and destination of funds it is absolutely necessary to verify their correct
accounting, collection type and expense in accordance with applicable regulations, and if due attention is paid
to obtain an optimal balance between resources and results. Therefore it is useful to study the role of public
audit in the formation and use of public funds to indicate its impact on the budget balance. Prior Work: This
paper presents the evolution of synthetic budgetary indicators during 2010 - 2013 and the impact that the
external public audit had on the budget deficit. Approach: In order to highlight the importance and necessity
of public audit activity it has been analyzed its influence in the formation and use of public funds and the
extent of implementation of the recommendations made in the audit reports. Results: In the study conducted
we have set out several conclusions regarding definite reality according to which financial resources
materialize a large part of GDP, so that advocates for public performance of the audit. Implications: The need
for public audit can be viewed through the prism of the three classes of economic and financial interests,
namely: the interests of public entities, third party interests of consumers of public goods and services and
state interests. Value: This paper highlights the importance and the impact of public external audit activity on
public financial funds and invites the interested readers on the topic to get involved by providing feedback in
order to improve this activity in Romania. |
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ISSN: | 2067-9211 2069-9344 |