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Aglika Kaneva
Analysis of the Profitability Indicators and Indicators for Assessment of Assets Quality of the Banks in Bulgaria in the 2007 – 2018 Period
Summary:
This research is dedicated to the profitability of the banks in Bulgaria - profit after tax, return on equity and return on assets. Òhe dynamics of indicators for assessment of assets quality of banks such as banks risk exposures and impairments of credits of the banks has been examined that like the profitability indicators are highly influenced by the financial crisis.
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Petar Ilkov Peshev, Ivaylo Donchev Beev
Analysis of the Proportional Tax System in Bulgaria
Summary:
Proportional taxation with a single tax rate and the low tax rate policy intended to lower the shadow economy, increase tax revenues due the larger tax base, but also aimed to attract local and foreign investments, improving the employment situation, and finally to stimulate Bulgarian economy in the EU convergence process. Nearly a decade later empirical data allows an objective analysis of the pros and cons of tax cuts introduced in 2007 and 2008. This paper aims to provoke discussion on low tax policy implemented in in 2007 and 2008 and to analyze its suitableness and eventually to provoke a tax policy amendment debate.
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Branimira Assenova Koleva
Analytical Procedures as a Means of Optimising Auditing
Summary:
Audit literature provides many definitions of the nature of an audit. In general, they all boil down to focusing on audit outcomes, namely, establishing that financial statements comply with accounting standards. An audit is an independent examination, and an auditor assumes responsibility for expressing a true and fair opinion on financial statements for the public benefit. Achieving high-quality audits requires collecting and evaluating objectively the evidence obtained for economic actions and events. However, an auditor has a limited amount of time to process large volumes of information, so in terms of quality and time, their work can be optimized through analytical procedures.
According to the International Standards on Auditing, an audit involves analytical procedures throughout the process. Analytical procedures evaluate financial information through analysis of plausible relationships among both financial and non-financial data. The aim is to obtain quality audit evidence in a more timely and cost-effective manner. Applying analytical procedures reduces audit work and improves its efficiency. They are essential for risk assessment in both planning and fraud and error detection. The proper application of analytical procedures is a prerequisite for carrying out a quality audit and taking an adequate audit decision regarding management’s assertions in the financial statements. It is, therefore, necessary to maintain the professional qualification of independent auditors, not only as hours and types of seminars of auditors’ own choice, but also to make them mandatory in terms of regulations, which need to be amended accordingly. I believe that attending seminars is not sufficient to enhance an auditor’s expert knowledge. It would be good to pass a test each year as some form of verification to confirm the knowledge acquired.
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Branimira Assenova Koleva
Opportunities for Effective Cash Flow Audit
Summary:
Performing an independent financial audit is not an easy task - it is an ethic commitment for the auditor that must be performed with a due care both to the client and to the community. The present work is aimed at supporting the work of auditors by providing theoretical knowledge and illustrative examples on the verification of cash. Determining the actual amount of cash is a high-risk audit assignment. Therefore, the confirmation of cash is a large-scale and comprehensive procedure, which requires more attention. The paper discusses the issues, techniques, and procedures the auditor can apply to get the most credible evidence of quantity and ownership of cash.
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Boryana Ilieva Evlogieva
Democracy - a Current Myth
Summary:
The present study is an attempt for a more critical look at the contemporary democracy, if it is reality at all. Public consciousness has built up its image on the ideas since the time of Aristotle up to present days. But the task is to have a look at and analyze the contemporary democracy from a more different position – this of the mythological thinking. The conclusion is that a huge discrepancy between the democracy as an idea, as a theory and the real organization and management of the society, is a fact. The idea has been developed and enriched since ancient times till nowadays, but is still far from its practical realization – something that turns it into a myth.
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Nikola Zhivkov, Marieta Zhivkova
The Role of Democracy in Reaching Public Consolidation
Summary:
In this article, we analyzed in historical aspects of the Bulgarian authors related to the formation of the values of democracy. A logical connection with some of them is the analyzed leading goals and principles in the Preamble of the 1991 Constitution. They form the image of constitutional democracy. Based on modern theoretical statements and political practices, the conviction is imposed that, guided by its principles, the political subjects will be able to achieve agreement and consolidation necessary to bring sustainability to the development of society.
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Silviya Bratoeva Manoleva
Income Inequality in Bulgaria in the Period 1993-2019 – Decomposition by Income Sources
Summary:
Income inequality is a result from an unequal distribution of different types of incomes forming total household income. The aim of the paper is to find which income sources are the main drivers for rising inequality in Bulgaria for the last 25 years by using income inequality decomposition. The results show that wages has the biggest and growing importance for the overall inequality. Most unequal distributed incomes are those from property, but they have an insignificant role for the rising overall inequality because of the small share in total household income. Incomes that mitigate income inequality are the social transfers, but their effect varies depending on the type of transfer.
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Aleksandar B. Todorov
Empirical Analysis of the Economic Concentration Within the Largest Bulgarian Companies for the Period 2006-2013
Summary:
The article provides a descriptive analysis of the economic concentration and inequality among the 100 largest companies in the Bulgarian non-financial sector in the period from 2006 to 2013. For this purpose, data used are sales and number of employees provided by the annual ranking Capital 100. Established statistical measures of concentration and disparity are applied to the data: concentration ratio, Herfindahl index and Gini coefficient. The empirical results suggest stabilization of the positions of the 10 largest companies, but at the same time growing importance of companies in the second half, i.e. of these with positions from 51 to 100.
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Nikolinka Dimitrova Ignatova
Study of Competitive Advantages of Residential Properties
Summary:
The study analyzes and compares the indicators characterizing the competitive advantages of residential properties in two regions of the country – the north and south-central region. The main criteria for the selection of the two regions are the average living area per occupant, the structure of the buildings, the location of both regions and the number of counties therein. Subject of analysis are the residential properties in the northern and southern central region and the counties therein – Veliko Tarnovo, Gabrovo, Razgrad, Ruse, Silistra, Kardzhali, Pazardzhik, Plovdiv, Smolyan, and Haskovo. The study is focused on following indicators: price and quality (range) of residential properties, characterizing their competitive advantages. The time period of the study is from 2010 to 2014. The study analyzes the impact of individual factors of micro and macroenvironment on the market and the competitive advantages of residential property.
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Olena Sharah
Quality of the Economic Growth under the Terms and Conditions of the Technological Progress
Summary:
This Paper has a two-fold purpose: 1) to explore the abstract and theoretical principles of the classical and neoclassical economic theory to the notion of the economic growth under the terms and conditions of the technological progress; 2) to try to apply these provisions with national economic practice of modern Ukraine.
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Ivan G. Ivanov, Nonka Georgieva
A Linear Matrix Inequality Method for Stochastic Model on Markov Jump Linear Systems
Summary:
We consider a special class of linear quadratic stochastic models on Markov jump linear system. The aim is to find the best control function for a model. The search of the control function passes trough the computation of the maximal solution to a system of the general discrete time Riccati equations. An effective method for finding the maximal solution is the method of a linear matrix inequality (a standard method). In this paper we present two new modifications of the method of a linear matrix inequality. The numerical experiments for comparing the computational characteristics of the modified methods and the standard method are executed. The numerical experiments show the effectiveness of new methods to the standard method.
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Elka Tsoneva
Youth Unemployment in Bulgaria - Economic and Social Problems
Summary:
Unemployment in Bulgaria is becoming a significant scales being a general problem of the society. The so-called ”risk-groups” are particularly affected. Young are the significant group of people that are not in appropriate level on the labor market. The reasons for this condition are the education which does not conform to the needs of the labor market, the difficulties of starting the first job lower pay and searching for better realization abroad after graduation. Young people are social group which represents the near future of the society. They are the most valuable treasure because of their skills, capabilities and intellectual potential are worth for our country. Exactly for this reasons the country and its government social politic should play a main role in caring of this part of the society. General prerequisite for surviving of the society as an organization is the reproduction of the human recourse and so the change of generation themselves.
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Branimira Assenova Koleva
Accounts Receivable and Revenue
Summary:
Revenues are the lifeblood of any organization. Without cash inflows, the entity may cease to exist. The sales account is closely tied to accounts receivables, therefore, evidence supporting accounts receivable tends to support sales. Accounts receivable is frequently the largest asset that a company has. If your company is subject to an annual audit, the auditors will review its accounts receivable and revenues in some detail to determine if they are fairly presented in the context of the financial statements as a whole.
Some companies manipulate their earning by inflating their period and receivables. When trade receivables increase, revenues increase. So, a company can increase its net income by recording nonexistent receivables.
In this article, we will answer questions such as:
• Should auditor confirm receivables to obtain reliable evidence that they are fairly presented?
• Why should we assume that revenues are overstated or understated and to apply professional skepticism?
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Donika Stoyanova
The Impact of the Quality Management Systems on the Activities of Bulgarian Furniture Producers
Summary:
Quality management systems (QMS) undoubtedly are able to bring a number of positives in the organizations that made the decision of their implementation. They can contribute in improving the image of the enterprise to the clients and the other stakeholders; lowering the cost of internal and external nonconformities, optimizing the organizational processes and numerous other positive effects.
The article presents the results of a survey of Bulgarian furniture enterprises in the period 2015-2016 aimed to find out the benefits, realized due to implemented quality management systems.
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Branimira Assenova Koleva
The Role of Materiality and the Correct Assessment of Audit Risk in Issuing Quality Audit Report
Summary:
The Certified Public Accountant (CPA) has to take an oath before the independent financial audit may commence. Everyone has to comply with the code of ethics, perform a quality and independent work. This paper is aimed at supporting the work of auditors by providing theoretical knowledge and illustrative examples on the definition and use of audit materiality.
Each of us is a user of financial statement information, however we may not always understand from the audit report if there is an unqualified (clear) opinion (in terms of volume). This is due to the fact that the audit materiality is stated in the audit file and not considered valuable in the audit report. In addition, the audit materiality is not a public information and any errors below the level of materiality remain in the audit file. What is the level of materiality determined by the auditor, what are the rules that have led to define it? This remains confidential information.
The core of the audit is to determine the audit risk, the level of materiality and gathering audit evidence. Quality work performed by the auditor ensures audit quality. It is difficult to determine audit quality as this does not get clear from the auditor's report. Therefore, in order to better inform users of financial statements, it is required additional disclosures to be made in the audit report presented as recommendations in the study.
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Todor Todorov, Margarita Shopova
The Statistical Quality Control – European Alternative of Quality
Summary:
The implementation of the statistical methods for quality control of the technological processes is an important approach that ensures a substantial increase in the quality of the production. The statistical methods for quality control are wide spread practice in the developed countries. On the contrary they are almost not implemented in the Bulgarian economy and as a result achieving high quality by the European standards is only a good intention.
The survey performed in about 300 enterprises from the machinery construction industry in Bulgaria have shown that the statistical methods are unknown to the workers in that branch of industry and that they have not been implementing such methods in the practice despite their obvious advantages. Thus it is necessary for the Ministry of Economy and Energy to undertake practical steps on the implementation of statistical methods for quality control in the machinery construction enterprises by developing a “Strategy” in which to define the priorities of the Government, the measures and the financial resources that will ensure the training of specialists and the implementation of modern systems for quality management.
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Tsvetelina Tsanova
Theoretical and Methodological Basis of the Concept "Quality of Life" and its Development as an Economic and Social Category
Summary:
The article outlines and explores the concept of quality of life, as well as its similar essence - standard of living, well-being, subjective well-being, well-being, satisfaction, happiness, trust, freedom, and human rights. The concepts related to the object of research are interpreted, and a definition of quality of life as a major role in the lives of individuals.
