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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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Gergana Mihailova
Bank Efficiency in Bulgaria in the Period 2007-2013: Application of Parametric Method Stochastic Frontier Analysis (SFA)
Summary:
The study uses a nontraditional method for the measurement of bank efficiency - parametric method "stochastic frontier analysis" (SFA), to help analyze the efficiency of the entire banking system in Bulgaria and individual groups of banks by ownership. This method has been applied in numerous studies of bank efficiency in a group of countries, but it is not used for the purpose of measuring the efficiency of the Bulgarian banking system. The survey results show that foreign banks are the most efficient banks in the economy and determine the dynamics of the efficiency of the banking system. Their better performance is explained by the technology and experience they have.
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Georgi Georgiev Dimitrov
Economic Efficiency Due to Improvements in the Road Infrastructure of the Transport Corridors on the Territories of the Republic of Bulgaria
Summary:
In the present study economic efficiency for users of road infrastructure in its building in directions of the land trans European transport corridors in the territory of the country. For the purpose shall be calculated the potential savings in operating costs, by using the method of the scenarios. In the case of the first variant road infrastructure is in this condition, and in the second option, it is accepted that are already built priority projects for the construction of highways and speed roads.
The main purpose of the study is to determine from a consumer point of view to which transport corridors it is economic priority to focus resources and efforts to build the road their infrastructure.
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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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Krasimir Kulchev
Optimization of Physical Distribution by Analyzing its Efficiency
Summary:
The article clarifies the methodological, theoretical and applied problems of analysis of physical distribution. The presented opinions are about the nature and the range of physical distribution. The models have been developed to analyze the efficiency of physical distribution. They are probed to a firm - manufacturer of baby food for two consecutive years. The thesis that is defended is that in contemporary conditions the tools of the economic analysis (methodological and technical) have an important role in the optimizing of the activities included in the composition of the physical distribution and physical distribution in general.
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Yavor Stanev
Entrepreneurship as a Possibility for Employment (Self-Employment) and Development of Small Localities in Bulgaria
Summary:
This paper focuses on the resuls of conducting a seven-year real experiment that is still ongoing and in the course of which we have faced many challenges. The key points in the construction of an agricultural holding, whose main activity is the production of quality bee products, have been discussed. The article compares the two main types of farming – conventional and organic. Both their strengths and weaknesses have been presented. All data and indicators correspond to real prices and results. The study is entirely focused on practice and aims to show young people in Bulgaria that they can make a career and develop in their native places, instead of seeking livelihood in large cities or abroad.
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William Barnett Ii, Walter E. Block
Spreading the Benefits of Productivity Increases: Price Increases, Decreases, or Both? A Critique of Baumol on Subsidies to the Arts
Summary:
This paper attempts to grapple with the market mechanism through which growth in one sector of the economy spreads to other sectors. It calls into question Baumol’s argument for subsidies to the arts and by extension, to other economic areas that have not enjoyed productivity increases.
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Teodora Spasova
Systematization of the Cloud Migration Approaches and Calculation of the Economic Efficiency from its Implementation in Bulgarian Corporations
Summary:
Large corporations have specific features which make their cloud migration difficult. Systematization of different approaches to transition from on-premise system to the cloud can facilitate the selection of a strategy by the management if the organization decides to make a migration step.
Migration to the cloud is generally profitable for organizations, but in order to justify the decision it is necessary to make preliminary calculations of some financial indicators. It is necessary to consider all possibilities for hidden costs, to evaluate the material and non-material benefits of migration.
The aim of the article is to classify and compare cloud migration approaches, to calculate performance indicators and to outline cloud service challenges to help managers in cloud migration decisions.