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• The impact of freedom ensured by the accounting principles on a realistic assessment of economic management processes

  51-59

  Imre Túróczi

  Views:

  111

  The information system of accounting serves as a constant source of information to entrepreneurs concerning the state of their assets, financial and profitability conditions. By fulfilling their reporting commitments and ensuring public accessibility the business environment can also draw on this source. In order to operate the single system the fundamental rules are set by the Act on Accounting. The core principle of the regulation prescribes the keeping of such a registration system and the application of such asset and resource evaluation rules which can help entrepreneurs to form realistic and reliable picture of their asset situation. In reality, accounting cannot be applied isolated from the environment; the special features must assert themselves in registration, asset evaluation and the income and financial processes alike. Because of the differing market and other conditions – and specifically in order to achieve the basic objective of the Act – flexibility must be ensured. To facilitate adaptation to the environment the Act on Accounting defines only principles and within their framework ensures a certain level of freedom for the entrepreneurs. The formulation of internal rules takes place through the accounting policy which must be worked out by everyone affected. A primary goal of the auditing procedure is to check whether the entrepreneurs have made correct use of the opportunities or bent them according to their needs falsifying the figures in their reports.

• The Auditing System in Hungary

  21-30

  Anikó Petrányi

  Imre Túróczi

  Views:

  155

  The auditing work goes back several decades in Hungary. Following the change of the political and economic regime the professional auditing of tax returns of companies and the discovery of mistakes and deliberate errors became necessary in the emerging market economy. Auditing - apart from the supervision of enterprises - includes the examination of the utilization of competition resources and the authentication of accounts. The auditors strive to ensure the purity
  of entrepreneurial public life. It is an important fact from the point of view of judging this work that the auditors are not official people, they do their work as entrepreneurs and are liable for its accuracy with all their assets.