Impact of Non-Financial Factors on the Effectiveness of Audits in Energy Companies

Milojević, Marko; Urbański, Mariusz; Terzić, Ivica; Prasolov, Valeriy

doi:10.3390/en13236212

Cited by 10 publications

(6 citation statements)

References 34 publications

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“…When choosing sources of information, the fact that the efficiency of energy companies in eastern Europe is significantly influenced by non-financial factors that are reflected in integrated reporting was taken into account. Therefore, their financial audit should consider the state of corporate social responsibility and the effectiveness of sustainable development; the responsibility of an auditor should be generalized by the length of the integrated audit vector [3]. Companies in the energy sector have a high level of social responsibility, including the quality of disclosure of financial and non-financial information in integrated reporting [4].…”

Section: Methodsmentioning

confidence: 99%

Ukrainian Market of Electrical Energy: Reforming, Financing, Innovative Investment, Efficiency Analysis, and Audit

Kostyrko¹,

Косова

Костирко

et al. 2021

Energies

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The aim of this research is to determine the influence of electrical energy market regulation reform in Ukraine on the competitive environment, the reproduction processes of financial and innovative support, and the energy efficiency of the national economy. The authors have put forward and verified the hypothesis that, under conditions of institutional maturity of the Ukrainian electrical energy market, its liberalization and separation of the kinds of activity related to generation, transmission, and distribution leads to a decrease in prices, and the level of economic concentration stimulates implementation of innovations and the formation of reports on sustainable development. Over the thirteen-year time interval, a steady trend of decreasing energy intensity of the Ukrainian economy was established, and the appropriateness of energy efficiency management based on strategic targets was substantiated. The electricity market model in Ukraine is defined as a hybrid one, with an emphasis on trade under bilateral agreements. It was statistically found that liberalization of the electrical energy market in Ukraine contributed to a decrease in prices, with the exception of the areas of largest household and non-household consumers. The high level of asset concentration in the accounts of large enterprises was revealed, and the conclusion concerning the improvement of the competitive environment in the electricity production sector and the existence of the features of natural monopolies in the areas of transmission and distribution of electricity was made. The assessment of the financial competitive ability and profitability of electrical energy market entities was made, the main entities of the investment activity and the sources of their financing were characterized, and innovations were emphasized. The role of the standards of the audit of integrated reporting of the Ukrainian energy holdings and their role in ensuring sustainable development was determined.

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Section: Methodsmentioning

confidence: 99%

Ukrainian Market of Electrical Energy: Reforming, Financing, Innovative Investment, Efficiency Analysis, and Audit

Kostyrko¹,

Косова

Костирко

et al. 2021

Energies

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“…Accounting firms with industry expertise earn more additional income than other accounting firms, according to Wang et al research on Chinese data, and accounting firms can enter an industry by reducing audit fees to gain professional experience and win more clients later [15]. Furthermore, to address difficulties scientifically, we must devote significant time to the study and investigation of contradictions and problems, as well as to the solution of big problems in the actual world [16,17]. In addition, practical audit recommendations or actionable policy recommendations to resolve conflicts and problems should be put forward.…”

Section: Introductionmentioning

confidence: 99%

The Application of Grey Relational Analysis in the Evaluation of Financial Auditing Effect and Improvement

Wang

2022

Mobile Information Systems

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Financial institutions are confronting more complicated risks as a result of the current financial crisis. Financial auditing is an essential aspect of government auditing since it serves to protect the security and stability of the national financial system by evaluating financial systemic vulnerabilities. Therefore, this paper combines the grey relational analysis to carry out research work on the financial auditing effect and improvement evaluation. Firstly, we conducted a preliminary selection of relevant financial audit impact indicators and identified the design of the influencing factor system as well as appropriate data for the influencing factors, resulting in the first evaluation system of the evaluation indicators. Secondly, we created a factor set for evaluating the financial audit improvement effect. The completed task proportion component and the task completion quality factor are the two kinds of improvement impact evaluation factors. On this foundation, this research develops a grey correlation-based assessment model for audit effect enhancement. The residual graph fitting findings indicate that the scheme has a good implementation impact and may be utilised to assess the financial auditing improvement effect.

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“…Many articles published over the last 35 years involve the theory and applications of EVA, e.g., [17][18][19][20][21][22][23][24][25][26], and one may argue that a new study about EVA is unnecessary because many have discussed how to use the EVA in unstable markets. However, based on a systematic literature review, including Pal and Sura's [27] study and Worthington and West's [28] review of the literature on EVA, and their survey of EVA's conceptual underpinnings, one may argue that there is still a need for further analyses of EVA.…”

Section: Literature Reviewmentioning

confidence: 99%

Can the Economic Value Added Be Used as the Universal Financial Metric?

et al. 2022

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Previous research into Economic Value Added (EVA) has extensively described it as a business metric of firms. Still, no studies have confirmed or denied that EVA is a universal metric and that one may use EVA in unstable markets in the same way as in stable and developed economies. Meanwhile, the green energy revolution, ensuring carbon neutrality through green innovations, requires enormous investments, and the projects realised must be appropriately tailored. These projects are realised by different firms, including those from developing countries, and investors need solid financial metrics. The study determines whether EVA is a universal metric of owners’ value in the energy sector. The research proves that this metric does not correctly reflect the limitations of emerging markets, can lead to incorrect managerial decisions and limit shareholders’ value. Therefore, there is a need to reanalyse financial metrics used in financial planning, including EVA. The study eliminates this research gap and, based on data from seven countries and the Euro Zone, explains why one may not perceive the currently used EVA formula as a universal financial metric. Consequently, the study modifies the EVA formula and presents a universal solution tailored to unstable economies. In the conducted research, literature studies were used, taking into account the methodology of a systematic literature review, including bibliometric analysis. Based on this review, it is shown that little is known about whether EVA as a financial measure can be used in energy management. Two conclusions emerged: first, the research contributes to developing the business and management science; second, identifying risks associated with EVA metrics helps practitioners. In addition, the study defined further research directions.

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Impact of Non-Financial Factors on the Effectiveness of Audits in Energy Companies

Cited by 10 publications

References 34 publications

Ukrainian Market of Electrical Energy: Reforming, Financing, Innovative Investment, Efficiency Analysis, and Audit

Ukrainian Market of Electrical Energy: Reforming, Financing, Innovative Investment, Efficiency Analysis, and Audit

The Application of Grey Relational Analysis in the Evaluation of Financial Auditing Effect and Improvement

Can the Economic Value Added Be Used as the Universal Financial Metric?

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