TU Chemnitz: Economic Sciences: International Accounting: Chair

Subjects:

Financial accounting is part of company’s information/reporting system. Its objective is to provide financial information about the reporting entity that is useful to present and potential stakeholders, especially investors, lenders and other creditors, in making economic decisions. Such data shall be enabling the users to assess the chances and risks of their (potential) investment and to evaluate the stewardship or accountability of management. To ensure the reporting data are informative for users, preparing financial accounting is laid down by general accepted accounting principles. These principles represent more or less strict guidelines of the preparation and distribution of financial statements. At the chair various issues of national and international financial reporting are investigated.

Auditing is characterized as process of gaining obtaining and evaluating evidence on management’s financial statement assertions. Auditing culminates in the issue of an auditors’ report that contains the auditor’s opinion on whether the financial information gives a fair presentation of the financial position of the entity or not. In general “auditing” deals with constitutional and institutional conditions and their developments as well as with typical functions of auditors (expert, auditor and fiduciary). The chair focuses on issues concerning auditing and selected problems concerning the other functions (e.g. business valuation).