Czech Financial and Accounting Journal, 2018 (vol. 2018), issue 1

Articles

Nature of Audit and Demand for Audit

Michal Bobek

Český finanční a účetní časopis 2018(1):5-23 | DOI: 10.18267/j.cfuc.507  

The article analyses the purpose of audit in the current market economy. The article focuses on the demand for the audit. The article presents theories of audit (Policeman theory, Lending credibility theory, Theory of inspired confidence and Agency theory) and hypothesis of existence of audit (Monitoring hypothesis, Information hypothesis and Insurance hypothesis). These theories explain the reasons for the existence of the audit and its functions. These theories and hypothesis are compared with the factors determined as crucial for forming the demand for audit services. The article compares the results to the current development and repetitive misstatements...

Indicators of financial stability for needs of municipalities

Irena Szarowská, Ingrid Majerová, Jarmila Šebestová

Český finanční a účetní časopis 2018(1):25-45 | DOI: 10.18267/j.cfuc.508  

Financial stability of municipalities is an important aspect for long-term sustainable development and disproportionate debt can generate risks for their standard functioning. Although there are many methodologies for assessing the financial stability of municipalities, they are usually based on central government needs and are not used for financial management and planning. The aim of the article is to develop a set of indicators for assessing financial stability for needs of municipalities by using publicly available information. The selected indicators highlight two basic assumptions important for short and long-term budget balance and sustainability...

Czech Republic - Tax Paradise for Paying Profits

Jana Skálová, Maria Argenskaya

Český finanční a účetní časopis 2018(1):47-59 | DOI: 10.18267/j.cfuc.509  

The Czech Republic has implemented the Directive on the common system of parent and subsidiary companies taxation as amended by Council Directive 2006/98/EC. Based on this, the profits paid to parent companies are exempt from withholding tax. All EU Member States are required to implement this Directive. However, a number of states have supplemented their legislation with rules designed to prevent tax evasion. On the contrary, since 2014, the Czech Republic has simplified the rules on commercial law for the payment of equity and has extended the possibilities for payment of dividends since 2018. The empirical research was focused on the exploration...

Possibilities of using blockchain in accounting and auditing: literary research

Robert Jurka, Jaroslava Roubíčková

Český finanční a účetní časopis 2018(1):61-75 | DOI: 10.18267/j.cfuc.506  

This article discusses the basic issues associated with the blockchain. Blockchain logs transactions, so the usage is almost infinite. Blockchain can record virtually any transaction, both digital and physical. Blockchain technology would mean that trading and business have a trustworthy and transparent system, as the uniqueness is that one-time recordings cannot be edited retrospectively and therefore remain in history.Blockchain technology could significantly reduce the cost of bookkeeping, tax advice, and auditing, to companies emerging from outsourced services or internal activities. If the transactions were to be accounted for centrally and...