The series of corporate accounting scandals drew attention to the stewardship function of accounting. This exposition deals with the characteristics of accounting from perspective of institutional economic theory. I analyze relationship between owner and manager by the principal-agent model....

This paper deals with professional liability of auditors seen from the perspective of criminal law of the Czech Republic. The introductory part discusses the essentials of criminal liability, analyses the term “criminal act” and other issues, particularly “fault”: not only from the...

This paper deals with auditor’s and tax advisor’s duty of confidentiality. In the first part I define the auditor’s duty of confidentiality, also in the context of legal regulation development concerning the auditor’s profession. I go on to discuss aspects of breach of the duty to...

This paper discusses the criminal liability of auditing companies which came into force in the legal system of the Czech Republic on 1 January 2012. It explains new principles of legal regulation concerning criminal liability of corporations and actions against them and it goes on to apply these...

The New civil code in the Czech Republic re-implemented earnest into legislation. This article handles with this instrument – substance of earnest, its functions which are important for the decision on accounting treatment of earnest (proof, secure and penalize). Also distinction between...

The supervision of the quality of auditors' activities in the Czech and Slovak Republic has developed in different directions even though the default Act of 1989 for this profession was identical. The Czech approach was more aimed at the restriction of undesirable behavior of auditors the Slovak...

Assurance services are services provided by auditors to reduce information asymmetry in agent/principal situation or in other situations when one party of transaction is able to gain less information then the other. Those services are regulated by International Standards on Auditing issued by...

This text is concerned with problems related to transfer prices within business combinations, particularly multinational enterprises. It is based on the expectation that a company’s information system is composed of three basic accounting subsystems: managerial, financial and tax. The...

The aim of the strategic cost control is to recognize mutual interconnections and relations of budgeting process as a whole, to design the management model of a company operating in turbulent market environment and to specify the principles, rules and tools of the model. Budgets stand on the top...

This paper deals with different kinds of costing formulas, regarding the price-setting decisions, resp. transfer-pricing decisions and business value maximization. Results of theoretical research show that it is always suitable to separate fixed and variable costs, nevertheless retrograde...