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 paper focuses on distribution of unrealized profits. It identifies arguments for such a discussion. Substance of creditor protection, equivalent rights for shareholders and creditors, capital maintenance concepts and accounting aspects of these phenomena are discussed. The paper clearly...

As governmental accounting standards have developed, the complexities of preparing financial statements for governmental entities have greatly increased. Providing meaningful financial information to a wide range of users is not an easy task. Adding to these challenges, the Governmental...

This paper deals with detailed analysis of sanctions imposed in the Czech Republic for unlawful conduct concerning accounting provided for in Act No. 563/1991 Coll., on Accounting, as amended. I analyze the difference between an infraction and an administrative offence including implications for...

The Czech National Accounting Board, an independent national accounting body that was established by the initiative of Czech accountants, the Chamber of Auditors, academics from the University of Economics in Prague, and the Chamber of Tax Advisors in 1999 is subject of the article. The main...

As a reaction on bankruptcy and financial scandals of the important international corporations, the Congress U.S.A. issued in 2002 a new law – Sarbanes-Oxley Act. The important part of it deals with the regulation of auditor profession by means of a new established institution – PCAOB. This...

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...

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 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...

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...