Business and audit in the process of globalization
Journal Title: Globalization and Business - Year 2017, Vol 3, Issue 3
Abstract
Humanity has a lot of challenges in regard of social, political, ethnic, religious, gender etc. direction within the context of modern globalization, but innovative reveal of the natural regularities in regard of the globalization process characteristic of legislative and social-economic systems taking place willfully or involuntarily, can be considered as the most important one among the mentioned challenges. Sensitivity of business to the internal or external environment characteristic of business within the conditions of globalization can be considered as especially sensitive at all stages of the social-economic formation. If we take into consideration the impact of external factors, affecting social- economic systems, on the economic behavior of the mentioned business structures, the problems related to globalization can have extremely important impact together with the positive events. The latter, on its side, causes the start of so-called “natural survival process” of existing business structures. Business is the field of activity of society distinguished with special requirements. Transparency and legitimacy of the financial-economic situation can be considered as the most important among the mentioned requirements. Since the globalization process is accompanied by the strife for survival in a form of business subjects relevant resources (labor, financial, material and/or other material or non-material) will be provided. This may contain: ability to make law-abiding maneuvering within the legislative system, attractiveness of investment, image of honest taxpayer, compliance with the international harmonized customs- tax system, establishment of trust and transparency by the participants of partner and/or equity capital, confirmation of stable financial image with possible contractors and so on. All the above mentioned can be achieved through proper working of the most important segment of market infrastructure such as audit. Materials of audited financial statements form the basis of transparency of working of business subjects, financial stability, image of honest tax payer and obtaining of desired partner status. Herein, business adaptation process is accompanied by the relevant increase of load of audit segment and inevitability of additional requirements and regulations for the field of audit within the globalization process. It should also be noted that important challanges can be perceived in regard of audit profession and auditorial activity as well that is caused by the process of globalization. That caused a number of legislative and structural changes in the country on its side.
Authors and Affiliations
NIKOLOZ BAKASHVILI
Keywords
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