Increasing Financial Audit Quality Using A New Model To Estimate Financial Performance

Establishing the performance of the companies is one of the facts that influence the shareholders’ attitude. As a fact, a framing category could further affect the evolution of the company and could influence the audit opinion. As creditworthiness should be given to audit, a performance function score was computed for the companies listed on the Bucharest Stock Exchange. Four performance categories were established, while the validation was done using not only companies from RASDAQ, which is Romania’s secondary market, but also their next stock price evolution. The model developed is trustworthy, as more than 70% of the companies were properly framed.