Template-Type: ReDIF-Article 1.0 Author-Name: Robert Jurka Author-Name: Jaroslava Roubíčková Title: Possibilities of using blockchain in accounting and auditing: literary research Abstract: 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 not for separate books, then all records would be visible to notaries, banks, auditors, financial officers and other institutions transparently and in real time. These entities would be able to control transactions much easier and more efficiently, and could test much more information and data. Blockchain technologies are expected to be used in a wide range of industries, including accounting and auditing. The aim of the article is to introduce this issue, to get acquainted with selected opinions published by relevant experts of consultancy companies, professional organizations and other institutions. Keywords: Audit, Auditor, Audit, Auditor, Účetnictví, Corporate Governance, Bookkeeping, Corporate governance, Blockchain, Tripple-entry accounting, Blockchain, Tripple-entry accounting Classification-JEL: G34, M40, M42 Pages: 61-75 Volume: 2018 Issue: 1 Year: 2018 File-URL: http://www.vse.cz/cfuc/download.php?jnl=cfuc&pdf=506.pdf File-URL: http://www.vse.cz/cfuc/506 File-Format: text/html Handle: RePEc:prg:jnlcfu:v:2018:y:2018:i:1:id:506:p:61-75 X-File-Ref: http://www.vse.cz/RePEc/prg/jnlcfu/references/506 Template-Type: ReDIF-Article 1.0 Author-Name: Michal Bobek Title: Nature of Audit and Demand for Audit Abstract: 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 in audited financial statements. The results and presents the reasons for that. Keywords: Audit, Audit, Teorie zastoupení, Demand for audit, Agency theory, Poptávka po auditu Classification-JEL: M42 Pages: 5-23 Volume: 2018 Issue: 1 Year: 2018 File-URL: http://www.vse.cz/cfuc/download.php?jnl=cfuc&pdf=507.pdf File-URL: http://www.vse.cz/cfuc/507 File-Format: text/html Handle: RePEc:prg:jnlcfu:v:2018:y:2018:i:1:id:507:p:5-23 X-File-Ref: http://www.vse.cz/RePEc/prg/jnlcfu/references/507 Template-Type: ReDIF-Article 1.0 Author-Name: Irena Szarowská Author-Name: Ingrid Majerová Author-Name: Jarmila Šebestová Title: Indicators of financial stability for needs of municipalities Abstract: 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 of funding. Concretely, the balance of the current budget should always be positive and the maximum debt service should not exceed the surplus of the current budget. The set of indicators includes three groups of indicators: budgetary management (7 indicators), indebtedness (8 indicators) and liquidity (3 indicators). There is a clearly defined and interpretable assessment for each indicator in terms of financial stability and potential risks. Keywords: Budget, Rozpočet, Financial stability, Finanční stabilita, Liquidity, likvidita, Zadluženost, Municipality, Indebtness, Obec Classification-JEL: H7, R5 Pages: 25-45 Volume: 2018 Issue: 1 Year: 2018 File-URL: http://www.vse.cz/cfuc/download.php?jnl=cfuc&pdf=508.pdf File-URL: http://www.vse.cz/cfuc/508 File-Format: text/html Handle: RePEc:prg:jnlcfu:v:2018:y:2018:i:1:id:508:p:25-45 X-File-Ref: http://www.vse.cz/RePEc/prg/jnlcfu/references/508 Template-Type: ReDIF-Article 1.0 Author-Name: Jana Skálová Author-Name: Maria Argenskaya Title: Czech Republic - Tax Paradise for Paying Profits Abstract: 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 of the largest Czech companies and their profits paid out, i.e. on how much of the generated profits are paid to parent companies abroad. The selected sample included 56 companies from the CZECH TOP 100 ranking, 31 joint-stock companies (55%) and 25 limited liability companies. All these companies paid dividends in the years 2013 to 2015. Banks and financial institutions were not in the survey. It was found that 16 out of 31 joint-stock companies paid dividends each year at the amount close to the entire reported profit for the prior period. The same policy was followed by 9 out of 21 limited liability companies. More than 99% of the earnings paid was exempt from withholding tax on the basis of the implementation of the favorable tax regime of the EU Directive in the Czech Income Tax Act. Keywords: Účetní závěrka, Payment of dividends, Withholding tax, Annual report, Podíl na zisku, Srážková daň Classification-JEL: D22, H21, M41 Pages: 47-59 Volume: 2018 Issue: 1 Year: 2018 File-URL: http://www.vse.cz/cfuc/download.php?jnl=cfuc&pdf=509.pdf File-URL: http://www.vse.cz/cfuc/509 File-Format: text/html Handle: RePEc:prg:jnlcfu:v:2018:y:2018:i:1:id:509:p:47-59 X-File-Ref: http://www.vse.cz/RePEc/prg/jnlcfu/references/509