Guido Giovando

Work cost impact analysis in FTSE MIB companies

The aim of this research is to analyse the cost impact of the work factor of production on the financial statements of Italian companies listed on the FTSE MIB. It emerged a correlation between salary costs and turnover. This is due to the human factor being a highly important input in the companys production process. In addition, a strong correlation emerged between the cost of salaries and wages and actual turnover, since the work factor of production represents a resource of primary significance within the process of production. Finally, a time variable correlation has arisen between the other personnel costs and turnover. Due to the implications of the research, in its decision process, the management has to consider the human element as pivotal to a combination of production factors. The research boundaries should be considered as limitations of the research.

A Model to Reduce Internal Auditing Risk in SMEs

The financial statement may not contain correct or truthful information and, as a consequence, stakeholders’ interests may be damaged. To avoid such risk, legislators have established certain obligations concerning the auditing of disclosures. The paper has a double objective. Firstly, the audit risk approach used by the auditors within a specific small and medium enterprise (SME) is analysed. Secondly, a theoretical model of the limitations of typical risks involved in the SME auditing process is created. According to the audit risk approach, audit risk can be seen as the union of different risk categories, which can be more or less directly influenced by the conduct of the auditor. Such risk components influence each other. Every risk component can be more or less influenced by the small size of a SME. A model for the reduction of audit risk in an SME depends on the typical factors of an SME and the attentive and efficient planning of the audit activity.