Europe in Progress: Model and Facts by Sabine Urban (auth.), Sabine Urban (eds.)

By Sabine Urban (auth.), Sabine Urban (eds.)

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Whether in professional statements of ethical standards or by governments, there have been many attempts to identify and prohibit activities deemed incompatible with audit responsibilities. This issue is now considered from an agency theory perspective. The audit function exists as part of monitoring arrangements imposed by the law on behalf of investors and lenders, as principals, on the activities of company managers, as agents. Given the inherent risk in principal-agent relationships that the agent will not act consistently to maximise welfare of the principal, audit is used by the principal as a monitoring procedure to reduce uncertainty.

In the absence of adequate policies there is also the risk that the liberalization brought about by the single market will induce the Italian entrepreneurs to abandon an unfavorable national environment and to move their activity and entrepreneurial ability somewhere else. Italy cannot allow itself to export entrepreneurs, bearers of the rare entrepreneurial ability that has always represented a fundamental strategic element of the product "made in Italy". In order to create the conditions for investing in Italy, we will unfortunately have to rely less and less on financial incentives to the firms, which are considered by the Union as protective measures which distort competition and therefore are non-permissible.

Die strukturellen Handicaps dieser Region werden durch die Schwache der offentlichen Hand aber noch erschwert, die so die wettbewerbswirksamen Vorteile dieses Teiles des Landes negativ beeinflussen. 43 Giovanni P ALMERIO References BANCA D'ITALIA (1994): Relazione annuale. May. /JACQUEMIN, A. (1988): La sfida del 1992 una grande scommessa per l'Europa. Rapporto di Paolo Cecchini. Sperling and Kupfer. Milan. ISCO (1994): Rapporto semestrale, I. MAJOCCHI, A. (1994): Un nuovo sviluppo per l'Europa.

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