Analysis of external and legal audits within the pharamaceutical sector

Abstract

The objective of this work is to analyse the opinions with exceptions for auditing in the pharmaceutical sector in order to verify the existence of some type of evolution over the correct accountancy framework. It will also look at demonstrating the existence of some kind of irregularity that maybe cause in order to achieve a purposeful result. External auditing in the pharmaceutical sector has been overlooked in comparison with the rest of sectors in Spain, due to it not being considered a business within the economic sector. Instead, the situation was deconstructed by the entry with conviction under the ruling of June 5, 2003, from the Constitutional Court, forcing many pharmaceutical entities to keep their accountancy in order. The delay in incorporating an accountancy framework into the pharmaceutical sector has been reflected in the evolution of the types of audit reports, showing how pharmaceuticals have been decreasing in volume with opposing exceptions, represented by the results for 2011 as 18.49% and for 2016 15.82%. Therefore, it’s fair to say that during the course of time pharmaceuticals have progressively improved in the correct application for accounting regulations. On the other hand, in 2016 a type of exception was discovered whose total opinions with exceptions represented 71.20%, causing an irregularity of the true representational value to be absent. This was due to the lack of information relating to members of high remunerations within.