THE EVALUATION OF AUDIT RISK AND SIGNIFICANCE IN AUDIT OF FINANCIAL AND ECONOMIC ACTIVITIES OF ENTERPRISES
Journal Title: Проблеми системного підходу в економіці - Year 2018, Vol 2, Issue 64
Abstract
The issues of evaluation of audit risk and significance in the audit of financial and economic activities of enterprises are considered. Ongoing discussions at scientific conferences, in professional journals for the selection of the audit strategy and audit procedures, indicate that there are many issues that require further development. The necessity of determining the level of significance of errors in the audit process that will allow planning the audit with additional procedures for specific problem areas; evaluating the effectiveness of the accounting system and internal control system; determining the content and scope of the procedures that will be used in the audit process in whole and on individual reports and operations. The realization of these objectives will ensure the achievement of the overall objective of the audit – to prevent financial irregularities and ensure the reliability of financial reporting and the main tasks of the audit: ensuring correctness of accounting, the legality of the use of funds and property of the company; the preparation of reliable financial statements and providing effective internal financial control; ensuring that the officials of enterprises comply with the legislation on financial issues. It is proposed to provide the improvement in the evaluation of audit risk and significance through the implementation of short-term (the formation of a system of criteria and the appropriate procedure of calculations and their processing by the internal standards or individual methods; creating a set of factors affecting audit risk and significance; developing the questionnaire-test assessment of the overall risk associated with the company) and long-term (improving the professionalism of auditors; systematization of terminology used in defining the elements of audit risk in the national practice; development of modern techniques: study of the internal control system of the enterprise, of its structure and components, and their interaction; evaluation of the effectiveness of the internal control system; assessment of audit risk and its clarification in the audit process; determining the level of significance; the evaluation of audit quality, etc.).
Authors and Affiliations
T. M. Banasko, R. V. Varicheva
Keywords
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