Bodenchuk Liliia, Candidate of Economic Sciences, Associate Professor at the Department of  Economics and Management, Prydunayska Filiya MAUP, Ismail, Ukraine

ORCID ID: 0000-0003-3892-3823
e-mail: lb-izm@ukr.net

Sikorska Liliia, 5th year student of the Faculty of Economics and Management, Prydunayska Filiya MAUP, Ismail, Ukraine

ORCID ID: 0000-0003-2430-0502
e-mail: sikorskaalilia7@gmail.com

The use of State Control of Financial Statements to Justify the Effectiveness of Management Decisions

Abstract. Introduction. At the present stage of development of economic relations the issue of reliability of financial reporting, which serves as the main source of information on the property status of an institution or organization, is acute.

Purpose. To understand the practical necessity of control procedures, it is necessary to clearly understand the essence of this concept and their role in making effective management decisions by users of information disclosed in financial statements.

Results. The article considers the basic concepts, which reveal the essence of the process of application of procedures of state control of financial reporting, structured the methodology of such procedures, analyzed the methods of control and carried out a review of the legal framework, which regulates its implementation. For revealing of these questions, the works of domestic and foreign researchers have been analyzed, the concept of reliability of indicators of financial reporting has been revealed, the process of gathering of audit evidences and the source of their reception has been described. Also, the article characterized the importance of state control of financial reporting for the correction of deviations from the adopted standards and compliance with current legislation, for the formation of a positive image of the institution or organization and for all users of such information to make informed decisions. Consideration of the concepts of “audit report” and “audit conclusion” allowed to analyze their difference and the materiality of their impact on the organization, in which control procedures were applied to determine the reliability of the information given in the financial statements.

Conclusions. As a conclusion, it is noted that the state control is an integral part of the regulatory system, which aims to identify deviations and violations of the principles of legality, efficiency and economy of expenditure of material resources at the earliest possible stage in order to be able to take corrective action.

Keywords: financial statements; auditor; audit risk; methodology of control procedures; audit evidence; audit report; audit conclusion.

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