JEL Classification: M40; M41
Syrtseva Svitlana, Candidate of Economic Sciences, Department of Accounting and taxation, Mykolayiv national agrarian university, Mykolayiv, Ukraine.
Cheban Yuliia, Candidate of Economic Sciences, Department of Accounting and taxation, Mykolayiv national agrarian university, Mykolayiv, Ukraine
METHODOLOGICAL APPROACHES TO THE FIXED ASSETS AUDITOF AGRARIAN ENTERPRISES
Introduction. An audit of fixed assets is an integral part of general audit of any entity. The purpose of fixed assets audit is to confirm the accuracy of the information on the fixed assets value, the amount of accrued fixed assets depreciation, operations related to the movement of fixed assets, costs of improvements in fixed assets and repairs, and the revaluation outcomes in the accounting and financial reporting.
Purpose. The article presents the methodology of fixed assets’ auditing in agrarian enterprises, improved methodological approaches to its implementation, proposed verification program and working documents of the auditor.
Results. The methodology of fixed assets’ auditing conducting should include an assessment of the internal control system, the preparation of the program and audit plan, the implementation of audit procedures, and the confirmation of the information reliability on the accounting of fixed assets.
The arrangement and methods of auditing are reflected in the audit program, which is a list of audit activities at each stage of the audit.
In accordance with the requirements of ISA 520, “Analytical Procedures”, during the verification the auditor should apply procedures for the analysis of important financial indicators and trends, further studying deviations and interactions that conflict with other relevant information or deviate from the predicted amounts.
The main methodical techniques used in the audit of fixed assets include organoleptic, accounting and analytical, and documentary.
The proposed program of fixed assets audit in agrarian enterprises should include the following steps: checking the availability and preservation of fixed assets of the enterprise; checking the correctness of income and disposal of fixed assets’ accounting operations; checking the correctness of calculation and reflection of depreciation of fixed assets; verification of fixed assets’ use and their reproduction; validation of the data on the fixed assets, reflected in the financial reports.
The final stage of the audit is a synthesis of the audit results, determining the severity of the detected errors and violations; as well as drawing the relevant conclusion.
Conclusions. Consequently, the proposed audit program should consist of 4 stages. Based on the given program the working papers of the auditor were developed in order to improve the quality and systematic conduct of the audit of fixed assets in agrarian enterprises.
Keywords: audit, fixed assets, agrarian enterprises, audit procedures, working documents of the auditor.
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