Dubinina M. V., Doctor of Sciences in Economics, Professor, Head of Department of Accounting and Taxation, Mykolayiv National Agrarian University, Mykolayiv, Ukraine

ORCID ID: 0000-0002-3993-0622
e-mail: dubinina@mnau.edu.ua

The Role of Inventory in Auditing the Reliability of Financial Reporting in Agricultural Enterprises: Methodological Aspects and Practice in Ukraine

Abstract. Introduction. Inventory serves as a critical tool in auditing the reliability of financial reporting in agricultural enterprises, especially under conditions of uncertainty and economic instability. It ensures the accuracy of accounting data, supports compliance with legislative requirements, and mitigates the risk of misstatement.

Purpose. The study aims to examine the methodological and practical aspects of inventory procedures in the context of auditing financial statements of agricultural enterprises in Ukraine. Emphasis is placed on the role of inventory in assessing audit risk, ensuring continuity of operations, and enhancing the quality of auditors’ professional judgments.

Results. The article analyzes the regulatory and practical dimensions of conducting inventory in agriculture, identifying risks associated with formalism, limited documentation, and restricted access to assets under martial law. It highlights the importance of integrating inventory with internal control systems and audit processes to strengthen financial reporting reliability. The effectiveness of digital tools and automated systems for inventory control is examined as a response to logistical and operational limitations. The study demonstrates how inventory, when properly implemented, can serve as a source of audit evidence and a basis for strategic decision-making.

Conclusions. Inventory plays a crucial role in improving the credibility of financial reporting in agricultural enterprises. Its proper organization and alignment with international audit standards enhance transparency, reduce risks, and support long-term financial sustainability. A comprehensive approach that combines inventory procedures with digital technologies, internal audit, and risk-based analysis is essential for ensuring audit quality and maintaining user trust in financial information.

Keywords: audit; business entity; financial reporting; agricultural business; judgment; risk management; going concern.

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