{"id":19529,"date":"2024-12-09T21:48:46","date_gmt":"2024-12-09T19:48:46","guid":{"rendered":"https:\/\/modecon.mnau.edu.ua\/?p=19529"},"modified":"2024-12-10T11:17:57","modified_gmt":"2024-12-10T09:17:57","slug":"risk-oriented-audit-of-fixed-assets","status":"publish","type":"post","link":"https:\/\/modecon.mnau.edu.ua\/en\/risk-oriented-audit-of-fixed-assets\/","title":{"rendered":"Hnatyuk A. Risk-Oriented Audit of Fixed Assets: Modern Methods and International Standards"},"content":{"rendered":"

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JEL Classification:<\/strong>M41; O31; G32.<\/em><\/span><\/td>\nDOI<\/b>: https:\/\/doi.org\/10.31521\/modecon.V47(2024)-04<\/a><\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

[\/vc_column_text][vc_column_text]Alla Hnatyuk,<\/strong> Ph.D. in Economics, Associate Professor, Lecturer of Economic Disciplines, Separated structural subdivision \u00abRivne Professional College of the National University of Life and Environmental Sciences of Ukraine\u00bb, Rivne, Ukraine.<\/p>\n

ORCID ID:<\/strong> 0000-0002-8743-1932<\/a>
\ne-mail: <\/strong>alla1720@gmail.com<\/a><\/p>\n

 <\/p>\n

Risk-Oriented Audit of Fixed Assets: Modern Methods and International Standards<\/strong><\/h2>\n

Abstract. Introduction.<\/em><\/strong>This article examines current approaches to risk assessment in the audit of fixed assets based on International Standards on Auditing (ISA). The study is motivated by the growing need to improve the quality and reliability of financial reporting, particularly in Ukraine\u2019s transition towards European standards. Given the significance of fixed assets in the structure of companies’ financial statements, an accurate and comprehensive risk assessment is essential to avoid financial misstatements and ensure audit effectiveness. The research identifies specific factors impacting the reliability of fixed asset audit assessments, such as depreciation rates, impairment, and asset obsolescence. These factors are critical for auditors to consider in their risk evaluation processes, as they directly influence the quality and objectivity of the audit outcomes.<\/em><\/p>\n

Purpose. <\/em><\/strong>The article aims to provide methodological recommendations to enhance risk-based audit approaches for fixed assets. The research purpose focuses on adapting and refining audit procedures to better identify, assess, and mitigate potential risks associated with fixed asset management. This goal aligns with the ongoing integration of international audit standards in Ukraine and the need for practical applications that meet these requirements. The study also intends to bridge the gap between theoretical principles of risk-based auditing and their practical applications in the audit of fixed assets within different economic sectors. By exploring internal factors, such as a company\u2019s internal control system and accounting policy, alongside external macroeconomic conditions, this research seeks to develop a comprehensive framework for fixed asset risk assessment.<\/em><\/p>\n

Results. <\/em><\/strong>The study finds that incorporating both analytical and technological tools significantly enhances the accuracy of risk identification and evaluation. Analytical tools, such as trend analysis, ratio analysis, and big data analysis, allow auditors to detect patterns and pinpoint areas vulnerable to misstatements. Technological advancements, including automated systems and data analysis software, play a vital role in minimizing human error and improving audit precision. The findings also indicate that risk assessment for fixed assets requires industry-specific adjustments due to the unique depreciation, maintenance, and valuation challenges associated with different types of assets. Additionally, the study underscores the importance of ongoing auditor training in new risk assessment methodologies and technologies to keep pace with evolving standards.<\/em><\/p>\n

Conclusions. <\/em><\/strong>The article concludes that a well-defined, risk-based approach to fixed asset audits, as supported by ISA guidelines, is integral to enhancing the transparency and reliability of financial reporting. The proposed framework for risk assessment includes a multi-layered analysis of both internal and external risk factors. This approach is tailored to meet the unique conditions in Ukraine\u2019s economic environment while aligning with international audit standards. The recommendations provided in the article can be instrumental for auditors, accountants, and business managers striving to improve fixed asset management practices and minimize financial reporting risks. Ultimately, the adoption of these risk-oriented audit techniques contributes to stronger stakeholder confidence in financial reporting and enhances the overall quality of financial governance.<\/em><\/p>\n

Keywords: <\/em><\/strong>audit; fixed assets; risk; risk-based approach; risk assessment; financial reporting; International Standards on Auditing (ISA).<\/em><\/p>\n

References:<\/strong><\/p>\n

    \n
  1. Hevlych, L. L. (2023). The Place of Risk in the Process of Independent Audit. Bulletin of Lviv University of Trade and Economics. Economic Sciences<\/em>, 73, 73\u201378. https:\/\/doi.org\/10.32782\/2522-1205-2023-73-11.<\/u><\/li>\n
  2. Datsenko, H., & Kudyrko, O. (2022). Features of Auditing Fixed Assets in Manufacturing Enterprises. Economy and Society<\/em>, 46. https:\/\/doi.org\/10.32782\/2524-0072\/2022-46-32.<\/u><\/li>\n
  3. Kulyk, R. R. (2018). Methodological Aspects of Risk Assessment in Auditing. Economic Analysis: Collected Works of Ternopil National Economic University<\/em>, 28(1), 142\u2013147.<\/li>\n
  4. International Standards on Auditing. (n.d.). Public Oversight Body of Audit Activity. https:\/\/www.apob.org.ua\/?page_id=3482.<\/u><\/li>\n
  5. Poddubna, N. (2021). Modern Mainstream in Auditing: Risks and Their Assessment. Scientific Journal “Economics and Region”<\/em>, 2(81), 102\u2013106. https:\/\/doi.org\/10.26906\/EiR.2021.2(81).2296.<\/u><\/li>\n
  6. Podmeshalska, Yu. V., & Trojan, O. V. (2019). Theoretical and Practical Aspects of Auditing Fixed Assets. Investments: Practice and Experience<\/em>, 2, 64\u201370. http:\/\/www.investplan.com.ua\/pdf\/2_2019\/12.pdf.<\/u><\/li>\n
  7. Tomchuk, V. V., & Lesik, Ye. S. (2018). Modern Aspects of Auditing Fixed Assets. Economics and Organization of Management<\/em>, 4, 100\u2013110.<\/li>\n
  8. Fabianska, V. Yu. (2020). Audit Risk: Essence, Methodology of Assessment, and Ways to Reduce. Bulletin of Khmelnytsky National University<\/em>, 1, 110\u2013121.<\/li>\n
  9. Sharmanska, V. M., & Kaliuzhna, O. O. (2019). Analysis of Risks Associated with the Use of Fixed Assets. Scientific Journal “\u039b\u038c\u0413O\u03a3. The Art of Scientific Thought”<\/em>, 3, 14\u201316.<\/li>\n
  10. Shulha, S. (2019). Methodological Aspects of Risk Assessment in Providing Audit Services. Scientific Bulletin of Odessa National Economic University: Collection of Scientific Works<\/em>, 5(268), 233\u2013256.<\/li>\n<\/ol>\n

    [\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text]Received:<\/strong> 25 October 2024<\/p>\n

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    Hnatyuk A. (2024). Risk-Oriented Audit of Fixed Assets: Modern Methods and International Standards . Modern Economics, 47(2024), 27-32. DOI: https:\/\/doi.org\/10.31521\/modecon.V47(2024)-04.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
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    [vc_row][vc_column][vc_column_text] JEL Classification:M41; O31; G32. DOI: https:\/\/doi.org\/10.31521\/modecon.V47(2024)-04 [\/vc_column_text][vc_column_text]Alla Hnatyuk, Ph.D. in Economics, Associate Professor, Lecturer of Economic Disciplines, Separated structural subdivision \u00abRivne Professional College of the National University of Life and Environmental Sciences of Ukraine\u00bb, Rivne, Ukraine. ORCID ID: 0000-0002-8743-1932 e-mail: alla1720@gmail.com   Risk-Oriented Audit of Fixed Assets: Modern Methods and International Standards Abstract. Introduction.This
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