Shchur, K. A.

Electronic Repository Kyiv National University of Technologies and Design

Економіка інноваційної діяльності підприємств Іноземні мови  598 UDC 657.6.011.8(477)  PROBLEMS AND PROSPECTS OF DEVELOPMENT OF AUDIT  ACTIVITY IN UKRAINE  Stud. K. A. Shchur, gr. BOA 1-15 Language and scientific supervisor I. I. Borolis Kyiv National University of Technologies and Design  Purpose and tasks. Determination of the problems of the development of audit as a type of independent financial control in Ukraine and the search for ways to solve them. Audit activity is an inappropriate element for supporting the management processes of domestic business entities and an important component of supporting the life cycle of enterprises of different forms of ownership and types of economic activity. Object and subject of research. An analysis is carried out on topical issues that have been identified that practically eliminated the targeted scientifically-based classification of audit activity that would be investigated by the potential capabilities of certain types of audit work and services.  In particular, the mechanism requires the development of an optimal correlation of systems and methods of regulation of audit activity. The actual problems of the impact of International Standards on audit on domestic practices of audit activity remain. Research results. The Law of Ukraine "On Auditing" states that the Audit is an audit of the accounting data and indicators of the financial statements of the entity in order to express an independent opinion about its reliability in all material aspects. Accordingly, Audit activity is a sphere of entrepreneurship that includes organizational and methodological provision of audits, practical implementation of audits and provision of other audit services. One of the most important problems of audit activity is regulatory regulation and prospects for its improvement. It was investigated that normative regulation of audit activity in Ukraine is carried out in three levels: I. legislative and regulatory regulation; II. normative-methodical regulation and quality control; III. internal regulation. This vision of the essence of audit activity led to the idea that the current regulatory audit of Ukraine has a number of shortcomings. In particular, the shortcomings of legislative and regulatory regulation (level I) relate to the definition of the range of mandatory audit objects, the list of other services that can be influenced by auditors (in addition to audit of financial statements), the definition of the role and place of public professional organizations in the regulation of audit activity .   The multilevel system involves providing certificates of such series based on an assessment of the level of auditor's professionalism: A-1 "for those who first passed the qualifying examinations, has a limit on auditing in medium and large enterprises; "A-2" for auditors who have been continuously practicing and have increased their qualifications annually, has limitations in carrying out audits at large enterprises; "A-3" to provide the entire list of audit services to enterprises of any size and type of activity; "A-4" for auditors with a degree in economics or law. Also, the problem is setting prices for audit services in the part of the methodology for their definition. There is no single system for calculating the cost of audit services in Ukraine, which is why auditors often use their own pricing system. Usually such a system is based on determining the number of hours worked or the amount of work performed, which leads to a decrease in the quality of services provided. Економіка інноваційної діяльності підприємств Іноземні мови  599 An urgent need to solve the problem of effective work of the auditor with the use of computer technology, which has already found its application in the work of various economic services. The development and improvement of computer programs for working with audit documentation will reduce the auditor's load and will also enable the development of a multifunctional client base. The directions of the development of the audit are rather relevant issues, since this activity is rather new and has a large field of action to improve the overall system of audit performance in Ukraine. Audit activity is a rather new field, resulting in a number of shortcomings in its functioning. In particular, this concerns the lack of methodological foundations. In Ukraine, in general, the inadequacy of domestic special literature and, moreover, detailed development, manuals for auditing efficiency, which is a certain gap in the formation of its methodology and requires scientifically grounded theoretical developments in this direction and their practical implementation, is objectively felt. . The second rather acute problem of national audit is the lack of strictly regulated and state-level audit standards. The development of standards for audit activity was based on foreign experience, in particular on the ISA. But such developments to date are only recommended, which in modern realities is an ineffective step. At the moment there are a number of reasons that hamper the process of effective audit development in Ukraine. Among them are the following:  insignificant period of functioning of market mechanisms of regulation and corresponding mechanisms of state financial control in Ukraine;  the presence of a large number of financial violations, inappropriate and ineffective use of public resources;  limiting the effectiveness of audit results at the legislative level, etc. Thus, one can distinguish the fundamental problematic issues of audit activity in Ukraine:  imperfection of theoretical, applied and methodological materials on audit control;  low confidence in the auditor;  significant negative impact of shadow business;  insufficient practical experience of audit activity;  low level of qualified auditing staff;  auditors' non-compliance with the quality of audit services;  absence of fines and penalties for unreliability of the auditor's report;  the lack of a clear mechanism for the formation of the price of audit services;  lack of methodical recommendations on computerization of audit  the negative influence of the verbal translation of foreign standards and concepts without taking into account the peculiarities of the economic development of our country;  the absence of standard forms for audit documents. Conclusions. One can conclude that improving the audit in Ukraine is a complex and multifaceted process that requires: improving the system of economic control in the country as a whole, increasing the qualification requirements for auditors, and improving the normative and methodological provision of audit activity. References 1. Law of Ukraine "On Audit Activity" No. 3125-XII dated 22.04.1998 (as amended from 07.08.2016). 2. L. Kinašchuk Problems of organizational and methodological provision of audit // Entrepreneurship, economy and law. - 2014 - № 2. - p. 87-89. 3. B. F. Usach Problems of Audit Development in Ukraine / B. Usach.-K.: Knowledge-Press, 2014.- p. 217-222. 4. M.K. Schulman Problems of practical implementation of the principle of independence in the activity of the auditor / M. K. Schulman // Auditor of Ukraine. - 2015 - № 14. - p. 23-25.  

Problems and prospects of development of audit activity in Ukraine

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Problems and prospects of development of audit activity in Ukraine

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