Features of the audit of financial reporting according to international standards of financial reporting

Homulyak Taras
Ph. D. in Economics, Associate Professor, Department of Accounting Technologies and Taxation, Ivan Franko National University of Lviv, Lviv, E-mail:taras.khomuliak@lnu.edu.ua, ORCID ID: https://orcid.org/0000-0002-6648-6782

Lyubenko Andriy
Doctor of Economics, Professor, Department of Accounting Technologies and Taxation, Ivan Franko National University of Lviv, Lviv, E-mail:andriy.lyubenko@lnu.edu.ua, ORCID ID: https://orcid.org/0000-0001-9064-4253

Cite this article:

Homulyak T., Lyubenko A. (2023) Features of the audit of financial reporting according to international standards of financial reporting. Ed.: V.V. Kovalenko (ed.-in-ch.) and others [Osoblyvosti audytu finansovoi zvitnosti, skladenoi za mizhnarodnymy standartamy finansovoi zvitnosti; za red.: V.V. Kovalenko (gol. red.)], Scientific Bulletin of the Odessa National Economic University (ISSN 2313-4569), Odessa National Economics University, Odessa, No. 7-8 (308-309), pp. 63-67.

Abstract

The purpose of the article is to determine the specifics of the audit of financial statements prepared according to the requirements of international financial reporting standards. In the course of the study, the organizational requirements of the national legislation for the subject of audit activity, which audits financial statements prepared in accordance to IFRS, were analyzed. Risks that should be taken into account by the economic entity during the audit of financial statements prepared accordance to IFRS are defined. According to the results of the study, it was concluded that the subjects of audit activity should ensure an internal quality control system for the performance of the audit. In addition to internal quality control, the subjects of audit activity undergo external quality control - by the Audit Public Oversight Body of Unkraine. It was concluded that in addition to demanding requirements for the subject of audit activity when auditing financial statements prepared in accordance with IFRS, when planning an audit, auditors should take into account the potential risks of such financial statements: the transition to international standards, the preparation of statements in accordance with the Conceptual Framework of international standards, taxonomy. During the audit of financial statements prepared in accordance to IFRS, the subject of audit activity identifies potential risks during the transition of the business entity to international standards and subsequent accounting. Confirmation of the first IFRS financial statements is important. If no errors were identified during the audit of the first reporting, then the financial reporting will be prepared with significant errors in the future. The question of taxonomy is also important in the audit of the specified reporting and may have risks in the presentation of financial information.

Keywords

audit, audit process, audit documentation, risks, financial reporting IFRS, ISA.

JEL classification: M410; DOI: 10.32680/2409-9260-2023-7-8-308-309-63-67

UD classification: 657.6

References

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