Gontarenko Y.A., Usikov V.A.
Donetsk National University of
Economic and Trade named after Mikhail Tugan-Baranovsky
ACHIVEMENT AND DEVELOPMENT PROSPECTS OF AUDITING IN
THE UKRAINE TAKE INTO ACCOUNT OF INTERNATIONAL EXPERIENCE
The word "audit"
originates from the Latin word of "audio" to "hear", and
"auditor" - means "that, who listens". By roots this
handicraft goes back to ancient times. After the most widespread thought an
audit arose up in China in 700 B.C., where already by that time there was
position of the General public accountant, who was the guarantor of honesty of
civil servants who had an access to the state money.
In 1887 in the USA a law was
accepted about an obligatory audit. However only in the second half of the Õ²Õ
an auditor entered on complete rights to the business world as
professional.
The origin of profession of
internal auditor is historically related to foundation in 1941 national
organization of internal auditor of the USA - Institute of internal auditor
(²IA). After Second world war this institute grew into international and today
has the national institutes of that type in Israel, Australia, China, France,
India, Japan, Malaysia, New Zealand, South Africa, Great Britain and North
Ireland, protecting interests over more than 25 thousand members.
An audit is conducted by the
members of Institute of jurors of accountants (American Institute of Certified
Public Accountants, À²ÑÐÀ), which was created in 1887.
Institute also certifies qualification of applicant who has to pass the proper
examinations and gets the diploma of accountant-public accountant.
In the USA audit are falls
within three major directions: audits of financial statements, compliance
audits and operational audits.
The generally accepted
standards of audit (Generally Accepted Àuditing Standards, GAAS) are developed
by Bureau of public accountant standards (Auditing Standards Board ASB). Three
basic criteria for a public accountant
are set is education, experience of practical work and examination, that
makes a rule three "Å" (education, experience, åõàmination).
The audit of the financial
statements (which is our primary concern)ordinarily covers the balance sheet
and the related statements of income, retained earnings, and cash flows. The
goal is to determine whether these statements have been prepared in conformity
with generally accepted accounting principles. Financial statement audits are
normally performed by firms of certified public accountants; users of auditors’
reports include management, investors, bankers, creditors, financial analysts,
and government agencies.
The performance of compliance
audit is dependent upon the existence of verifiable data and of recognized
criteria or standards, such as established laws and regulations, or an
organization’s policies and procedures. A familiar example is the audit of an
income tax return by an auditor of the Internal Revenue Service (IRS). Such
audits seek to determine whether a tax return is in compliance with tax laws
and IRS regulations. The findings of the IRS auditors are transmitted to the
taxpayer by means of the IRS auditor’s report.
Another example of a compliance
audit is the periodic bank examination conducted on a surprise basis by bank
examiners employed by the Federal Deposit Insurance Corporation and the state
banking departments. These audits measure compliance with banking laws and
regulations and with traditional standards of sound banking practice.
Many state and local
governmental entities and nonprofit organizations that receive financial
assistance from the federal government must arrange for compliance audits under
the Single Audit Act of 1984 or OMB Circular A-133. Such audits are designed to
determine whether the financial assistance is spent in accordance with
applicable laws and regulations.
An operational audit is a study
of a specific unit of an organization for the purpose of measuring its
performance. The operations of the receiving department of a manufacturing
company, for example, may be evaluated in terms of its effectiveness, that is,
its success in meeting its stated goals and responsibilities. Performance is
also judged in terms of efficiency, that is, success in using to its best
advantage the resources available to the department. Because the criteria for
effectiveness and efficiency are not as clearly established as are generally
accepted accounting principles and many laws and regulations, an operational
audit tends to require more subjective judgment than do audits of financial
statements or compliance audits. For example, quantifiable criteria often must
be developed by the auditors to be used to measure the effectiveness or
efficiency of the department [2].
Oversea countries have long enough history of audit as
well as their own traditions. Our country only stands on the way of emerging
and development of public accountant activity, however now it is possible to
say about some achievements and problems.
Positive results of organization of audit in Ukraine:
- successive introduction (legalization) of
international public accountant standards;
- reorientation on organization of certification of
candidates in public accountants in accordance with foreign standards;
- introduction of the obligatory in-plant training of
practicing public accountants;
- the Chamber of Auditors of Ukraine (CAU) positioning
as unique organ in a country, which really works out actual problems of public
accountant practice [1].
But in turn it is needed to define the problems of
development of audit in Ukraine:
- duties none-legalized control of quality of public
accountant services, because not all public accountants are the members Union
of Auditors of Ukraine (UAU);
- UAU influences on a profession exceptionally through
the representatives at CAU, because not all theorists and practical workers are
the members UAU;
- audit pain is oriented to book-keeping and
especially on the tax aspect of activity of customer and does not represent
some confidence to the last on to the results of verification;
- in practice public accountants more protect interests of customer which pays for a
favour, and interests of proprietors (how it is acknowledged in oversea
practice);
- it is indeed engaged in the professional audit of to
10-15% subjects of audit. Small
auditing firms carry on public accountant activity from the agreement to the
agreement, subject to the condition very hard
competition;
- realization of principles of audit (honesty,
justice, independence, objectivity, etc.) very difficultly passes in modern
society.
1.
Áóòèíåöü Ô.Ô. Àóäèò [Òåêñò]: ï³äðó÷íèê
äëÿ ñòóäåíò³â ñïåö³àëüíîñò³ «Îáë³ê ³ àóäèò» âèùèõ
íàâ÷àëüíèõ çàêëàä³â. – 3-å âèä.; äîï. ² ïåðåðîá. – Æèòîìèð: ÏÏ «Ðóòà», 2006. –
512ñ.
2. Whittington. Principles of auditing [Text]. – Chicago:
Irwin, 1995. -734 p.