Economic science / 7. Accounting and Auditing

Shmichkova Inna

lecturer of department of account, audit but information technologies

Vinnytsya co-operative institute, Ukraine

Process of external and internal audit of enterprises income taxation in sphere of commodity circulation

Process structure and organization of the process of internal and external audit Corporate Income Tax (CIT) sphere of commodity circulation requires understanding of the external and internal audit. Thus, external audit – is an element of market infrastructure that combines user information and its elements, establishes trust between them, promotes market transparency and expansion of business contacts. That external audit work in the outside environment for the enterprise. The main aim of internal audit - control the optimal operation of all internal structural divisions of the institution for their appropriate behavior in a specific context macro.

Despite the complementarity of internal and external audit CIT sphere of commodity circulation, examine their differences (table 1).

Compare models of the external and internal audit CIT sphere of commodity circulation allow to form three phases of work audit CIT [2, с. 23-24].

Stage 1 - a preliminary assessment of the existing system of taxation, which includes:

- A general analysis and review elements of the tax system;

- Identify the main factors affecting the tax rates; verification methods of calculating tax payments;

- The legal and tax expertise of the existing system of economic relations;

- Evaluation document and study the functions and powers of services responsible for the calculation and payment of taxes;

- Preliminary calculation of tax impacts; analysis of accounting policies;

- Assessment of audit risk and materiality level;

- A plan, audit program in fact, the choice of audit procedures.

Table 1

Differences between the external and internal audit CIT sphere of commodity circulation [3, p. 95]

Sign	External audit	Internal audit
Place on Market	Information middleman between the company and macro	A component of competitive enterprises
The purpose of the audit	Get confirmation that the financial and tax reporting enterprise is made in accordance with the applicable requirements	Convince managers of assets that they are used most effectively
Key features	Assessment of completeness, reliability of financial statements and tax and its compliance with the standards	Evaluation and improvement of internal control enterprise, minimize risks and improve production efficiency
Audited	Public reporting and accounting, tax reporting	Information flows within the enterprise, accounting, tax and management accounting
The volume of checks	Selectively	Analysis of all enterprises in the process of commodity circulation
The audit results	Standardized audit report	Acts, reports, recommendations, installed internal standards
Interested parties	Third parties - contractors, investors, regulators	Top management and business owners
Reason for	The contract between the customer and contractor audit	The agreed plan audits, order management
Performer	Independent audit firm or auditor entrepreneur	A separate unit consisting of enterprises
Extension of table 1
Payment for services	Under the business agreement concluded	Salaries by an employment contract
Legal relationship	Relations are governed by civil law based on partnership and equality of arms	Relations regulated by labor legislation. Available subordination, subordination top management
Independence	High	Average
Frequency	Depending on the needs of the company in its disclosure statements	Continuous process of collaboration with accounting service and other parts of the enterprise
Audit criteria	Tax laws and regulations governing accounting and reporting	Tax laws and regulations governing accounting and reporting, duties, overall strategy, etc.
The degree of awareness	Medium (need is a long study of the state tax business client)	High (due to a continuous process for tax audits, structural)

Stage 2 - test and validate the calculation and payment of enterprise income tax. At work makes checking the tax returns submitted by now established forms (tax returns, advance payments of income tax, etc.) as well as the legality of the use of tax incentives. The information contained in the tax returns are tested and analyzed by comparing them with the data of synthetic and analytical registers of tax accounting (accounting and adjustments for tax purposes) and reporting. The auditor has the right to analyze the primary documents of the enterprise, to obtain explanations from management on indicators and methodologies underlying the calculation of tax corporate income tax, and can observe the process of inventory and participate in the review of objects used by the taxpayer for income or is subject to taxation. Tax reporting enterprise may be recognized auditor more reliable if the period were conducted inspections by the tax authorities and composite acts indicate the absence of violations of tax laws, or if specified in the act of violation found and corrected the economic entity.

Stage 3 - the final - design and presentation of the results of the audit of income tax. In preparing the recommendations and suggestions auditor should follow the precautionary principle judgments and conclusions, reporting on the tax risks that may arise in the company in dealing with issues not covered in the current legislation. Any recommendations auditor and payments of income tax should be accompanied by a reference to the applicable regulations. The auditor is responsible for the accuracy and completeness of the data included in this report and the auditor's report (if it was drawn up by the contract) the distortions found him.

In general, the overall plan of internal and external audit Corporate Income Tax sphere of commodity circulation provides confirmation of the tax status of an audit determining the tax base for income tax audits reflect liabilities for income tax on accounts and audit disclosure obligations income tax in the financial statements.

Common for external and internal audit Corporate Income Tax sphere of commodity circulation is also a system of audit risk associated with the fact that in principle the auditor may not detect all errors and distortions in accounting Corporate Income Tax sphere of commodity circulation. After the conclusion is based on reasonable sampling, resulting in a high available, but not an absolute guarantee. So some abuse may go unnoticed. Therefore the likely risk that the auditor expresses an opinion on the state of inadequate Corporate Income Tax sphere of commodity circulation. This risk is called universal, or risk audit, which itself consists of three specific risks - inherent, non-compliance control and risk detection errors.

Stable financial position of any entity, including ?? including enterprise sphere of commodity circulation, is largely determined by the size of his tax liabilities and tax risks its materiality, hence increasing role of adequate procedural structure and organization of internal and external audit Corporate Income Tax sphere of commodity circulation. That audit Corporate Income Tax sphere of commodity circulation interested users assign the task of obtaining complete, accurate and objective information about the correct calculation of tax liability for corporate income tax sphere of commodity circulation in compliance with applicable tax laws of that, in its turn, often depends on the effectiveness of the operation and the level of socio-economic development entity in this part enterprises of commodity circulation.

Literature:

1. Bogomazov M. External and internal audit: correlation and distribution functions / M. Bogomazov // Herald National Bank. - 2001 - Jul. - P. 60-62.

2. Pechersk L.A. Organization and regulation rules Income tax audit Commerce organization: Author. Diss .... candidate. keeper. 08.00.12 Sciences / L.A. Pechersk; FHOBUVPO "Finance University at the Government of the Russian Federation." - M., 2012 - 27 p.

3. Potopalsky G. External and internal audit in Ukraine / G. Potopalsky // Ukrainian society. - 2005. - № 1 (6). - P. 92-99.