Economic sciences
Kazhikova Zh.N. senior teacher.
Lucuk I. V. student
Kostanaysky state university of A.
Baytursynov,
Kazakhstan
Essence of procedures of analytical
consideration of financial statements.
Auditor activity is business
activity of auditors and audit organizations on carrying out audit of financial
statements. At implementation her auditors widely apply analytical procedures.
According to the Law of the Republic
of Kazakhstan of November 20, 1998 No. 304-I "About auditor activity"
audit organizations have the right to define independently methods of carrying
out audit and as to request and check necessary accounting and other financial
and economic documentation for implementation of terms of the contract on
carrying out audit.
What means the concept
"analytical procedures"? In professional literature it is treated
differently. So, authors of the book "Montto-meri's Audit" write:
"Analytical procedures represent a kind of verifications of financial
information by carrying out researches and comparison of these tendencies of
change. Analytical procedures provide the analysis of accounting records …,
search of documents on the suspicious sums and information sources which at
detection demand carrying out further researches".
The known expert in the USA in the
field of the theory and practice of audit J. Robertson treats it as follows:
"Analytical procedures are methods of an assessment of accounts of
financial reports by studying and ratio comparison between a financial and
non-financial performance".
Authors of one of the most popular
American textbooks devoted to audit, E.A. Ahrens and J. K. Lobbek give
definition which is given in Situation according to standards of the audit No.
56 (SAS 56) developed by the American institute of jury accountants (AICPA).
According to this definition "analytical procedures (analytical tests)
which carry out the auditor company, represent an assessment of financial
information on the basis of studying of probable ratios between financial and
non-financial data, including comparisons of the written-down sums with the
expected sums which were defined by the auditor". The same definition of
SAS 56 is given in the book "Audit Bases" by the known English expert
in the field of accounting and audit R. Adams. In the Instruction of the
specified Committee analytical check is defined as "procedures by means of
which the analysis and comparison of the interconnected numbers, trends, the
relations and other data serving as the proof of their objectivity is
systematically carried out. All this promotes development of opinion on
financial statements".
In the Analytical Procedures
standard of the International standards of audit in Kazakhstan it is specified
that "analytical procedures mean the analysis of considerable coefficients
and tendencies, including the subsequent research of changes and interrelations
which are inconsistent other relevant information or deviate the predicted
sums". Almost same definition is given and in the Auditor Proof standard.
"Analytical procedures, – it is spoken in it, – represent the analysis of
important coefficients and tendencies, including research of fluctuations
following from here and interrelations which are inconsistent other relevant information
or differ from the predicted sums" [2].
Prominent Russian scientists Yu.A.
Danilevsky, A.D. Sheremet and V.P. Suyts write that the essence of analytical
procedures consists in identification, the analysis and an assessment of ratios
between financial and economic indicators of activity of checked economic
subject. V. V. Skobara – the author of the solid monograph holds the same
opinion also. "Audit: methodology and organization". These
definitions, though truly capture the concept "analytical procedures"
essence, however they are given briefly and in insufficient degree open it.
More developed definition with which O. V. Kovalyova and Yu.P. Konstantinov
agree, we agree also, L.V. Sotnikova gave. "Analytical procedures", –
she writes, is an analysis and an assessment of information received by the
auditor, research of the major financial and economic performance of checked
economic subject for the purpose of identification of the facts of economic
activity unusual and incorrectly reflected in accounting, and also
identification of the reasons of such mistakes and distortions. In our opinion,
this definition completely opens an essence of analytical procedures.
We will consider analytical
procedures as part of audit inspections. According to the List of terms and the
definitions used in rules (standards) of auditor activity, auditor procedures
are a certain order and sequence of actions of the auditor for obtaining
necessary auditor proofs on a concrete site of audit. (Strictly speaking,
addition "for the receiving, necessary auditor proofs on a concrete site
of audit" is excessive. At a definition of objects it is necessary to
place emphasis on their essence and to abstract whenever possible from their
appointment. Besides, some auditor procedures, in particular analytical, are
necessary not only for obtaining necessary auditor proofs, but also for audit
planning etc.).
The essence of procedures of
analytical consideration consists in:
• the analysis of interrelations
between financial data or between financial and non-financial information;
• comparison of actual data with
data for the previous periods, received by means of the analysis of known or
expected interrelations between elements of data;
• information comparison for the
last period with the relevant information for earlier periods, with data of the
similar enterprises and on the average on branch;
• studying of the unexpected
deviations found in the course of carrying out the analysis and comparisons;
• receiving and justification of
explanations on these deviations;
• assessment of results of the
carried-out analysis, comparison and research from the point of view of the
evidence obtained as a basis for formation of opinion of the auditor by results
of financial statements.
Analytical procedures represent the
analysis and an assessment of information received by the auditor, research of
the major financial and economic indicators of a checked audited face for the
purpose of identification unusual and (or) incorrectly reflected in accounting
economic operations, the reasons of such mistakes and distortions.
The procedure of analytical
procedures is defined (standard) of auditor activity "Analytical
procedures". Main objective of application of analytical procedures is
identification of existence or absence unusual or incorrectly o of the facts
and results of economic activity, the of area of potential risk and demanding
special attention of the auditor [3].
The purpose of application of
analytical procedures at the general verification of financial reports consists
in assistance to the auditor in formation of his reasonable competent opinion.
Thus, a main objective is
preliminary diagnosing of distortions of accounting reports; for its efficiency
such diagnosing — as well as in other areas of human activity — has to be
simpler and cheap, than the exact and reliable methods focused on work with
accounting documentation [4].
Literature
1. The law of the Republic of
Kazakhstan of November 20, 1998 No. 304-I "About auditor activity"
(with changes and additions as of 19.02.2007), www.zakon.kz.
2. International standard of audit
520 "Analytical procedures", the Collection of the International
Standards of Audit, Confidence and Ethics Expression, 2006, in Russian.
3. Standard of auditor activity No. 20 "Analytical
procedures": are approved as the Resolution of September 23, 2002 No. 696
(in an edition of 19.11.2008)//Legal-reference Consultant system.
4. Rozhentsova I.A. Analytical
procedures at a stage of planning of audit. // Accounting, 2009 No. 6. – page
72 – 74