Problems of audit in Ukraine
Anna Rud
National University of Food
Technologies
Ukraine today is an
integral part of the world economic community and is gradually gaining
importance as a business and political partner. One tool that helps
develop economic relations, including international, are audited because it
provides confidence in tested financial information to its users at various
levels.
Auditing means examining a company's
systems of control and the accuracy or exactness of its records, looking for errors
or possible fraud: where the company may have deliberately given false
information.
The method of
system analysis and synthesis was used in the given work. In our country, some
of the audit firms (auditors) are not involved in the audit, and provide only
consulting and other services. While global trends indicate audit services by
audit firms reducing the volume of consulting services or the allocation of
these entities providing consulting services to individual structures.
In Ukraine there
are regions where the audit in total audit services covers about 30%. They are
Vinnitsa, Chernigiv, Nikolaev, Zaporozhzhya and Lugansk. In most cases, the
cause of performance - this diversification, the desire to keep the customer by
providing a variety of services and seeking alternative sources of income.
However, despite the fact that this sphere of activity is developing fast there
are many problems that need to be solved.
One problem is the
insufficient number of teaching materials on auditing, which results in lack of
knowledge and low competence of the auditor during the performance of the tasks.
In addition, these trends lead to lowering the competitiveness of Ukrainian
auditors versus foreign, which offer a much wider range of services. Another
bad thing is the lack of qualified accounting personnel, which reduces the
quality of audit services. This question has violated not only the users of
audit services and government agencies, but also the actual auditors who are
interested in the development of the market for audit services, enhancing the
prestige of the profession.
Another problem is
the problem of the modem auditor and confidence in him. The selection of the
auditor is a matter of trust. That is, before the client elects to provide
information to the auditor, it must be assured that the auditor will be able to
power and keep it in confidence. This is certainly due to the professionalism
of the auditor and legal protection of its activities
The actual problem
is a dumping. Usually auditors do not have stable prices. In order not to lose
a client, they are always ready to give a considerable price reduction. All the time,
since 1997, the Ukrainian auditors have been trying to extend clients through
the statutory audit. The part of auditors has been in a wait condition.
Instead of working up an audit market together with other auditors they either
wait for a statutory audit or for one-shot job provoking some appeals of
auditors to the government.
Another problem is
a quality control of audit services. Illusions of independence made some
auditors feel being out of any control. There are only 5 persons that work in
Control and Registration Commission at the Chamber of Auditors. Working on a
voluntary basis (gratis) they have to control 1700 audit firms (sole
practitioners) throughout Ukraine.
Along with the
above there is a serious problem of pricing of audit services, namely in terms
of methodology for its determination.
Thus, there are a
lot of problems concerning modem audit in Ukraine that negatively affect the
results of business operations and the economic situation of the state as a
whole. Ukrainian auditors know their problems and discuss them openly. The
solution of these problems is aimed at strengthening the position and authority
of the audit, improving auditing activities in Ukraine.
References:
1. Usach B.
Problems of audit in Ukraine / / Regional Economy - 2007 - № 4, p. 217 -222
2. Drach V.I. Next
step: Quality Assurance Audit Services / V. Drach /Auditor Ukraine. - 2009. - №
5/6. - P. 60-61.
Scientific supervisor: V. Mirochnyk