Economic sciences / 7. Accounting and Auditing

Mariia Nezhyva, postgraduate

Kyiv national university of trade and economics, Ukraine

Effectiveness audit of formation financial reserves formed by trade enterprises

Financial reserves in trade are reserved financial resources formed by trade enterprises contingencies, special and specific needs, removal of temporary financial difficulties and ensure normal operating conditions due to the elimination of the negative effects of random and unexpected events or circumstances arisen.

Formation of financial reserves formed by trade enterprises play important role in formation the financial results, as well as creating an opportunity: to reduce costs through their distribution over time, generate reliable information, prevent the formation of risks and reduce their negative impact.

The relevance of their formation is ensuring sustainable development capabilities to withstand external factors, and timely compensation and neutralize possible negative effects on trade enterprises. If the financial reserves are formed on trade enterprises, it is important for the auditor is to establish the correctness of size and efficiency of development and use.

Because of the influence of factors on the trade are generated financial reserves. Therefore, for a more detailed understanding of the issues of financial reserves ways of forming and developing mechanisms to use trade enterprises should be classified according to their main characteristics, including sources of their formation: funds to cover the costs associated with transportation, emission, financial incentives for employees, dividends, revaluation and sale of fixed assets, positive and negative exchange differences, purchase and sale considering seasonality, allowance for doubtful accounts, warranty, reserve capital. This classification plays a key role, since it is based on study the formation and use of financial reserves in trade enterprises, that is an economic mechanism of their formation and use to audit.

An audit is a very high form of organization and implementation of economic ideas. The need for an audit is caused by user needs information about the real financial position of an entity.

Effectiveness audit of formation financial reserves formed by trade enterprises is a task with the assurance that an independent verification and analytical assessment of the extent to which the trade enterprises work effectively and efficiently, with due regard to conserve financial allowance trade enterprises.

The purpose of effectiveness audit of formation financial reserves formed by trade enterprises is to assess the achievement of its performance, identify problems in the performance of tasks and develop proposals for improving the efficiency of formation and use of financial reserves.

Elements of effectiveness audit of formation financial reserves formed by trade enterprises:

§ efficiency audit using trade enterprise financial reserves spent on achieving goals;

§ performance audit using trade enterprise financial reserves during their activities by bringing information technology;

§ effectiveness audit activities of trade enterprise in terms of perform tasks with expediency formation and use of financial reserves, the achievement of actual results and compare them with the plans.

Effectiveness audit of formation financial reserves formed by trade enterprises has certain advantages over the financial audit. Effectiveness audit of formation financial reserves is concentrated on the performance of trade enterprises, the establishment of specific response to what could be achieved and provide comments regarding the quality of the existing financial reserves. However, the effectiveness audit of formation financial reserves formed by trade enterprises has its drawbacks, among them are the only internal processing of evidence and facts, but must also take into account external evidence, more information processing and increase its size.

Effectiveness audit of formation financial reserves formed by trade enterprises is retrospective and reconstructive in nature, is focused on determining the accuracy of formation financial reserves and assessing the impact of their formation to financial results. Initiative and thematic audits of operations for the formation and use of financial reserves is aimed at policy adjustments redundancy, since the auditor provides assurance on the correctness of the formation financial reserves, adjustments to accounting policies. Providing auditing services for the problematic aspects of operations financial reserves associated with analysis policy reserving by trade enterprise, determine its effectiveness and efficiency and may require a prospective analysis of predictive calculations and have strategic and preventive nature.

Effectiveness audit of formation financial reserves formed by trade enterprises indicators include:

· cost indicator, which describes the scope and structure of own and borrowed resources to carry out activities of trade enterprise;

· benefits indicator that characterizes analysis and ranking goals on the formation and use financial reserves of trade enterprises.

Effectiveness audit of formation financial reserves made by:

Ø analysis of current legislation, materials, books and publications about effectiveness audit of formation financial reserves by trade enterprises;

Ø analysis the results of previous audits to help assess the current problems in the trading company;

Ø analyze performance reports, including the assessment of financial stability, liquidity, solvency, business activities of trade enterprises, as well as absolute and relative dynamics of financial reserves;

Ø observation, the actual control, survey, verification, calculation, documentary and analytical procedures.

Thus, effectiveness audit of formation financial reserves formed by trade enterprises is a task with the assurance that an independent verification and analytical assessment of the extent to which trading company is working effectively and efficiently, with due regard to conserve financial reserves of trade enterprises.