ACCOUNTING, AUDIT AND MANAGEMENT OF PAYABLES

Keywords: accounts payable, audit, international standards, auditor, accounting, analysis, commitment, management

Abstract

This article examines the theoretical and practical issues of determining the nature of accounts payable, its movement in economic activity; the main methods of auditing accounts payable in accordance with International Standards are considered; features of effective management of current liabilities of the enterprise; analysis of current accounts payable; accounts payable. The place of current liabilities in the activity of the enterprise is determined. Complete and reliable information ensures the adoption of management decisions on accounts payable at the enterprise. A special place in accounts payable is occupied by numerous settlements with suppliers and contractors. Сomponents of accounts payable are considered. Accounts payable are defined as «obligations to pay goods or services that have been received or delivered or that have been invoices were issued, or they were formally agreed with supplier». Accounts payable provide an opportunity the company temporarily use the borrowed funds but with on the other hand – reduces the solvency and liquidity.Effective management of accounts payable is a necessary condition for successful operation as it creates the conditions for rapid business development and increase the financial capabilities of the enterprise. These articles also consider the theoretical provisions and the development of methodological approaches and practical recommendations aimed at improving the audit of liabilities of enterprises. Analysis and research of scientific and practical literature, as well as standards governing the audit of financial statements allowed to justify the peculiarities of the methodology of auditing the liabilities of enterprises. Some components of the methodological support and methods of auditing the liabilities of the enterprise are highlighted. The stages of the audit are summarized and identifies audit procedures that are substantive of the audit plan for the entity’s liabilities. The achievements concerning the peculiarities of the formation of the methodology of audit of the company's liabilities at the present stage of development of auditing activities in Ukraine in particular approaches to determining the procedure for auditing long-term liabilities of the enterprise and short-term liabilities enterprises. The algorithm of the methodology of audit of current liabilities of the enterprise is presented separately.

References

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Article views: 223
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Published
2021-03-30
How to Cite
Bondarenko, O., Matveeva, O., & Kovalyova, V. (2021). ACCOUNTING, AUDIT AND MANAGEMENT OF PAYABLES. Economy and Society, (25). https://doi.org/10.32782/2524-0072/2021-25-1
Section
ACCOUNTING AND TAXATION