ORGANIZATION AND METHODOLOGY OF AUDIT OF INVENTORIES AND WAYS OF ITS IMPROVEMENT

Abstract

This article discusses the features of the organization and methodology of the audit of inventories, taking into account the provisions of International Standards on Auditing (ISA). As inventories are an important part of the current assets of economic entities, the audit of inventories in the general audit of economic entities is of great importance. Conducting audits of operations with inventories allows you to confirm the completeness, accuracy, reliability and legitimacy of the display in accounting and reporting of such information and provide its legal assessment. The concept of inventories is given in this article. Inventories are assets that are tangible and owned by the enterprise and are intended for use in production and marketing processes, are also constantly consumed, sold and replaced by new such assets, and in addition are converted into funds during the year or one normal operating cycle. The audit of inventories will allow companies, taking into account the recommendations of the auditor to improve the system of accounting, internal control in general and, in particular, operations with inventories. In addition, the purpose is determined and the main tasks of the audit of inventories are considered. The main methods used to audit of inventories were also discussed. The main stages of the audit of inventories are presented and the peculiarities of its conduct are revealed. The method of the audit of inventories presented in the article can be used by the auditor when inspecting enterprises. In addition, the developed procedure can be expanded through additional audit procedures, or shortened due to their reduction. The method of the audit of inventories presented in the article will allow optimizing the work of auditors and streamlining their actions, etc. The main sources of audit evidence during the audit of inventories are also studied. In addition, the objects of the audit of inventories were identified. The impact of the audit of inventories on the economic activity of the enterprise is revealed. Ways to improve the audit of inventories are formulated. The methodological and information base of this work is regulations, works of scientists, periodicals and Internet resources.