International standards of audit: update of implementation practice in Ukraine

Abstract

Methods. The methodological basis of the study was the work of domestic and foreign scientists and international audit standards. The results were obtained through the application of methods of analysis and synthesis to generalize the directions of development and existing shortcomings in the activities of audit subjects, to develop the forms of the auditor's working documents; historical and logical when establishing audit quality as a strategic direction of its development; general and special when determining specific steps in response to overcoming current shortcomings and future challenges; system approach for summarizing statements considered by the auditor when identifying risks of material misstatement. Results. The article summarizes the scientific and methodological approaches to determining the quality of audit services as a strategic direction of audit development in Ukraine and the world. Current vectors of audit development and its weaknesses at the organizational and practical levels, in particular, the shortcomings of auditors' activities in assessing the risks of material distortion, are analyzed. The specific steps that should be implemented by the subjects of audit activity within the framework of harmonization with the EU requirements have been determined. Examples of audit procedures (execution of actions in response to assessed risks) in the format of the auditor's working documents are offered. The categories of assertions considered by the auditor when identifying risks of material misstatement are systematized. Novelty. The strategic, scientific-methodical, and organizational-practical foundations of improving the quality of audit activity in the conditions of the European integration of the Ukrainian economy and the implementation of European legislation are summarized. Practical value. The results of the research are of an applied nature since they allow the implementation of relevant strategic directions and scientific and methodological developments, eliminate organizational shortcomings of auditing activities, and form a modern approach to improving the quality of auditing firms in Ukraine, which ensures the confidence of users of financial information.