Abstract
The problematics and the goal of the research: The lack of theoretical foundations as well as the practical necessity for organizations to create a methodology for assessing the audit risk in carrying out the audit of tax reporting, determined the research objective: the development of theoretical and practical recommendations regarding the methodological provision for the assessment of audit risks as well as the methodology for establishing the relationship between the adequate tax reporting and the managerial decisions of owners on the basis of tax audit results. Methods used: a method based on the theory of fuzzy sets and the basics of the theory of information asymmetry. Results achieved: the development of a methodology for assessing an audit risk in carrying out the audit of tax reporting and establishment of relationship between the theory of information asymmetry and the effectiveness of the users' managerial decisions. The conclusions of the research: practical implementation of the methodology in organizations with different taxation systems has proved the relationship between the theory of information asymmetry and optimization of the users' managerial decisions. The practical benefits from the obtained results make it possible to increase the efficiency of organizations' activities and to confirm to the tax authorities the timeliness of the calculation and payment of taxes. These methods are the basis for the development of a theory for assessing audit risks in carrying out tax audits Keywords: methodological provision, qualitative assessment, audit risk, tax audit, tax reporting, asymmetric information.
Highlights
In modern conditions, with the transition to the international audit standards and the improvement of the quality of audit services, the popularity of tax audits has increased especially as owners of organizations and other stakeholders need to obtain information depending on tax indicators for making optimal managerial decisions that affect the effectiveness of their organizations
In this case, the asymmetry of information manifests itself when some users have sufficient information depending on the indicators of adequate tax reporting in making managerial decisions and some users do not possess this information, which can lead to inefficiency of these decisions
The minimization of audit risk during the tax audit is caused by the interest of users in reliable indicators of tax reporting of the audited entity in order to optimize managerial decisions
Summary
With the transition to the international audit standards and the improvement of the quality of audit services, the popularity of tax audits has increased especially as owners of organizations and other stakeholders need to obtain information depending on tax indicators for making optimal managerial decisions that affect the effectiveness of their organizations. The likelihood of an effective managerial decision made by stakeholders is significantly reduced if they do not have this information. In this case, the asymmetry of information manifests itself when some users have sufficient information depending on the indicators of adequate tax reporting in making managerial decisions and some users do not possess this information, which can lead to inefficiency of these decisions. The achieved level of audit risk in the audit of tax reporting affects the formation of the relevant audit opinion on the reliability of tax reporting. Before expressing an opinion about the reliability of tax reporting it is necessary to assess audit risks
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