Place and role of financial statement audit in the enterprise activity

Abstract

This article conducts a comprehensive study and generalisation of the essence of financial statement audit. The main attention is paid to determining the place of financial statement audit in the context of enterprise management in the current economic environment. The study found that the financial statements of an enterprise are designed to meet the information needs of its users, and each element of the statements performs functions that provide information in a certain context. The article analyses the procedures for auditing financial statements that meet its purpose, depending on the elements of financial statements. The possible risks that enterprises may face as a result of not conducting an audit of financial statements are identified. In particular, it was found that failure to audit financial statements may affect internal and external decisions of enterprises, such as investment planning, lending and management decision-making. The study showed that neglecting the frequency of financial statement audits can also lead to losses and financial instability, which can expose companies to financial fraud, illegal actions and uncontrolled risks. According to the results obtained in the course of the study, a specific algorithm of actions has been developed that should be performed by the auditor when checking compliance with the conditions for preparing financial statements by enterprises. The proposed algorithm is aimed at improving the quality of financial statements, simplifying the process of making management decisions and promoting sustainable development of enterprises in Ukraine. The results of the study include an analysis of the methods of collecting audit evidence and their significance for the audit of financial statements. The study showed that in an unstable economic environment, the audit of financial statements is becoming increasingly important, as it addresses global issues related to the reliability of accounting and reporting, analysis of the causes of possible inconsistencies between these statements and the real state of the enterprise, as well as control over the efficiency of financial and economic activities.