Revenue reflection in the auditor’s report on accounting statements

Abstract

Organizations whose securities are traded with the organizers of trading on the securities market, which include public joint-stock companies, are subject to mandatory audit. In the audit reports, according to the requirements of the international auditing standard 701 issued to such organizations, the key audit issues should be disclosed. Very often, auditors opt for such a key issue as “revenue recognition”. The article deals with situations when the choice of the subject of a key question on revenue seems insufficiently justified, and the wording of the key questions is as identical as if their text were standardized, while the adoption of standard 701 had the opposite goal — information transparency, specificity and reflection of the characteristics of the activities of each audited entity. The article uses examples to reveal various approaches to the disclosure of revenue information in key audit issues. During the research, such methods as analysis and synthesis, comparison, grouping, analogy, logical and systematic approaches were used. The research results obtained in this article can be applied in the practical work of modern organizations, in the educational process of higher educational institutions and in the development and reform of regulatory documents on accounting, reporting and auditing. The results presented in this paper will also be useful to a wide range of readers interested in modern problems of accounting, reporting and auditing at the domestic and international level.