STUDY OF THE METHODOLOGY FOR AUDITING THE COMPANY’S EQUITY CAPITAL

Abstract

Effective management of equity can not happen without the creation of a quality system of control over changes in its size and structure at appropriate intervals. Carrying out an independent form of financial control – audit provides early detection of deviations in the system of accounting and reporting and their elimination by enterprises. A very important issue is the development of methods for auditing various areas of accounting for the movement of equity of the enterprise to implement quality control. Significant components of the effectiveness of the audit are the correct setting of audit objectives and determine its main sources of information. The method of auditing the equity of the enterprise is investigated in the work. Particular attention is paid to the study of tasks, objects and sources of information in this area of audit. A comparison of the definition of the tasks of the audit of equity by different scientists is made. The scheme of interrelation of objects of audit of own capital with sources of information concerning these objects is constructed. It is advisable to use various sources of information to conduct a quality audit of the constituent documents and equity. The paper compares the views of different authors on the use of specific sources of information in the audit of equity. As a result of the analysis of works of scientists the decision of uncoordinated questions and own vision of conceptual bases of a technique of audit of own capital is offered. We consider it appropriate to add to the Order on Accounting Policy a section “Equity”, which would contain the necessary information on the authorized, additional, reserve capital, retained earnings (uncovered losses) and other components available to the company. This will establish compliance with the provisions of the accounting policy and the constituent documents on equity and will facilitate the task of users of relevant information.