The Organizational-Methodical Bases for Auditing of the Enterprise’s Liabilities and Collaterals

Abstract

The article is aimed at substantiating the organizational-methodical bases of auditing of the enterprise’s liabilities and collaterals. The parameters of the above mentioned bases should comprehensively substantiate the ways in which the objective of an auditing be met, clearly identify audit procedures at each stage of an audit inspection, allow the formation of an acceptable and sufficiently evidence-based framework that will be reflected in the documentary data, the important elements of which will be summarized in the Auditor's Report and presented to the relevant authorities. It is argued that against the background of the unstable financial situation of Ukraine’s enterprises, the increased dependence of business entities on the external sources of financing, the issue of assessing the impact of the actual size of liabilities and collaterals on the continuity of functioning of business entity becomes relevant. A contextual consideration of the continuity assumption implies the mandatory use of the audit procedures, which necessitate the calculation and assessment of indicators, which characterize solvency and financial stability.

Keywords

• audit
• audit evidence
• collaterals
• liabilities
• methodology
• approval