Audit of the Activities of Network Retailers in the Open Access Economy

Abstract

The article explores specifics of the activities of network retailers (retail trade chains). It is defined what retailers in general and network retailers in particular are. The main stages of modern auditing (during the 20th and early 21st centuries), until the formation of an open-access economy, are covered. The need to improve the quality of financial and non-financial information in accordance with the requirements of consumers is rationalized. It is summarized that the quality and transparency of information, the obtained positive results of an external (so-called independent) audit either directly or indirectly impact the market value of a company, as they increase the level of confidence in the reliability and objectivity of information. The related needs and the socio-economic potential of audit in the context of globalization and European integration are highlighted. The results of a comparative analysis of the main trends in the development of network retailers in Ukraine, obtained as a result of research and evaluation of both the global and the national economic and social professional institutions, are presented. The basic, significant criteria for assessing information for confidence (or distrust) of the outcomes of analysis and auditing are systematized. The contents and features of assessing the quality and transparency of information have been disclosed. The main approaches to auditing the financial statements of a network retailer are substantiated, taking into account the initiative and mandatory audit (according to the requirements of the main relevant legislation regarding audit of financial statements and the auditing activity in Ukraine). It is concluded that in an economy with open access to information in general and audit information in particular, its users (professional and non-professional users of information) put forward a list of conceptual requirements, among which are quality and transparency. It is proved that network retailers, which are among the most investment-attractive for the M&A deals, are interested in obtaining positive audit results, and therefore, accordingly, are either objects of mandatory audit, or initiators of voluntary audit. The announcement of positive audit results of financial statements influences the value of a network retailer.

Keywords

• audit
• network retailers
• open-access economy
• quality of information
• transparency