Methodical Approach to Determining the Quality of Accounting Data in Internal Audit

Abstract

Nowadays, information as a product of accounting should reflect more complex, global and rapidly changing business processes, ensuring the ability of management to respond to the challenges of economic life adequately. However, practice shows that the accounting system of enterprises often does not form the information adequate to modern conditions, which leads to its inconsistency with the needs of users and the loss of their confidence in the institute of accounting. Therefore, there is a need to implement effective control over the completeness and accuracy of accounting data. The purpose of the article is to reveal the methodical approach to determining the quality of accounting data by using the tools of the internal audit system, as well as to substantiate the relationship of thematic areas of internal audit with the relevant accounting registers. The algorithm of the internal audit of accounting data was given. The information sources were systematized for each group of objects of accounting (cash and cash documents, long-term and short-term loans, settlements, long-term and current liabilities, non-current assets and financial investments, expenses, income, equity and collateral). Auditing procedures were recommended, which should be selected and applied according to the characteristics of the audited objects and the technology of their accounting. Consistent adherence to the proposed methodical approach to the choice of analytical procedures of internal audit will ensure high-quality accounting data and financial statements. In addition, the level of their informativeness for making management decisions by external and internal users will increase.

Keywords

• accounting
• internal audit
• primary documents
• accounting registers
• financial statements
• reliability of information
• management decisions